MANILA – The Philippines closed 2025 with a significantly narrower agricultural trade deficit in December, as a surge in farm exports—led by tropical fruits—combined with softer imports to ease pressure on the country’s external accounts.

Agriculture Secretary Francisco P. Tiu Laurel Jr. welcomed the improvement, calling it early proof that the Department of Agriculture’s export diversification strategy is gaining traction.

“We are now reaping the gains of our efforts to widen our menu of farm export products and open new markets,” he said, adding that last year’s export growth strengthens the case for pushing deeper into new destinations and higher-value goods.

Data from the Philippine Statistics Authority showed agricultural exports reached USD884.77 million in December, equivalent to 36 percent of total agricultural trade. Imports stood at USD1.55 billion, or 64 percent of the total, resulting in a trade deficit of USD668.35 million—27 percent narrower than in December 2024.

Exports jumped 19 percent year on year, supported by firmer overseas demand and higher shipment values. Edible fruits and nuts, including citrus and melon peels, dominated outbound trade at USD329.72 million, accounting for 37 percent of total exports.

To broaden the export base, the DA has identified 12 high-value crops for global markets: asparagus, avocado, banana, cacao, calamansi, durian, dragonfruit, mango, okra, pomelo, pineapple, and rambutan. The department aims to target Asian and European markets where Philippine produce has been gaining visibility.

Market access gains were evident in December’s trade flows. Malaysia emerged as the largest Southeast Asian buyer, importing USD58.1 million worth of Philippine farm goods, while exports to European Union countries reached USD220.40 million. The Netherlands absorbed USD154.4 million of that total, reinforcing its position as a key gateway 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.”

On the import side, agricultural purchases fell 6.2 percent year on year, with the top 10 commodity groups down 7.6 percent. Cereals, including rice, remained the largest import item. Analysts said the December data points to a gradual rebalancing in agricultural trade—driven increasingly by export momentum rather than import restraint alone.