Davao banana industry cluster out to strengthen marketing
(Source: Edge Davao/23 November 2009)

The banana industry cluster of the Davao region is expected to get a boost after the pilot project for its enhancement has already been implemented.
Cluster project team leader Rene Dalayon said this million-peso project will really help a lot especially in the drive towards strengthening the marketing activities of the banana farmers.

The pilot project for the enhancement of the banana industry cluster in the municipality of Santo Tomas, Davao del Norte involves a comprehensive documentation of managing the value chain. This is enrolled under the Davao Industry Cluster Capacity Enhancement Project (DICCEP), which is spearheaded by the Department of Trade and Industry (DTI) 11 and supported by various national government agencies and private sector representatives. DICCEP is funded by the Japan International Cooperation Agency (JICA).

“If we get a picture of the entire process – from planting to bringing our produce to the shelves of our markets – we will further understand how the industry works. Thus, we will also have the opportunity to see the limitations of certain aspects of the industry,” Dalayon said.

DICCEP manager and DTI 11 head for Management Support and Special Concerns Division (MSSCD) Romeo L. Castañaga said that by finding the limitations of the banana industry, the stakeholders will be guided on what succeeding steps to take.

In strengthening the marketing of locally-produced bananas, the cluster will implement initiatives such as bulk buying of inputs, cooperative development and marketing assistance which would redound to reduced production cost, improved productivity and improved/new products.

“If we group together, we can negotiate for better prices, especially if we sell our bananas directly to the retailers,” Dalayon said.

Dalayon added that per records of the Federation of ARB Banana-Based Cooperatives (Fedco), the group of banana farmers where Dalayon sits as the chief executive officer, upland bananas directly sold to Japan’s retailers are priced at a minimum of US$10 per box of 13.5 kilograms, a lot higher than the usual US$3 to US$3.50 per box price level.

“Japan remains to be the most stable market for our bananas. And it’s great that Japan gives us assistance in developing our local banana industry and at the same time they are also our institutional buyers,” he said, adding that 80 percent of the bananas produced by Fedco goes to Japan.

The Davao Region Banana Industry Cluster Team was in Japan last month as part of the market study and exposure to the process of bringing the products to Japan. [dti11/jmm]