By Justine Irish D. Tabile, Reporter
THE Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) said the outlook for agricultural exports is less positive this year because the coconut industry is facing supply challenges.
“We are not as optimistic because of the coconut supply issues,” EMB Director Bianca Pearl R. Sykimte told reporters on the sidelines of the Business Issues Forum.
Growth in agricultural exports had helped mitigate the decline in manufacturing exports last year.
“As you know, coconut has been one of our export winners in the past few years. But unfortunately, we have been facing significant supply constraints,” she added.
In 2024, she said the Philippine agro-based exports of $6 billion offset a $1.5 billion decline in manufactured goods.
“These figures underscore the urgency to innovate and move up the value chain, particularly in our agri-based sectors,” she said.
“By investing in research, sustainable practices, and product development, we can transform basic agricultural outputs into high-value, globally competitive products. This shift is essential, not only to diversify our export base but also to build resilience against external shocks and market volatility,” she added.
She said coconut supply has been a concern for some months.
“But the demand is there. In fact, we have been participating in a couple of shows, and the demand from international markets is high,” she said.
“So the question is, how fast can we supply it? There are challenges like that… coconuts are not only exported but are also being used in local manufacturing,” she added.
She said that the issue is also having an impact on food manufacturers, who are major users of coconut oil.
Asked to comment, Philippine Coconut Authority (PCA) Deputy Administrator Roel M. Rosales said the extended El Niño in previous years has adversely affected output.
“There was a slight reduction in last year’s harvest. During the same time, demand and prices for coconut also increased, for domestic and export, thus the reduced output, though minimal, was felt,” he said via Viber.
“However, it is expected that recovery in production will be seen by the second semester of this year,” he added.
He said that the PCA is currently implementing a salt fertilization program as a “quick turnaround intervention.”
“Effects of fertilization will be seen in terms of increased production a year after application,” he added.
Ms. Sykimte said the EMB has proposed an annual allocation of P200 million under the General Appropriations Act to support exporters in accessing new markets.
“The idea is to help them in terms of getting the certifications they require to access markets because without those certifications, you cannot export,” she said.
She said that both the Philippine Development Plan and the Philippine Export Development Plan (PEDP) are undergoing recalibration, not only for exports but also for other indicators.
For the PEDP, she said that the DTI has been running simulations but is hopeful that the targets will be finalized by the third quarter.
“It’s a whole set of recalibrations. But definitely, (exports) will be aligned, whatever that number is,” she added.