Clustering of local growers boosts banana industry
By MICK BASA
December 3, 2009, 3:08pm
DAVAO CITY – By clustering banana farmers here in the region, marketing strategies of local growers will likely be strengthened to be in the same league with corporate banana companies, the Department of Trade and Industry (DTI) XI said.
With this vision, the regional trade and industry body is currently implementing a million-peso banana industry cluster project in Santo Tomas, Davao del Norte, which is supported by various national government agencies and private sector representatives.
Romeo Castañaga, manager of the Davao Industry Cluster Capacity Enhancement Project (DICCEP), said the cluster will implement initiatives such as bulk buying of inputs, cooperative development and marketing assistance which would redound to reduced production cost, improved productivity and improved products.
Records of the Federation of ARB Banana-based Cooperatives (FEDCO) show that upland bananas directly sold to Japan’s retailers are priced at a minimum of US$10 per box of 13.5 kilograms.
“This is a lot higher than the usual price level of US3$ to 3.50 per box,” Rene Dalayon, FEDO chief executive officer said, while citing that 80 percent of their bananas are exported to Japan.
Dalayon suggested that if local growers cluster themselves, they could negotiate for better prices, especially when sold directly to the retailers.
He added that gathering local growers would also create a uniform understanding of how the banana industry works. “We also have the opportunity to see the limitations of certain aspects of the industry,” he said.
He said that local growers here have the advantage since Japan, being the institutional buyers of FEDCO, is in helping hands to improve the banana industry in this region.
