THE COUNTRY should prioritize the banana industry as Davao Region’s production continues to plummet, particularly affecting small-scale growers, the Federation of Cooperatives in Mindanao (Fedco) said Friday.
Fedco chief executive officer Ireneo Dalayon reported the banana production, specifically Cavendish is concerned, is in “bad condition.”
“For small growers, we are not producing; it’s totally wiped out,” Dalayon told reporters during the Hukad Business Forum on Friday, April 11.
He added even the areas in Kapalong, Sto. Thomas, Asuncion, Tagum in Davao del Norte, and parts of Davao del Sur, banana lands of small growers have been “vacant and unproductive.”
Dalayon estimated a 10 to 15 percent decline in the Cavendish production, attributed to the rising logistical and transportation costs, coupled with Fusarium wilt or Panama disease.
Farmers would not till their land as there is no security in the return of investment, considering that the production cost of 1 hectare of Cavendish amounts to almost a million pesos, and given the climatic changes, a farmer can only net P900K maximum.
Banks, he added, refuse to allow these farmers to apply for a loan since there is no security of payment.
While the demand for Cavendish in the United States is maintained, the country’s Cavendish cannot compete given the logistic costs and its shelf life.
“The shelf life of the Cavendish is only 40 days, so if it is transported, it takes time to sell, whereas compared to South America where there are trains and buses, it is more attractive to the US,” Dalayon said.
Comparing the prices of the fertilizers and herbicides five years ago, the ammonium, which is essential to control weeds, skyrocketed from P300 up to P700, while Urea, which is used to promote growth, is priced at P2,000 per 50kg bag.
Dalayon said the organization has conducted initial talks with the Mindanao Development Authority on initiatives to revitalize the Cavendish production in the region as well as the whole Mindanao.
At present, they encourage the small growers to transition to Cardava banana production as the production cost for Cardava is much lower, at P80,000 per hectare.
