The Philippines has been surpassed by Guatemala as the world’s second-largest banana exporter last year, ending the Asian country’s four-year reign as it struggled to maintain its position in major markets in the face of increased competition from Latin American exporters.
The Food and Agriculture Organization of the United Nations (FAO) said that Guatemala exported 2.467 million metric tonnes (MMT) of bananas last year, beating the Philippines’ 2.235 MMT.
According to the FAO, banana output in the Philippines has continued to fall as growers struggle to manage and limit the catastrophic spread of the disease, Banana Fusarium Wilt Tropical Race 4 (TR4)
Besides, FAO stated that Filipino banana producers were hit with a double whammy due to high input and fertiliser expenses in 2022.
“Both developments are reportedly having a particularly detrimental effect on small-scale banana producers in the Philippines, who are struggling to procure the necessary agricultural inputs to meet the quality requirements of export markets,” said the international agency’s preliminary worldwide banana market evaluation study, which was just released.
“Based on available data and information, banana shipments from the Philippines are estimated to fall by some 6 per cent over the full year, to [2.235] million tonnes,” it added. The Philippines exported 2.383 MMT of bananas in 2021, according to the FAO.
FAO data reveals that the Philippines’ total estimated banana shipments in 2022 were the lowest over a six-year period, or since 2017 when it exported 2.725 MMT.
The Philippines restored its position as the world’s second-largest banana exporter in 2018, shipping a total of 3.125 MMT.
As per the FAO, the Philippines has lost significant market share in major destinations such as China. The Philippines, which formerly had a market share of up to 75 per cent, currently accounts for just 38 per cent of total bananas that China imports.
“Imports of Filipino bananas, meanwhile, dropped by a reported 8 per cent over this period due to the continuing production difficulties experienced in the Philippines,” it said.
Apart from being surpassed by Guatemala, the Philippines may fall lower in the worldwide rankings due to the increasing exports of other Central American banana growers.
Colombia, the fourth-largest exporter, delivered an estimated total of 2.125 MMT of bananas last year, only 100,000 MT less than the Philippines.
