The United States Department of Agriculture (USDA) sees the Philippines importing as much $3.84 billion worth of American food and beverage items this year, an 8 percent increase from last year’s $3.55 billion.
In a report dated July 6, 2022, USDA noted opportunities for the US to sell to the Philippines additional milk, cheese, meat, poultry, baked products, fruits, vegetables, wine and pet food products.
Last year, the Philippines ranked as the seventh-largest US agricultural export market.
The USDA 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 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 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.
