AGRICULTURAL trade in the second quarter (Q2) of the year posted a deficit of $3.07 billion, or 13.8 percent more than the $2.7 billion shortfall in the same period in 2023, according to the Philippine Statistics Authority (PSA). The deficit also widened compared to P2.621 billion in the first quarter. Data from PSA on Monday showed that although exports from April to June 2024 amounted to $1.86 billion, up by 14.7 percent from $1.6 billion, imports grew even more at $4.93 billion, 14.1 percent higher than $4.32 billion last year. The country's Q2 total agricultural trade totaled $6.79 billion, an increase of 14.3 percent from $5.94 billion — a turnaround from the 14.7-percent annual decrease in the same period last year and higher than the 2.6-percent growth in the previous quarter. Edible fruits and nuts and peels of citrus fruit melons accounted for the largest share of exports at $543.62 million, an 84.2-percent jump from $295.02 million. Animal or vegetable fats and oils, and their cleavage products; prepared edible fats; and animal or vegetable waxes netted $543.45 million, 4. 07 percent higher than $522.18 million. However, preparations of vegetables, fruit, nuts or other parts of plants were valued at $176.03 million, 9.7 percent lower than $194.99 million a year earlier. Rounding up the country's top five agricultural exports were preparations of meat, fish, crustaceans, mollusks and other aquatic invertebrates at $142.54 million and shipments of tobacco and manufactured tobacco substitutes at $102.59 million. The top 10 commodity groups in terms of export value contributed $1.8 billion or 96.9 percent of export revenues for the quarter. As for imports, cereals accounted for 26.0 percent at $1.28 billion, a 44.28-percent spike from $888.26 million followed by residues and waste from food industries and prepared animal fodder, $567.24 million; miscellaneous edible preparations, $525.34 million; meat and edible meat offal, $467.3 million; and animal or vegetable fats and oils, and its cleavage products, and prepared edible fats, animal or vegetable waxes, $357.27 million. Among Association of Southeast Asian Nations member countries, Malaysia remained the biggest buyer of Philippine agricultural exports at $95.22 million. The Netherlands, among European Union member countries, was the top destination of Philippine agricultural commodities valued at $179.77 million. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the increase in agricultural trade to lower base effects as the economy reopens with normalcy after the pandemic. He explained that higher imports and exports indicate a rise in global commodity prices driven by El Niño's impact on output and higher prices for rice and other products. "For the coming months, the risk of La Niña would be a consideration in terms of storm damage that could cause some disruptions on crops and other agricultural damage," Ricafort said. Moreover, the economist noted lower tariffs on imported rice that could boost rice imports and the country's inventory in anticipation of La Niña. Likewise, African swine fever was cited as a factor that could lead to increased pork and meat imports.
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