Banana Market Overview in the Philippines

The revenue of the banana market in the Philippines amounted to $4.2B in 2010, going down by -9.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +11.5% from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The most prominent rate of growth was recorded in 2008 with an increase of 37% year-to-year. Banana consumption peaked at $4.6B in 2009, and then declined slightly in the following year.

In value terms, banana production amounted to $5.8B in 2010 estimated in export prices. Over the period under review, the total output indicated strong growth from 2007 to 2010: its value increased at an average annual rate of +6.7% over the last three years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2010 figures, banana production increased by +46.7% against 2007 indices. The pace of growth appeared the most rapid in 2008 with an increase of 38% year-to-year. Banana production peaked at $6.1B in 2009, and then declined slightly in the following year.

Average yield of bananas in the Philippines amounted to 20 tonne per ha in 2010, flattening at the previous year. The yield figure increased at an average annual rate of +5.7% over the period from 2007 to 2010; the trend pattern remained consistent, with only minor fluctuations being observed over the period under review. The pace of growth was the most pronounced in 2008 with an increase of 16% year-to-year. Banana yield peaked in 2010 and is likely to continue its growth in the immediate term. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

Banana harvested area in the Philippines totaled 449K ha in 2010, standing approx. at the previous year. In general, the banana harvested area continues to indicate a slight increase. The most prominent rate of growth was recorded in 2009 with an increase of 1.8% against the previous year. Banana harvested area peaked in 2010 and is likely to continue its growth in the immediate term.

In 2010, the amount of bananas consumed in the Philippines stood at 6.5M tonnes, coming down by -4.8% against the previous year. The total consumption volume increased at an average annual rate of +5.6% over the period from 2007 to 2010; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2008 when consumption volume increased by 18% year-to-year. Over the period under review, the banana consumption attained its peak figure volume at 6.8M tonnes in 2009, and then declined slightly in the following year.

The revenue of the banana market in the Philippines amounted to $4.2B in 2010, shrinking by -9.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +11.5% over the period from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2008 with an increase of 37% y-o-y. Banana consumption peaked at $4.6B in 2009, and then declined slightly in the following year.

The banana market is expected to start a downward consumption trend over the next twenty years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the twenty-year period from 2010 to , which is projected to depress the market volume to tonnes by the end of .

Over the period under review, imports of banana in the Philippines were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for banana.

This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.