2018 Highlights of the Foreign Trade Statistics for Agricultural Commodities in the Philippines: Final Results

Reference Number: 

2019-316

Release Date: 

Thursday, October 31, 2019

 

Total agricultural trade reaches USD20.22 billion

The total agricultural trade value of the Philippines increased to USD20.22 billion or by 10.2 percent in 2018, from USD18.34 billion in 2017. The total export revenue for all commodities increased to USD69.31 billion in 2018 or by 0.9 percent, from USD68.71 billion a year ago. Agricultural exports showed an opposite trend as it contracted to USD6.12 billion or by 7.0 percent, from USD6.58 billion in 2017 to USD6.12 billion in 2018. Moreover, the share of agricultural exports to total exports decreased by 0.8 percentage points in 2018.

Figure 1

Total import receipts, which amounted to USD119.00 billion in 2018, rose by 16.8 percent from its value of USD101.90 billion in 2017. Agricultural imports, likewise, posted a 19.9 percent increment in expenditures, from USD11.76 billion in 2017 to USD14.10 billion in 2018. The share of agricultural imports to total imports went up by 0.3 percentage points in 2018 (Table 1).

Figure 2

Agricultural trade with Japan posts surplus of USD750.53 million

Trade Surplus is the amount by which the country’s total exports exceeds its total imports. On the other hand, trade deficit occurs when a country’s total imports exceeds its total exports.

Among the major trading partners, Japan posted a trade surplus of USD750.53 million in 2018. All other major trading partners, on the other hand,  showed trade deficits as follows: Australia, USD691.75 million;  USA, USD1,807.54 million; ASEAN member countries, USD4,071.12 million and EU member countries, USD300.14 million. (Table 2)

Figure 3

Edible fruits and nuts; peel of citrus fruit or melons commodity group accounts for the largest share to total agricultural export

The total value of agricultural exports for the top 10 commodity groups amounted to USD5.78 billion in 2018 or 94.4 percent of the total agricultural export revenue in 2018. Total export value of these commodity groups declined by 5.4 percent,  from USD6.11 billion in 2017.

Among the commodity groups, edible fruits and nuts; peel of citrus fruits or melons with a value of USD1,981.59 million had the largest share of 32.4 percent to the total agricultural exports in 2018.  Export of this commodity rose by 12.8 percent in 2018, from a    USD1,757.11 million value in 2017.  Japan was the major buyer of this commodity group valued at USD569.30 million or a share of 28.7 percent.

Animal or vegetable oils and their cleavage products; prepared edible fats; animal or vegetable waxes ranked second with 19.3 percent share to total agricultural exports or a value of USD1,178.56 million in 2018.  Export for this commodity dropped by 29.3 percent from its USD1,665.77 million export value in 2017.  The United States of America (USA), with a share of 43.4 percent or USD511.27 million, was the major destination of this commodity group.

Preparation of vegetables, fruits, nuts or other parts of plants, which placed third among the top 10 commodities in terms of agricultural exports, posted a value of USD479.48 million or a 7.8 percent share to the total agricultural exports in 2018. It slid by 23.9 percent from an export  value of USD630.12 million in 2017. The bulk of this commodity group  was bought by USA, amounting to USD192.82 million or 40.2 percent of the total agricultural export. 

Furthermore, tobacco and manufactured tobacco substitutes posted an increase of 48.4 percent, from USD297.73 million in 2017.  Other commodity groups which recorded growths in 2018 were preparation of cereals, flour, starch or milk; pastry cooks’ products, 12.1 percent; lac; gums, resins and other vegetable saps and extracts, 15.8 percent; miscellaneous edible preparations, 7.0 percent; and beverages, spirits and vinegar, 2.5 percent. 

On the other hand, the following commodity groups posted decrements in 2018:  fish and crustaceans, molluscs and other aquatic invertebrates,14.1 percent and  preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, 9.9 percent (Tables 3 and 4).

Figure 4

Cereals commodity group leads in terms of value of agricultural imports

Among the top 10 major commodity groups, cereals was the highest in terms of value of imports, amounting to USD2,948.92 million or a share of 20.9 percent in 2018. Import of this agricultural commodity group grew by 63.7 percent compared with the USD1,801.11 million import value in 2017.  The bulk of this commodity was bought from USA with a value of USD754.11 million or 25.6 percent of the total imports of cereals.

Residues and waste from the food industries; prepared animal fodder placed second with a share of 12.9 percent to the total agricultural imports in 2018. This agricultural commodity posted an import value of USD1,817.13 million or an increase of 26.9 percent, from its import value of USD1,432.45 million in 2017.  USA was the major source of this commodity with import value of USD1,108.49 million, which accounted for 61.0 percent of the total agricultural imports.

Miscellaneous edible preparation ranked third with a share of 10.8 percent to the total agricultural imports in 2018 or a value of USD1,523.95 million. This commodity group posted an increase of 6.1 percent from the USD1,437.00 million value recorded in 2017. The bulk of this commodity group was supplied by Indonesia with a  value of USD456.22 million or a share of 29.9  percent.

