Total agricultural trade amounts to $5.22 billion

The total agricultural trade of the Philippines, valued at $5.22 billion in the third quarter of 2018, went up by 8.2 percent compared with the $4.83 billion total agricultural trade in the same period of 2017. The total export revenue for all commodities, amounting to $18.07 billion, increased by 1.5 percent, from $17.80 billion in the third quarter of 2017.  Agricultural export reflected an opposite trend, in which a decline of 4.3 percent or $1.68 billion was noted in the third quarter of 2018, from $1.76 billion during the same period of the previous year. Similarly, share of agricultural export to total export decreased by 0.6 percentage points in the third quarter of 2018.

Total import bills, which amounted to $30.33 billion in the third quarter of 2018, rose by 21.4 percent from its value of $24.98 billion in the same period of 2017. Agricultural import expenditures likewise posted a 15.5 percent increment, from $3.06 billion in the third quarter of 2017 to $3.54 billion in the same period of 2018. The share of agricultural imports to total imports declined by 0.60 percentage points in the third quarter of 2018 (Table 1).

Agricultural trade with Japan reflects surplus of $273.38 million

Among the major trading partners, Japan posted a trade surplus of $273.38 million in the third quarter of 2018. However, other major trading partners showed trade deficits, as follows:  Australia with $153.24 million, USA with $470.68 million, ASEAN with $1,070.31 million and EU Member countries with $102.14 million.

         

Edible fruits and nuts; peel of citrus fruit or melon has the largest share to total agricultural export

Total value of agricultural exports for the top 10 commodity groups reached $1.61 billion. This amount showed a 95.4 percent share to the total agricultural export revenue in the third quarter of 2018. However, export value of the top 10 commodity groups decreased by 4.3 percent, from $1.76 billion export value of these commodity groups 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 39.1 percent or a value of $659.26 million. Export of this commodity rose by 55.4 percent in the third quarter of 2018, from $424.39 million in the third quarter of 2017. Japan bought bulk of the value of exports for this commodity group amounting to $226.11 million or a share of 34.3 percent.

Animal or vegetable oils and their cleavage products; prepared edible fats; animal or vegetable waxes ranked second with 14.3 percent share to total agricultural exports or a value of $241.32 million in the third quarter of 2018. Export for this commodity declined by 44.9 percent, from its $437.53 million export value in the same period of 2017. USA, with a share of  43.4 percent or $104.66 million, was the major destination of this commodity group.

Preparation of vegetables, fruits, nuts or other parts of plants, which came third among the top 10 commodities in terms of agricultural exports, posted a value of $132.80 million or a   7.9 percent share to total agricultural exports during the period in review. It went down by 35.9 percent from $207.26 million recorded in the third quarter of 2017. The bulk of these products was bought by USA with a share of 38.0 percent or a value of $50.47 million.

Fish and crustaceans, molluscs and other aquatic invertebrates with a contribution of 7.6 percent to the total agricultural exports or a value of $128.40 million, placed fourth. Export of this commodity group dropped by 16.1 percent, from $152.94 million in the same period of 2017. Japan was the major destination of this export commodity with a value of $25.99 million or a share of 20.2 percent to total export for this commodity group.

Tobacco and manufactured tobacco substitutes ranked fifth, contributing 7.4 percent to total agricultural exports. Export of this commodity expanded by 52.1 percent or $125.18 million in the third quarter of 2018, from a value of $82.32 million during the same period of 2017. Export to Republic of Korea, valued at $29.35 million or a share of 23.4 percent to total export of this commodity, was the highest.

Completing the list of top 10 agricultural exports for the third quarter of 2018 were: 

• Preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, $123.87 million, declined by 16.7 percent;
• Preparation of cereals, flour, starch or milk; pastrycooks’ products, $80.18 million, increased by 26.8 percent;
•  Lac; gums, resins and other vegetable saps and extracts, $43.25 million, went up by 13.9 percent; 
• Miscellaneous edible preparations, $38.52 million, contracted  by 15.6 percent;  and
• Beverages, spirits and vinegar, $35.96 million, dropped by 1.3 percent (Table 3 and 4).

Cereals commodity group leads the commodities in terms of value of agricultural imports

Among the major commodity groups, cereals was the top in terms of value of imports, amounting to $826.47 million or a share of 23.4 percent in the third quarter of 2018. Import of this agricultural commodity expanded by 82.4 percent, from the $453.25 million import value for the commodity in the same period of 2017. USA was the major buyer of this commodity with a value of $253.98 million or 30.7 percent of the total imports of cereals.

Residues and waste from the food industries; prepared animal fodder placed second with a share of 12.0 percent to total agricultural imports. This agricultural commodity posted an import value of $422.82 million which went up by 23.5 percent from the import value of $342.46 million in the third quarter of 2017. USA was the major source of imports of this commodity, accounting for 56.0 percent of the total agricultural imports or a value of $236.62 million.

