DAVAO CITY – The banana industry in Davao region is currently facing a significant downturn, especially among small-scale growers, as Cavendish banana production continues to fall due to the combined impact of Panama disease and the El Niño phenomenon.

IRENEO Dalayon, chief executive officer of the Federation of Cooperatives in Mindanao (FEDCO) and Philippine Exporters Confederation Inc. (PhilExport) trustee, and Ed Bullecer, executive vice president and board member of the American Chamber of Commerce in Mindanao (AmCham-Mindanao), speaks in a business forum in Davao City on Friday, April 11. (Ivy Tejano)

Ireneo Dalayon, chief executive officer of the Federation of Cooperatives in Mindanao (FEDCO) and PhilExport trustee, said in a business forum here on Friday that while the big players in the industry continue to expand, small growers are struggling.

Dalayon estimated a 10 to 15 percent decline in banana production, a major setback for farmers, leaving several lands in the towns of Kapalong, Santo Tomas, and Asuncion and Tagum City in Davao del Norte and some areas in Davao del Sur and Davao de Oro unproductive.

Aside from the fusarium wilt and the sudden changes in the weather, Dalayon explained that the rising cost of logistics, fertilizers, and chemicals are making it increasingly difficult for these farmers to sustain their business. Accessing financial assistance is another challenge, he said.

“Let’s say you’re used to producing 5,000 boxes but now only manage 4,000. You’re not making any money with the high logistics cost. Developing one hectare of Cavendish banana plantation costs about a million, which is unattainable for many farmers,” Dalayon said.

He added that banks are also hesitant to extend loans, fearing farmers will struggle to repay their debts due to high input costs, leaving them to shut down their operations, which the organization is doing its best to prevent.

Dalayon said Philippine bananas are losing their competitiveness in the global market, adding that the cost per box of the bananas is significantly higher than those from Cambodia, Laos, and Vietnam, which are geographically closer to key markets like China and Japan. 

He said that countries like South Africa benefit from well-developed transport infrastructure, including trains and buses, making their bananas more attractive to international buyers like those from the United States.

Ed Bullecer, executive vice president and board member of the American Chamber of Commerce in Mindanao, said the economic decline and changing priorities of younger generations make things more challenging. He pointed out how shifting food habits affect local farming.

The officials said efforts to revitalize the Cavendish banana industry remain a topic of discussion among industry leaders. They encouraged small growers to shift to Cardava bananas or rice as these products remain in high demand in the market. 

Dalayon said that as a PhilExport board member, he emphasizes the need for financial support and better management to revive the sector. However, the recovery is uncertain due to high costs and the lack of government support similar to that in other countries. 

As the banana industry faces these challenging times, Dalayon said the stakeholders continue to search for solutions to keep small growers afloat. He added that without intervention, the country risks a further decline in one of its most important agricultural exports.