Highlights of the Foreign Trade Statistics for Agricultural Commodities : Philippines, Second Quarter 2018

Reference Number: 

2018-265

Release Date: 

Friday, September 28, 2018

TOTAL AGRICULTURAL TRADE AMOUNTS TO $4.77 BILLION IN THE SECOND QUARTER OF 2018

The total value of Philippine agricultural trade expands by 4.8 percent or $4.77 billion in the second quarter of 2018 from $4.55 billion in the same period of 2017.

Total export revenue for all commodities decreased by 1.3 percent in the second quarter of 2018. Agricultural export followed the same trend contracting by 11.0 percent or $1.53 billion in the second quarter of 2018 compared with $1.71 billion during the same period of the previous year. Moreover, share of agricultural export to total export was 8.9 percent in the second quarter of 2018 from 9.9 percent in the second quarter of 2017.

Total import receipts reached $28.93 billion in the second quarter of 2018, reflecting an increase of 18.5 percent over its value of $24.40 billion during the same period in 2017. Agricultural import likewise rose by 14.3 percent valued at $3.24 billion in the second quarter of 2018 compared with $2.84 billion during the same quarter of 2017. The share of agricultural imports to total imports however, went down to 11.2 percent in the second quarter of 2018 from 11.6 percent in the same quarter of 2017 (Table 1).

This resulted to a higher trade deficit of $1.72 billion in the second quarter of 2018 compared with $1.12 billion in the same period of 2017.

AGRICULTURAL TRADE WITH JAPAN POSTS SURPLUS OF $206.05 MILLION

Among the major trading partners, Japan reflected a trade surplus of $206.05 million in the second quarter of 2018. This however was lower by 13.2 percent compared with the $237.46 million posted in the same period of 2017. Other major trading partners were: European Union with $72.52 million trade deficit; Australia with $258.69 million deficit, USA with $368.00 million trade deficit; and ASEAN also with $886.14 million trade deficit (Table 2).

           

EDIBLE FRUITS AND NUTS; PEEL OF CITRUS FRUIT OR MELON LEADS AGRICULTURAL COMMODITIES FOR EXPORT

The value of the top ten agricultural exports at $1.44 billion shared 94.5 percent to total agricultural export revenue in the second quarter of 2018. It decreased by 8.7 percent compared with  the    $1.58 billion recorded in the same period of 2017.

Among commodity groups, edible fruits and nuts; peel of citrus fruits or melon accounted for the largest share of 32.4 percent and a value of $494.55 million. Export of this commodity however, dropped by 12.3 percent from $564.12 million during the second quarter of 2017. Japan bought the bulk of this export commodity valued at $162.42 million or a share of 32.8 percent.

Animal or vegetable oils and their cleavage products; prepared edible fats; animal or vegetable waxes ranked second, reflecting a 21.1 percent share to the top ten agricultural exports or a value of $321.93 million in the second quarter of 2018. It declined by 3.5 percent from $333.53 million during the same period in 2017. USA with 46.1 percent share, was the major destination of this commodity group valued at $148.51 million.

Preparation of vegetables, fruits, nuts or other parts of plants placed third among the top ten Philippine agricultural exports with value of $137.69 million accounting for 9.0 percent share to total exports during the period in review. It dropped by 21.0 percent from a value of $174.26 million during the second quarter of 2017. The major portion of these products was bought by the USA recording 41.0 percent share valued at $56.47 million.

Preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates came in fourth, contributing an 8.3 percent share to total agricultural exports. Export of this commodity increased by 4.3 percent or $126.83 million during the second quarter of 2018 from a value of $121.65 million during the same quarter of 2017. Export to the United Kingdom was valued at $27.97 million or a share of 22.1 percent to total export of this commodity.

Fish and crustaceans, molluscs and other aquatic invertebrates valued at $105.89 million ranked fifth, comprising a share of 6.9 percent to the total agricultural exports. It contracted by 24.7 percent from $140.70 million in the second quarter of 2017. Japan was the major destination of this export commodity valued at $24.20 million or a 22.8 percent share to total export of fish and crustaceans, molluscs and other aquatic invertebrates.

Completing the list of top ten agricultural exports for the second quarter of 2018 were: 

Tobacco and manufactured tobacco substitutes, $99.05 million, rose by 57.5 percent;
Preparation of cereals, flour, starch or milk; pastry cooks’ products, $49.48 million, went down by 20.5 percent; 
Lac; gums, resins and other vegetable saps and extracts,  $46.56 million, declined by     6.8 percent;
Miscellaneous edible preparations, $31.53 million, dropped by 22.2percent; and
Beverages, spirits and vinegar, $27.61 million, went down by 20.2 percent (Table 3 and 4).

CEREALS TOPS THE LIST OF IMPORTED COMMODITIES VALUED AT $561.12 MILLION

Among the major commodity groups, cereals led imports of agricultural commodities valued at   $561.12 million or a share of 17.3 percent in the second quarter of 2018. Import of this agricultural commodity went up by 32.5 percent compared with $423.36 million during the same period in 2017. The bulk of this commodity was bought from Australia accounting for a value of $183.46 million or 32.7 percent share to total imports (Table 6).

Residues and waste from the food industries; prepared animal fodder ranked second, contributing a share of 12.7 percent. This agricultural commodity posted an import value of $411.44 million increasing by 14.6 percent over the import value of $358.97 million recorded during the second quarter of 2017. It was heavily imported from the USA comprising
56.8 percent share to total agricultural imports or a value $233.48 million.

Miscellaneous edible preparation placed third, representing 12.6 percent share to total agricultural imports valued at $408.29 million. This agricultural commodity grew by 14.0 percent from the $358.16 million posted value during the first quarter of 2017. Indonesia was the major buyer of this commodity with imports valued at $124.99 million comprising a share of 30.6 percent.

