Fading industry?
Expert: PH banana industry may perish in 2-3 yrs if no gov't action on problems
THE banana industry, one of the major economic drivers of the country, will perish in two to three years if threats will remain unsolved, a banana expert warned.
Pilipino Banana Growers and Exporters Association (PBGEA) executive director Stephen Antig said in press conference Tuesday morning, October 17, 2017, at Apo View Hotel that Philippines’ declining share of the world banana industry should be seriously be taken up by the government.
“The industry is facing serious problems, if unsolved, in two to three years we can kiss the banana industry goodbye. We are losing our major markets to Ecuador and other exporting countries,” he said.
Citing Dole Asia Holdings chair David DeLorenzo’s presentation in Banana Conference last October 12, 2017 at SMX Convention Center, SM Lanang Premier, Davao City, Antig enumerated the leading disruptive forces lurking the industry.
These are tariffs imposed on banana products shipped to export markets; disease and pestilence; climate change; speed and interconnectivity of markets, and inconsistencies of government policies, among others.
Antig emphasized that the slow-paced response of the government to their pleas maybe because of the wrong mentality that exporters, especially those members of PBGEA, are already giant players ergo less assistance needed from the government.
“Yes, we are a big industry but we also have bigger problems. We need enough government in-
tervention because in the new global banana industry, the competition is now between countries than it is between companies,” Antig said.
At present the Philippine banana industry is ranked 6th globally, an alarming decline from last 2014’s second spot behind Ecuador.
DeLorenzo, in his presentation in the conference mentioned that “Philippines does not compare well in many exporting countries, in areas of disease infection, infrastructure, and market import duties.” Drop in exports From 2011 to 2016, the country lost 21% to 50 million boxes, an enormous amount to consider.
“We exported 237 million boxes in 2011 while in 2016 we only exported 187 million boxes. If a net export value of is about $6 per box, it meant that Mindanao lost $300 million in revenue last year compared to 2011,” the Dole chair shared explaining the gravity of the issues facing the industry.