Slowing Chinese Demand Threatens Banana Exports From The Philippines

Banana professionals in the Philippines are worried about the repercussions of the coronavirus (nCoV) epidemic in China. Order cancellations, blocking of certain cities, transport difficulties.

 

 

 

According to PBGEA (Pilipino Banana Growers and Exporters Association), Chinese buyers have already started to reduce their volume and for some to cancel them entirely. The blocking of certain cities impacts the consumption of the population and the offer present in the stores which cannot be restocked.

 

 

 

China is the No. 1 market for bananas in the Philippines. This situation could cause the industry to lose around $5.5 million per week.

 

 

 

In addition, it is estimated that banana production in the 1st quarter will increase due to favorable weather conditions, which will lead to an overabundance of bananas.

 

 

 

Data from the PSA (Philippine Statistics Authority) indicated that from January to November 2019, the Philippines exported 1.428 million tonnes of bananas to China valued at $ 599.216 million.