Furthermore, the other six commodity groups that showed increments in 2018 were sugars and sugar confectionery, 23.2 percent; meat and edible offal, 16.4 percent; beverages, spirits and vinegar, 11.5 percent; fish and crustaceans; molluscs and other aquatic invertebrates, 11.0 percent; dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included, 7.0 percent; and preparation of cereals, flour, starch or milk, pastrycooks’ products, 5.3 percent.

On the other hand, animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes posted a decrease of  5.1 percent.

Figure 5

Malaysia leads as trading partner in exports while Indonesia in imports among ASEAN member countries

The country’s agricultural exports to ASEAN member countries in 2018 amounted to USD646.04 million, comprising a share of 5.8 percent to the total exports.  Agricultural imports from ASEAN member countries, on the other hand, was valued at USD4,717.15 million, accounting for a share of 15.7 percent to the total imports.

Among the ASEAN member countries, Malaysia was the top buyer of agricultural exports, representing a share of 30.1 percent or a value of USD194.67 million. Similarly, inbound shipment of agricultural products from Indonesia amounted to USD1,302.74 million or 27.6 percent of the total agricultural imports from ASEAN member countries.  (Table 7 and 8).

 

Figure 6

         

The top five major agricultural commodities exported to the ASEAN member countries in 2018 were tobacco and manufactured tobacco substitutes, USD270.43 million; preparation of cereals, flour, starch or milk; pastrycooks’ products, USD75.19 million; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, USD47.12 million; miscellaneous edible preparations, USD45.60 million; and fish and crustaceans, molluscs and other aquatic invertebrates, USD26.39  million.  (Table 7)

On the other hand, the top five major imports of agricultural goods from the ASEAN member countries were miscellaneous edible preparations, USD1,055.68 million; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, USD1,007.11 million; cereals, USD951.62 million; sugars and sugar confectionery, USD324.85 million and preparation of cereals, flour, starch or milk; and pastrycooks’ products, USD320.99 million (Table 8).

 

Netherlands is the country’s top trading partner among EU member countries

Exports of agricultural goods to EU member countries in 2018 reached USD1,173.27 million or a share of 13.2 percent to the country’s total exports. On the other hand, agricultural imports from EU member countries amounted to USD1,473.41 million which comprised 16.1 percent of the total imports.  Netherlands was the country’s top buyer of agricultural commodities among the EU member countries with exports amounting to USD471.64 million or a share of 40.2 percent. Likewise, imports from Netherlands reached USD271.42 million, comprising 18.4 percent of total imports of agricultural commodities to EU member countries.

Figure 7

The major agricultural commodities exported to EU member countries in 2018 were:

Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, USD459.97 million;
Preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, USD245.07 million;
Edible fruit and nuts; peel of citrus fruits or melons, USD119.49 million;;
Preparation of vegetables, fruit, nuts or other parts of plants, USD107.98 million;  and
Fish and crustaceans, molluscs and other aquatic invertebrates, USD83.80 million.

The top agricultural commodities imported from EU-member countries were:

Meat and edible meat offal, USD492.69 million;
Residues and waste from the food industries; prepared animal fodder, USD214.44 million;
Dairy products; bird’s eggs; natural honey; edible products of animal origin, not elsewhere specified or included, USD200.73 million; 
Beverages, spirits and vinegar, USD115.13 million;  and
•  Miscelanneous edible preparations, USD70.70 million.

 

      

 

ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

 

         

 

 


 

EXPLANATORY NOTES

 

This Special Release (SR) features the Agricultural Foreign Trade Statistics of the Philippines for the year 2018.  The total agricultural exports and imports stated in this report are generated from the monthly Merchandise Export and Import of the country from January to December 2018.

The commodities are classified in accordance with the ten-digit 2015 Philippine Standard Commodity Classification (PSCC). The agricultural commodity groups are from chapters 1 to 24 of the 2015 PSCC.  Chapters 1 to 24 relates to commodity classifications for live animals, meat and edible meat offal, fish and crustaceans, molluscs and other aquatic invertebrates, dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere classified, products of animal origin, not elsewhere specified or included, vegetables products, edible vegetables and certain roots and tubers, edible fruit and nuts; peel of citrus fruit melons, coffee, tea, mate and spices, cereals, malt, starches, inulin, wheat gluten, oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit, industrial or medicinal plants, straw and fodder, lac, gums, resins, gum-resins and oleoresins, vegetable plaiting materials, animal or vegetable fats and oils, waxes, prepared foodstuffs, beverages, spirits, vinegar and tobacco (manufactured and unmanufactured).

The valuation used for foreign trade of agricultural commodities adopts the WTO agreement on customs valuation and this applies to both imports and exports. Exports of agricultural commodities utilized the free on board (FOB) value, also known as the cost of goods. It is the value of the goods free on board the carrier at the frontier of the exporting country. It includes inland freight, export duty and other expenses. Ocean freight, insurance and consular fees, however, are excluded. On the other hand, Imports of agricultural commodities use the cost of insurance and freight (CIF) values which include the transaction value of the goods, the value of services performed to deliver goods to the border of the exporting country and the value of services performed to deliver the goods from the border of the exporting country to the border of the importing country.1/

 

 

1/  Source: IMTS Concepts and Definitions 2010, page 40 chapter 4. The value of transaction is
     expressed in US dollar.

 

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