WPS tension, production woes shrink banana exports to China

Rising geopolitical tensions in the West Philippine Sea is impacting Filipino banana growers as China has cut back its purchases of the country's prized commodity, worsening the erosion of the Philippines' foothold in key Asian markets.

- JASPER EMMANUEL ARCALAS

China's imports of bananas from the Philippines plunged by 49 percent year-on-year as of end-July to 255,636.069 metric tons, based on International Trade Centre (ITC) data.

Thus, the Philippines' share in China's banana market fell to 24.53 percent compared to 37.49 percent during the same seven-month period last year.

With the substantial loss of market share, Vietnam has, for the first time, overtaken the Philippines as the top banana supplier to China.

Vietnam's banana exports to China expanded by 19 percent year-on-year to 438,573 MT, effectively cornering 42 percent of the market.

During the January to July period last year, Vietnam accounted for only 33 percent of the Chinese banana market share.

The Pilipino Banana Growers and Exporters Association (PBGEA) confirmed to The STAR that geopolitical tension between the country and China impacted banana shipments to Asia's largest economy.