Banana growers say they will fulfill export commitments

MANILA, Philippines - Banana growers in provinces affected by Typhoon Pablo would still be able to fulfill export commitments to premium markets such as Japan, South Korea and New Zealand although at a lesser volume, according to the Department of Agriculture (DA).

Agriculture Secretary Proceso Alcala said affected banana growers have already relayed the concerns of the industry to their overseas clients.

“They will have lesser deliveries. This can be explained to clients because the destruction is caused by force majeure,” he said.

The cost of damage to the banana industry caused by Typhoon Pablo has reached P22.23 billion. Damaged were 50,096 hectares of banana plantations of which 44, 937 hectares have no chance of recovery while 5, 159 hectares may still recover. This translates to production losses of P1.91 million metric tons (MT).

It will take at least eight months to rehabilitate damaged banana plantations in Davao and Compostella Valley.

Alcala said fruit exporter Sumitomo Fruits Corp. Philippines (Sumifru), which has plantations in Davao, has signed with farmers a tripartite agreement with LandBank of the Philippines for the provision of loan to be used in the rehabilitation of their banana cultivation areas.

“They were badly hit so they decided to rehabilitate but they’re also having problems because of the cost,” he said.

Landbank has opened a P2.1-billion rehabilitation loan facility for Cavendish banana growers whose plantations were damaged by the typhoon.

Banana growers may avail of financing of P430,000 per hectare. The loan proceeds will have a six-percent interest rate fixed for 10 years. Borrowers will enjoy a two-year moratorium on payment of principal and interest.

High Value Crops Development Program (HVCDP) director Jennifer Remoquillo reported that according to the assessment made by the DA field unit in Davao XI, “there will be no tremendous effect” on Cavendish banana shipments to Japan, South Korea and New Zealand because exporters based in the region obtain bananas from independent growers are not affected by the  typhoon.

Remoquillo said the HVCDP has already allocated P6.69 million worth of assistance to banana farmers affected by the typhoon.

According to its latest assessment, the HVCDP estimates that around P33.35 million is needed for the rehabilitation of affected banana cultivation areas in Davao and Compostella Valley.

Because of the extent of damage to banana crops, the Philippines postponed the planned exportation of Cavendish bananas to the United States in December to fulfill export obligations to other major export markets.

Dole Philippines was expected to ship 3,000 metric tons of cavendish bananas to the US this month.

Alcala also said that the planned exportation of Cavendish bananas to the United States is still expected to push through.

He said cultivation areas of Dole Philippines, which was supposed to make the shipment, sustained damage but this was not severe. Validation of damage to Dole’s cultivation area devoted to shipments to the US market is still ongoing.

“It’s still open (US market). We will have to review the roadmap so we can sustain the demand,” said Alcala.