Japan and Korea should provide valuable alternative outlets for Philippine banana exporters as competitors face challenges
Philippine banana exporters have turned to key markets Japan and Korea to take some of the excess volume typically absorbed by the Middle East.
The Middle East accounts for around 12 per cent of Philippine banana exports, but conflict in the Gulf has restricted access. Japan and Korea are the top two destinations for Philippine bananas and the industry believes they can take more volume.
According to a report from The Star, Agriculture Secretary Francisco Tiu Laurel Jr said the Philippines was well-positioned to divert volume to closer markets, particularly as competitors such as Ecuador are also dealing with rising costs.
“Our exporters can shift their supplies to nearby countries since other suppliers like Ecuador and Mexico are facing much higher freight costs,” Tiu Laurel told One News.
Pilipino Banana Growers and Exporters Association (PBGEA) executive director Stephen Antig said it is plausible for Philippine exporters to shift more fruit to neighbouring markets.
However, he noted local exporters and growers were still subject to the same rise in input costs and freight rates.
PBGEA has appealed to the Philippine government s to waive certain fees and defer minimum wage hikes to help them cope with the market disruptions.
