The Federation of Cooperatives in Mindanao (Fedco) has highlighted the challenges facing the banana industry in the Davao Region of, Philippines. Cavendish banana production has been declining, particularly affecting small-scale growers. Fedco CEO Ireneo Dalayon stated at the Hukad Business Forum on April 11, 2025, that the situation is "dire," with small growers facing total production losses.
In areas like Kapalong, Sto. Tomas, Asuncion, and Tagum in Davao del Norte, as well as parts of Davao del Sur, many banana farms lie vacant and unproductive. Dalayon estimates a 10 to 15 percent drop in Cavendish production, citing increased logistics and transportation costs and the ongoing threat of Fusarium wilt, also known as Panama disease.
With production costs approaching US$18,000 per hectare, farmers are hesitant to cultivate due to uncertain returns. Even under optimal conditions, a farmer may net a maximum of US$16,000, offering minimal profit margins. Financial constraints are exacerbated by banks' reluctance to lend to small growers lacking collateral and reliable repayment plans.
Despite strong demand for Cavendish bananas in the United States, Philippine exporters struggle to meet global demand. The fruit's 40-day shelf life complicates exports compared to South American nations like Ecuador, where infrastructure supports quicker market access.
Rising agricultural input costs further strain growers. Ammonium-based herbicides have surged from US$5.40 to US$12.60, and Urea fertilizers now cost US$36 per 50-kilogram bag, more than double the price five years ago.
Fedco is in discussions with the Mindanao Development Authority (MinDA) to address these issues. Proposed solutions include shifting small growers to Cardava banana production, which costs about US$1,440 per hectare. The Department of Agriculture (DA) is advocating for increased credit support and research to enhance crop nutrition and pest control. A proposed banana industry revitalization roadmap aims for legislative backing to secure ongoing government support.
Data from the Philippine Banana Growers and Exporters Association (PBGEA) and the Bureau of Plant Industry indicate a loss of market share in Japan and China. The decline is attributed to pest outbreaks, rising export costs, and competition from countries like Vietnam and Cambodia. Fedco and other stakeholders urge government intervention to support this vital industry.
Source: SunStar