Miscellaneous edible preparation ranked third with a share of 10.2 percent to the total agricultural imports or a value of $362.18 million in the third quarter of 2018. This agricultural commodity declined by 1.4 percent from the $367.22 million recorded value in the same period of 2017. Indonesia was the major source of this commodity with imports valued at $111.87 million or a share of 30.9 percent.

Meat and edible offal came fourth with a total agricultural import value of $316.56 million or a 9.0 percent share. Import of this commodity dropped by 5.1 percent compared with the import value of $333.63 million in the same quarter of 2017.  USA was the major supplier of this commodity, accounting for 16.4 percent of the total value of imports or a value of $51.89 million.

Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included, which ranked fifth, had a share of 7.7 percent or an import value of $273.79 million during the period in review. Import of this commodity group went down by 2.0 percent from the $279.46 million recorded value in the third quarter of 2017. This imported product came mostly from New Zealand with a share of 37.5 percent or a value of $102.71 million.

Completing the list of the top 10 commodities on agricultural imports for the third quarter of 2018 were the following:

• Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $245.18, million, contracted by 17.0 percent;
• Sugars and sugar confectionary, $154.37 million, surged by 53.9 percent;
• Beverages, spirits and vinegar, $154.21 million, rose by 2.2 percent; 
• Fish and crustaceans; molluscs and other aquatic invertebrates, $149.45 million, went up by 16.3 percent; and
• Preparation of cereals, flour, starch or milk, pastrycooks’ products, $108.25 million, dropped by 10.0 percent (Table 5 and 6).

            

Malaysia and Thailand lead as trading partners in exports and in imports among ASEAN countries

The country’s agricultural exports to the ASEAN-member countries for the third quarter of 2018 amounted to $175.63 million, contributing 6.0 percent share to the total. Agricultural imports from ASEAN-member countries, on the other hand, was recorded at $1,245.94 million, comprising a share of 16.1 percent to the total imports. Among the ASEAN-member countries, Malaysia was the top destination for agricultural export. It amounted to $57.63 million, representing a share of 32.8 percent. Similarly, inbound shipment of agricultural products from Thailand amounted to $403.81 million, accounting for 32.4 percent of the total agricultural imports.

   

Major agricultural commodities exported to the ASEAN member countries for the third quarter of 2018 were: Tobacco and manufactured tobacco substitutes, $71.43 million; preparation of cereals, flour, starch or milk; pastrycooks’ products, $21.08 million; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $16.39 million; miscellaneous edible preparations, $11.49 million and edible fruit and nut; peel of citrus fruits or melons, $9.11 million.

On the other hand, top major imports of agricultural goods from ASEAN member countries were: cereals, $320.67 million; miscellaneous edible preparations, $247.32 million; animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $227.36 million; sugars and sugar confectionery, $103.91 million and  preparation of cereals, flour, starch or milk; pastrycooks’ products, $76.88 million (Table 7 and 8).

 

Netherlands is the country's major trading partner among EU member countries in the third quarter of 2018

Exports of agricultural goods to EU member countries in the third quarter of 2018 amounted to $263.47 million or a share of 12.3 percent to the country’s total exports. On the other hand, agricultural imports from EU member countries amounted to $365.60 million, contributing 13.6 percent share to total imports. Netherlands was the country’s top buyer of agricultural commodities among the EU member countries with exports amounting to $91.97 million or a share of 34.9 percent. Similarly, Netherlands was also the country’s top supplier of agricultural commodities among EU member countries with imports reaching $64.96 million.

Leading major agricultural exports to the EU member countries for the third quarter of 2018 were:

• Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes, $82.17 million;
• Preparation of meat, of fish, or of crustaceans, molluscs and other aquatic invertebrates, $58.99 million;
• Preparation of vegetables, fruit, nut and other parts of plants, $32.32 million;
• Edible fruit and nuts; peel of citrus fruits or melons, $30.34 million; and
• Fish and crustaceans, molluscs and other aquatic invertebrates, $19.84 million.

Top major import commodities from the EU-member countries were:

• Meat and edible meat offal, $114.55 million;
• Dairy products; bird’s eggs; natural honey; edible products of animal origin, not elsewhere specified or included, $56.69 million;
• Residues and waste from the food industries; prepared animal fodder, $47.41 million; 
• Beverages, spirits and vinegar, $32.25 million; and
• Miscellaneous edible preparations, $17.88 million.

 

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EXPLANATORY NOTES

 

This Special Release (SR) features the Agricultural Foreign Trade Statistics of the Philippines for the third quarter of 2018.  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 July to September 2018.

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/