DAVAO CITY -- The banana industry sector is looking at 2018 with better opportunities and improved production as the government responded to the issues and concerns affecting the industry the past years.
Pilipino Banana Growers and Exporters Association (PBGEA) executive director Stephen Antig is optimistic that 2018 would be a better year for them from production to the price of bananas, market expansion, and the realization of the government’s commitment to addressing tariff issue, among others.
The industry made noise this year through series of press releases tackling issues and engagement with the members of the media that affected not only the big players but also the small growers.
Antig said that through series of press releases from Davao media the banana sector had drawn the attention of the government to their concerns.He lauded the government for being responsive during the Duterte administration.
He cited the Presidential Management Staff (PMS) which asked the Bureau of Customs (BOC) to help the industry.
He said the Department of Trade and Industry (DTI) is set for bilateral talks with Australia, Japan, and Korea on the tariff issue.
“These are the things that we should watch out if the talks will pursue,” he said.
There were also meetings with Agriculture Secretary Emmanuel Piñol and Undersecretary Evelyn Lavina on the crafting of a banana industry roadmap for the next three years.
Piñl had reportedly emphasized on an inclusive roadmap to include the saba and cardava growers and processors of banana chips.
He said the cost for the preparation of the roadmap is between PHP80,000 to PHP100,000 and this would be shared by the stakeholders.
"Coordinating the crafting of the roadmap is the PhilExport and we had several meetings already with consultant Robert Soriano and the DA regional head for Davao Region on high-value crops Melanie Provido for the initial drafting of the roadmap which we aim to complete this December or January next year," he said.
Antig said that it was not only the national agencies that reacted to the industry’s concerns but also the local government units like Compostela town which committed to lowering the environmental user's fee from P500 to P100 per hectare per year.
It was the province’s response to the case filed by the industry against Compostela town four years ago to stop the implementation of the ordinance on environmental user's fee, he said.
“I think the different agencies had realized the plight of the industry. We are happy with the action and response of the government but we wish from them more support," he said.
Losses
The banana industry has been adversely affected by security, climate change, disease, raising fears exporters could lose its market globally.
The Philippine Exporters (Philexport) mentioned the continued raids by lawless elements on banana plantations affecting the industry’s sustainability as the country’s top export trade.
“Peace and order is the primary factor that is greatly affecting the banana industry,” said Ferdinand Marañon, president of PhilExport. Marañon.
Lapanday Food Corporation this year lost billions when the New People’s Army (NPA) attacked its box plant in Davao City and the plastic plant in Panabo. The company folded up the two companies.
“We are afraid that the investments of multinational companies will be pulled-out as it would be beyond their means to cope,” Marañon had said, voicing concerns that if banana firms give in to demands of lawless groups, who forced businesses to give revolutionary taxes, it could cost them more money.
Philexport executive director Marizon Loreto said the continued attacks would result in the displacement of workers and affect production, thus resulting in the low supply of banana.
She said climate change like the El Niño is another factor that affects production and quality of the bananas.
Land issues
Aside from security, climate change, tariff, and disease, land issues are also affecting the industry.
The joint venture agreement between Floirendo-owned Tagum Agricultural Development Company (TADECO) and Bureau of Corrections (Bucor) is being questioned in relation to the 2003 lease of 5,308.36 hectares of land at the Davao Prison and Penal Farm (DPPF).
Tadeco developed a banana plantation inside the DPPF Reservation to realize these goals.
Valoria pointed out that the banana operations under the JVA have created 30,000 jobs in direct, indirect and ancillary roles, which translates to the secure livelihood and future of at least 181,000 Filipinos.
The issue threatens not only the production but jobs for all workers.
On the other, Lapanday is still confronted by land claim issues with continued struggle of the Agrarian Reform Beneficiaries (ARBs) in owning the land they are tilling.
In May this year, the farmers belonging to the Madaum Agrarian Reform Beneficiaries Association, Inc. (MARBAI) were installed on their land of 145 hectares in Madaum, Tagum, Davao del Norte.
Top export
Philippine bananas including plantains, fresh or dried remain the top export commodity from Davao Region.
The DTI reported that bananas F.O.B (Freight on Board) value was pegged at USD268.96 billion or 35 percent of the total value of the export commodity as of the third quarter.
Following banana are coconut (copra) and crude oil, pineapple (fresh or dried), gold including gold plated with platinum) in semi-manufactured forms, and other fruits like lychees, longans jackfruit, mangoes, among others.
Antig said 2017 may not be a good year for the banana industry although better compared to 2016 in terms of production.
The price of the banana in the world market was unpredictable.
It was quite good in the China market which is between $8 and $9 unlike before where the price was pegged at $3 to $4. The Japan market price remains at $6 to $7.
It is the small growers that benefited the current good price in China because that is their market, he said.
“We are hoping that the good price will continue until next year and if ever there is a shortage of bananas in China hopefully the prices will hold on, Antig added.
China is still the best bet of the market because of the share size of the population. Russia is a potential market if we find a way to market to Moscow.
For 2018, Antig said the industry sees the need to continue pushing the government to put up the research facility which is included in the roadmap. (PNA)
