Nearer home are the chips from Thailand, which use Philippine technology but are sold at a cheaper price because of heavy government export subsidies.
"Thailand has been shipping bigger volumes to the same markets at lower prices than Philippine chips," said B-G Fruits and Nuts Manufacturing Corp. export manager Jonathan Godoy. "Unless we do something drastic, we might lose our markets to the Thais," he said.
Major export markets are the United States and Europe. Philippine banana chips have an average shelf life of six months to one year.
Aside from B-G, other major banana chip exporters are Celebes International, See’s International Food Manufacturing Corp., and El Coco Manufacturing.
Its entire banana chips production is shipped out of the country. "Filipinos do not see anything novel about banana chips. For many foreign buyers, it is their first time to try it," said 24-year-old Godoy, who joined the family business after finishing a marketing course at the International Academy of Management Economics in Makati.
Through the years, the company has grown to its current net worth of P50 million. Last year, B-G exported $10 million worth of chips.
As part of its marketing plan, B-G participates in international food festivals such as the Anuga in Germany and SIA in France, which are alternately held every other year. B-G is also developing non-traditional markets like Russia.
Starting this month, two pilot plants in Mindanao will become operational and will increase the company’s monthly output of 90 to 100 tons by at least 50%.
"With the increased output, we may be able to fill up some of the demand that has been waiting to be met all these years," Godoy said.
B-G also produces coconut gel or nata de coco. The company’s entire monthly output of 34 tons is exported to Japan, where the product is consumed as a health food.
The major competitors for Philippine coconut gel are Thailand and Indonesia, which price their products 35% cheaper.