Banana is a tropical plant with large leaves and hanging increase against last year’s 437 thousand BANANA

d BANANA PRODUCTS
clusters of long curved fruits. Bananas make up the genus hectares. Mindanao accounted for more than > banana chips > feeds
Musa of the Musaceae family. The plantain, or cooking 50 percent of the country’s’ total banana area. > flour > banana catsup
banana, is classified as Musa paradisiacal. Species of the Area planted to Cavendish increased by 1.54 Off-grade Cavendish
genus are native to Southeastern Asia but are now grown percent from 2007 level. Those planted to > chips > feeds > flour
extensively in all tropical countries. Lacatan and Saba posted increases of less > puree > condiments
Banana is the leading fruit grown in the Philippines and is a than 1 percent each.
consistent top dollar earner. The prospect for Philippine In MIMAROPA region banana production was OPPORTUNITIES
bananas in the domestic and foreign market is promising; promising it posted 196.10 thousand MT. in • Greater access to market
Cavendish and banana chips for export and lakatan and 2008 and it was increases 188.59 thousand • Presence of ICT facilities
latundan for the local market. The demand for organic banana MT. in 2007. MIMAROPA shares 1.21 percent • Heightened global consciousness for health foods.
chips, Cavendish and balangon for export is also growing. in the national production. • Rapid changes in costumer preferences
Cavendish is grown on a plantation scale in Mindanao. • High employment and investment generator
Lakatan and Latundan are grown commercially and cater 2008 Vol. Area Yield
even the Luzon and Visayas markets. Cardaba is grown Production Harvested Per
POTENTIAL AREAS FOR INVESTMENT
mainly for the banana chips industry. Balangon is grown Hectare
MIMAROPA region has a large potential areas for banana
organically in Tupi, South Cotabato, while the organic Marinduque 587.27 452 1.29
Min. Occ. 587.27 648 4.66 production specifically Saba production. Production of
Cavendish is being grown by multinational corporations. organically grown bananas using modern technology and a
Mindoro Or. 3,017.77 18,515 9.08
Palawan 168,048.50 5,356 3.16 good investment in the production of fertilizers, pesticides,
PROCESSING tissue cultured planting materials, organic inputs, plastic
Romblon 7,497.74 1,781.6 4.21
Cardaba and Saba bananas are processed into banana chips bags, plastic mulch and packaging materials. And in addition,
intended mainly for the export markets. Cavendish bananas production sub-system project – Credit/loan financing to
are processed into feeds, flour and banana catsup and are MARKET
Local Market: The domestic market for fresh growers/ processors for the production/ expansion of banana
also exported to foreign countries. Off-grade Cavendish is plantations and other processing activities.
processed into chips, feeds, puree and condiments. banana is captured by middlemen who pay very
low farm gate prices. The products are either
disposed in the local market, local processor or INVESTMENT ARRANGEMENT/MODALITIES
PRODUCTION Joint venture of Local partners/Peoples’ Organization and
Production of banana rose from 7,484 thousand MT. in 2007 shipped to Manila via the ports of the region
such as calapan port and others. From Manila, joint venture company to manage the production site and
to 8,686 thousand MT in 2008. This represented a 16.06 enter contract growing and/ or land lease agreement with
percent growth in 2008. All varieties posted production fresh bananas are distributed by consignees to
wholesalers in nearby regions. The wholesalers individual banana growers.
increases as a result of the continued expansion in cultivated
areas and additional bearing hills in the top three (3) then sell the commodities to local retail markets
in the place such as fruit stands, supermarkets, COST AND RETURN ANALYSIS for 1 hectare
producing regions, namely, Davao, Northern Mindanao and Particulars
SOCCSKSARGEN. Cavendish variety as the main growth wet markets and mobile retailers.
Foreign Market: The Philippines ranked second Cost of Production P 55,000
driver, registered an increase of 23.01 percent in 2008. Saba Ave. Yield 30,000 kg
variety production grew by 3.21 percent during the period. among all banana-exporting countries. Among
the country’s major banana export destinations Price/kilo P 3.50/kg
Production on Lacatan variety went up by 1.76 percent. The
are the European Union, USA, Japan, Russia, Net Income P 50,000
estimated 2008 production for the following varieties was:
China, and Canada. In 2008, Japan continued Payback Period 6 months
Cavendish, 2,144 thousand MT; Saba, 1,260 MT; and
to be the Philippines’ main market for fresh ROI 91%
Lacatan, thousand MT. The total area planted to banana was
estimated at 439 thousand hectares. It posted a 0.48 percent banana. The United States of America
absorbed most of the processed products.
INSTITUTIONAL SUPPORT
The industry has the following institutional support
mechanisms:

• Collaboration among government institutions

• Strong industry associations such as Philippine
Banana Growers Exporters Association (PBGEA) and
others.
• Collaboration among financing Institutions
• Collaboration with resource providers
• Collaboration with academe and other institutions.

An Investment Opportunity

Produced by:
Office of Regional Executive Director
Agribusiness & Marketing Assistance Division Regional Field Unit - 4B (MIMAROPA)
4/F ATI Building, Elliptical Road
(AMAD) Diliman, Quezon City
DA-RFU-IVB Tel. # (02)426-47-84
Telefax: (02)920-20-18
TeleFax: (02) – 921 – 2650 Email address: oredda4b@yahoo.com