Agricultural trade deficit deepens in second quarter
The trade deficit in agricultural goods expanded in the second quarter, driven by higher imports than exports, the Philippine Statistics Authority (PSA) reported.
Agricultural trade deficit grew by 13.8 percent to $3.074 billion from April to June 2024, compared to $2.702 billion in the same period last year. The deficit also widened from $2.621 billion in the first quarter.
Based on the PSA data, this spike in the trade deficit represents a stark reversal from the 6.5 percent contraction recorded in the first quarter of 2024 and the 0.04 percent decline in the same period last year.
Agricultural imports, representing 15.5 percent of total imports for the quarter, increased by 14.1 percent to $4.94 billion from $4.323 billion a year earlier.
Cereals remained the leading agricultural import, making up 26 percent of the total at $1.28 billion.
Imports from Southeast Asian countries reached $1.86 billion, accounting for 19.9 percent of all agricultural shipments.
Vietnam was the top supplier among ASEAN peers, contributing $686.6 million, or 36.9 percent of the total.
Meanwhile, agricultural imports from Europe totaled $450.29 million, or 24.6 percent of total imports in the second quarter. Meat and edible meat offal category led agricultural imports.
Among EU member states, Spain was the leading supplier, with imports valued at $122.27 million, or 27.2 percent of agricultural imports from the region.
On the other hand, agricultural exports grew at a slower rate of 14.7 percent to $1.86 billion in the second quarter from $1.62 billion a year ago. These exports represented 10.2 percent of the country's total exports.
Among commodity groups, edible fruits and nuts, including citrus peels and melons, comprised the largest share at $543.62 million, or 29.2 percent of the total.
Exports to ASEAN countries amounted to $227.24 million, accounting for 8.8 percent of the total regional exports. Malaysia emerged as the top buyer in the region, importing $95.22 million, or 41.9 percent.
Meanwhile, exports of agricultural goods to EU member countries reached $358.93 million in the second quarter, contributing 18.6 percent to the total value of exports.
The Netherlands was the leading destination for Philippine made products, accounting for 50.1 percent of the total, valued at $179.77 million.
The country’s total agricultural trade in the second quarter of 2024 reached $6.795 billion, up 14.3 percent compared to $5.945 billon in the same period of 2023.