Retitled: Defending the banana industry through market diversification

[adroth]

The "PH-China banana war" (see here) exposed the vulnerability of the Philippine agricultural sector to economic pressure due to failure to properly diversify markets for this product. This . . . could very well help strengthen our economic defenses.



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Philippines working out banana-for-oil trade with Iran
By Prinz Magtulis (The Philippine Star) | Updated October 20, 2016 - 12:00am

http://www.philstar.com/business/2016/10/20/1635246/philippines-working-out-banana-oil-trade-iran

MANILA, Philippines – The Philippines is planning to buy more petroleum products from Iran, which vowed to strengthen ties with the country after economic sanctions against it were lifted.

This was discussed by Finance Secretary Carlos Dominguez with Iranian ambassador Mohammad Tanhaei during the latter’s recent courtesy call to the finance chief.

“The Iranian government...has expressed interest in working with the Philippines’ energy sector in the fields of oil exploration and the petroleum product trade,” the Department of Finance (DOF) said in a statement yesterday.

In return, Iran promised to source more bananas from the Philippines. “We do want to improve our relationship with Iran...,” Dominguez said.

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[adroth]

Philippines, Japan sign banana export deal
ABS-CBN News

Posted at Oct 27 2016 01:47 PM


http://news.abs-cbn.com/business/10/27/16/philippines-japan-sign-banana-export-deal

MANILA - Filipino banana farmers could earn as much as P5 billion every year from exports to Japan under an agreement between the Department of Agriculture and Japanese company Farmind, the Philippines' agriculture minister said Thursday.

The deal involves the development of 7,000 hectares in banana farms that can produce up to 20 million boxes of cavendish bananas annually, said Secretary Emmanuel Pinol.

The agreement was among $1.5 billion in trade deals that are expected to be reached during President Rodrigo Duterte's official visit to Japan this week.

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[adroth]

To neutralize the Chinese threat, we'd need to look for additional markets to replace the potential loss of $114.4M from the Chinese and Hong Kong markets.

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Banana exports by country

http://www.philippinesaroundtheworld.com/philippines-bananas-exports-by-country/

Below are the 15 countries that accounted for the highest dollar value worth of bananas exported from the Philippines during 2015:

    Japan: US$176.9 million (40.2% of total bananas imports)
    China: $109.2 million (24.8%)
    South Korea: $51.6 million (11.7%)
    Iran: $33.8 million (7.7%)
    United Arab Emirates: $19.2 million (4.4%)
    Saudi Arabia: $12.9 million (2.9%)
    Kuwait: $8.7 million (2%)
    New Zealand: $6.5 million (1.5%)
    Hong Kong: $5.2 million (1.2%)
    Singapore: $5.1 million (1.2%)
    Malaysia: $2.3 million (0.5%)
    Taiwan: $2.1 million (0.5%)
    North Korea: $1.7 million (0.4%)
    Bahrain: $1.1 million (0.2%)
    Qatar: $912,000 (0.2%)

[mamiyapis]

We could probably look to the European countries for diversification. Those markets would arguably need development, but catching customers from a few western and eastern european nations could possibly fill in the void of another banana war with China.

The question is, is there demand elsewhere? Have we just been lazy?

[adroth]

The question is, is there demand elsewhere? Have we just been lazy?

Good question.

What have are consuls been doing?

Has there been a follow up to this effort?

http://www.philippineembassy-usa.org/news/3514/300/Philippines-Becomes-First-Asian-Country-to-Export-Bananas-to-US-with-Arrival-of-Bukidnon-Cavendish-in-Los-Angeles/d,phildet/

14/09/2013: Philippines Becomes First Asian Country to Export Bananas to US with Arrival of Bukidnon Cavendish in Los Angeles

PRESS RELEASE
WDC-085-2013
14 September 2013

WASHINGTON, D.C.—Filipinos and Americans will finally have a taste of Philippine bananas with the arrival in California of the first shipment of highland cavendish from Bukidnon, the Philippine Embassy announced today.

With the arrival of the maiden shipment of 7.047 metric tons of highland bananas at the Port of Long Beach near Los Angeles, the Philippines has earned the distinction of being the first Asian country to export bananas to the United States, Ambassador Jose L. Cuisia, Jr. said.

“With this shipment, we are hopeful that Philippine bananas would be able to find and satisfy a niche in the competitive US banana market,” Ambassador Cuisia said. “We also hope that this is the beginning of increased access of Philippine bananas in North America.”

