Food imports from the United States will increase by 8% to reach $3.84 billion

The United States Department of Agriculture (USDA) estimates that the Philippines imports $3.84 billion worth of American food and beverages this year, an increase of 8% from $3.55 billion from last year.

In a report dated July 6, 2022, the USDA noted opportunities for the United States to sell milk, cheese, meat, poultry, baked goods, fruits, vegetables, wine and additional pet food.

Last year, the Philippines ranked as the seventh largest agricultural export market for the United States.

The USDA said other major factors in the optimistic projections for U.S. agricultural exports to the Philippines include continued household spending and purchases by manufacturers that will propel the local food processing sector as well as easing mobility restrictions and improved online services that will boost retail. sales in particular in convenience stores, grocery stores, hypermarkets and warehouse clubs.

The report predicts that the local restaurant sector will recover further this year as the economy reopens and face-to-face classes and on-site work resume.

The USDA also said recent national elections have boosted the economy and improved consumer confidence and household spending.

The report cited optimism about the expansion of food and beverage retailers in residential areas and provinces; the preference of upper class and growing middle class consumers for imported food brands offering greater product value and healthier options; and the growth of food product sales via e-commerce.

Despite this, the USDA recognizes that the majority of the population is still engaged in more frugal spending, resorting to low-priced products, especially as prices are expected to continue to rise due to high input costs and the rise in inflation.

Other challenges cited by the USDA include global shipping issues such as congested ports and limited container availability; the Russian-Ukrainian war disrupting the supply of wheat and petroleum products affecting groceries such as bread, noodles, pasta, cookies, pastries and snack foods; as well as rising fuel prices, among others.