The Philippines is a major producer of tropical fruits such as banana, pineapple and mango. These fruits are the country’s top agricultural exports in terms of volume and value. More areas in the country are now being devoted to production of tropical crops to further boost the industry.

Banana

• Leading fruit grown in the Philippines and a consistent top dollar earner. The top four banana exporting countries in 2006, which includes the Philippines, accounted for the 64% of world exports

• Locally produced varieties are Cavendish, Latundan, Lakatan, Inarnibal, Amas, Bungulan, Pitogo, Morado, Inabaniko, and Señorita

• Export market products: Cavendish and banana chips from saba/cardaba varieties

Local market products: lakatan and latundan varieties

Pineapple

• Philippines is the third top exporter of pineapple in the world with a market share of 9.57% in 2005

•Varieties grown in the Philippines: Smooth Cayenne or Hawaiian, Queen or Africa Queen or Formosa and Native Philippine Red or red Spanish and Cabezona

Mango

• Country’s national fruit and is considered as one of the finest and the sweetest in the world

• Third most important fruit crop of the country based on export volume and value next to banana and pineapple.

• The country is among the top ten mango exporter in 2005 with a market share of 3.8%

Export variety: Carabao Mango, which is one of the best varieties in the world

Production & Exports (MT)

Market Opportunities

Increase in world demand

Banana

• Demand for exports is expected to reach 15 million MT by 2010 (Source: UN Conference on Trade and Development & UN-Food and Agriculture Organization)

• Top major export destinations of Philippine banana are Japan, Iran, China, South Korea and Singapore


Pineapple
• Annual growth in world demand remains high (3% in volume annually) while the domestic demand grows by an average of 5.5% yearly

• The top fresh fruit export destinations are Japan (200,651 MT); Republic of South Korea (40,098 MT); and Singapore (12,865MT).

• In recent years, there has been growing demand for pineapple as beverage


Mango
• World export market is expected to grow by 10% per year up to 2010.

• Country among the worlds top ten mango exporting countries with a share of 3.6%

• The major destinations for Philippine fresh mangoes are Hong Kong and Japan absorbing 86% of our mango exports

• Other existing markets for Philippine mangoes are USA, Singapore, German Federation, Malaysia, New Zealand and Canada

• Netherlands, South Korea and Middle East are new markets for Philippine mangoes

• To increase the country’s exportation of mango, the DA is planning to pen up new markets in Europe and North America to take advantage of the projected increase in global demand

Philippine Advantage

Natural resources

• Suitability of climate and soil fertility to grow a wide variety of Philippine tropical fruits Technology that supports the industry

Banana

• Tissue-culture technology is now being used in the industry to prevent fruit diseases and improve yield. This technology involves growing banana culture in a laboratory until they are read for transplant into the field.

Pineapple

• A newly discovered technique for growing export-quality pineapple was discovered early this year by Department of Agriculture’s Research Outreach Station. The said technique involves control in the application of Nitrogen and Potassium fertilizers in soil, which helps improve the height, length and width of the pineapple plant’s leaves.

Mango

• The combination of spraying and smudging has proved to be a more cost-effective means for flower induction compared to the usual practice of purely using potassium nitrate spray.


Support industries/infrastructure

• Availability of post-harvest facilities and other logistical support facilities

• Irrigation projects by the National Irrigation Administration (NIA)


Ideal locations

Based from investment opportunities identified by the DA

• Cordillera Administrative Region, Autonomous Region of Muslim Mindanao, Region I, Region IV-B, Region V, Region VII, Region VIII, Region X, Region XI, Region, XII

• Specific areas for pineapple production: Bukidnon, South Cotabato, Davao City, Camarines Norte, Laguna, Batangas, Nueva Vizcaya, Bataan, Zambales


Human Resources

• Big labor force that is highly skilled, educated, English proficient and has strong and good work ethics.

• The country, being an agricultural country, has many readily-available farm workers who are very knowledgeable on the details and technicalities of farming in the Philippines.

• Number of graduates in Agriculture: 15,980 in 2008

Government Support

Enabling laws/ policies

• Medium-Term Philippines Development Plan 2004-2010

-Development of at least 2 million hectares of new agribusiness lands by 2010

• Agriculture and Fisheries Modernization Act (AFMA)

-Provides duty-free importation of capital equipment and inputs for production

• Philippine Export Development Plan 2008-2010

-Inclusion of fresh fruits as one of the revenue streams of the economy


Strong support from government/Industry association

• Presence of dynamic industry associations

-Philippine Banana Growers and Exporters Association

-Philippine Mango Growers Association

-Northern Mindanao Pineapple Industry Association

-Philippine Exporters Confederation, Inc. – mandated to strengthen the country’s export industry through its export promotion and development programs.


Market/Technical/R&D support

• Inclusion in the promotional activities of various government agencies (i.e. BOI, PEZA)

• Inclusion in the 2010 Investments Priorities Plan

• DA-Gintong Masaganang Ani (GMA) High Value Commercial Crops Program – includes policy reform, market development and promotion, infrastructure support, investment and financing,

• Technology development, training, extension, communication support, program advocacy, information networking and dissemination

• Research and Development support from the Department of Science and Technology (DOST), particularly the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD) and Industrial Technology and Development Institution (ITDI)

Incentives

Fiscal

• 4 to 8 years Income Tax Holiday (ITH)

• Special 5% tax rate on gross income after the lapse of ITH (for Eco-zone locators)

• Duty-free importation of capital equipment (for BOI-registered firms under E.O. 528);

• Additional deduction for labor expense


Non-fiscal

• Unrestricted use of consigned equipment

• Exemption from wharfage dues and export tax, duty, impost and fees

• Employment of foreign nationals

• Special Investors Resident Visa

Cost of Doing Business

Salaries and wages (average per day)

• Regions/Provinces – US$ 4.21 – US$ 5.31


Farm Inputs

Source: Fertilizer and Pesticides Authority

• Fertilizer (US$/50 Kg. bag) - $17.87 - $40.84 depending on the type of fertilizer

• Pesticides (US$/L) - $5.21 - $21.67 depending on the type of pesticide


Land Lease Rates (US$ per hectare per year)

• Bukidnon: $125.00-$208.33

• South Cotabato: $338.54

• Laguna: $156.25 - $312.50

• Nueva Vizcaya: 1/3 of harvest value

Industry Players