Record F&B Exports Likely as Robust Growth Continues

A Lastest News about Food Processing in the Philippines

Posted on: 21 Oct 2012

U.S. food and beverage (f&b) exports to the Philippines were up 16 percent from January to June 2012,

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 10/5/2012 GAIN Report Number: Philippines Post: Manila 2012 Mid-Year Update – Record F&B Exports Likely as Robust Growth Continues Report Categories: Market Development Reports Approved By: Philip A. Shull Prepared By: Maria Ramona C. Singian Report Highlights: U.S. food and beverage (f&b) exports to the Philippines were up 16 percent from January to June 2012, once again making the country our largest market in Southeast Asia for this category. The robust growth is expected to continue as importers stock-up for the year-end holidays. Export sales of f&b products are expected to reach a record $880 million by the end of the year, more than double 2009 levels. These exports will fill over 21,000 container trucks, providing key support to the approximately 1.8 million American food processing jobs, and to many more throughout the supply chain. General Information Overview U.S. food and beverage (f&b) exports to the Philippines were up 16 percent from January to June 2012. Robust growth is expected to continue as importers stock-up for the year-end holidays, propelling 2012 f&b sales to a a projected record of $880 million. Should this forecast prove correct, it would mark a doubling of f&b exports to the Philippines since 2009, thus achieving a full two years early the National Export Initiative (NEI) goal of doubling exports by 2014 in this value added category. The volume of exports by year-end will have filled over 21,000 container trucks, providing support to the 1.8 million American food processing jobs and many more throughout the supply chain. Furthermore, record sales in 2012 will allow the Philippines to maintain its longstanding position as the largest U.S. f&b market in SE Asia, and one of the fastest growing markets in the world. This remarkable growth extends a steady trend of impressive export achievement that has carried through over a decade. In the ten years from 2003 to 2012, U.S. f&b exports to the Philippines have exploded by more than 500 percent. In 2011, record sales were achieved in 13 of the 16 f&b categories, with 10 out of the 16 categories more than doubling in the past five years (from 2006-2011). In terms of volume, record levels were achieved in 11 of the 16 f&b categories, with 8 out of the 16 categories doubling in the past five years (from 2006-2011). Top Ranking Products in 2012 and Good Prospects for 2013 The top five f&b product categories by value in the first half of the year were: dairy products, red meats, poultry meat, processed fruits & vegetables and snack foods. The top five f&b products that showed outstanding volume growth in the first half of the year were: breakfast cereals, prepared/ preserved red meats, fruit & vegetable juices, snack foods and poultry meat. Note: “Gourmet”, “healthy” and “convenience” products are experiencing excellent growth and have good prospects but are not identified by individual customs statistics. With most analysts projecting continued growth in the Philippine economy and the Filipinos’ penchant for spending on food, post projects continued growth in f&b import demand through 2013 and beyond across a wide spectrum, with some of the fastest growth potential in convenience, gourmet, and “healthy, natural, and organic” categories. In addition to being consumed directly, many U.S. f&b products (e.g. dairy and dried fruits and nuts) are being used by the Philippines’ burgeoning food processing sector. Please see the table above for more details. Further Information and Assistance For questions, further information or for assistance in exporting US food & beverage products, please contact: Foreign Agricultural Service U.S. Department of Agriculture Embassy of the United States of America 25/F Ayala Life-FGU Building 6811 Ayala Avenue Makati City 1203 Tel: (632) 894-5363 or 894-5379 Fax: (632) 812-5430 Email: agmanila@usda.gov
Posted: 21 October 2012

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