The United States Department of Agriculture’s (USDA) forecast of $3.8-billion exports of food and beverage to the Philippines this year is achievable especially that prices of goods have increased while demand has not diminished, according to Daniel Whitley, administrator of the agency’s ’s Foreign Agricultural Service (FAS),
The USDA in a report dated July 6 year made this forecast, representing an 8 percent increase from last year’s $3.55 billion.
“I’m always optimistic but I’m especially optimistic this year for a couple of reasons. One, when we talk about value, prices have been somewhat high while demand has not really fallen off so we do think that those projections will hold true,” Whitley said.
“I do think that the inflationary pressures on food and agri prices will allow the Philippines to open up the markets even further. We think our products are safe and we think without unfair trade barriers, we can increase our exports. The $3.8 billion projections sound about right to me and from all the data I’ve reviewed, I think we’ll hit that target,” he added.
Based on USDA report, the US expects to sell the Philippines additional milk, cheese, meat, poultry, baked products, fruits, vegetables, wine and pet food products as the country also ranked as the seventh-largest US agricultural export market last year.
The same report also said other major factors in the upbeat projections for US agricultural exports to the Philippines include the continued household spending and purchasing by manufacturers that will propel the local food processing sector as well as the easing of mobility restrictions and enhanced online services that will boost retail sales particularly from convenience stores, grocery stores, hypermarkets and warehouse clubs.
The report also sees the local food service sector to further recover this year driven by the reopening of the economy and the resumption of face-to-face school classes and on-site work.
The USDA also said the recent national elections boosted the economy and improved consumer confidence and household spending.
The report even cited optimism over the expansion of food and beverage retailers in residential areas and provinces; the preference of upper-class and the growing middle-class consumers for imported food brands offering more product value and healthier options; and the boost in sales of food products via e-commerce.
Despite this, the USDA acknowledges majority of the population is still engaged in thriftier spending, resorting to low-cost products especially that prices are expected to continue to rise due to elevated input costs and higher inflation.
Other challenges cited by the USDA include global shipping issues such as congested ports and limited availability of containers; the Russia-Ukraine war disrupting the supply of wheat and oil products affecting grocery items such as bread, noodles, pasta, biscuits, pastries, and snack foods; as well as rising fuel prices, among others.
