THE country’s shipments of cut flowers jumped to over $690,000 trade surplus in 2024, maintaining its position as a net exporter of the commodity, according to a unit of the University of Asia and the Pacific (UA and P).
In its latest briefer, UA and P Center for Food and Agribusiness (CFA) Research Assistant Cy P. Reyes said the Philippines exported cut flowers worth $705,000 last year, while imports stood at $12,000, resulting in a trade surplus of $693,000.
Cut flowers are blooms or buds that were severed from plants for decorative purposes.
‘This positive trade balance indicates that the country remains a net exporter of cut flowers,’ Reyes said.
‘Exports reflect robust local production, while imports reveal supply gaps due to seasonal or unavailable flower varieties, indicating the industry’s competitiveness and potential.’
Reyes said the country’s cut flower output rose to 9,730 metric tons (MT) in 2024 from about 8,960 MT in 2020.
However, he noted that data showed a slight dip in production in the last two years owing to weather-related shocks.
While the commodity’s shipments in terms of volume steadily declined year-on-year from 2020 to 2024 at an average rate of 9.1 percent, Reyes noted that the value of exports posted an average annual growth rate of 93.2 percent in the same period.
Thailand was the Philippines’ largest export market for cut flowers last year in terms of value, accounting for 39.2 percent of total shipments, he said.
In terms of volume, he noted that Japan and the United States were the country’s top export destinations, with each accounting for 36.9 percent of the total export volume.
‘These figures highlight the Philippines’ strong regional trade linkages in Asia and its expanding presence in established global markets in Europe and North America, demonstrating both the scale and value of the country’s cut flower exports and the growing international competitiveness of the industry,’ Reyes said.
Meanwhile, he noted that exports peaked in 2021 when it reached $1.89 million, before declining by 71.7 percent to $536,000 in 2022.
He added that the downtrend trend persisted in subsequent years, with export volume slipping further to $705,000 by 2024.
‘This continued decline after 2021 indicates a slowdown in export activity, which can be attributed in part to the supply limitations previously identified as one of the challenges for the industry,’ Reyes said.
Despite the uptrend in production, Reyes said the industry continues to face high costs of infrastructure, such as greenhouses, irrigation systems, and post-harvest facilities.
He added that the industry also deals with increasing vulnerability to the unpredictable effects of climate change.
‘Extreme weather events such as storms and floods disrupt production cycles, leading to irregular supply and fluctuating prices,’ Reyes said.
However, he noted that there remains growth opportunities amid these challenges.
‘Cut flower exports have been growing, which indicates that the industry has the capacity to improve production, quality, and competitiveness in the global market,’ Reyes said.
‘Aside from this, the overall production trend suggests that domestic demand remains stable and that producers continue to respond to market opportunities both locally and abroad.’