Philippine banana exporters are assessing alternative markets following disruptions to shipments to the Middle East. Agriculture Secretary Francisco Tiu Laurel Jr. said export volumes can be redirected to Japan and South Korea, the country's main markets for bananas.
"Our exporters can shift their supplies to nearby countries since other suppliers like Ecuador and Mexico are facing much higher freight costs," Tiu Laurel said.
The Philippines is positioning to increase supply to regional markets, with competitors such as Ecuador facing higher logistics costs. According to the Philippine Banana Growers and Exporters Association (PBGEA), diversion of shipments from Iran and other Middle Eastern destinations to Asia is feasible.
PBGEA executive director Stephen Antig said exporters are also facing higher shipping costs linked to fuel prices. He noted that while freight costs are rising across origins, the Philippines may maintain its position relative to other Asian exporters facing similar conditions.
Trade disruptions in the Middle East are expected to reduce export revenues by nearly US$200 million. Some exporters have already suspended shipments to the region following the escalation of the situation.
PBGEA has requested policy support to manage the impact. The group has appealed to Ferdinand Marcos Jr. to waive selected fees and defer minimum wage increases in key producing regions, including Regions 10, 11, 12, 13, and BARMM. It has also proposed suspending export-related charges to reduce operating costs.
Iran, the fourth-largest export destination for Philippine bananas, accounted for 8 per cent of export revenues last year, equivalent to US$97.52 million. Exports to Gulf Cooperation Council countries and Iraq reached nearly US$95.5 million.
The Middle East accounted for 12 per cent of total banana export value, with revenues increasing to US$193 million from US$120 million in the previous year, supported by higher shipment volumes across most markets.
Source: philstar GLOBAL
