Philippine Banana Exports Dropped 31% in 2021
In 2021, Philippine bananas reached a record low export value since 2017. USD 1.1 billion in Philippine bananas were exported in 2021, which is USD 521 million less than the export value in 2020. The 31% decrease in exports for 2021 marked the second year in decline, after the country faced an 18.3% banana export decrease in 2020.
Source: Business Mirror
In terms of banana export volume, the country faced a larger decrease of 36.5%, going from 3.8 million metric tons exported in 2020 to 2.4 million metric tons in 2021.
In 2021, Japan was the top importer of Philippine bananas, accounting for 38.1% of total exports. Japan imported 923,060 metric tons of Philippine bananas, which is 34.8% less than the 1.4 million metric tons imported in 2020. China was the second-largest importer of Philippine bananas in 2021, holding 37.5% of the total export market. China decreased its import volumes of Philippine bananas by 25% from 2020, establishing an export volume of 907,440 metric tons in 2021. South Korea was the third largest importing market of Philippine bananas holding 11.2% of the market. South Korea also decreased its Philippine banana imports in 2021 by 38% from the previous year.
Source: Business Mirror
Influencing Factors for the Export Decrease
Many factors affected Philippine banana exports both in 2020 and 2021. According to Tridge's Engagement Manager in the Philippines, Warren Cunanan, last year Philippines’ banana exports were mainly affected by COVID-19. During the first quarter of 2021, COVID affected the workforce and created a delay in the harvest. During the second and third quarters, exports were affected in terms of value from the decrease in banana price. The price decrease occurred due to an oversupply of bananas in China because the country started importing higher volumes of cheaper bananas from Cambodia and Vietnam.
Additional factors affecting Philippine banana exports include the investment shift of multinational banana companies from the Philippines to Latin American countries such as Panama. Lately, the Philippines has been losing its market to Latin America due to an increased supply of high-quality bananas.
2022 Philippine banana outlook
The Philippine's agricultural industry did not get off to a great start in 2022 due to the impact Typhoon Rai had on crops in December 2021. Typhoon Rai left USD 266,924 in damage on the agricultural sector, which are still being addressed.
The Philippines Department of Agriculture is striving to help the industry recover by encouraging suitable practices and investing in high-value crops like pineapples and bananas. The Department of Agriculture is aiming to increase production by shifting banana crops to more resilient varieties and investing in post-harvest facilities. Recently, Japan lifted the 100% mandatory testing for Philippine banana exports, which will encourage imports. It is expected that the ministry's efforts and the global decrease in COVID-19 cases will help Philippine banana exports recover in 2022.
Sources
Asiafruit. Banana battle continues for Philippines.
Business Mirror. PHL banana exports down 31%, a 5-year low.
GMA News. Philippines missed agri production target in 2021 — gov’t data.
