As per the Food and Agriculture Organization of the United Nations, the Philippines' Cavendish bananas continue to be the top choice in the Asian market. The "Banana Market Review 2023" by FAO highlighted that the Philippines catered to approximately 60 percent of Asia's Cavendish banana demand. Despite a drop to the third-largest exporter globally, overtaken by Guatemala, the Philippines maintains a strong presence in the international banana market.
The affordability of bananas has kept their demand steady worldwide. According to the FAO, global banana exports, excluding plantains, saw a slight increase of 0.3 percent to 19.3 million metric tons in 2023. This marks a recovery from the 6 percent decline experienced in 2022. Market analysis by Mordor Intelligence anticipates the global banana industry to grow at a compound annual growth rate of 4.5 percent from 2022 to 2027.
However, the Philippine banana industry faces domestic production challenges that could hinder its ability to exploit export opportunities. The FAO report points out that export supply limitations from major producers, including the Philippines, have restricted growth. Issues such as Fusarium wilt Tropical Race 4 (TR4) have significantly impacted production, with up to 18,000 hectares of Cavendish banana plantations affected in the Philippines.
The government's efforts to open new markets and the interest from nontraditional buyers are positive signs. Yet, the FAO's findings emphasize the need for policy interventions to address production inefficiencies and high costs. The Philippine Department of Agriculture's banana industry roadmap, developed under former President Duterte's administration, aims at tackling these challenges, focusing on pest and disease control and reducing production expenses to support especially the small-scale growers.
Source: BusinessMirror