Bananas and Food Security - Bioversity International

Asie/Pacifique - Asia/Pacific : J.M. Yorobe
The results of the investigation indicate that the local market for bananas is not
efficient. There is poor system of grading and the pricing mechanism practised provides
room for exploitation by middlemen. Some of the middlemen are making excessive profit
through improper counting and grading and an inefficient pricing system. The lack of
market integration of the local market to Metro Manila further adds to the cost of
banana marketing as pricing information is not readily transmitted to the farm level.
The marketing margins also reveal substantial profits earned by wholesalers and
retailers; more than the costs of the services provided. Marketing losses are also high
due to improper handling and poor storage facilities in the area. The bad condition of
roads and non-existent post-harvest facilities make marketing more difficult and costly
in terms of quality and quantity losses. Government intervention through the provision of
new investment in infrastructure and marketing facilities will substantially influence the
conduct of marketing in the area.
References
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Clarete R. 1994. Revitalising the sagging banana export industry: Lift the hectareage limitation
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