INDUSTRY OVERVIEW- BANANA

Banana Industry Development Started development in 1966 in Dadiangas Expanded in Davao Provinces With growing demand, further expanded in Bukidnon, North and South Cotabato, Sarangani Province, Compostela, Agusan del Sur and in ARMM Currently about 50,000 hectares Involves multinational and local companies and individual growers MINDANAO

Main Market Areas Russia Canada South Korea China Japan Middle East Singapore Brunei Indonesia New Zealand

Competition Latin America 108 years of Banana Industry China Honduras Costa Rica Guatemala Panama Sri Lanka Colombia Somalia Equador Australia Latin America 108 years of Banana Industry

ECONOMIC IMPACT Employment (minimum wages, job security) Investment of about P 700,000 per hectare (infrastructures, banana plantation, offices) Development of related industries (transport, food, consumer goods, entertainment) Increased income opportunity (cash crop, i.e. corn, rice, firewood gathering vs. employment) Improved infrastructure support from government and private organizations Increased tax collection for local government.

Impact of GFC to the Banana Industry Delayed remittance of revenues from the markets Tight cash flows Delayed payments to suppliers, growers and service providers Delayed payroll and benefits Anticipated decrease on demands for fresh fruit products Increased cost of production Prioritization of expenditures

Key Issues and Concerns

Key Issues and Concerns POLE VAULTING Enforcement by LGUs to “criminalize” pole vaulting Encouraging LGU ordinance to prohibit small packing houses DA thru BPI to spearhead inspection and accreditation of exporters

Key Issues and Concerns POLE VAULTING Government to provide support to small independent growers to put up common service facilities addressing industry standards in packing, processing, disposal, etc. For DOLE to hire/train more personnel in the conduct of time and motion studies/DOLE certification of time and motion studies/to tap industrial engineering students to prepare TMS as part of their OJT under DOLE supervision

Key Issues and Concerns Threat of Other Banana Producing Countries Make the enforcement of labor standard equally investor friendly Tax incentives to investors Review of the labor code to make it more investor-friendly

Key Issues and Concerns Threat of Other Banana Producing Countries For the industry to take advantage of tax incentives to reduce the cost of inputs Increase government subsidy (eg. reduced import tax on inputs) DOLE to relax provisions for service provider Tax incentive

Key Issues and Concerns Peace and Order Increased military visibility in strategic areas

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