Growing cavendish bananas enable farmers to earn more

MANILA, Philippines – Growing of cavendish bananas generated the highest revenue and created the most number of jobs among the other subsectors in the agriculture industry in 2013, according to the final results of the Annual Survey of Philippine Business and Industry released recently by the Philippine Statistics Authority (PSA).

The survey for the agriculture, forestry and fishing sector covered 2,562 establishments in the formal sector of the economy.

Of the total, 16.3 percent were into hog farming, 13.4 percent into growing of sugarcane, 12.3 percent were engaged in chicken production, 8.3 percent were into ocean fishing, 6.5 percent into growing of cavendish banana, 6.4 percent into contract animal growing services and 36.8 percent into other farming activities.

Agriculture, forestry and fishing establishments employed 164,455 workers in 2013, 98.4 percent of which were paid employees while 1.6 percent were working owners and unpaid workers.

Growers of cavendish bananas employed 27.5 percent of the total while growers of sugarcane employed hired 21.2 percent out of the total number of workers during the period.

Banana, being a plantation crop, requires more labor and inputs to grow and at a profitable volume. Work begins from land preparation to planting of bulbs, protecting banana bunches from wind pests and extreme temperature.

During harvest, workers have to pick, sort, pack and maintain the quality of the produce until they reach their export destination.

By value of output, cavendish banana growers cornered 37.3 percent equivalent to P53.9 billion of the total output of P144.7 billion generated by agriculture, forestry and fishing establishments.

Hog farming comprised 12.2 percent or P17.6 billion of the total while whole chicken production accounted for 10.3 percent or P14.9 billion.

Growing of cavendish bananas also produces the highest value-added among other subsectors in the farming industry.

In 2013, value added produced by all agriculture, forestry and fishing establishments stood at P40.7 billion.

Among industry sub-classes, growing of cavendish banana generated the highest value-added estimated at P16.5 billion, corresponding to 40.6 percent of the total.

Commercial ocean fishing came in second with P4.2 billion (10.2 percent), followed by growing of sugarcane including muscovado sugar-making in the farm with P3 billion (7.3 percent).

Subsidies granted by the government to support the business operation of all agriculture, forestry and fishing establishments amounted to P6.3 billion in 2013.

Among industries, services to establish crops, promote their growth and protect them from pests and diseases received the highest subsidy with P5.1 billion, or  80.7 percent of the total. This was followed by dairy farming which received P26.7 million, less than one percent share to total subsidies.

Bananas are among the country’s top 10 agricultural exports along with coconut oil, pineapple, natural rubber, tuna, seaweed and carrageenan, processed tobacco, desiccated coconut, unprocessed tobacco, and copra oil cake.

In October, China lifted its import restrictions on Philippine bananas, giving banana exporters greater market access.

The Philippines remains the second largest producer of bananas worldwide, next to Ecuador, and it continues to supply 95 percent of the total banana demand for the Asian market.

Last year, the Philippines exported 448,000 metric tons of bananas to China valued at $157.5 million for non-compliance to pesticide residue requirements and presence of pest.

China had destroyed 35 tons of bananas from the Philippines valued at $33,000 last March, and eventually suspended 27 exporters.

The bananas were destroyed in Shenzen, a major entry point for Philippine bananas, after notifications of non-compliance.

The Administration of Quality Supervision, Inspection and Quarantine (ASQIQ)  in China issued the notification of non-compliance, saying it detected the presence of the pest Dysmicoccus neobrevipes in the shipment made by NKM Import/Export Inc. to Dalian Kawoo Import and Export Co. Ltd.

Another factor for the suspension was the shipment of Sumifru to Shenzen Everglory Trading Co. Ltd. which has a carbendazim level of 0.199 mg/kg, in excess of the maximum residue level of 0.1 mg/kg.

In September, ASQIQ sent an inspection team to the Philippines to evaluate the corrective measure being implemented by the local-based exporters, thus the lifting of the ban.