The arrival of the shipment, which is the first of an estimated 3,000 metric tons that the US hopes to import from the Philippines this year, came almost eight years after the Philippines first requested market access for its bananas, according to Agriculture Attaché Dr. Josyline C. Javelosa.

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[adroth]

Japan’s ongoing love affair with Philippine bananas
By BusinessMirror - NOVEMBER 6, 20160367
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By Jeremaiah M. Opiniano / Special to the BusinessMirror

http://www.businessmirror.com.ph/japans-ongoing-love-affair-with-philippine-bananas/

TOKYO, JAPAN—Ripe bananas wrapped in clear plastic entice Japanese consumers at a Maruestu supermarket outlet in Ichigaya area. Even if labels are written in kanji letters (to the bewilderment of non-Nihongo fluent Filipino tourists), these yellow fruits are packed with brotherly love from a Southeast Asian neighbor.

Bananas are synonymous to the Philippines. Not even drought and soil-related issues in the last few years can stop the Philippines from collaring 90 percent of the Japanese market for bananas, now the East Asian nation’s most preferred fruit.

Japan tinkered with getting supplies from other countries farther than the Philippines, like top producer Ecuador, Vietnam, or Mozambique. But the Philippine banana is a Japanese fixation.

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[adroth]

The Philippines is the second largest producer of banana in the world . . . after Ecuador

http://www.fao.org/docrep/019/i3627e/i3627e.pdf

[adroth]

PH, Bahrain companies expand banana production
Updated April 14, 2017, 3:53 PM
By Roy Mabasa

http://business.mb.com.ph/2017/04/14/ph-bahrain-companies-expand-banana-production/

President Rodrigo Duterte personally witnessed the signing of an agreement between private companies from both the Philippines and Bahrain that will expand its existing banana plantation operation in Mindanao, particularly in Davao, targeting additional 10,000 hectares of farmland for agricultural production.

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[adroth]

Selling price of banana in world market down
Friday, June 30, 2017
By REUEL JOHN F. LUMAWAG

THE selling price of banana in the world market has dropped to as low as $3 per box in recent weeks, an official of the The Pilipino Banana Growers and Exporter Association (PBGEA) said.

"Right now the price in the world market is very bad because there is an excess supply," said Stephen Antig, PBGEA executive director in an interview with SunStar Davao Friday, June 30.

At present, Atig said the selling price of banana per box has gone down to around $3 but can even go lower to around $1.60 per box or around P80.

He pointed out that the selling price of Philippine banana per box used to average at $7 per box and can go as high as around $14 per box. Per box has a weight of 13 kilograms.

Antig said PBGEA members have already expressed their concerns on the current state of the market.

However, Antig pointed out that the hardest hit would be the small banana growers and exporters.

"Their major is China, where the volume being exported there has gone down by 33 percent. They are also buying from other banana producing countries," he said. Data from the organization showed that member exports decreased to 29,590 metric tons from January to April this year as compared to 44,379 MT in the same period last year.

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Read more: http://www.sunstar.com.ph/davao/business/2017/06/30/selling-price-banana-world-market-down-550464
Follow us: @sunstaronline on Twitter | SunStar Philippines on Facebook

[adroth]

Mindanao rail gets P6.5-b fund
posted August 14, 2017 at 12:01 am by  Macon Ramos-Araneta

http://thestandard.com.ph/news/national/244398/mindanao-rail-gets-p6-5-b-fund.html

The first phase of the Mindanao Railway Project—a 105-kilometer line linking the provincial capital of Davao del Norte to the provincial capital of Davao del Sur—will get an initial P6.58 billion in funding next year, a member of the House appropriations committee said on Sunday.

Surigao del Sur Rep. Johnny Pimentel said the amount is among the items in the Rail Infrastructure Program of the Department of Transportation in the proposed 2018 national budget.

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“There’s no question the railway will ease considerably the transfer of people and goods, and propel in a big way Mindanao’s overall social and economic development,” Pimentel said.

Phase 1 of the railway is expected to cut travel time between Tagum and Digos cities from 3.5 hours to 1.3 hours once the trains start operating in 2022, data from the DOTr showed. Itwill have eight stations: Tagum, Carmen, Panabo, Mudiang, Davao Terminal, Toril, Santa Cruz and Digos. A 10-hectare depot will also be put up in Tagum City.


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“I hope that the train service will be capable of ferrying not just people but cargo as well as the island is an agriculture powerhouse producing, by last count, at least P500 billion worth of farm products a year,” he said.

Mindanao accounts for almost half of the country’s total corn output, around 83 percent of the total banana production, at least 61 percent of total harvested coconut, and around 90 percent of total pineapple yield.

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