Price haggling mushes PHL search for new banana markets

Philippine banana exporters face extensive price haggling from prospective buyers in their search for alternative markets, the Philippine Banana Growers and Exporters Association revealed on Thursday.   “Obviously, these countries have gotten wind of the incident with China. They know we have excess output here. They keep on haggling down to lowest price possible. Babaratin ka talaga,” Steve Antig, the group’s president, told reporters on Thursday.   Chinese buyers supposedly bought Philippine bananas from the standard P200 to P300 per box before the Panatag Shoal standoff, according to the association.   They and other potential buyer like Middle Eastern countries, Russia and now are now undervaluing the commodity at P60 to P120, the association added.   Still, institutional buyers like Japan, New Zealand and Korea have maintained the standard prices for Philippine bananas, it noted.   Amid the months-long standoff between Manila and Beijing over a territorial dispute involving Panatag Shoal in West Philippine Sea since last April, the Chinese government enforced stricter pythosanitary measures on banana imports from the Philippines – even citing that the produce were bug-infested.   Antig and the association were part of the trade mission scouting for additional markets for Philippine bananas.   Although the trade mission was declared as “generally successful” after closing several deals, Antig noted that the transactions were wobbly as importers capped the price ceiling well below the standard.   "We're out there for business. We've considered offers and most of them were break-even only. We're not sure how long we can keep up with this set-up," he claimed.   The group marketed Philippine bananas in Dubai, Rome, Brussels and a city in the Netherlands.   Another trade mission is scheduled to scout for new markets before the year ends, the association said.   Some companies have started retrenching employees to keep the business going, Antig noted.   “It’s either they reduce manpower or they reduce the hectarage and volume. Though a reduction in hectarage would also mean a reduction in the people working on the plantation,” he said.   If things do not turn out well for the industry – despite government intervention – a lot of companies will be closing their businesses soon and possibly shift focus to other more profitable crops, the according to the association.   “We do not have a choice, either way we have to bit the bullet,” Antig noted.   Although the import volume from China has dropped significantly due to the quarantine issue, some Chinese importers were reportedly buying RP bananas at prices below prevailing market price, the association said.   Earlier, Trade Secretary Gregory Domingo affirmed that China remained a valuable market for Philippine bananas.    To aid small banana growers, the President allotted some P50 million to post-harvest packing facilities that comply with international standards. — RRD/VS, GMA News