Highlights of the Foreign Trade Statistics for Agricultural Commodities : Philippines, Second Quarter 2019

Reference Number: 

2019-291

Release Date: 

Monday, October 14, 2019

 

1. Total agricultural trade amounts to USD5.09 billion

The total agricultural trade of the Philippines for the second quarter of 2019 amounting to USD5.09 billion, slid by 0.01 percent compared with the USD5.091 billion total agricultural trade in the same period of 2018. The total export revenue for all commodities, amounting to USD17.80 billion, rose by 1.8 percent from the USD17.49 billion in the second quarter of 2018. Similarly, agricultural export reflected an increase of 10.5 percent or USD1.74 billion in the second quarter of 2019 from the USD1.57 billion agricultural export during the same period of the previous year. Moreover, the share of agricultural export to total export went up by 0.8 percentage point in the second quarter of 2019.

Figure 1

The total import bills, valued at USD28.32 billion in the second quarter of 2019, declined by 6.1 percent from its value of USD30.16 billion in the same period of 2018. Agricultural import expenditures of USD3.35 billion in the second quarter of 2019, likewise, posted a 4.7 percent decrease from the USD3.52 billion expenditures incurred in the same period of 2018. The share of agricultural imports to total imports went up by 0.2 percentage point during the quarter (Table 1).

Figure 2

2. Agricultural trade with Japan reflects surplus of USD272.42 million

Trade Surplus is the amount by which the country’s total exports exceeds its total imports. On the other hand, trade deficit occurs when a country’s total imports exceeds its total exports. Among the major trading partners, Japan posted a trade surplus of USD272.42 million in the second quarter of 2019. However, all other major trading partners showed trade deficits, as follows:  Australia with USD299.03 million, USA with USD423.35 million, ASEAN  with  USD964.28 million and EU Member countries with USD127.65 million. (Table 2)

Figure 3         

3. Agricultural export of edible fruit and nuts; peel of citrus fruit melons commodity group accounts for the largest share to total agricultural exports

The total value of agricultural exports of the top ten commodity groups amounted to USD1.64 billion or 94.3 percent of the total agricultural export revenue in the second quarter of 2019. Combined export value of these top ten commodity groups grew by 10.6 percent, from USD1.48 billion in the same period of 2018. 

Among the commodity groups, edible fruit and nuts; peel of citrus fruit melons amounting to USD693.89 million, accounted for the largest share of 40.0 percent to the total agricultural exports.  Export of this commodity went up by 37.4 percent in the second quarter of 2019 from the USD504.95 million export value in the second quarter of 2018. People’s Republic of China was the top buyer of this commodity group with exports valued at USD229.67 million or a share of 33.1 percent.

Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes ranked second with a share of 17.3 percent to the total agricultural exports or a value of USD300.75 million in the second quarter of 2019. Export for this commodity went down by 5.9 percent from the USD319.44 million export value in the same period of 2018. Netherlands, which accounted for 39.6 percent or USD119.18 million, was the major destination of this commodity group.

Preparations of vegetables, fruit, nuts or other parts of plants placed third, contributing 7.4 percent to total agricultural exports. Export of this commodity dropped by 4.8 percent, from a value of USD135.40 million during the same period of 2018. Export to USA, reaching USD50.82 million or a share of 39.4 percent to the total export of this commodity, was the highest.

Moreover, positive growth in export revenue were noted in tobacco and manufactured tobacco substitutes, 6.6 percent; sugars and sugar confectionery, 2.6 percent; preparations of cereals, flour, starch or milk; pastrycooks’ products, 3.7 percent; and miscellaneous edible preparations, 2.3 percent.

On the other hand, decreases were posted in the following commodity groups: preparations of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, 5.9 percent; fish and crustaceans, molluscs and other aquatic invertebrates, 5.6 percent; and lac; gums, resins and other vegetable saps and extracts, 3.0 percent, respectively.  (Tables 3 and 4).

Figure 4

 

4. Cereals commodity group leads in terms of value of agricultural imports

Among the major commodity groups, cereals was the top in terms of value of imports, amounting to USD703.67 million or a share of 21.0 percent to the total agricultural imports in the second quarter of 2019. Import of this agricultural commodity rose by 8.6 percent, from the USD647.75 million import value in the same period of 2018. Most of this commodity came from Vietnam with a value of USD236.95 million or 33.7 percent of the total imports of cereals.

Miscellaneous edible preparations placed  second, accounting for 12.9 percent of the total agricultural imports. This agricultural commodity posted an import value of USD432.24 million, which went up by 2.4 percent from its import value of USD422.26 million in the second quarter of 2018. Indonesia was the major source of this commodity, accounting for 31.4 percent of the total agricultural imports or a value of USD135.76 million.

Residues and waste from the food industries; prepared animal fodder placed third with value amounting to USD411.30 million or a share of 12.3 percent to the total agricultural import. Import of this commodity group decreased by 15.5 percent. USA was the major supplier of this commodity with imports valued at USD241.87 million or a share of 58.8 percent.

