Banana exports down 21%, climate change to blame
CAMBODIA exported approximately 290,000 tonnes of fresh bananas in 2023, marking a decline of over 21% year-on-year, as reported by the Ministry of Agriculture, Forestry and Fisheries.
Hun Lak, CEO of Longmate Agriculture Co Ltd, explained on January 8 that the drop in exports in 2023 was not due to reduced market demand but rather attributable to climate change.
He confirmed the accuracy of the report, noting that his company's banana exports to China had diminished due to lower yields harvested in 2023 compared to the year prior.
"Market demand still exists, and prices are good, but yields are declining due to weather and technical issues, especially in large plantations heavily affected by these problems. Large farms encounter technical difficulties in providing agricultural inputs due to climate change," he said.
Lak added that when farms are impacted by severe weather phenomena like El Nino, which lead to soil moisture depletion due to water scarcity, it results in increased pest problems, rendering the use of pesticides less effective.
"The decline is due to output, not the market. Shipping costs remain reasonable, while expenses are not high. In general, climate change will become more problematic in the future, making the direct agricultural sector more vulnerable. This is why global intervention is necessary because the issue affects not only Cambodia but the entire world," he explained.
He also noted that the yellow banana exported to the Chinese market is a unique variety that has superior taste compared to others.
He said to maintain its quality, it should be harvested when still dark green and can be transported over long distances as it is able to be stored for nearly two months.
According to Lak, another important factor affecting the stability of the market price is the Russia-Ukraine conflict, which has disrupted the global economic situation, including China, the largest importer of the commodity from ASEAN countries.
Ministry spokesperson Im Rachna previously highlighted that over 90% of Cambodia's fresh bananas, as well as some potential crops, were exported to the Chinese market.
She noted that discussions between the two nations on expanding further exports of various agricultural products continue.
"China is the largest market for Cambodia's potential agricultural products, not only for fresh banana but also for milled rice, cassava and mango. Exports of banana and other agricultural products to China have made an important contribution to the development of Cambodia's agricultural sector," she said.
Regarding the issue of climate change caused by El Nino, Rachna said the ministry has been urging all professional units, particularly the provincial agriculture departments, to pay close attention to timely interventions aimed at mitigating the impact and damage caused by pests and diseases on various crop types, not limited to banana.
According to the ministry, the Kingdom had more than 16,000ha of banana plantations. Provinces with the largest banana cultivation include Ratanakkiri, Kratie, Stung Treng, Kampot, Kampong Cham and Kampong Speu.