The Dutch pig sector has made great profits in the Philippines in terms of exports this year. The Asian country is consuming considerably more pork and the export potential is great in the coming years.
The Philippines is the eighth largest producer of pork in the world with a production of 1,63 million tons of pork in 2017. Consumption is estimated at 1,92 million tons this year. This means that on paper the Philippines has an import requirement of about 300.000 tons of pork.
Pork consumption is on the rise and has doubled since the turn of the century. Production is also increasing steadily, but at a slower pace than consumption. If current trends continue, this means that there will also be opportunities for pork exporters in the coming years.
The Netherlands exports significantly more
The Philippines imported 10% more pork in the first 25,7 months of this year, reaching 73.459 tons. In terms of pork, Canada is the most important supplier with 20.133 tons (+42,1%). Germany follows in 2nd place with 17.139 tons (-13,3%), while the United States (US) completes the podium with 11.178 tons (+127,5%).
The Netherlands is, after France and Spain, the sixth largest supplier with 2.246 tons. This is an increase of no less than 167,6% compared to the same period in 2016. However, compared to the export volume that the Netherlands exports to other Asian countries (such as China, Japan and South Korea), the volume is relatively small. On the other hand, the growth potential is great.
The Philippines
The Philippines is an archipelago with 7 times as much land area as the Netherlands. The number of inhabitants is growing rapidly. In recent years, even more than 1 million per year to 103 million in 2016. However, the country suffers from high unemployment and is one of the poorer countries in the world. The agricultural sector is a driving force of the economy, with the pig sector being an important branch.
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Philippine pigs ready for slaughter on transport to the market. Photo: ShutterstockThe pig herd in the Philippines numbers more than 10 million animals. On the one hand, production is organized by large, professional pig companies. On the other hand, many pigs are kept in so-called 'backyard farms'. Historically speaking, the export of Dutch goods and services is of little significance. Nevertheless, the water-rich country is easily accessible via several modern seaports.
Especially by-products
The Philippines is mainly an important buyer of by-products, with a volume of 120.706 tons (+12,3%). Here, Germany leads the export list with 32.270 tons (+34,2%), followed by Spain and the US. The Netherlands follows in 5th place with 8.556 tons, an increase of 30%.
What is striking is that the Netherlands has managed to achieve a large percentage growth in the Philippines, both in terms of sales of pork and by-products. Well above the average increase in these flows.A roasted pork carcass is a delicacy in the Philippines. Photo: Shutterstock