EU losing share in Philippines import market
The Philippines is a growing market for pork and offal, however the importance of the EU as a supplier seems to be waning in recent months.
Total imports of pork into the Philippines were up by 7% (+3,200 tonnes) in the first half of 2018, compared with last year. However, shipments from the EU were down by 15% to 23,000 tonnes according to the Philippine Statistics Authority. In Q2 alone, the decline was even greater at 32%, reflecting displacement by Canadian product. This meant the EU’s market share fell from over 66% in 2015 to under 50% for this year so far. Within this, imports from the UK halved, with volumes accounting for just 1% of the total at 600 tonnes.
From a Philippine perspective, average import prices were higher in the first half of 2018, rising by 6% in Philippine pesos. However, this was a decline of 8% in euro terms as the peso has declined against the euro. This meant the value of EU pork exports to the Philippines decreased by €9 million year-on-year to €31 million.
The EU also lost share in the even more important pig offal market in the Philippines. Offal imports were up by 26% overall (+23,000 tonnes) but EU shipments were up by only 23% (+16,200 tonnes), meaning its share dropped back to 80%. This is two percentage points below a year earlier, although still above 2016 levels. The UK’s share of this trade nonetheless still increased to around 6%, with volumes nearly 50% higher than in the first half of 2018 at 6,500 tonnes.
As with pork, average import prices were higher in Philippine terms but lower from a European perspective. As such, the value of this trade to the EU increased 14% to reach €78.2 million during the first six months of the year.
Competing on the Philippine market could become increasingly challenging for the EU, as prohibitive tariffs on shipments on US pig meat to China encourage higher shipments to alternative destinations. As a higher value market for offal, the Philippines is likely to continue to be a target market.
Bethan Wilkins, Analyst
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