Philippines may lose $200 million banana exports to war

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Iran, Middle East among biggest markets

MANILA, Philippines — Banana exporters in the country stand to lose almost $200 million (around P12 billion) in revenues due to trade disruptions in the Middle East as the war in the region escalates.

The Gulf war has rattled the local banana industry, particularly big exporting companies, as it derails efforts by the Philippines to strengthen its foothold in the growing Middle Eastern market.

Iran, in particular, has become one of the most lucrative non-Asian destinations for the Philippines’ prized commodity, which has been looking for a more diversified market base amid stiff competition in the region.

Philippine Statistics Authority (PSA) data showed that Iran is one of the Philippines’ fastest growing markets for bananas, posting an annual growth rate of 15 percent from 2020 to 2025, and is now the country’s fourth largest market for fresh bananas.

Iran alone accounted for six percent of total banana export receipts last year, reaching almost $100 million. Banana exports to Iran in 2025 surged by 81 percent to $97.52 million from the $53.79 million recorded in 2024, based on PSA data.

Volume wise, banana exports to Iran last year reached 242,877.58 metric tons, about 46.7 percent higher than the 165,448.52 MT recorded in 2024.

Iran accounted for eight percent of the 3.04 million MT of bananas exported by the Philippines last year.

In 2024, the Philippines was the second largest supplier of bananas to Iran, behind India, which benefits from cheaper logistical costs due to proximity, according to the Observatory of Economic Complexity.

OEC noted that the Philippines was the fastest growing exporter of bananas to Iran between 2023 and 2024.

Meanwhile, the combined export value of bananas to the six Gulf Cooperarion Council (GCC) member-countries plus Iraq last year reached nearly $95.5 million, based on PSA data.

In a letter to President Marcos, the Pilipino Banana Growers and Exporters Association (PBGEA) said the country may lose $200 million in  revenues if the war intensifies. The Middle East market accounted for 12 percent of banana export value last year.

“We were quite optimistic about the prospects in the Middle East market. Our shipments had just started to increase and then the war broke out,” Stephen Antig, executive director of PBGEA, told The STAR in a separate interview.

“So it is like we are back to square one. Some companies may have stopped exporting already to Iran to minimize the risk,” Antig added.

He explained that some banana corporations have been establishing a “foothold” in Iran and other Middle Eastern countries to diversify their portfolio as key markets such as Japan and South Korea are already “saturated.”

“Even if we cannot compete with India, we still have loyal customers that continue to buy Philippine bananas in Iran due to better quality,” Antig said.

Revenues from banana exports to Middle East market last year expanded by 60 percent to $193 million from $120 million, driven by increased shipments in most countries except Kuwait and Oman, based on PSA data.

The country’s total banana exports last year rose by 30 percent on an annual basis to 3.04 million MT from 2.33 million MT.

The United Nations’ Food and Agriculture Organization earlier estimated that the Philippines has reclaimed last year its previous position as the second largest banana exporter, driven by supply improvements due to investments made by industry players.