The US could export more meat, pet food and processed potato products like French fries to the Philippines due to rising demand.
A recent report published by the USDA Foreign Agricultural Service (USDA-FAS) indicated that consumer-oriented US products ranging from meat and poultry products to food preparations, such as flavorings and supplements have a ‘high potential’ for export growth in the Philippines.
The report highlighted that US exports of pet food to the Philippines will also continue to rise as it expects pet ownership in the country to increase. In 2021, pet food exports to the country jumped 38% to US$51 million and this trend is expected to continue in the next few years.
US suppliers can also capitalise on growing demand in the Philippine food and beverage manufacturing sector for food preparations, such as flavorings, mixtures and supplements. This category recorded US$110 million in sales in 2021 with consistent growth over the past decade.
In addition, the report also mentioned good export opportunities for meat products as the domestic industry is not able to catch up with local demand. With growing disposable incomes in the Philippines as well as the threat of ASF diseases to the pig herd, demand for meat will continue to increase.
The report also sees a resurgence in imports of French fries and potato chips from the US as the economy recovers from the pandemic following the easing of social restrictions. The report noted that the US remains as the Philippines’s top supplier of processed potato products despite facing higher tariffs and stiff competition from India and China, which enjoy duty-free access. Specifically, demand for frozen French Fries declined in 2020 due to the pandemic which led to closures of restaurants in the country, however exports have recently recovered to pre-pandemic levels.
The Philippines is the 8th largest market for US agricultural exports with export value reaching a record-high US$3.5 billion in 2021. It is also the largest market for US processed food and agricultural products in the ASEAN region.
