The Philippines is the ninth largest market for U.S. agricultural exports and the largest destination for U.S. consumer-oriented products in Southeast Asia. The United States is the largest single-country supplier of agricultural products, although ASEAN countries benefit from lower tariffs and have more market share as a group.
Since the start of COVID-19, Philippine consumers have incorporated more fresh fruit into their diet. Global exports of fresh fruits to the Philippines increased 36 percent to $695 million in 2020 and are forecast to grow five percent in 2021.
The Philippine Bureau of Internal Revenue (BIR) on November 10, 2021 issued Revenue Memorandum Circular No. 112-2021, clarifying that all imported unprocessed fruits and vegetables are exempt from the 12 percent value-added tax.
The Philippines imports 99 percent of its dairy requirement as domestic production cannot meet the annual demand of 2.9 million metric tons (MT) liquid milk equivalent, according to the National Dairy Authority (NDA).
Post expects the Philippine food service sector to shrink by a further 13 percent to $7.4 billion in 2021, following its 44 percent decline in 2020. With the spread of the Delta variant of COVID-19, people are hesitant to return to restaurants.
FAS/Manila raises MY 21/22 rice imports by 100,000 metric tons (MT) to 2.2 million MT based on expected improving economic conditions and an upturn in Sanitary and Phytosanitary Import Clearances in July and August 2021.