• Why the banana industry is growing weaker

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    The banana industry, once a the leading driver of the country’s export sector, continued to weaken due to unreliable government policies that disregard established practices and contracts, extreme weather phenomena and the continuing attacks and extortion activities of communist insurgents in Mindanao, according to industry stakeholders.

    Despite a much-publicized interim ceasefire forged between the government and communist insurgents in the Netherlands, the atrocities committed by New People’s Army (NPA) rebels against banana and other fruit plantations in Mindanao continue to hound the industry, they said.

    Attempts by officials of the Department of Agrarian Reform (DAR) to scuttle legitimate and valid agribusiness venture deals between banana plantation developers and agrarian reform beneficiaries (ARBs), in blatant disregard of President Duterte’s policy of honoring all contractual obligations of the government, were also highlighted by the stakeholders.

    “We used to be the world’s second largest banana producer and exporter next to Ecuador. But today the Philippines has been edged out by Costa Rica,” Antero Sison Jr., president of Marsman Estate Plantation Inc. (MEPI), said in a statement.

    “Ironically, this could be the best time for us to recover because of the increasing demand from large markets like China, but unpredictable state policies are pulling the industry down,” Sison noted.

    Export earnings from banana plunged to $440 million in 2015, down by about 60 percent from $1.1 billion in 2014, according to the latest industry data.

    “We can learn to cope with extreme weather phenomena like the El Niño and the La Niña by applying and developing climate-resilient technologies,” Sison said. “But no technological application can be developed against the inconsistency of DAR policies,” Sison said.

    Hernando Rivero, a member of the Davao Marsman Agrarian Reform Beneficiaries Development Cooperative (DAMARBDEVCO), claimed that the DAR is to blame for what ails the industry.

    “DAR officials, whether deliberate or not, have been contributing to the decline of the banana industry, which has helped tens of thousands of agrarian reform beneficiaries significantly improve their living standards and that of their families,” Rivero claimed.

    DAMARBDEVCO has forged an agribusiness venture agreement with MEPI, which donated the land cultivated by members of the cooperative.

    Agribusiness venture agreements (AVAs) between cooperatives formed by ARBs and banana plantation developers are among the most successful partnerships in the agriculture sector. The AVAs have enabled banana growers to earn more than farmers planting rice or other crops.

    Sison said the DAR appears to be unconcerned about the plight of banana ARBs when its head, Secretary Rafael Mariano, ordered a blanket review of all AVAs or leaseback agreements despite these deals already upheld as legal, fair and aboveboard by government authorities and the courts.

    The DAR has been after the cancellation of the AVA between MEPI and DAMARBDEVCO.

    “It saddens us to think that the DAR doesn’t care whether our ARBs and other workers in our plantation lose their jobs. Their officials are indifferent to their plight and couldn’t care less if our farmers and their families go hungry,” Sison claimed.

    Extortion

    Hernani Geronimo, spokesperson of Lapanday Foods Corporation (LFC) said “the DAR’s move to break legitimate AVAs that have enabled many ARBs to earn better than decent wages and that have provided well for their families, doesn’t just violate the non-impairment clause contained in Section 10, Article III of the Constitution, it also apparently has emboldened the communist insurgents to continue with their extortion activities and attacks against banana plantations.”

    He said “the attack launched by this lawless armed group last April 29 against two of LFC’s packaging plants and a farm, all in Davao City, did not only leave almost 1,000 workers jobless, but it also displaced allied businesses that relied on the operations of our packaging plants. It also deprived Davao City and the national government of taxes that contribute to the well being of the nation.”

    “This lawless armed group appears to be mocking President Duterte because many of the atrocities were committed in his home city of Davao. The attack on our plants will affect the export capability of the Davao region, as pointed out by Maria Lourdes D. Lim, the National Economic and Development Authority (NEDA) REGION XI director, since Lapanday is one of the biggest producers of Cavendish bananas in Davao,” Geronimo said.

    “To make matters worse, when a group claiming to be ARBs earlier camped out outside our farm with the intention to forcibly entering them, there were indications that the local DSWD was indirectly abetting them as there were reports that they were provided food that were allegedly bought with government money,” Geronimo added.

    Political whims

    On top of contending with NPA atrocities and unpredictable policies, the banana industry also has to deal with political concerns, Alex Valoria, president and CEO of the Tagum Agricultural Development Co. Inc (TADECO) said.

    The quarrel between House Speaker Pantaleon Alvarez and Rep. Antonio Floirendo Jr. has dragged TADECO, owned by the Floirendo clan, into the mess. The feud has prompted Alvarez him to personally declare the joint venture deal between TADECO and the Bureau of Corrections as illegal and demanded that the Department of Justice investigate the agreement.

