Bananas and Food Security - Bioversity International

452 Les productions bananières / Bananas and food security – Session 2
The ability to open up new markets has renewed the vitality in the fresh banana export
sector, showing growth of more than 45% in the 1990-96 period.
The export of banana chips has also been characterised by stupendous growth. From
a mere 975 tons of exports in 1977, this has grown to 17,405 tons in 1996. Today, banana
chips are delivered to 39 countries with major markets in Germany, Japan, Hong Kong,
South Africa and United Kingdom. More recently, banana ketchup and flour were
introduced into the export market. Although the volume is still insignificant, it has
opened the market for processed bananas not dependent on the Cavendish type.
As an overall assessment of its performance, Dy (1998) has provided a critical
analysis of the strengths, weaknesses, opportunities and threats (SWOT) of the fresh
banana export industry (Table 5). According to Dy, the country is still a major and
competitive supplier of bananas in the region. Although it is beset by high labour costs,
growing competition, and area limitations, its opportunities in the world market are
many owing to efficient production, market expansion and the rising demand for other
product forms.
Market prospects
The Philippines maintain their dominant position in the banana trade in Asia and the
Middle East but face a tough environment with the entry of new players in the Japanese
market and trade restrictions and regulations imposed by importing countries. Although
traditional export destinations remain a ready market, much of the growth in this sector
Table 5. SWOT analysis of the Philippine banana export industry. 1998.
Item Remarks
Strengths (S)
High quality Most are marketed under global brands
Established marketing system
High productivity Most farms use world class technology
Available areas for expansion Mindanao has the ideal agro-climatic endowments
Weaknesses (W)
High cost of labour Higher than Indonesia and Vietnam
Area limitations LOI 58 and LOI 790
Opportunities (O)
Growing China market The industry has to gear for expansion
Rising demand for other varieties Saba for chips, flour and ketchup
Threats (T)
Market slowdown Stagnant Japanese market partly due to product
substitution. High productivity and quality can
offset labour cost.
Competition costs Other countries have lower land, capital and labor
CARP Lack of land tenure security.
Source: Dy, 1998