The Philippines ended 2025 with a markedly smaller agricultural trade deficit, supported by strong export growth led by tropical fruits and a decline in farm imports, according to official data.

Figures from the Philippine Statistics Authority (PSA) showed that agricultural exports reached $884.77 million in December, accounting for 36 percent of total agricultural trade for the month.

Imports stood at $1.55 billion, or 64 percent of the total, resulting in a trade deficit of $668.35 million. This was 27 percent narrower than the deficit recorded in December 2024.

DA’s export diversification efforts delivering results

Department of Agriculture (DA) Secretary Francisco P. Tiu Laurel Jr. recognized the improvement, describing it as an early indication that the department’s efforts to diversify exports are beginning to deliver results.

“We are now reaping the gains of our efforts to widen our menu of farm export products and open new markets,” he said. He added that the strong performance in 2025 supports the push to expand into new destinations and develop higher-value agricultural products.

Top agricultural exports

Agricultural exports grew 19 percent year on year in December, driven by stronger overseas demand and higher shipment values. Edible fruits and nuts, including citrus and melon peels, remained the country’s top agricultural export, generating $329.72 million.

These figures accounted for 37 percent of total farm exports, underscoring the growing importance of fruit shipments in driving overall export performance, while also highlighting the continued concentration of exports in a limited number of products.

To address this, the department has identified 12 high-value crops for intensified promotion in global markets. These are asparagus, avocado, banana, cacao, calamansi, durian, dragonfruit, mango, okra, pomelo, pineapple and rambutan.

The strategy reflects a shift toward products with higher margins and steady demand, particularly in Asian and European markets where Philippine agricultural products have gained wider recognition.

Data shows improved market access

Export data also showed improved market access. Malaysia became the largest buyer among Southeast Asian countries, importing $58.1 million worth of Philippine agricultural goods in December.

Exports to European Union member states reached $220.40 million, with the Netherlands accounting for $154.4 million, 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.”

Cereals largest agricultural imports

On the import side, agricultural purchases declined by 6.2 percent year on year, with the top 10 commodity groups registering a combined drop of 7.6 percent. Cereals, including rice, remained the country’s largest agricultural import.

Overall, the December figures point to a gradual shift of the country’s agricultural trade, increasingly supported by export growth rather than merely import reductions.