The United States Department of Agriculture (USDA) sees food sales in the Philippines to increase this year, fueled by the rebound of the hospitality and food service industry.
A USDA report dated July 3, 2024 said this is an opportunity for the US to supply agricultural and related exports to the Philippines.
Total American agricultural and related exports to the Philippines reached $3.6 billion last year.
The report said food and beverage manufacturing will see a 5-percent growth in sales this year despite increasing input costs, especially raw materials due to still-elevated food inflation rates.
The USDA said increased production costs will lead to more manufacturers increasing product prices.
Raw material products from the US are soybean meal and soy products; wheat products, powdered milk, buttermilk, pork offal, liver, guts, bladders and stomach; chipping potatoes, starches, tomato sauce, food preparations, dried grapes, unsweetened peaches, dextrins, peptones, proteins, tree nuts and pulses.
The USDA said food retail can grow by 7 percent this year as consumers travel more often and spend less time cooking at home.
Other factors that will contribute to higher sales are the continued expansion of retail chain stores in key cities and provincial areas, continued food inflation rates and agricultural damage caused by El Niño to prices of rice, corn and vegetables.
The report said with the sustained growth of supermarkets, hypermarkets, convenience stores and warehouse clubs in the country, the US can provide more
ultra-high temperature and chocolate milk, butter, cheddar, mozzarella, cream cheese, ice cream, soy milk, chicken leg quarters and breasts, tomato sauces, sausages, hotdogs, luncheon meat, meatloaf, pasta, seasoning, tomato ketchup, raisins, nuts, peas, beans, kidney beans, garlic, onions, potatoes, mushroom, chocolate, candies, cereals, bakery goods, frozen fruits and vegetables, beverages and pet food.
The USDA report said food service sales will surpass pre-pandemic levels, growing 10 percent this year.
It added this is because popular restaurants and hotels have reached full capacity while demand for catering on meetings, conferences and exhibitions has been increasing.
The USDA said limited-service restaurants, mostly serving fried chicken and pizza, have a high proportion of food service outlets which would open opportunities for the export of American chicken leg quarters, mozzarella and other imported ingredients.
The report said because of increased mobility, street kiosks are also growing that needs raw materials such as potato fries, processed meat, fruit beverages as well as roasted coffee and bean extracts.
It added more consumers also frequent bars and fine dining restaurants, driving up consumption of distilled spirits and wines.
