Advantages of Philippines Tropical Fruit Supply Agreement

After the pandemic, some Philippine pineapple and banana buyers negotiated contracted volumes and prices of fruits due to the high rate of ocean freight and newly opened trucking routes. The advantage of the contract price from major corporate growers and exporters is the assurance of competitive volume, quality, and price. Pre-pandemic prices are 20-30% higher than the contracted prices of bananas and pineapples this year. Market players with data about the current market price will be at an advantage, as spot price and volume will only help to gain market share with a minimal 10-15% margin.