Here is the rewritten content without extra comments and formatted to a single content:
The banana plantation industry in Mindanao, a key contributor to the Philippines’ exports, may face challenges after Vietnam surpassed the Philippines as 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 that Vietnam, for the first time, overtook the Philippines as China’s top supplier of bananas in 2023. He attributed this development to the Panama disease, pathogens, and other diseases affecting crops, which limited the availability of banana plantations in the region.
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.
The top banana varieties produced for export are Cavendish, followed by Saba and Lakatan. However, there are challenges faced in shipping to China, with the volatility of prices being 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, the Philippines is expected to face stiffer competition in the Chinese market, which could negatively impact the export sector. 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.
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. Vietnam’s share has surged to 37.06 percent, up from just one percent a decade ago.
The Philippines is working on legislation to revitalize the country’s struggling banana sector. Antig emphasized the need to establish modern facilities for Mindanao’s banana industry and to lobby the Department of Agrarian Reform to amend the Agrarian Reform Law, particularly the five-hectare limit for banana cultivation.
