Philippines dislodged as 2nd biggest banana exporter

MANILA, Philippines — Is the Philippines still the second largest biggest exporter of bananas in the world?

Not anymore, as it was overtaken by Guatemala last year, according to the official tally of the United Nations’ Food and Agriculture Organization (FAO).

The Philippines lost its six-year status as the second biggest exporter of bananas despite reversing its sagging trend in shipments in 2023.

The FAO said Guatemala shipped 2.6 million metric tons of bananas last year, about 300,000 MT more than the 2.3 million MT exported by the Philippines.

Ecuador remained as the world’s top banana exporter with 6.2 million MT of total volume last year.

The last time that the Philippines was the third biggest banana exporter in the world was in 2016 when the local industry reeled from drought and spread of pests.

FAO said the country’s banana exports last year were unable to keep up with global market demand due to a shortfall in domestic output caused by the devastating spread of fusarium wilt tropical trace (TR4), a serious banana disease.

Local banana growers also suffered financial strains because of the “substantial” costs they incurred to prevent the spread of TR4.

“Over the past decade, the country’s banana production has been impacted by adverse growing conditions related to various factors, including the spread of TR4, occasional flooding and occurrences of political unrest,” the international agency said in its global banana market review published recently.

Philippine banana shipments last year rose by 3.4 percent year-on-year to 2.3 million MT, driven by higher shipments to Iran and Saudi Arabia, halting three consecutive years of decline from 2020 to 2022.

Nonetheless, the country remained as the top banana exporter from Asia, accounting for more than half of the region’s 4.1 million MT shipment last year, according to the FAO.

On the other hand, Guatemala’s banana industry situation was a stark contrast to the Philippines as the Latin American country saw its exports growing by 17.5 percent year-on-year on the back of favorable production conditions and stronger farm investments.

The FAO noted that Guatemalan bananas remained among the cheapest bananas in the world, with an average export unit of $382 per MT last year.