According to the latest data released by the Philippine Statistics Authority, the Philippines recorded a significant improvement in its agricultural trade balance during December 2025. The agricultural trade deficit contracted sharply by 26.9 percent year-on-year, reaching US$668.35 million. This notable reduction was primarily fueled by robust export performance outpacing a decline in import demand, marking a positive trend for the sector.
Export Growth Outpaces Imports
The sharper contraction in the trade deficit followed smaller reductions of 10.8 percent in November 2025 and 10.7 percent in December 2024, indicating sustained momentum in agricultural exports. Total agricultural trade for the month edged up modestly by 1.7 percent to $2.44 billion. Exports rose to $884.77 million, accounting for 36.3 percent of the total trade volume, while imports declined to $1.55 billion, representing 63.7 percent.
Strong Performance in Export Earnings
Agricultural export earnings experienced a substantial surge of 19.3 percent year-on-year, contributing 12.7 percent to the country's total exports. The top ten commodity groups generated an impressive $863.37 million, which constitutes 97.6 percent of all agricultural exports. Leading the pack were shipments of edible fruits and nuts, which reached $329.72 million and represented 37.3 percent of the total export value.
Key Export Destinations and Products
Exports to the Association of Southeast Asian Nations (ASEAN) region reached $97.05 million, with Malaysia emerging as the top destination at $58.09 million. Key products shipped to ASEAN included animal or vegetable fats and oils, tobacco products, and miscellaneous edible preparations.
Shipments to the European Union totaled $220.40 million, led by the Netherlands with $154.41 million. Major exports bound for the EU were fats and oils, preparations of meat or fish, and processed fruit and vegetables.
Decline in Agricultural Imports
Meanwhile, agricultural imports fell by 6.2 percent to $1.55 billion, equivalent to 14.8 percent of total Philippine imports. Cereals remained the largest import item at $234.18 million. Imports from ASEAN reached $488.12 million, led by Indonesia, while EU imports amounted to $127.59 million, with Spain serving as the top supplier.
This data highlights a strengthening agricultural export sector in the Philippines, with diversified markets and product lines driving growth. The reduction in the trade deficit reflects improved competitiveness and market access for Filipino agricultural goods on the global stage.
