Hebei Woldi Trading Co.,LTD

Hebei Woldi Trading Co.,LTD

Overview of Agriculture and Fertilizer Demand in the Philippines, with a Directory of Local Agrochemical Enterprises and Distributors attached!

2023 08/07

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Overview of Agriculture in the Philippines



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Agriculture is an important part of the Economy of the Philippines' economy. 40% of the labor force lives on agriculture, and the agricultural output value accounts for 20% of the national GDP. Agricultural land accounts for approximately 42% of the country's land area. According to the latest estimate by the Food and Agriculture Organization of the United Nations in 2020, the agricultural land area in the Philippines is 12.675 million hectares, of which about one-third is for food use and two-thirds is for other agricultural uses.



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▲ Figure 2: "Philippine agriculture is the backbone of the economy. It forms the foundation of food and nutritional security and provides raw materials for industrialization." - Philippine President Duterte

The Philippines has abundant agricultural resources, mainly producing agricultural products such as rice, coconuts, corn, sugarcane, bananas, pineapples, and mangoes. Among them, rice is the most important food crop in the Philippines, accounting for a relatively large proportion in agricultural production; The main Cash crop are coconut and sugarcane.



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▲ Figure 3: Typical Crop Planting Area in the Philippines in 2021 (10000 hectares)



Data source: FAO database, Tianyu Agriculture

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▲ Figure 4: Typical crop yield in the Philippines in 2021 (10000 tons)



Data source: FAO database, Tianyu Agriculture



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Production and consumption of fertilizer in the Philippines



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According to data from the Philippine Fertilizer and Pesticide Administration, except for a small amount of secondary processing fertilizer production, its agricultural fertilizer needs mainly rely on imports.



Taking 2022 as an example, the Philippines consumed a total of 2.518 million tons of fertilizers, of which 368300 tons were domestically produced, accounting for 14.6%; Imported 2.1744 million tons, accounting for 86.4%.



Its domestic production is mainly based on binary and ternary compound fertilizers. In 2022, the Philippines produced 216600 tons of 14-14-14 ternary compound fertilizers and 42500 tons of 16-20-0 nitrogen phosphorus binary compound fertilizers, accounting for 70.4% of the domestic fertilizer production; In terms of imports, nitrogen fertilizers are mainly used. In 2022, the Philippines imported 649100 tons of urea and 613700 tons of ammonium sulfate, accounting for 58.1% of all fertilizer imports.



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▲ Figure 5: Filipino Fertilizer Production Import and Export Balance Table in 2022 (Unit: 10000 tons)



Data source: Fenghuo Platform





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Source of Filipino Fertilizer Import



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In 2021, the Philippines imported approximately $769 million in fertilizer products, with the top ten import sources being China 33.9%, Malaysia 16.5%, Indonesia 14.8%, South Korea 6.04%, Canada 5.7%, Qatar 5.15%, Norway 3.81%, Vietnam 3.34%, Japan 2.94%, Jordan 1.88%, and CR10 market share of 94.06%. This indicates that the Philippines has a relatively concentrated source of fertilizer imports, with China as its largest fertilizer supplier.



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▲ Figure 6: Distribution of Fertilizer Import Sources in the Philippines in 2021




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Changes in Filipino Fertilizer Imports



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Before 2021, the Philippines will spend approximately



Compound Fertilizer, Monoammonium Phosphate, Nitrogen Fertilizer, Phosphate Fertilizer, Potassium Chloride, Potassium Fertilizer, Potassium Sulfate


Compound Fertilizer, Monoammonium Phosphate, Potassium Chloride, Potassium Fertilizer, Potassium Sulfate