Home » Banana Industry in Mindanao Faces Decline, Impacting Thousands of Workers

Banana Industry in Mindanao Faces Decline, Impacting Thousands of Workers

Davao City – The Pilipino Banana Growers and Exporters Association (PBGEA) has expressed concern over the declining production in the banana industry in Mindanao, warning that the downturn could have a significant impact on the region’s economy and its workers. During the Hukad Business Forum on September 27, PBGEA Executive Director Stephen Antig revealed that approximately 700,000 individuals in the Davao region alone depend on the banana industry for their livelihoods.

As one of the largest employers in Mindanao, the banana sector plays a crucial role not just in economic development but also in maintaining peace and order by providing employment opportunities, according to Antig. “We cannot afford to let this industry die. It has not only contributed to the economic development of Mindanao but has also helped improve peace and order by providing jobs,” he said.

The banana industry, which has long been a key driver of Mindanao’s agricultural economy, is now facing a host of challenges. These include the rapid spread of fusarium wilt, a devastating banana disease, as well as climate change, and difficulties in expanding the area available for banana cultivation.

One of the biggest hurdles, Antig noted, is the limitation imposed by the Agrarian Reform Law, which caps individual landholdings at five hectares. “For banana farming, this limitation is not feasible,” he explained, adding that PBGEA has been lobbying the Department of Agrarian Reform to amend the law, though they have yet to receive a response. The association is also working to develop pest-resistant banana varieties, though rehabilitating affected lands can take up to a year.

The declining availability of land has taken a toll on Mindanao’s banana plantations, with the total area dedicated to banana production shrinking from 89,000 hectares to just 50,000 hectares due to the spread of diseases and pests. This reduction has allowed competitors from countries such as Vietnam, Cambodia, Laos, Myanmar, and Ecuador—where land for banana cultivation is more abundant—to capture larger shares of the global banana market.

“There will come a time when Mindanao will no longer be known as the ‘banana republic.’ We are losing a lot of our markets to competitors with more land available for expansion,” Antig warned. He stressed that despite efforts by the private sector to sustain the industry, more substantial support from the government is urgently needed.

Despite these challenges, there have been some positive developments. Antig noted improvements in both the production and exportation of bananas to key markets such as Japan, South Korea, and the Middle East. However, the Philippine banana industry’s share in international markets has been steadily declining. According to data from the International Trade Centre, the country’s market share in Japan, for instance, has dropped from 94% in 2012 to 79% in 2023.

As the banana industry continues to struggle with these setbacks, stakeholders are hopeful that increased collaboration between the private sector and the government will help reverse the decline. The future of Mindanao’s banana industry hangs in the balance, with significant implications for the region’s economy and workforce.