Cambodia: Banana Exports down 21%, Climate Change to Blame

2024-01-19

Cambodia exported approximately 290,000 tonnes of fresh bananas in 2023, marking a decline of over 21% year-on-year, as the Ministry of Agriculture, Forestry and Fisheries reported.

Hun Lak, CEO of Longmate Agriculture Co Ltd, explained that the drop in exports in 2023 was not due to reduced market demand but somewhat attributable to climate change, noting that his company's banana exports to China had diminished due to lower yields harvested in 2023 compared to the year prior. Lak added that when farms are impacted by severe weather phenomena like El Niño, which lead to soil moisture depletion due to water scarcity, it increases pest problems, rendering pesticides less effective. "The decline is due to output, not the market. Shipping costs remain reasonable, while expenses are not high. In general, climate change will become more problematic in the future, making the direct agricultural sector more vulnerable. This is why global intervention is necessary because the issue affects not only Cambodia but the entire world," he explained.

He also noted that the yellow banana exported to the Chinese market is a unique variety that, to maintain its quality, should be harvested when still dark green and can be transported over long distances as it can be stored for nearly two months. According to Lak, another critical factor affecting market price stability is the Russia-Ukraine conflict, which has disrupted the global economic situation, including China, the largest importer of commodities from ASEAN countries.

Ministry spokesperson Im Rachna previously highlighted that over 90% of Cambodia's fresh bananas and some potential crops were exported to the Chinese market. She noted that discussions between the two nations on expanding further exports of various agricultural products continue.

Regarding the climate change caused by El Niño, Rachna said the ministry has been urging all professional units, particularly the provincial agriculture departments, to pay close attention to timely interventions aimed at mitigating the impact and damage caused by pests and diseases on various crop types, not limited to banana. According to the ministry, the Kingdom had more than 16,000 ha of banana plantations. Provinces with the most extensive banana cultivation include Ratanakkiri, Kratie, Stung Treng, Kampot, Kampong Cham and Kampong Speu.