Foreign Traders Negotiate Directly With Philippine Pineapple Growers as Demand Surges From Gulf and Middle East Regions

The sudden surge in demand for pineapples in the Gulf (UAE and Qatar) and Middle East (Iran) region prompted some foreign traders to negotiate directly with growers in the Philippines. Some will get deals based on the spot market price of FOB USD 8.50-9.50/12kg (Laydown with Crown pack). These foreign traders will use the export license of local traders (via royalty fee). The royalty fee may vary from one trader to the other. The royalty rate per container is around USD 500 together with the additional USD 300 for the documentation, customs/plant quarantine fees, and courier fee. The main challenges for export to the Gulf and Middle East region are the high freight rate and long transit times. On average, the transit to Jebel Ali port in UAE is 21 days. The long transit times will greatly affect the arrival condition of the product. Only a few multi-national companies have post-harvest treatment and facilities that can preserve the freshness of pineapples even for a 3-week journey to market.