Connect with us

Hi, what are you looking for?


Agricultural trade deficit widens 40.3%


THE DEFICIT in agricultural goods trade widened 40.3% year on year to $2.55 billion in the first quarter, according to preliminary data from the Philippine Statistics Authority.

The fourth quarter 2021 deficit was $2.36 billion.

Agricultural imports grew 33.4% year on year to $4.50 billion. Exports tallied $1.95 billion, up 25.3%.

Total trade in agricultural goods — the sum of exports and imports — grew 30.8% from a year earlier to $6.45 billion.

Cereals were the top first-quarter import at $3.93 billion, or 87.4% of the total.

Agricultural imports from the Association of Southeast Asian Nations (ASEAN) amounted to $1.52 billion or 17.5% of all goods imported. For the first quarter, Indonesia remained the top source of agricultural products with $401.91 million.

The top commodities imported from ASEAN were animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes ($410.15 million), miscellaneous edible preparations ($362.64 million) and cereals ($329.07 million).

Meanwhile, the value of agricultural exports tallied $1.949 billion, accounting for 10% of all exports.

The top export was animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes amounting to $623.32 million, or 32% of all exports.

Agricultural exports to ASEAN amounted to $261.69 million, or 7.5% of all exports to the region. Malaysia was the top destination, accounting for $111.84 million, or 42.7%.

The top commodities exported to ASEAN were animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes ($91 million); tobacco and manufactured tobacco substitutes ($85.14 million), and dairy produce, birds’ eggs, natural honey, and edible products of animal origin, not elsewhere classified ($13.61 million).

The Netherlands was the top European export destination with $328.86 million or 62.3% of all European shipments, while Spain was the top source of such imports with $97.48 million, or 23.9% of the total.

In an e-mail interview, University of Asia and the Pacific Senior Economist Cid L. Terosa attributed the agricultural deficit to “rising agricultural commodity prices worldwide due to supply issues spawned by the Russia-Ukraine war, constricted global markets for agricultural exports, and the depreciating peso,” he said.

“The widening gap between agricultural exports and imports is indicative of the country’s struggle to sell agricultural products abroad and to buy agricultural commodities from other countries given the outbreak of the geopolitical tensions in Europe,” Mr. Terosa added.

Mr. Terosa expects the agricultural trade deficit to continue to expand.

“The next quarter won’t be different from the first quarter of this year. The agricultural trade deficit will continue to widen since supply issues and supply chain disruptions will cause global prices of agricultural commodities to continue to rise, making agricultural imports more expensive,” Mr. Terosa said.

On Wednesday, the peso closed at P54.47, its weakest level since 2005.

Pampanga State Agricultural University Retired Professor Roy S. Kempis said in a text message: “With the rate of import growth outpacing the rate of exports growth, the trade deficit in the second quarter will be even higher.”

However, the disruption in agricultural trade may see more of an effort to produce goods domestically, he said.

“We may see a slowing down of agricultural trade as the country tries to produce more of its cereals especially rice and corn for the livestock, poultry and aquaculture… it is possible that countries that supply these two commodities may suspend or reduce their exports to the Philippines to protect themselves from looming food shortages,” he added.

In April, Indonesia blocked palm oil exports. This was followed by Indian restrictions on sugar and wheat exports. — Mariedel Irish U. Catilogo

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...


Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...


Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...


REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...


Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.