PHL banana...

The country’s banana exports to South Korea, the third biggest market of the fruit, declined by 37.99 percent to 270,247.299 MT from 435,827.485 MT in 2020. Value-wise, exports fell by almost 30 percent to $139.281 million from $198.622 million, based on PSA data.

In November last year, local banana exporters urged the government to initiate talks with Japanese retailers as they want to raise prices to offset rising costs.

In a letter to Philippine Agricultural Attaché to Japan Jose I. C. Laquian, the Pilipino Banana Growers and Exporters Association (PBGEA) sought the government’s 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.

Zero duty in Korea

IN October last year, the Department of Trade and Industry (DTI) announced that local bananas will enter South Korea at zero duty following the conclusion of the negotiations for the Philippine-korea Free Trade Agreement.

Trade Secretary Ramon M. Lopez told reporters that South Korea will allow the duty-free entry of Philippine bananas in five years.

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.

“We enjoy a comparative advantage in banana and pineapple, and for this reason, we at the DA invest in the development of the high-value crops subsector through our High Value Crops Development Program. Undoubtedly, high-value crops can provide farmers and their families, entrepreneurs and other players in the agriculture value chain sustainable income,” Agriculture Secretary William D. Dar said.

Last year, PBGEA revealed that the Philippines is losing market share in key banana markets to Latin American producers as well as prospective investments. These, the group pointed out, threaten the domestic banana output, which is considered the second biggest in the world.

The Businessmirror broke the story last year that the Philippines is losing market share for the prized yellow fruit in key Asian markets to neighboring countries like Vietnam and Cambodia, as well as Latin American producers.

Trade map data of the multilateral International Trade Centre analyzed by the Businessmirror showed that the Philippines’s market share for bananas in China, Japan, and South Korea has been shrinking in recent years, as domestic exporters have warned. (Related story: https://businessmirror.com.ph/2021/05/04/ phl-bananas-losing-out-in-asia-tolatin-america-asean-producers/).