Banana imports from the Philippines expected to drop 40%28 Apr 2020
Asia’s banana supply may take a hit in the upcoming months as lockdowns have curtailed the Philippines’ ability to harvest and export its banana crop. The country, which is the world’s second-biggest banana exporter, predicted its banana shipments may tumble from 4 million tons to 2.5 million tons this year.
Bloomberg reported that this 40% decline in exports is a direct consequence of social distancing policies and lockdowns that have prevented growers from harvesting the fruit daily. Stocks of the crop will continue to plunge as long as these measures remain in place.
"Bananas have to be harvested every day," Alberto Bacani, president of Unifrutti Philippines, told Bloomberg. “By the time we come back, a lot of that fruit will be spoiled and will have to be thrown away.”
While the Philippines only accounted for 20% of the global banana shipments last year, it is the primary source of this tropical fruit in Asia where the country provides 90% of the total exported bananas, according to the Food and Agriculture Organization of the United Nations. Japan and China comprise the majority of its export market and will be deeply affected by this decline in available product.
According to reporting by Bloomberg, Japan will be the first to feel the squeeze since many of the farms that export to the island nation have been under extended quarantine measures that limited the growers' ability to bring their fruit to market.
In the coming weeks, not only will there be fewer bananas available for purchase, but those that do make it to foreign supermarkets will likely arrive with a larger price tag that will affect customers. However, consumers are not the only ones that will be economically affected by this plunge in banana shipments. Data compiled by the United Nations show that the fruit accounts for 20% of the country’s total agricultural export value in the Philippines. Having 40% less to export will amount to a financial catastrophe for the South Asian country’s agriculture sector.
To mitigate the damage, Philippines Agriculture Secretary William Dar urged local governments in early April to permit agricultural workers to return to work. If the lockdown was eased before its scheduled April 26 termination, the country predicted it could export 3 million additional tons of bananas this year. The Philippine government did not lift the lockdowns in banana producing regions of Luzon and Bukidnon earlier than scheduled, according to Al Jazeera.
While the dearth in banana exports could be supplemented by purchasing the crop from alternative exporters like Guatemala, Costa Rica and Ecuador, it is unlikely that this will significantly help prices. All over the world, labor shortages are causing producers to leave harvests in the fields and supply chains are bottlenecked because of transportation constraints.
Frito-Lay releases its new U.S. Snack Index, shows summer trends
29 May 2020
Frito-Lay’s annual snacking index reveals that 86% of Americans believe their summertime activities, and consequently their snacking habits, will be different this year due to COVID-19. Typical snacking occasions like group gatherings are not anticipat...Read more
Nestlé plans $100M plant-based manufacturing facility in China
27 May 2020
Swiss food giant Nestlé recently announced that it will invest 100 million Swiss francs ($103 million USD) to open a plant-based food manufacturing facility in the Tianjin Economic-Technological Development Area (TEDA), which is 72 miles outside of Bei...Read more
Malaysian firm develops package-less packaging
26 May 2020
A group of Malaysian Ph.D. students won the Institution of Engineering and Technology (IET) Save our Seas global engineering challenge with their new bagless approach to food packaging called the PICAS block. The competition is hosted in partnership wi...Read more
Mintel: coronavirus spurred French consumer toward local and functional foods
25 May 2020
After two months of strict confinement in France, market insights firm Mintel discovered that French consumer preferences have shifted to favor both local products and functional foods in a more pronounced manner than before the government enacted quar...Read more
Report: Frozen Food sales to remain strong post-COVID 19
21 May 2020
March represented the peak for all frozen food sales in the U.S. with dollar figures rocketing 94% above the levels for the same time last year. However, things cooled off in April where volume sales were 30% to 35% above the same period last year. Ove...Read more
U.S. online grocery sales surge 37% in April
21 May 2020
April was another record-breaking month for online grocery sales with shoppers surpassing March’s record-breaking $4 billion in sales to spend $5.3 billion for grocery delivery and pickup. This is a 37% increase over March, according to data from Brick...Read more
COVID-19 may permanently change how we buy alcohol
21 May 2020
Online sales of alcohol are skyrocketing due to restrictions on movement that inhibit consumers from enjoying their favorite cocktails outside the confines of their house and deter in-person trips to the supermarket. According to data from Nielsen, e-c...Read more
Ethanol shortages may affect the shelf life of packaged foods
20 May 2020
As demand for fuel has collapsed during the pandemic, so too has ethanol production – which is blended into gasoline – and its byproduct CO2. Due to CO2’s integral role in food production, fears about a shortage of carbon dioxide have spurred predicti...Read more
Stakeholders send letter to European Commission asking for standardized labeling across Europe
19 May 2020
A coalition of nearly 40 food and beverage industry titans sent a letter to the European Commission’s Commissioner for Health and Food Safety on April 27 calling for mandatory EU-wide adoption of consistent front of package labeling to combat the risin...Read more
Hong Kong compostable food packaging startup lands $6 million funding round
18 May 2020
Hong Kong startup Ecoinno received US$6 million in Series A funding from the Alibaba Entrepreneurs Fund to help stand up its manufacturing facilities as well as increase its overall production of its biodegradable packaging. This is the startup’s secon...Read more
Are you a supplier
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation