by Reuel John F. Lumawag, Sunstar Davao
THE buying price for bananas exported to China has dropped in the recent months to less than P100, an industry leader said.
“The prices in China were not as good as they were two months ago,” Stephen Antig, Philippine Banana Growers and Exporters Association executive director, told reporters in an interview at the sidelines of the International Banana Symposium at the SMX Convention Center, SM Lanang Premier, Davao City on Thursday.
He said the buying price per box right now is less than P100 as compared to the past two months when it reached $16 per box.
Antig said the drop in the buying price for bananas can be attributed to an over-supply of bananas in the Chinese market.
“And most likely, China has started to produce their own bananas. They are also buying their bananas from Ecuador,” he said.
Antig said most of those who will be affected by this are the small banana growers whose main market is China.
“I would say about 95 percent of the small growers are shipping their bananas to China,” he said.
To address the problem, Antig urged banana growers and exporters, particularly the small growers and exporters, to explore the other international markets like Japan, the United States, and Russia.
“The prices in Japan are quite steady and the volume in Japan has not also gone down,” he said, adding that the buying price of banana in Japan is currently at $5 to $6.
Antig said the group is also looking into new markets like Russia, former Soviet nations like Ukraine, and the United states.
“We requested the government through the Department of Trade and Industry and the Department of Agriculture to arrange outbound missions to talk with [potential] importers and know their demand,” he said.
He said knowing the demand of the potential markets will help banana growers and exporters on their expansion or plantation plans.
As for the US market, they have already made a trial shipment of around 3,000 boxes in September last year.
“We are hoping to be able to ship a few more before the end of the year,” Antig said, adding that Philippine bananas were well accepted in the US.
He also said with the expected full recovery of the banana industry from Typhoon Pablo by the first and second quarter next year, the industry will be able to cater and supply both the current and new markets.
Source: SunStar Davao