Despite massive damage caused by Typhoon Pablo in Mindanao, the Department of Agriculture (DA) assured that local banana growers would continue their export commitments to premium markets, but a at a lesser volume.

Agriculture Secretary Proceso Alcala said that affected banana growers have informed international clients that they will continue shipment of Cavendish bananas, but may lessen shipments because of the massive damage sustained by the industry during the typhoon.

“The lowering of deliveries to these markets was caused by force majeure, so I think that the clients will understand our situation,” he told reporters.

Based on records, the damage caused by the typhoon to the banana industry has reached P22.23 billion, affecting 50,096 hectares of plantation areas.

The damage also translates to production losses of P1.91 million metric tons (MT), Alcala said.

“It will take at least eight months to rehabilitate the damage to these banana plantations, majority of which can be found in Davao and Compostella Valley,” he said.

The Agriculture chief noted that fruit exporter Sumitomo Fruits Corp. Philippines (Sumifru), which has plantations in Davao, has signed a tripartite agreement with Land Bank of the Philippines for the provision of loan to be used in the rehabilitation of its banana cultivation areas.

“They were badly hit so they decided to rehabilitate but they’re also having problems because of the cost,” he said.

LandBank has opened a P2.1-billion rehabilitation loan facility for Cavendish banana growers whose plantations were damaged by the typhoon.

Banana growers may avail of financing of P430,000 a hectare. The loan proceeds will have a 6-percent interest rate fixed for 10 years. Borrowers will enjoy a two-year moratorium on payment of principal and interest.

‘No tremendous effect’
Jennifer Remoquillo, director of the DA-High Value Crops Development Program (HVCDP), said that their assessments showed that there will be “no tremendous effect” on Cavendish banana shipments to Japan, South Korea and New Zealand, because exporters based in the region obtain bananas from independent growers not affected by the typhoon.

She also said that the HVCDP has allocated P6.69 million worth of assistance to banana farmers affected by the typhoon.

Based on the latest assessment of DA field unit in the Southern Mindanao (Region 11), the HVCDP estimated that around P33.35 million will be needed for the rehabilitation of affected banana cultivation areas in Davao and Campostella Valley.

Because of the extent of damage to banana crops, Alcala said that the Philippines has postponed the planned exportation of Cavendish bananas to the United States in December, so the country can fulfill export obligations to other major export markets.

Dole Philippines was expected to ship 3,000MT Cavendish bananas to the US this month.

But Alcala said that cultivation areas of Dole Philippines, which was supposed to make the shipment, sustained damage but this was not severe. Validation of damage to Dole’s cultivation area devoted to shipments to the US market is still ongoing.

“It’s still open [US market]. We will have to review the roadmap so we can sustain the demand,” said Alcala.

The Philippine banana industry intends to capture the delivery contract to defense commissaries of the United States.