Banana chip exports seen to drop by 10%

Exporters of banana chips are projecting a 10 percent drop in shipments this year due to the tight supply  of local “saba” or  “Cardaba.”

According to Ruben See, president of the Manufacturers and Exporters Banana Chips Association of the Philippines (MEBCAP), there was a widespread destruction of Cardaba plantations caused by a series of typhoons last year. This, coupled with  a huge demand for saba in Luzon has resulted in a supply shortage, See said, adding  that “our projection is that there will be a slight decline in our total shipments for this year.”

Last year, MEBCAP reported that its members exported 37 million kilograms of banana chips to China, Singapore, Australia, the United States and the Middle East.

While business is brisk, See said local exporters have to contend with a decline in revenues because of the appreciation of the peso and an increase in production cost.

“To avoid incurring losses because of foreign exchange losses, most of us have decided to book orders on a short-term basis. We book orders for only two months, See said.”

The MEBCAP official added that an increase in the price of coconut oil, which is one of the major costs in producing banana chips, has also cut into the profit margin of exporters.

See denied reports that the reason for the drop in banana exports is due to a ban imposed by China on banana chips from the Philippines. He said the ban covers dried bananas not banana chips. China imposed the ban on dried bananas allegedly due to findings of high sulfur dioxide content. Sulfur dioxide is commonly used as a food preservative.

See pointed out that the same dried banana exports are accepted in Japan.