The country’s fruit imports this year are expected to rise by 5 percent year-on-year to nearly $730 million as more Filipinos are consuming fresh fruits to stay healthy during the pandemic, an international report said.
A Global Agricultural Information Network (Gain) report projected that the Philippines’s fruit imports in 2021 would increase by $34.75 million from $695 million last year. The country’s fruit imports last year grew by 36 percent year-on-year.
“In general, consumers believe eating a variety of fruits casts a wider nutrient net. A typical fruit basket will include both local and imported fruits. Apples, citrus, and grapes are a staple for ‘get well-soon’ gifts for loved ones,” the report read.
“Since the start of Covid-19, Philippine consumers have incorporated more fresh fruit into their diet.”
The report was prepared by the United States Department of Agriculture Foreign Agricultural Service in Manila (USDA-FAS Manila).
The Gain report noted that the shift to remote work set-up during the pandemic allowed Filipinos to prepare food at home, enabling the inclusion of more fruits in their daily meals.
“BusinessMirror reported on the 2020 Diet Decisions Survey by OnePoll and Herbalife Nutrition; the survey revealed 53 percent of respondents have started eating more fruits and vegetables,” the USDA-FAS Manila said.
“Demand for imported fruits peak during the holiday season [October through December] and during the dry season [March through May] as consumers eat more fruit to refresh themselves and stay hydrated.”
The USDA-FAS Manila noted that imported fresh fruits, such as apples and oranges, are often cheaper than locally-produced fruits. The international agency added that quick commerce has become a key factor in the growing sales of fresh fruits during the pandemic.
“Quick commerce brings small quantities of goods to customers almost instantly, and a fast-growing number of fresh fruit online traders along with delivery service players, such as Grab and Lalamove, have been quick to fill this need.”
The USDA-FAS Manila said the top fruit exporters to the Philippines last year were China, Australia, and the United States.
“Exports from mainland China and Australia increased 80 and 17 percent respectively, while US exports dropped 35 percent in 2020.”
“The decline in US exports was across the top three fresh fruits, namely grapes, apples, and oranges amidst ocean freight challenges, while exports of cherries that are air-flown grew 33 percent.”
The Gain report noted that importers are buying fruits from nearby countries due to shorter transit time amid worsening global logistics and shipping problems.
“While 2021 global exports to the Philippines from January through September climbed eight percent year-on-year [with China and Australia up 9.4 and 8.9 percent respectively and the United States down 40 percent], importers are reporting that the shipping problem will worsen leading to the holiday season. Importers are seeking to minimize risk and prefer to purchase within the region, given the shorter transit time.”
The report noted that US fruit exports to the Philippines last year declined by 35 percent year-on-year to $32.5 million due to “freight challenges which continue to persist.”
“Traders are optimistic that once the pressure on the global supply chain eases, US fresh fruit exports to the Philippines will bounce back to $50 million in annual sales.”
The top fresh fruit exports to the Philippines include apples, grapes, mandarins, lemons, cherries, kiwi fruit, and melons, according to the Gain report. The top 10 fruit exporters to the Philippines with an annual export value of above $2.5 million are China, US, Pakistan, Hong Kong, Argentina, New Zealand, and Chile, it added.
The BusinessMirror earlier reported that the importation of all unprocessed fruits and vegetables are now exempted from the 12-percent value-added tax (VAT), following a recent amendment made by the Bureau of Internal Revenue (BIR), expanding the coverage of the exemption (Related story: https://businessmirror.com.ph/2021/11/22/vat-exemption-now-covers-imported-fruits-vegetables/).