Supply woes and declining world prices could cut earnings from Philippine agricultural exports this year by 20 percent to $4.8 billion, from last year’s $6 billion, according to the Philippine Food Processors and Exporters Organization Inc. (Philfoodex).
Philfoodex President Robero C. Amores said pest infestation, plant diseases and climate change have resulted in lower production of farm products and a reduction in the output of processed food.
For one, the harvest of mango which usually starts in February has been delayed due to weather problems, which Amores said could have an “impact on the output of fresh mangoes and processed products.”
But one of the laggards in terms of export revenue this year would be coconut oil as the glut in vegetable oil caused prices of the country’s top farm export to record a steep cut, Amores said.
“I think we will be recording a deficit in agricultural trade balance. Definitely, we will see the widening of the gap between agricultural exports and imports,” he said in an interview with reporters recently.
“So, total agricultural exports may be lower by 20 percent because of the impact of coconut oil prices,” Amores added.
Philippine exports of coconut products last year declined by
26.1 percent to $1.515 billion from $2.05 billion, largely due to the collapse
in the global prices of vegetable oil. This pulled down the country’s export
receipts from
coconut oil.
Earnings from coconut oil shipments alone fell to $1.1 billion, from the $1.614 billion recorded in 2017, Philippine Statistics Authority (PSA) data showed.
Total agricultural exports last year declined by 8 percent to $6.033 billion, from $6.578 billion in 2017, PSA data also showed.
“Bananas and pineapples are also in short supply because of the impact of climate change and diseases. Demand for these products are growing but we don’t have enough supply,” Amores said.
He said the Philippines should benefit from the trade tensions between the United States and China, but the country is unable to take advantage of this due to lack of supply.
The Philippines ended 2018 with an agricultural trade deficit of $7.312 billion, 41 percent higher than the $5.183 billion recorded deficit in 2017, as the country imported more farm products last year, PSA data showed.
Total agricultural imports last year rose by 13.46 percent to $13.345 billion, from $11.761 billion as the country was forced to purchase more goods abroad to temper inflation.
The country’s total agricultural trade last year reached $19.67 billion, 7.25 percent higher than the $18.34 billion recorded amount in 2017, PSA data showed.
In the fourth quarter of 2018 alone, the PSA reported that export receipts reached $5.23 billion, 15.9 percent higher than the $4.51 billion recorded in the same period of 2017.
PSA data indicated that the Philippines enjoyed a trade surplus of $224.10 million with Japan in the fourth quarter of 2018. But the country incurred trade deficits with Australia ($84.81 million), US ($473.83 million), Asean ($987.37 million) and member-countries of the European Union ($96.20 million).
Image credits: nonie Reyes