Image: Reuters Berita 24 English - On Wednesday, the Philippines openly asked to consumers in its main export market, Japan, to pay higher ...
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| Image: Reuters |
Berita 24 English - On Wednesday, the Philippines openly asked to consumers in its main export market, Japan, to pay higher prices for imported bananas in order to help cover rising production costs.
According to a report by the Philippines' embassy in Tokyo, rising gasoline and agricultural supply prices are pushing many farmers to the brink of bankruptcy, and the embassy is pleading with Japanese consumers to share the burden of "sustainable bananas."
"To retain the current quo would be impractical and unfair to Philippine banana producers," Ambassador Jose C. Laurel V told reporters.
Producers have been negotiating rates with Japanese retailers and trading companies, but have been told to go public with their concerns.
"It was stressed upon us that one of the most important things we need to do is explain to the consumers why a price hike is necessary," said Robispierre L. Bolivar, the Philippine embassy's second in command.
After decades of deflation, consumer prices are rising in Japan, fueled by the yen's slide to a 20-year low, rising energy costs, and logistical bottlenecks caused by the Ukraine crisis.
Food costs are in the spotlight, with everyone from snack manufacturers to breweries announcing their first price hikes in years.
Last Monday, the Teikoku Databank predicted that in 2022, prices on over 10,000 food items in Japan would climb.
According to United Nations trade data, Japan was the leading export destination for Philippine bananas in 2020, barely ahead of shipments to China.
According to data from the agriculture ministry, Japanese households spend more money on bananas than any other fruit, on average 4,387 yen ($32.92) every year.
Prices for Philippine bananas have been stable for seven years, but embassy officials say current margins are unacceptable due to a rise in manufacturing costs due to the Ukraine situation.
(1 dollar = 133.2500 yen)
