The Philippines is the largest producer and exporter of bananas in South East Asia, andthe second-largest in the world. Cavendish remains the most-grown variety in the Philippines, accounting for 53% of all bananas, followed by Saba (28%) and Lakatan (10%) varieties. However, during 2020, the country’s banana output fell to a three-year low level, accounting for 9.05 million metric tons.
According to the Philippine Statistic Authority (PSA), banana production started delving in the Philippines in Q2 2020. The decrease in volume is a consequence of numerous diseases in the banana plantations like Panama Tropical Race 4 (Panama TR4), bacterial wilt disease, and Mozaic disease. Besides, the production operation slowed down due to a lack of workers and farmers on the plantation sites due to the restrictions imposed by the local government. The farmers could not properly take care of their banana plantations which intensified the impact of the outbreak of various diseases. In addition, there were several difficulties in crossing borders and fresh bananas from the farms to the packhouses and further to the ports.
In January 2021, Philippines banana exports plummeted by 51%, from 384 thousand metric tons in January 2020 to 186 thousand metric tons. This was one of the steepest declines since January 2006. Banana exports to China fell by 32% in terms of quantity and 30% in terms of the value of exports. Similarly, the volume of banana exports to Japan, South Korea, and Saudi Arabia also fell in January 2021.
According to the FAO Banana Market Review 2020, the Philippines expects to expand its export share from 15.6% in 2019 to 18.6% in the global market by 2029. The banana industry is currently struggling to keep up the high production due to diseases like Panama Tropical Race 4, bacterial wilt disease, and Mozaic disease coupled with lack of harvesting due to the social distancing regulations. It is important to understand how the industry recovers in the coming months and starts working towards becoming the largest producer of bananas in the world.