Big banana firms pulling out of the Philippines

Banana

 Multinational banana firms in Mindanao, the Philippines, are starting to expand to other countries because of various issues plaguing the Philippine banana industry, such as pest diseases, diseases, drought, and a hike in government fees. The situation has led to the Philippine Banana Growers and Exporters Association (PBGEA) reiterating its projection that the banana industry will face another "not-so-good year" in 2016.

"This is alarming, multinational banana players are capable of packing their bags and leaving in favor of other countries because we are not the only country that can grow bananas. If these problems that encouraged them to leave, continue, our economy especially employment will be badly affected," Stephen Antig said in a roundtable discussion with media last Friday 12 Feb. at the Apo View Hotel, Davao City.

He said that at present, two of PBGEA members are developing banana plantations in Ecuador; one acquired an existing and operational 2,000 hectares plantation while the other one is still in the pipeline and under negotiation with another 2,000-hectare land area.

But he refused to disclose the identities of the two companies.

"It is a loss on our side but I think these companies know how important the banana industry is in the Philippines, especially in Mindanao," Antig earlier said in an interview, underscoring that the PBGEA member companies are more willing to expand the industry inside the country to help other regions and provinces to grow and develop economically.

Most of the major banana growers prefer to grow bananas here because of quality but Antig also pointed out that since business is business, it is only logical for investors to look after their profit.

Asean countries like Myanmar, Indonesia, Malaysia and Thailand are also offering investors the opportunity to expand their banana operations especially with the Asean Economic Integration.

Among the big obstacles the industry needs to overcome are the stricter standards for chemicals by some export markets, the onslaught of the El Nino phenomenon, Panama, Fusarium wilt and other pests and diseases, additional plant quarantine fees, wharfage dues and the proposed environmental users tax, global market war between banana producing countries such as the entry of Ecuador in the Asian market, and the proposed House Bill 5161, which regulates the establishment and implementation of agribusiness ventures arrangements in agrarian reform lands, among others.