The Philippines ended 2025 with a sharply narrower farm trade deficit in December, driven by a strong rebound in agricultural exports led by tropical fruits and a simultaneous easing in import demand, according to official data.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the improvement reflected early progress from the government’s export diversification strategy, which aims to reduce reliance on a narrow range of commodities while expanding access to new markets.
“We are now reaping the gains of our efforts to widen our menu of farm export products and open new markets,” Tiu Laurel said, adding that the export momentum supports a push toward higher-value goods and deeper penetration into overseas destinations.
Figures from the Philippine Statistics Authority showed agricultural exports reached $884.77 million in December, accounting for 36% of total agricultural trade. Imports stood at $1.55 billion, or 64% of the total, resulting in a trade deficit of $668.35 million, a 27% improvement from December 2024.
Exports rose 19% year on year, supported by firmer overseas demand and higher shipment values. Edible fruits and nuts, including citrus and melon peels, led outbound trade at $329.72 million, representing 37% of total agricultural exports.
While the data highlight the growing role of fruit shipments in lifting export performance, they also point to continued concentration risks within the export basket.
To broaden the mix, the Department of Agriculture has identified 12 high-value crops for expansion in global markets: asparagus, avocado, banana, cacao, calamansi, durian, dragonfruit, mango, okra, pomelo, pineapple, and rambutan.
The focus signals a shift toward products with stronger margins and clearer demand, particularly in Asian and European markets.
Market access gains were reflected in December trade flows. Malaysia emerged as the largest Southeast Asian buyer, importing $58.1 million worth of Philippine agricultural goods, while exports to European Union member states reached $220.4 million.
The Netherlands accounted for $154.4 million of that total, reinforcing its role as a key entry point for Philippine farm products into Europe.
“The goal is not just higher export numbers,” Tiu Laurel said. “What matters is building value chains that raise farmers’ incomes, attract long-term investment, and create jobs. That’s how export growth translates into real gains for the rural economy.”
On the import side, agricultural purchases fell 6.2% year on year, with the top 10 commodity groups down 7.6%. Taken together, the December figures point to a gradual rebalancing of the Philippines’ agricultural trade position, increasingly supported by export growth rather than import restraint alone.
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