Farm goods being counted on to boost export growth — DTI

THE Department of Trade and Industry (DTI) said it expects agriculture to help boost export growth via high-value, in-demand goods like coconut oil and purple yam (ube).

In a statement on Thursday, Trade Secretary Maria Cristina A. Roque noted that the latest export data highlight Philippine exporters’ competitiveness even in the face of global headwinds.

“Moving forward, we are ensuring a sharper focus on accelerating the growth of our agricultural sector, ensuring that our high-value agri-products and innovative goods are ready to compete on the global stage,” she said.

Merchandise exports rose 7.6% to $7.87 billion in May, according to the Philippine Statistics Authority (PSA).

Export sales in May were the highest since the $8.19 billion posted in March, while growth rates were the strongest since the 20.8% report also in March.

In the first five months, exports were up 10.6% at $37.87 billion.

The DTI noted the double-digit growth in the export of electronic products, machinery and transport equipment, mineral products, gold, coconut oil, and fresh bananas.

Exports of electronic products — the top export — rose 17.5% year on year to $20.83 billion by the end of May. Semiconductor shipments rose 19.1% to $15.65 billion, the PSA reported.

The DTI noted strong demand for coconut oil, where exports rose 10.3% to $1.32 billion in the first five months. This was driven by demand from key markets like the Netherlands, Malaysia, and the US.

The DTI has also cited ube and calamansi as the “rising stars” of the export trade, though domestic production has struggled to keep pace with foreign market demand, particularly for ube.

Asked to comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort called for investment in technology to boost agricultural productivity.

“There is a need to further boost competitiveness and productivity of agricultural exports through the use of best global practices/technology to further increase output and reduce production costs,” he said via Viber.

Even with the strong performance of exports in May, the trade-in-goods deficit widened to $5.48 billion following a double-digit surge in imports.

The DTI  is set to host the Exporters’ Fair between July 22 and 26 at the SM Megatrade Hall in Mandaluyong City. — Beatriz Marie D. Cruz