US Anticipates Boost in Agricultural Exports to the Philippines

Strategic Insights -

The United States is expecting an increase in agricultural exports to the Philippines in 2025, driven by growth in the food service sector and a burgeoning middle class. The US Department of Agriculture's Foreign Agricultural Service forecasts steady growth in the retail and food manufacturing sectors, making high-quality products in demand. The Philippine government's efforts to tame food price inflation and lower retail prices of food items also present opportunities for US farm exports to grow.

Key Takeaways:

  • The United States anticipates a hike in agricultural exports to the Philippines in 2025, driven by growth in the food service sector and a burgeoning middle class.
  • The US Department of Agriculture's Foreign Agricultural Service forecasts steady growth in the retail and food manufacturing sectors, thus making high-quality products in demand.
  • The Philippine government's efforts to tame food price inflation and lower retail prices of food items, such as Executive Order No. 62 and the reinstatement of a maximum suggested retail price for imported pork, present opportunities for US farm exports to grow.
  • The US is working with Philippine counterparts to reduce sanitary and phytosanitary barriers and resolve import licensing issues to facilitate trade.
  • The Department of Finance's administrative order mandating preshipment inspection and cross-border electronic invoicing for various products may increase the administrative burden on exporters.
  • US agricultural exports to the Philippines totaled $3.5 billion in 2024, a 3-percent drop from $3.6 billion a year prior.
  • America's farm exports to Manila averaged $3.58 billion between 2020 and 2024.
  • The prices of soybean meal, the largest US export product, declined by 20 percent, resulting in a drop in outbound farm shipments to the archipelago.
  • Ethanol (nonbeverage) exports reached $147 million, surpassing imports by $77 million or 111 percent due to the continued rapid growth in Philippine gasoline sales and competitive pricing compared to Brazil.
  • Beef, pork, and poultry and their products climbed by 58 percent, 10 percent, and 8 percent, respectively, driven by population growth and income growth and a resurgence of African swine fever.

Statistics:

  • US agricultural exports to the Philippines totaled $3.5 billion in 2024.
  • US agricultural exports to the Philippines averaged $3.58 billion between 2020 and 2024.
  • The prices of soybean meal, the largest US export product, declined by 20 percent.
  • Ethanol (nonbeverage) exports reached $147 million, surpassing imports by $77 million or 111 percent.
  • Beef, pork, and poultry and their products climbed by 58 percent, 10 percent, and 8 percent, respectively.

Sources:

  • United States Department of Agriculture's (USDA) Foreign Agricultural Service
  • Executive Order No. 62 signed by President Marcos
  • Department of Agriculture's reinstatement of a maximum suggested retail price for imported pork