Fruit exporters bag $603 million orders in China expo

MANILA, Philippines — The Philippines has already secured purchasing agreements worth $603 million, particularly for fresh fruits such as bananas and durian, at the China International Import Expo (CIIE).

In a virtual media briefing, Ana Abejuela, the Agriculture Counselor at the Embassy of the Philippines in Beijing, said most of the purchase agreements generated for the CIIE, which will run until Nov 10, are for the country’s major fruit exports to China.

“So as of yesterday [Nov. 6] at CIIE, we were able to produce a little over $600 million [worth of purchasing agreements] and most of these are fresh fruits. And of course, the largest is still bananas, and then followed by durian.Then we have also pineapples and also banana chips,” she said, noting that coconut products were also covered.

Data from the International Trade Center (ITC) showed that the Philippines is the largest source of China’s banana imports, accounting for 41 percent of imports last year ,worth $476 million.

Abejuela also noted the interest of the Chinese market for durian.

“We see that the market for durian is huge in China and we have these opportunities, “she said, adding that the country has gained market access for the fruit earlier this year.

However, she emphasized that volume remains a challenge for the Philippines in terms of durian exports to China.

“Volume has always been a challenge for all our fresh and processed food products to China,” she said, explaining that China makes bulk container orders.

To address this, she explained that the Department of Agriculture (DA) plans to implement a durian production program, which is aimed at expanding the production area of the fruit in the country.

“So next year, the plan for expansion is a little more than 4,000 hectares. The DA will give planting materials,” she said.

Davao City’s Durian Industry Association president Emmanuel Belviz said the challenge with the durian industry is that the majority of it is composed of backyard farmers.

“Because of this export market,we’re trying to fix the mindset of the farmers to be more entrepreneurial,” he said.

He stressed the need to focus on production and improving the quality of the product to be able to capitalize on the opportunities for export.

The Philippines earlier witnessed the strong demand for its durian products in the Chinese market when it participated in the China-ASEAN Expo (CAEXPO) in September.

Data from the DTI-Center for International Trade Expositions and Missions (CITEM) showed that the Philippines generated $5.4 million in sales from fresh durian during the expo, accounting for more than half of $10.36 million total sales raised.

In April, the Philippines successfully delivered its first shipment of fresh durian to China, signaling the activation of the agreement for direct market access between the countries during the state visit of President Marcos in January this year.

“The top sales performance at CAEXPO 2023 of durian exhibitors from both retail and wholesale buyers reinforces the growing demand for the local durian variety in the global market. The Puyat variety from Davao boasts of a richer flavor profile than regional counterparts with its creaminess on top of its expected sweetness,” the CITEM said.