BANANA INDUSTRY output is recovering to near 2012 levels, and growers believe they may be in position to compete again in traditional export markets with some help from the government in negotiating lower tariffs.

“We are recovering in volume production. No estimates yet but I believe it will be higher than last year,” Pilipino Banana Growers and Exporters Association, Inc. (PBGEA) Executive Director Stephen A. Antig said in an e-mail interview.

Mr. Antig noted that the industry has been losing ground since 2012 as banana producers in Latin America have been encroaching into traditional markets such as Japan, China, South Korea, New Zealand and the Middle East.

He also noted that big markets such as Japan have granted competitors market access without duty while Philippine bananas are levied an 8.4% tariff during the off-season for Japanese fruits. An 18.4% tariff is levied in season.

“To regain our market share we will produce and export more bananas with the highest quality we can muster,” Mr. Antig added.

The Philippine Statistics Authority (PSA) said banana output in 2016 was 4.64 million metric tons (MT).

The 2016 output closely matches 2012’s 4.69 million MT, just before Panama disease and typhoon Pablo (international name: Bopha) hit banana farms, pulling down output to 4.23 million MT in 2013.

PBGEA is also looking forward for government assistance in easing trade barriers, with talks expected to start next year.

The PSA estimates that the value of banana exports in 2016 was $617.53 million on a free-on-board (FOB) basis, down 6.1%.

During the first nine months of 2017, exports declined 0.4% to $488.84 million FOB.

In September, banana exports fell 38.7% to $58.73 million.

“This encroachment into our markets have been raised with the Departments of Agriculture (DA), Trade (DTI) and Finance (DoF). DA and DTI informed us that tariff issues will be taken up next year in the first quarter,” Mr. Antig said. — Janina C. Lim 

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