THE banana plantation industry in Mindanao, a key contributor to the Philippines' exports, may face challenges after Vietnam recently surpassed the Philippines to become China’s top banana supplier. This shift marks the end of the Philippines' two-decade-long dominance in the Chinese market.
Pilipino Banana Growers and Exporters Association (PBGEA) Executive Director Stephen Antig confirmed to SunStar Davao on Tuesday, March 4, 2025, that the latest data from the International Trade Centre (ITC) showed that Vietnam, for the first time, overtook the Philippines as China’s top supplier of bananas in 2023.
Antig explained that this development was primarily due to the Panama disease, pathogens, and other diseases affecting crops, further limiting the availability of banana plantations in the region.
“The reason nga [naungusan] tas Vietnam kay dako ang hectares planted for bananas bisag naigo na sila sa Panama disease and kasagaran pud nga mga farmers sa Vietnam gikan sa China,” the association’s official stated in a phone interview.
“Possible effect ani, maigo gyud ang mga small growers [sa atoa] kay major market nila kay China, dili parehas sa mga dagko na banana companies naa silay Middle East so pwede sila makadula kung asa ang dako na presyo,” he said.
(The reason why Vietnam surpassed us is that they have a wide hectareage planted with bananas, even though they’ve been affected by Panama disease. Most of the farmers in Vietnam also came from China. The possible effect of this is that small growers in our country will be greatly impacted because China is their major market. Unlike large banana companies, which also have access to the Middle East, they can shift to where the prices are higher).
When asked about the current situation of banana plantations in the region, Antig explained that 95 percent of the country's banana exports, which mainly come from five regions in Mindanao, including the Davao Region, will be significantly impacted.
He noted that the top banana varieties produced for export are Cavendish, followed by Saba and Lakatan.
Antig revealed that there are also challenges faced in shipping to China, citing the volatility of prices as a major issue. Unlike in Japan and Korea, where long-term price agreements are established through contracts, the Chinese market is much more unpredictable.
As a result of Vietnam’s growing dominance in banana exports, the Philippines is expected to face stiffer competition in the Chinese market, which could negatively impact the export sector.
According to recent data from the International Trade Centre (ITC), Vietnam surpassed the Philippines as China’s top banana supplier for the first time last year.
China imported a record 625,166 metric tons of bananas from Vietnam, while imports from the Philippines dropped to 463,306 MT, the lowest in 15 years.
Vietnam’s banana exports to China grew by nearly 24 percent from 505,633 MT in 2023, reflecting its increasing production and export capacity. In contrast, imports from the Philippines fell by 32.45 percent from 685,869 MT.
Over the years, Vietnam has steadily eroded the Philippines’ share of China’s banana market, which imports around 1.8 million MT annually. From a peak of 70 percent in 2017, the Philippines now holds just 27.47 percent of China’s banana imports.
Meanwhile, Vietnam’s share has surged to 37.06 percent, up from just one percent a decade ago.
China remains one of the Philippines' top three banana markets, having been the largest in 2018 and 2019 due to improved relations under the Duterte administration.
In 2024, SunStar Davao reported that government and banana industry stakeholders in Mindanao are working on legislation to revitalize the country’s struggling banana sector. They also aim to introduce a bill addressing industry challenges.
“We are currently drafting a bill to revitalize the Philippine banana industry, and once ready, we will ask a congressman to sponsor it,” Antig shared at the Business Matters Forum.
Antig emphasized the need to establish modern facilities for Mindanao’s banana industry. He also mentioned lobbying the Department of Agrarian Reform to amend the Agrarian Reform Law, particularly the five-hectare limit for banana cultivation, which he believes is inadequate for the crop. Although there has been no feedback on the amendment, he remains committed to continuing the effort.
Antig noted that, of the 89,000 hectares originally designated for banana agriculture, only 15,000 have been utilized. DEF