Don’t put all your bananas in one basket

So…all those rotten bananas from the China export mess taught Philippine banana exporters a lesson.

Banana Plantation, Photo Source: www.freshplaza.com

A lesson that reminds me of the insurance industry terms, risk management and risk separation, or…. don’t put all your eggs — and bananas — in one basket.

After Japan, China was the 2nd largest market for Philippine banana exports.

In mid-May, China impounded Philippine bananas and instituted strict quarantine measures — which many suspect was really due to the ongoing disputes over the Scarborough Shoals, in the South China / West Philippine Sea.

Philippine banana exporters realized that they cannot rely on just a few export markets, and the industry is now looking at other markets, like Pakistan and countries in the Middle East.

And the good news, the Department of Agriculture announced that Dole Philippines is sending its first ever shipment of Cavendish bananas to the USA.  Cavendish are the common type of banana sold at grocery stores.

Bananas at the grocery store

Ecuador is picking up the Philippine banana import void to China.  Though halfway around the world from China, Ecuador’s government is providing a subsidy for their China-bound banana exports, to give their producers a price advantage.

Did you know…bananas are the 2nd top commodity by weight (after furniture) in all container shipments arriving at USA ports?  For more, view the post “What’s in the Box”.

Top 10 banana producing nations
(in million metric tons)
 India* 26.2
 Philippines 9.0
 China 8.2
 Ecuador 7.6
 Brazil 7.2
 Indonesia 6.3
 Mexico 2.2
 Costa Rica 2.1
 Colombia 2.0
 Thailand 1.5
World total 95.6
Via Wikipedia-Source 2009 data-Food & Agriculture Organization of the United Nations
*Note: Although India leads in banana production, most of it is for domestic consumption and not for export.

Related banana links:

Fresh Plaza – Global Fresh Produce and Banana News

All about bananas, from Wikipedia

Lolako’s “What’s in the Box” - Top Commodity, by weight, arriving in U.S. container ports

Bananas – Philippines

Clever line from Philippines Today columnist Fred G. Gabot…“save the sagging saging, Sir“.

Saging is the Tagalog (Philippine national language) word for bananas.  It is pronounced something like sah-ging — the ging part rhymes with ring.

I heard about the Dole banana plantations in the Mindanao region, but prior to this post, I did not know that the Philippines is among the top nations growing and exporting bananas…how about you?

Now that you are here, I would love to know what you think!