Banana exporters warn House bill will hurt the industry

Industry group Pilipino Banana Growers and Exporters Association (PBGEA) has formalized its appeal against House Bill 5161 (HB 5161) through a letter submitted to various government agencies, which cited the threats that will be brought about by the proposed regulation to the viability of the US$1-billion banana export industry.

Authored by Ifugao Representative Teddy Brawner Baguilat, HB 5161 proposes to regulate the establishment and implementation of agribusiness ventures arrangements (AVAs) in land reform areas in the country.

In a white paper submitted to six department secretaries, including Agriculture Secretary Proceso J. Alcala, Agrarian Reform Secretary Virgilio delos Reyes, Trade and Industry Secretary Gregory Domingo, and Interior and Local Government Secretary Manuel A. Roxas II, PBGEA has formalized its petition against HB 5161, which, according to the group, could “kill the country’s banana industry”.

“The banana export industry has survived for almost five decades and flourished to become a consistent major contributor to the export earnings, second only to coconut oil, despite the rigors of the international market and with remarkably very minimal support from the government,” PBGEA said in the white paper.

“To sustain the growth, there has to be collaboration among the pillars of effective participatory governance,” the PBGEA said in its white paper,” it added.

On top of this bill, the country’s banana industry is also facing global challenges such as climate change and calamities, plant diseases, economic fluctuations, geopolitical conflicts as well as domestic problems and disruptions that are brought about by natural, economic, scientific and ideological means.

Banana exporters suggest that instead of the government interfering in purely private commercial transactions, the least it can do are provide banana growers and farmers the necessary access to micro-financing to increase their equity and capital; train farmers to be entrepreneurs and understand how economies of scale works; and provide all banana growers/farmers laboratory facilities to protect, preserve and promote the industry; among others.

PBGEA also asked the government to “impart scientific knowledge on precision farming and good agricultural practices (GAP) with pragmatic considerations on environmental, public safety and economic concerns that requires serious extension works by agricultural technicians”.

“[The government should likewise] institutionalize participatory policymaking activities through intensified consultation and feed backing from all stakeholders to really get to the bottom-line of the issue and concern,” the group said. .

In 2014, exports of Cavendish bananas has breached the US$1-billion mark as it grew 18.06 percent from US$962.58 million in 2013 to $1,136.42 million. This is according to the statistics provided by the Philippine Statistics Authority (PSA).

The industry also contributed billion to the government last year through the taxes and fees it paid.

In 2014, the total land area planted with different varieties of bananas all over the Philippines already reached 441,951 hectares. Majority of the country’s banana production is located in Mindanao, which is produced from 243,450 hectares.