The Pilipino Banana Growers and Exporters Association (PBGEA) said Philippine bananas may be losing their share in the world market owing to various issues, including high tariffs, plant infections, rising competition and government-subsidized efforts by Latin American producers to enter traditional Philippine markets.
In an ironic twist, the Philippines – a top exporter of bananas during the 1970s – hit a 5-year low on banana exports in 2020, while imports from world suppliers have steadily increased.
Despite a 14.38 percent contraction in total volume, the Philippines in 2017 remained at the world’s second top exporter of banana for the third consecutive year as it shipped 3.725 million tons of the prized yellow fruit.
In October 2020, the Philippine Statistics Authority (PSA) reported a 10 percent drop in banana exports over the first seven months, with the export value falling from $1.1 billion to $1 billion.
The Chinese market has seen the most marked decline, with Japan once again replacing China as the largest export market for Philippine bananas.
China had been the top export market for Philippine bananas since 2018.
PSA statistics reveal that banana exports to China surged from 748,500 tons in 2017 to 1.27 million tons in 2018, corresponding to a 70 percent increase. This rapid growth continued in 2019, with a 40 percent increase.
However, the first seven months of 2020 have seen a reversal of this trend, with purchases of Philippine bananas by China falling by 30 percent to $287.4 million, compared to last year’s $408.2 million.
Banana shipments to China fell from 943,464 tons to 714,740 tons, a year-on-year decline of 24.2 percent.
But exports to Japan rose by 12 percent year-on-year, from $406.8 million to $455.1 million.
Thus, Japan accounted for almost half of the total value of banana shipments during this period and surpassed China — a position it had held for 30 years prior to 2018.
Losing market
The Pilipino Banana Growers and Exporters Association (PBGEA) said Philippine bananas may be losing their share in the world market owing to various issues, including high tariffs, plant infections, rising competition and government-subsidized efforts by Latin American producers to enter traditional Philippine markets.
With declining exports and tight global competition, the Philippines has renewed talks with the Australian government to gain market access for Philippine bananas after a 20-year ban.
While Australia is likely to be a small market owing to the existing domestic banana industry, Philippine bananas could maintain a competitive advantage in terms of price.
In 2021, the Philippines’ exports of its prized bananas last year plunged by 31 percent to a five-year low of $1.123 billion as the industry was plagued with a logistical problems and stiffer competition, resulting in lower volume of shipments.
The double-digit decline of banana exports last year marked the second consecutive year of sagging performance by one of the country’s top agricultural products.
PSA data obtained by the Business Mirror showed the country’s full-year banana exports last year was $521.012 million lower than the $1.644 billion recorded in 2020.
The value of total banana shipments last year was lowest since the $1.128 billion recorded in 2017, PSA data also showed.
The total volume of bananas exported by the Philippines last year reached 2.419 million metric tons (MMT), which was 36.46 percent lower than the 3.808 MMT recorded volume in 2020.
Likewise, historical PSA indicated the volume of banana shipments last year was the lowest in the past five years.
Japan was top market in 2021
Japan was the country’s top importer of bananas last year, accounting for 38.14 percent of the total volume of exports last year, per PSA data.
The Philippines exported 923,060.755 MT of bananas to Japan last year—34.75 percent lower compared to the 1.414 MMT recorded in 2020.
Banana exports to Japan fell by 31.92 percent year-on-year to $486.422 million from $714.517 million.
The PBGEA has already sent a letter to Philippine Agricultural Attaché to Japan Jose Laquian seeking government support in seeking higher prices for Philippine bananas.
The move, the PBGEA said, would help the local banana industry cope with the many challenges it faces today, including disease outbreaks and rising production costs.
In a recent statement, the Department of Agriculture (DA) said it will do its best to “maintain” the country’s position as a major exporter of banana by containing the Panama disease.
Last year, PBGEA revealed that the Philippines is losing market share in key banana markets to Latin American producers.
Tags: #agriculture, #exports, #bananas, #worldtrade, #PhilippineBananaGrowersandExportersAssociation