Banana growers in Mindanao still suffer loses: China and Europe issues

The banana industry continues to suffer loses as China market, the largest importer of Philippines’ bananas, supporting the livelihood of about 200,000 farmers, had sharpened its quarantine policy and there had been a decreasing exports to other international markets.

The China issue which started early this year with the dispute over the Scarborough shoal islands, wherein China claimed ownership of Philippine territories, has rolled into a national crisis. Mindanao is greatly affected since banana is the islands main export product, aside mangoes and pineapples.

It was reported that scale type insects (Aonidiella comperei) were found in one of the containers, but Chinese quarantine officials claimed to have discovered insects in 43 shipments. 

As a result of the issue, thousands of boxes of Cavendish bananas (which are sold at around $2 per box) had been rotting at Shanghai's ports since the mainland is turning down banana shipments from the Philippines that do not conform with the new set quarantine procedures. Mindanao banana growers and exporters continue to incur losses of up to P120 million per week.

Then, European buyers are asking for a discount of 20-30 percent. Since European countries are trapped in a crisis themselves, referring to the European sovereign debt crisis (also called the "Eurozone crisis") is since 2009 an ongoing financial crisis that has made it difficult or even impossible for some countries (like Greece or Spain)  in the euro zone to repay or re-finance their government debt without the assistance of third parties, Philippine banana importers are pressured to offer at lower prices. 

And this move has lead to stopped production and even closure of small time banana growers. Others have diverted their selling to the Middle East market or Russia, at a much lower price starting at $1.43 per box, or ventured into banana chips, making banana cake or exploring other recipes to find a market. Another option many growers turn to is to plant areas of cacao and coconut instead of banana.

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