Importation of dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included, 8.6 percent; and sugars and sugar confectionery, 3.4 percent showed positive growths.

Meanwhile, decreases were recorded in the following commodity groups: in meat and edible meat offal, 8.6 percent; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, 6.4 percent; beverages, spirits and vinegar, 4.5 percent; fish and crustaceans, molluscs and other aquatic invertebrates, 3.8 percent; and preparations of cereals, flour, starch or milk pastrycooks’ products, 3.5 percent, respectively. (Tables 5 and 6).

Figure 5

            

5. Malaysia leads as trading partners in exports while Vietnam in imports

The country’s agricultural exports to the ASEAN-member countries in the second quarter of 2019 reached USD191.39 million, contributing 7.0 percent share to the total exports. On the other hand, agricultural imports from ASEAN-member countries amounted to USD1,155.67 million or a share of 14.9 percent to the total imports. Among the ASEAN-member countries, Malaysia was the top destination of agricultural exports worth USD69.09 million or a share of 36.1 percent to the total exports. Whereas, the largest inbound shipment of agricultural products was from Vietnam amounting to USD370.15 million or 32.0 percent of the total agricultural imports.

Figure 6

   

The major agricultural commodities exported to the ASEAN-member countries in the second quarter of 2019 were tobacco and manufactured tobacco substitutes, USD65.26 million; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, USD43.83 million; preparations of cereals, flour, starch or milk; pastrycooks’ products, USD15.26 million; miscellaneous edible preparations, USD10.16 million; and edible fruit and nuts; peel of citrus fruit melons, USD9.01million. 

On the other hand, the top major imports of agricultural goods from ASEAN-member countries were miscellaneous edible preparations, USD309.36 million; cereals, USD274.70 million; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, USD192.19 million; preparation of cereals, flour, starch or milk; pastrycooks’ products, USD80.24 million; and sugars and sugar confectionery, USD52.63 million (Tables 7 and 8).

 

6. Netherlands is the country's major trading partner among EU member countries in the first quarter of 2019

Exports of agricultural goods to EU-member countries in the second quarter of 2019 amounted to USD290.78 million or a share of 13.7 percent to the country’s total exports. On the other hand, agricultural imports from EU-member countries reached USD418.43 million, accounting for 18.9 percent share to total imports.  Among the EU-member countries, Netherlands was the country’s top buyer and supplier of agricultural commodities. Total exports to this country amounted to USD147.17 million or 50.6 percent of the total export while total imports reached USD68.79 million or 16.4 percent of the total import.

Figure 7

 

The leading major agricultural exports to the EU member countries for the second quarter of 2019 were:

Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, USD135.46 million;
Preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, USD51.89 million;
Preparation of vegetables, fruit, nut and other parts of plants, USD31.50 million;
Lac; gums, resins and other vegetable saps and extracts, USD18.80 million; and
Edible fruit and nuts; peel of citrus fruits melons, USD$18.74 million.
 

The top major import commodities from the EU-member countries were:

Meat and edible meat offal, USD129.24 million;
Dairy products; bird’s eggs; natural honey; edible products of animal origin, not elsewhere specified or included, USD76.72 million;
Residues and waste from the food industries; prepared animal fodder, USD45.11 million; 
Cereals, USD29.47 million; and
Beverages, spirits and vinegar, USD24.84 million.

 

 

 

(Sgd.)  ROSALINDA P. BAUTISTA
            Assistant Secretary
            Deputy National Statistician
            Sectoral Statistics Office

 

 


 

EXPLANATORY NOTES

 

This Special Release (SR) presents the Agricultural Foreign Trade Statistics of the Philippines for the second quarter of 2019.  The total agricultural exports and imports stated in this report are generated from the monthly Merchandise Export and Import of the country for the period April to June 2019.

The commodities are classified in accordance with the ten-digit 2015 Philippine Standard Commodity Classification (PSCC). The agricultural commodity groups are from chapters 1 to 24 of the 2015 PSCC.  Chapter 1 to 24 relates to commodity classifications for live animals, meat and edible meat offal, fish and crustaceans, molluscs and other aquatic invertebrates, dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere classified, products of animal origin, not elsewhere specified or included, vegetables products, edible vegetables and certain roots and tubers, edible fruit and nuts; peel of citrus fruit melons, coffee, tea, mate and spices, cereals, malt, starches, inulin, wheat gluten, oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit, industrial or medicinal plants, straw and fodder, lac, gums, resins, gum-resins and oleoresins, vegetable plaiting materials, animal or vegetable fats and oils, waxes, prepared foodstuffs, beverages, spirits, vinegar and tobacco (manufactured and unmanufactured).

The valuation used for foreign trade of agricultural commodities adopts the WTO agreement on customs valuation and 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 use the cost of insurance and freight (CIF) values which include 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/

 

 
 
1/ Source: IMTS Concepts and Definitions 2010, page 40 Chapter 4). The value of transaction is expressed in US dollar.

 

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