Sumitomo, local partner allot P5B for expansion of banana plantation

Japanese company Sumitomo Fruit Co. and its Filipino partner, AJMR Group of Companies is embarking on a P3-billion expansion of their banana plantations in North Cotabato in Mindanao. Northern Cotabato Governor Manny Piñol said the Filipino-Japanese joint venture will involve expanding the existing banana hectarage to 5,000 hectares from only 700 hectares.

"The company will be investing heavily in its expansion program and will be planting more midland and highland varieties of Cavendish bananas for exports to their major markets," said Piñol in an interview during the North Cotabato Fair and Fruit Festival at the SM Megamall last week.

The trade fair showcased the province’s major fruit produce as such Cavendish bananas, mangosteen, durian, marang, lanzones and rambutan. The fair intends to drum up interest for the province’s bid to become one of Mindanao’s major fruit producers.

As part of its expansion plan in the Philippines, especially in Mindanao, Sumitomo has constructed new port facilities in Tibongco, Davao City, including a container yard, cold storage and reefer vans.

It also reportedly set up a new research and development complex that houses a modern tissue culture laboratory worth P200 million.

Piñol said that aside from Sumitomo-AJMR, two other big banana companies are increasing their investments in his province.

DOLE-Stanfilco, currently the biggest player in the province, has an ongoing P200-million expansion program while the Lapanday Global Fruits has a P50-million investment in Daliag, Arakan.

He said the flurry of expansion in the banana industry is speeding up efforts to spur more economic activities in North Cotabao and has made the province one of the choice investment areas in Region XII.

Piñol said new jobs generated by these new investments reached 68,595.

The production of Cavendish bananas for exports is one of the top agricultural earners for Mindanao with harvests going mostly to Japan and China. Exports are estimated at $400 million.