INCREASE IN BANANA EXPORTS LIKELY FELT
Though there is an increase in the exports of bananas, exporters will less likely feel this due to operational costs
Though there is an increase in the export value in bananas, its effect may only be slightly felt by the exporters, an industry leader said.
Data from the Department of Agriculture (DA 11) showed the country’s banana industry had a 56 percent increase in export in 2017 with a value of $1.128 million.
Philippine Statistics Authority (PSA), in a statement, said this increase can be attributed to the expansion of banana plantations, and lesser weather disturbances.
Philippine Banana Grower’s Export Association (PBGEA) executive director Stephen Antig said the banana export industry welcomes the development in the increase in export as this helps in the economic activity of the country but factors must also be considered in understanding its effect.
“The increase in profit margin is not that big considering that a large portion of the inputs in producing bananas is also imported using US dollars,” Antig said in a phone interview yesterday.
Antig said production cost in exporting these agricultural produce like the banana must also be considered.
“The continuous increase of fuel is also adding to the woes of exporters and to top it all the recent adjustment in the minimum wage of 16 percent,” Antig said.
Presently, data from the Organization of the Petroleum Exporting Countries showed that petroleum prices are at $1.17 per liter and $1.07 per liter for diesel. Meanwhile in the Philippines, data from the Department of Energy showed that gasoline is pegged at around P53.25 per liter and diesel at P44.30 per liter.
The recent adjustment of the minimum wage also adds to the cost production of the banana export industry here in the region.
Last June this year, the Department of Labor and Employment (Dole) issued a new wage order approving the P56 wage increase in Davao region. In the agriculture sector, the current wage amount of P335 will become P365 pesos on August 16, 2018 and will then reach P391 by February 16, 2019.
The continuous increase of fuel is also adding to the woes of exporters and to top it all the recent adjustment in the minimum wage of 16 percent.
STEPHEN ANTIG
PBGEA executive director