RGM Feb 4, 2006

BANANAROAD MAP FOR

REGION XII

RGM Feb 4, 2006

VISIONRegion 12 as a leading banana product

exporter contributing towards food

security and improvement of

the socio – economic status of all

Stakeholders

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M I S S I O N

Integrating the industry efforts in

the areas of production, distribution

and marketing and providing

stakeholders the opportunity to

maximize profits

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OBJECTIVES

1. Increase export of banana chips and

other products;

2. Increase export of „Cavendish‟ banana

to various markets;

3. Increase production of „Lakatan‟ and

„Latundan‟ by 4 percent per year; and

4. Development of export markets for

other cultivars and niche markets

RGM Feb 4, 2006

Facts about banana…

• About 130 countries grow banana. India, Ecuador,

Brazil and China account for half of the world’s

production. However, in the 90’s, Asian region lead in

banana production;

• No. 1 fruit exported internationally with 16.8 million

metric tons in 2006.

• A staple/substitute food in many developing countries

hence the relevance of banana for food security;

• In the Philippines, 80-90% of land area planted to

banana are cultivated by small farmers growing

‘Lakatan’, ‘Latundan’, ‘Bungulan’, ‘Saba’/‘Cardaba’ and

other cultivars;

RGM Feb 4, 2006

• On the other hand, ‘Cavendish’ is grown in large

plantations in Mindanao for fresh fruit export;

• About 2.8 million households are dependent on

banana; and

• Good source of carbohydrates and minerals

particularly potassium needed by the body.

Facts about banana…

RGM Feb 4, 2006

WORLD INDUSTRY

SITUATION

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Major Producing Countries of Banana in the World (2011)

Source: FAOStat

COUNTRYAREA

(000'ha)

PRODUCTION

(000' MT)

PRODUCTIVITY

(MT/ha)

% SHARE IN

WORLD TOTAL

PRODUCTION

India 830.00 29780.00 35.88 29.19

China 373.45 9848.90 26.37 9.65

Philippines 449.61 9101.34 20.24 8.92

Ecuador 215.65 7931.06 36.78 7.77

Brazil 486.99 6962.79 14.30 6.82

Indonesia 101.28 5755.07 56.83 5.64

United Republic of

Tanzania420.00 2924.70 6.96 2.87

Guatemala 63.53 2637.57 41.52 2.59

Mexico 76.93 2103.36 27.34 2.06

Colombia 80.52 2034.34 25.27 1.99

Other Countries 1916.11 22949.05 11.98 22.49

World Total 5014.06 102028.17 20.35 100.00

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INDUSTRY PROFILE

ITEMS WORLD PHILIPPINES

Trade

Fresh Banana

Major Exporter: Ecuador, Costa

Rica, Colombia, Philippines,

Belgium- Luxemburg,

Guatemala

And Panama.

Major Market: Japan, Hong

Kong

Banana Chips Exporters: Philippines,

Thailand, Indonesia, Malaysia

Major Market: Hong Kong,

U.S.A.,

United Kingdom, Germany,

Japan, Taiwan, Singapore,

Netherland, South Korea and

France.

BAS 2008

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Philippine Export Destinations

Japan49%

Middle East22%

Korea11%

China11%

Hongkong3%

New Zealand2%

Singapore1%

Russia1%

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PHILIPPINE

INDUSTRY SITUATION

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TOTAL PRODUCTION (M.T)

RegionRank 2010 Actual 20011 Actual Percent Share

Philippines 9,101,341.19 9,165,046.44

CAR 16 25,668.92 25,082.53 0.27

I 15 41,220.27 40,785.21 0.44

II 7 368,074.23 269,193.41 2.93

III 14 58,216.40 57,419.90 0.62

IVA 12 105,841.75 113,587.59 1.23

IVB 9 210,382.85 223,794.14 2.44

V 13 77,891.54 78,942.32 0.86

VI 5 332,177.65 344,588.49 3.75

VII 11 182,323.07 199,544.98 2.17

VIII 6 278,305.78 277,173.15 3.02

IX 8 263,643.26 238,309.33 2.60

X 2 1,702,391.84 1,725,775.20 18.82

XI 1 3,804,459.99 3,854,844.76 42.06

XII 3 1,043,811.31 1,094,955.99 11.94

XIII 10 210,392.94 204,139.88 2.22

ARMM 4 396,539.39 416,909.57 4.54

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Banana is produced in all regions

CAR0%

R11%

R24%

R31%

R4a3%

R4b3%

R51% R6

5%

R73%

R84%

R93%

R1010%

R1141%

R1211%

R134%

ARMM7%

Banana Production, 2011

Region Area (ha)