    TADECO and the BuCor have a decades-long joint venture agreement to develop the a part of the Davao Prison and Penal Farm into a banana plantation, primarily to help rehabilitate inmates and prepare them for reintegration into society.

    “Our joint venture agreement with BuCor is a successful model for rehabilitating inmates who get to earn decent incomes that help them provide for their families while serving their sentences. This is a legally binding agreement that has proven to be aboveboard by the Congress, the Executive Branch and the courts,” Valoria noted.

    “The arrangement would not have lasted this long if it has not been proven to be beneficial for all the parties concerned—the government, TADECO and the inmates being rehabilitated inside the Davao penal farm,” Valoria said.

    “Now, all of a sudden, the JVA is being branded as void and illegal based on some legal hocus-pocus meant to satisfy political whims,” he claimed.

    “We cannot accomplish our goal of maintaining the global competitiveness of our banana industry if the government itself is the one sabotaging us. Investors can just pack, leave and relocate elsewhere. The ultimate losers here are the workers and their families,” Valoria added.

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    8 Comments

    1. Syempre, lagyan mo ba naman ng rebelde sa DAR. Wala na nga tayong magawas sa pang gugulo nila naglagay pa tayo ng tao sa position. Pretty soon investors will pack up their bags and move their businesses elsewhere dahil sa security risks dito. Sayang, the banana industry employs millions directly and indirectly and it is our biggest dollar earner.

    2. The Philippines used to be one of the biggest producer of coffee, sugar, rice and coconut. Asan na yong mga industries na yon? Ang iba nawala dahil sa kapabayaan ng gobyerno. Philippines used to be the 2nd biggest exported of bananas, now we’re at number 5. Do we want this industry to be like our coffee, sugar, rice and coconut?

    3. Masyado kasing nagpapalapad ng papel ang iba sa gobyerno, all in the guise of “to protect the government” eh sa totoo lang it’s all but selfish intentions. Hay naku! Si speaker para bang may nagawa talaga sa distrito niya wala naman eh. Di nga yan kilala sa Distrito niya. Nakilala lang yan dahil sa kaibigan niya na tinitira niya ngayon.

      What’s happening now reminds me of the story of the cat and tiger. The tiger was just big but don’t know how to catch its prey. The cat, though small, catches its prey well. The tiger befriended the cat and asked it to teach him how to catch a prey. When the tiger was good enough to catch its prey, he attached the cat….

      Sounds familiar right, parang ganon lang din nangyari sa dalawang dating magkaibigan na araw-araw ay laman na ngayon ng mga pahayagan.

    4. Alisin sa pwesto yung mga lider na personal na interest lang ang ibinabandera, na nagingialam sa bahay ng iba na wala namang output sa bahay nila. The likes of House Speaker Alvarez.

    5. Roman Reigns on

      Ai naku ang governo nga naman. In placed na sana yong JVA between Tadeco-Bucor ang daming benefits dito for our inmates, tapos itong magaling na Alvarez gumawa ng gulo as if he knows everything whatever stipulated in the contact. Hoi gising Mr. Speaker!

      Very true banana industries payed billions for taxes most especially us in TADECO. We are hoping that they come up good decision pertaining to the Congressional Hearing on JVA. With out Tadeco, totally dead na talaga yong banana industry. #SAVE TADECO #SAVE JVA

      • Allan Lansigan on

        Couldn’t agree more. The government will also lose the taxes collected through property taxes, business permits, VAT and income taxes that could also drive away multinational corporations with
        investments in banana production to relocate in other friendly countries.

    6. Instead of the agri sector, legit businesses and common people running to the government to help, dapat ata you run away from it bec once the crooks in position have set their sights on your livelihood, patay na. See Marsmans case with the NPA heads of DAR – MARIANO, ERRO, RISONAR. And The case of Alvarez and Tadeco. Saklap!

    7. Why? Because of people like these DAR officials who seems more interested in creating chaos than helping our farmers. And then we have the NPA attacks and of course people like Alvarez, who will stop at nothing to get revenge, ngayon pati DSWD. The rebels matagal na nating problema yan, dapat dyan gerahin na. Stop trying to talk peace with them, they are not interested. And remove these useless officials at DAR and DSWD, lalo na yang abusadong Alvarez na yan.

      The banana industry contributes billions in taxes not to mention thousands if not millions employed. What’s goung to happen to them if investors decides to move their businesses elsewhere?