Newly released market study: Philippines Agribusiness Report Q3 2016

From: Fast Market Research, Inc.
Published: Sun Jun 19 2016

We hold a positive view on the Philippines ' agribusiness sector in the long term, given the country's potential for expansion into new sectors , such as palm oil. We particularly like t he outlook for sugar production and believe the livestock sector will continue to show healthy growth rates. The Philippines' vast consumption market, along with strong government support , will foster domestic and foreign investment and favour output expansion. However, backyard farming and infrastructure problems, especially transport costs, will continue to hamper the sector's growth. These inefficiencies will become increasingly crippling as South East Asia moves towards the ASEAN Economic Community, which is supposed to lead to trade and investment liberali s ation in the region. Although the Philippines' government appears to have taken the measure of the challenge and is now supporting rice and sugar production, agriculture in the country remains uncompetitive. As such, the sector is at risk of low cost imports from its neighbours over the medium term.

Full Report Details at

Key Forecasts

Sugar production growth to 2019/20: 21.0% to 2.8mn tonnes. Sugar production growth will be driven by improvements in yields. The government approved the Sugarcane Industry Development Act, which is aiming at diversifying the sugar sector towards more value-added products and will provide financing to farmers.

Poultry production growth to 2019/20: 16.3% to 1.3mn tonnes. Poultry production will record steady but unspectacular growth. Growth will be driven by investment, both domestic and foreign.

Milk production growth to 2019/20: 23.4% to 25,100 tonnes. Milk and other dairy production will remain very low in the Philippines, although it will record strong growth due to low base effects. The government is committed to increase domestic supply of liquid milk, via National Dairy Development Plan.

Agribusiness market value: 2.5% increase to USD32.9bn in 2016, forecast to grow on average 4.7% annually between 2016 and 2020.

2016 real GDP growth: 6.0% (up from 5.8% in 2015; predicted to average 5.9% over 2016-2020).

2016 consumer price inflation: 2.0% y-o-y (up from 1.5% in 2015; predicted to average 3.5% over 2016-2020).

Industry Developments

The Philippines has been badly affected by El Nino since the phenomenon re-emerged in H215, as it has lead to a prolonged period of unusually dry weather. Although El Nino is currently fading and should dissipate in Q316, rainfall in the Philippines remained significantly lower than normal so far in 2016.

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You may also be interested in these related reports:

- Malaysia Agribusiness Report Q3 2016
- Colombia Agribusiness Report Q3 2016
- Thailand Agribusiness Report Q3 2016
- Mexico Agribusiness Report Q3 2016
- South Korea Agribusiness Report Q3 2016

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Contact Name: Bill Thompson
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