Meat and edible offal came in fourth, accounting for a 10.1 percent share of the total agricultural imports or $328.41 million. Import of this commodity expanded by 13.7 percent over the import value of $288.82 million in the second quarter of 2017. Inbound shipment of this commodity was supplied by the USA, contributing 17.2 percent of the total value of imports or an import value of $56.32 million.

Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included, ranked fifth, contributing a share of almost 8.0 percent of imports valued at $258.79 million in the first quarter of 2018. It went up by 11.7 percent from the $231.73 million posted in the same period of 2017. This imported product came mostly from New Zealand with a share of 36.6 percent valued at $94.60 million.

Completing the list of the top ten agricultural imports for the second quarter of 2018 were the following:

Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $250.46 million, went down by 2.1 percent;
Beverages, spirits and vinegar, $160.83 million, increased by 7.2 percent;
Fish and crustaceans; molluscs and other aquatic invertebrates, $136.07 million, rose by 11.0 percent; 
Preparation of cereals, flour, starch or milk, pastry cooks’ products, with an import value of $113.0 million, rose by 17.7 percent; and
Tobacco and manufactured tobacco substitutes, $93.67 million, grew by 31.2 percent (Table 5 and 6).

              

MALAYSIA AND INDONESIA LEAD TOP TRADING PARTNERS AMONG ASEAN MEMBER COUNTRIES

The country’s agricultural exports to the ASEAN member countries for the second quarter of 2018 amounted to $140.20 million accounting for a share of 5.1 percent. Agricultural imports from ASEAN member countries on the other hand, reached $1,026.35 million or 14.3 percent share to the total imports. Among the ASEAN member countries, Malaysia was the top destination for export with a representing a share of 27.1 percent valued at $38.01 million. On the other hand, inbound shipment of agricultural products from Indonesia reached to $344.83 million or a share of 33.6 percent.

     

Major agricultural commodities exported to the ASEAN member countries in the second quarter of 2018 were: Tobacco and manufactured tobacco substitutes, $64.71 million; Preparation of cereals, flour, starch or milk; pastry cooks’ products, $11.89 million; Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $9.83 million; Miscellaneous edible preparations, $8.70 million; Lac; gums, resins and other vegetable saps and extracts, $7.45 million.

On the other hand, top major agricultural goods imported from the ASEAN member countries were: Miscellaneous edible preparations, $291.24 million; Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $235.19 million; Cereals, $129.17 million; Preparation of cereals, flour, starch or milk; pastry cooks’ products, $84.87 million and Beverages, spirits and vinegar, $54.45 million (Table7 and 8).

 

NETHERLANDS IS THE MAJOR TRADING PARTNER AMONG EUROPEAN UNION (EU) MEMBER COUNTRIES FOR THE SECOND QUARTER OF 2018

Exports of agricultural goods to EU member countries in the second quarter of 2018 amounted to $310.23 million comprising a share of 13.3 percent to total exports. On the other hand, agricultural imports from EU member countries reached $382.75 million representing an 18.3 percent share to total imports.  Netherlands was the top trading partner of agricultural commodities among the EU member countries with exports amounting to $139.85 million and imports valued at $64.67 million.

Leading major agricultural exports to the EU member countries in the second quarter of 2018 were:

Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $127.85 million;
Preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, $79.30 million;
Preparation of vegetables, fruit, nut and other parts of plants, $34.38 million;
Edible fruit and nuts; peel of citrus fruits or melons, $23.84 million; and
Fish and crustaceans, molluscs and other aquatic invertebrates, $16.84 million.

Top major import commodities from the EU member countries were:

Meat and edible meat offals, $135.02 million;
Residues and waste from the food industries; prepared animal fodder, $58.21 million; 
Dairy products; bird’s eggs; natural honey; edible products of animal origin, not elsewhere specified or included, $49.71 million;
Beverages, spirits and vinegar, $24.55 million; and
Preparation of vegetables, fruit, nuts or other parts of plants,  $19.60 million

 

 

 

 

EXPLANATORY NOTES

 

This Special Release (SR) features the Agricultural Foreign Trade Statistics of the Philippines for the second quarter of 2018.  The total agricultural exports and imports stated in this report are generated from the final tables of the monthly Merchandise Export and Import for the country for the period   April to June 2018.

The commodities are classified in accordance with the ten-digit 2015 Philippine Standard Commodity Classification (PSCC). The agricultural commodity groups are from chapters 01 to 24 of the 2015 PSCC.  Chapter 1 to 24 relates to commodity classifications for live animals, vegetables, fats, oils and waxes, foodstuffs, vinegar, tobacco (manufactured and unmanufactured).

The valuation used for foreign trade of agricultural commodities adopt the WTO agreement on customs valuation. This applies to both imports and exports. Exports of agricultural commodities utilized the free on board (FOB) value, also known as the cost of goods. It is the value of the goods free on board the carrier at the frontier of the exporting country. It includes inland freight, export duty and other expenses. Ocean freight, insurance and consular fees, however, are excluded. On the other hand, Imports of agricultural commodities uses the cost of insurance and freight (CIF) values which includes the transaction value of the goods, the value of services performed to deliver goods to the border of the exporting country and the value of services performed to deliver the goods from the border of the exporting country to the border of the importing country.1/

 

 

 

(Sgd.)  ROSALINDA P. BAUTISTA
(Director II)
Officer-in-Charge
Deputy National Statistician
Sector Statistics Office
 
 
 
 
 
1/ Source: IMTS Concepts and Definitions 2010, page 40 chapter 4). The value of transaction is expressed in US dollar.

 

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