The Pilipino Banana Growers and Exporters Association (PBGEA) has expressed concern over China’s mandatory disinfection of food imports as a precautionary measure against Covid-19, as it could hike business costs and affect shipments to the Philippines’s second-largest export market.
PBGEA Executive Director Stephen A. Antig told the BusinessMirror that the shipments of some of the group’s members were disinfected by Chinese officials even if the guidelines are not yet “implementable.”
Citing the Department of Agriculture (DA), Antig noted that China has just submitted the proposed guidelines to the World Trade Organization for comments.
Antig said at least three PBGEA members have reported that their shipments were disinfected in at least two different ports in China.
He said the disinfection of food imports, particularly cold chain food, prior to distribution could pose problems for banana exporters as it will increase their cost and result in the deterioration of the quality of their shipments.
Antig said PBGEA received an English translation of Beijing’s latest guidelines on food imports last week from the Philippine Agriculture Attaché to China.
“If they implement these guidelines it may increase cost and affect the quality of fruits. China’s plan is to spray disinfectant on the boxes of bananas arriving in China and let it dry for 3 to 4 hours in an open area,” he said.
“So, there is a possibility that after spraying six sides of the boxes the disinfectant may seep into the fruits. So what if the chemicals they sprayed have some effect on the health of consumers? Then that will be a problem for us.”
Antig said PBGEA has already raised the issue with concerned DA agencies, but his group is planning to submit a formal letter to Agriculture Secretary William D. Dar.
He said PBGEA will urge the DA to hold a dialogue with Chinese officials on how the guidelines would be implemented and to determine the impact of the rules on banana exporters, particularly on small growers who depend on China.
Antig noted that the guidelines did not specify the entity that will shoulder the cost of disinfection. Also, drying the boxes in an open area for a few hours could mean lost opportunity for exporters, he said.
If problems arise after the disinfection is done in China, Antig expressed concern that the cost may be borne by the importing entity and the exporter.
“If that happens then importers may request price reduction or just pass on the additional costs to their consumers which may affect demand.”
Antig said PBGEA is now in the process of determining the cost implications of China’s new guidelines as well as the scientific explanation on how the disinfection could affect banana shipments. The results would be submitted immediately to the DA.
“We understand why China wants to do it but definitely not at the expense of our export commodity. China is one of our top markets, and a growing market for that matter, and we do not want to lose it,” he said.
China is now the country’s top banana export market after it dislodged Japan as the number one buyer of Philippine bananas in 2018 (See “China wrests Japan’s 30-yr record as top buyer of PHL bananas,” in the BusinessMirror, April 22, 2019).
However, Japan is poised to overtake China as the Philippines’s top banana export market this year as total purchases by Japan at end-September grew 8.8 percent on the back of firmer consumer demand during the Covid-19 pandemic.
Preliminary Philippine Statistics Authority (PSA) trade data showed that banana exports to Japan from January to September reached 1.138 million metric tons (MMT), which was 27 percent over the 893,628.177 MT shipped to China last year.
Latest PSA data showed that the country’s 9-month banana shipments to Japan were 8.8 percent higher than the 1.046 MMT it exported to the East Asian country a year ago. However, banana shipments to China plunged by 32 percent from last year’s 1.178 MMT, PSA data indicated.
PSA data also showed that the value of banana exports to Japan rose by 6.3 percent to $571.283 million while those shipped to China fell by 28.2 percent to $365.363 million.