CAR 4,864.00

R1 7,537.86

R2 23,656.28

R3 6,273.00

R4a 29,705.50

R4b 26,754.24

R5 18,777.00

R6 34,697.90

R7 21,536.00

R8 30,380.46

R9 19,863.50

R10 51,452.05

R11 88,379.00

R12 29,283.65

R13 24,728.00

ARMM 32,236.55

Phil 450,124.99

Source : BAS 2011

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Region XII Industry Situation

BAS 2011

PROVINCEArea

(ha)

Production

(MT)

Yield

( MT/ha)

North Cotabato 15,283.00 629,150.50 41.16

Sarangani 3,542.40 179,190.88 50.58

South Cotabato 7,870.00 257,892.97 32.76

Sultan Kudarat 2,588.25 28,721.64 11.09

TOTAL 29,283.65 1,094,955.99 37.39

BAS DATA 2008

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PRICES OF BANANA

FRUITS, February 2012

Region XII

Average Farm gate

P/kg

CULTIVAR Lacatan Latundan Saba

North Cotabato 15.19 6.40 5.66

South Cotabato 14.51 6.92 5.66

Sarangani 11.85 6.82 5.26

Sultan Kudarat 13.32 9.51 6.34

Source: BAS 2012

RGM Feb 4, 2006

STRENGTH WEAKNESS OPPORTUNITY THREAT

•High demand in

the local market

•High potential for

the export market

•Starting to be

grown

commercially in

large areas (>20

ha.)

•The country is

the sole producer

in large quantities

•Good intercrop

•High yield

•Can be grown

organically

•Poor cultural management

followed by growers

•Susceptibility to viruses, leaf

diseases & insect pest

•Lack of information on pre-

and post-harvest

technologies

•Inadequate infrastructure

•Poor and expensive

transport system

•Lack of entrepreneurial skill

of farmers

•Lack of marketing

promotions in other countries

•Lack of quality standards for

fresh fruit

•Lack of marketing strategies

•Increase demand in the

local and international

market

•Preferred in the local

market

•High price

•Appreciation of the

market of high quality

fruits

•Improved human

nutrition

•High economic return

•Virus

diseases &

other pests

•Land use/

conversion

•High

pesticide use

SWOT ANALYSIS FOR ‘LAKATAN’

RGM Feb 4, 2006

STRENGTH WEAKNESS OPPORTUNITY THREAT

Favorable agro-

climatic

conditions

Proximity to

markets in the

region

Availability of

technology,

logistic support,

and manpower

Globally

competitive

product and

superior quality

Perishable

product

Limited direct

market access

Very labor

intensive

Small growers

difficult to police

Land disputes

affecting

productivity and

investments

Priority for water

availability

Truck hauling

Prone to

advocacy issues

raised by NGO‟s

Integrate forward

selling and

distribution

Look for new

markets

Find ways for

product

differentiation to

enhance price and

saleability

Capitalize on

emerging niche

markets

Develop a Filipino

global brand

Occasional risks due to

adverse climatic

disturbances

Spiraling cost of

production and business

costs

Weakening economic

conditions of the country

Unresolved agrarian

reform issues

Competitiveness of Latin

American bananas

Increasing supply and

market price softening

Proliferation of “fly-by-

night” traders who

encourage pole vaulting

Land use issues

Proliferation and illegal

use of unregistered

chemicals

Security issues

SWOT ANALYSIS FOR ‘CAVENDISH’

RGM Feb 4, 2006

STRENGTH WEAKNESS OPPORTUNITY THREAT

•Consumer

specific

•The country is

the sole

producer in

large quantities

•High sugar

content

•Can be grown

organically

•Stress tolerant

•Can be grown

in marginal

areas

•Have

medicinal

•property

•Susceptible to viruses and other pests

•Limited market

•Poor cultural management followed by

farmers

•Lack of information on pre and post-

harvest technologies

•Inadequate infrastructure

•Short post-harvest life

•Finger dropping

•Thin skinned and prone to fruit cracking

•Lack of quality standards for fresh fruit

•Poor and expensive transport system

•Lack of entrepreneurial skill of the

farmer

•Inappropriate marketing system

•CARP implementation

•Lack of marketing strategies

•Improve human

nutrition

•Not enough supply

in the market

•High economic

return

•Viruses

and other

pests

•Land use/

conversion

•High

pesticide

use

SWOT ANALYSIS FOR ‘LATUNDAN’

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RGM Feb 4, 2006

THANK YOU !!!