5. Key Commodity Performance - National Agricultural and Fishery ...

SWOT Analysis
5.5.18 Banana is a relatively well established industry in the country. The
industry’s strengths include favorable climate for banana growing, year-round
production and availability of processing technologies. For Cavendish which is
geared mainly for export, the advantages stem from the availability of tissuecultured
planting materials, the highly integrated operations from input supply to
production to marketing, the relatively well-developed export marketing
infrastructure from cold storage facilities, reefer vans, ports, ships, and
established global presence due to the dominance of multinational firms like Del
Monte and Dole, as well as local companies like Lapanday.
5.5.19 Despite these strengths, the industry suffers from rising costs of inputs
like labor, fertilizers, and chemicals, declining soil fertility resulting from
continuous farming and application of chemicals, and incidence of pests and
diseases, among others. For the native varieties, there are still constraints
related to sourcing of tissue-cultured planting materials, low productivity and
product quality, and multi-layered marketing system. Processing is also limited
by the availability of raw material supply (specifically saba/cardava) and the
increasing costs of inputs like sugar, cooking oil as well as utilities (electricity,
water). For Cavendish, the lack of market diversification (or the continuing
reliance on traditional markets like Japan) poses as a constraint.
5.5.20 Overall, however, there are opportunities for expanding both production
and exports considering the growing demand in both the domestic and
export markets not just for fresh but for processed products as well. To
be able to capitalize on these opportunities, however, there is need to
manage the threats brought about by increasing competition in the global
market, the imposition of non-tariff barriers by importing countries (such
as in the case of Australia which continues to ban Philippine bananas on
sanitary and phytosanitary grounds), the uncertainties of land reform,
and rising input costs. Managing the peace and order situation in
Mindanao, where most commercial banana plantations are located, is
also critical.
5- 38