Food, beverage imports from US seen hitting $1-B mark
Food and beverage (F&B) products coming in from the United States are seen to surpass the $1-billion mark this year—the highest since 2014—as effects of natural calamities continue to increase the country’s reliance on imports.
In a report by the US’ Department of Agriculture (USDA), it stated that the “natural calamities and changing weather patterns” in the country “exacerbate general inefficiencies in Philippine agricultural production,” thereby increasing the country’s import dependence.
It forecasts a 4-percent growth in the country’s US F&B products from $964 million last year. The last time the country surpassed the $1-billion mark was in 2014.
Other factors that are seen to increase the country’s F&B imports include Filipinos’ growing consumer demand for “healthy, gourmet and convenient” products and the “expansion of modern supermarket chains and fast-food franchises in key provincial cities.”
Products that may ramp up the country’s agricultural imports include beef, pork, cheese and cheese products, frozen and powdered eggs, fresh vegetables, apples, infant food preparations, potatoes, wines and pet food.
The US continues to be the Philippines’ biggest supplier of agricultural products and the Philippines is its 10th largest global market. Despite the country’s high inflation rate and weak peso, USDA said strong consumer spending kept sales of US agricultural exports to the country afloat.
To tame price spikes of food items in the market, President Duterte has issued an order in September removing non-tariff barriers for agricultural products.
In effect, the Department of Agriculture has allowed the additional importation of rice, corn, onion, meat and round scad to address inflation.
Annually, the Philippines is visited by an average of 20 typhoons. For 2018, the country was already hit by 18 typhoons, while a new typhoon has just entered the country this week.
The agriculture sector remains vulnerable to natural calamities. In an interview with Agriculture Secretary Emmanuel Piñol, he said that with the entry of typhoon “Rosita” just after the country was battered by typhoon “Ompong,” farmers were in for a “double whammy” disaster.
Next week, the Philippine Statistics Authority is expected to release the sector’s performance for the third quarter. The secretary said they were expecting a very minimal growth on the back of severe damage to crops, fisheries and agricultural infrastructure.
