New market eyed for cavendish banana surplus-A A +A
Friday, April 4, 2014
THE Pilipino Banana Growers and Exporters Association Inc. (PBGEA) is considering new international markets to address the possible surplus of cavendish bananas when it recovers by end of 2014.
"The industry is expected to recover by the end of this year however, once we recover there will be a surplus resulting to a drop in prices," said Stephen Antig, executive director of PBGEA.
Supply of cavendish bananas are expected to exceed demand following the simultaneous recovery of cavendish banana producers who were affected by Typhoon Pablo.
"That is the reason why we are finding new markets to address this," he said, adding they cannot identify just yet how much the surplus will be.
Among the options, Antig said, are increasing their shipment volume to the US, Russia, Europe, and other nations where they have established markets.
Players are also considering at the growing economies like Kazakhstan and Kyrgyzstan.
Based on the data of PBGEA, Japan, China, South Korea, Iran, and Saudi Arabia are the top five export markets of Cavandish bananas. However, a decrease in exports was noted in these markets in 2012 and 2013.
Exports in Japan dropped from 26.44 million boxes in 2012 to 22.31 million boxes in 2013; exports to China dropped from 19.14 million to 10.94 million, South Korea from 10.94 million boxes to 6.37 million boxes, Iran from 9.52 million boxes to 5.69 million boxes, and Saudi Arabia from 8.52 million to 6.46 million boxes.
The total cavendish exports of PBGEA in the top 5 destinations dropped from 74.57 million boxes in 2012 to 52.36 million boxes in 2013.
"Once the volume normalizes, we are hoping that we should be able to export 180 to 200 million boxes," Antig said.
As of 2012 report of Plant Quarantine Service, the Philippines is also exporting cavendish bananas to nations Kuwait, United Arab of Emirates, New Zealand, Russia, Singapore, Qatar, Hong Kong, Bahrain, Egypt, Oman, Jordan, Iraq, Malaysia, Indonesia, Brunei, and Thailand.
In 2012, the Philippines penetrated Bulgaria, Belarus, Pakistan, Mongolia, Netherlands, Ukraine, Syria, and Germany.
Published in the Sun.Star Davao newspaper on April 05, 2014.