According to the International Trade Centre (ITC), Vietnam surpassed the Philippines as the leading banana supplier to China last year. China imported 625,166 metric tons of bananas from Vietnam, while imports from the Philippines decreased to 463,306 MT. This marks the lowest volume from the Philippines in 15 years.
Vietnam's banana exports to China increased by nearly 24 percent from 505,633 MT in 2023, indicating the country's expanding production and export capabilities. In contrast, imports of Philippine bananas fell by 32.45 percent from 685,869 MT in 2023.
The Philippines' share of China's banana market has decreased over the years, dropping from a peak of 70 percent in 2017 to 27.47 percent. Vietnam now holds 37.06 percent, up from just one percent a decade ago.
China, once the top market for Philippine bananas in 2018 and 2019, has become the second largest since 2020. The economic effects of the COVID-19 pandemic and ongoing domestic production issues have contributed to this shift.
Geopolitical tensions in the West Philippines Sea have also affected Filipino banana growers. The Pilipino Banana Growers and Exporters Association (PBGEA) noted that geopolitical challenges exacerbate existing production issues, such as the spread of Fusarium Wilt.
The volatile pricing in China's market has led growers to prefer long-term contracts over spot pricing. Vietnam's banana industry benefits from a larger planted area and additional supplies from Cambodia.
The Philippines is also losing market share in South Korea and faces competition from Latin American and Asian producers. The United Nations Food and Agriculture Organization (FAO) indicated that the Philippines may have dropped to fourth place in global banana export rankings.
Source: philstar Global