Banana exporters are looking at new markets for Cavendish bananas in anticipation of a possible production surplus, once the industry recovers by the end of this year from the destruction of typhoon Pablo in 2012.
“Most of the banana growers in the region expect a surplus and are looking at new markets to combat a possible drop in the price of bananas,” Stephen A. Antig, executive director of Pilipino Banana Growers and Exporters Association, Inc. (PBGEA), said.
The most likely options are the growing economies of Kazakhstan, Kurdistan and Kyrgyzstan.
PBGEA’s top five export markets are Japan, China, South Korea, Iran, and Saudi Arabia, but the industry is looking at the possibility of increasing the shipment volumes to other established markets like the United States, Russia and Europe.
Annually, the industry — largely composed of PBGEA member firms — ships out roughly $700 million worth of bananas.
Ireneo D. Dalayon, chief executive officer of the Federation of Cooperatives in Mindanao (Fedco), composed of independent banana growers, said members of the group are set to meet in Davao this month with Japanese executives from Marunaka Ltd., one of the largest fruit importers in Japan, to discuss additional exports not only of bananas but also of mangoes. Marunaka, which has been trading with Fedco since 2001, was one of the members of the Japanese Banana Importers Association that briefed Davao independent banana growers during a 2009 business mission to Japan.
“We are also set to negotiate with Marunaka about a possible increase in the buying price of bananas,” Mr. Dalayon said.
The Japanese buyers, who pay $7/box, are willing to increase their buying price so as not to lose Philippine banana suppliers to China, which buys Cavendish bananas at a much higher $10/box.
Bureau of Plant Industry data shows that new markets for bananas in 2012 included Pakistan, Belarus, Bulgaria, Mongolia, Netherlands, Ukraine, Syria and Germany.
Source: Business World Online