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China holds PH bananas

conan008

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Posted May 12th, 2012

by Christine F. Herrera & filed under Feature.
Fruit exports worth P700M rotting in four ports

ABOUT P700 million worth of Cavendish bananas from the Philippines have been

rotting in the major Chinese ports after they were denied entry because of Beijing

’s territorial dispute with Manila over the Scarborough Shoal, the president of

the Kidapawan Chamber of Commerce and Industry, Ramon Floresta, said Friday.

“The Mindanao plantation owners and farmers urge President Benigno Aquino III to

immediately intervene and fast-track the settlement of the dispute,” Floresta

told the Manila Standard. “Chinese traders have stopped buying bananas and

pineapples from us. With firm resolve, the standoff can be settled diplomatically.



“The Philippine government has to do it fast. The products are being made to rot

in China’s ports and we shoulder the huge losses. The freight alone costs $1,200

per container.”

Floresta said 1,000 containers full of bananas landed in Beijing and Shanghai last

week, and that 800 more containers were in transit.

Each 40-foot container held 1,550 boxes of Cavendish banana or 2.79 million boxes,

with each box worth $6, Floresta said.

The last shipment for the month had been harvested and were being packed, but

Mindanao’s160; businessmen had found there were no more buyers, he said.

Floresta says the Philippines exports 30 percent of its banana production three

times a month to China, a voyage that takes seven days. Bananas are planted to

50,000 hectares in Mindanao and are harvested daily year round.

The Philippine Banana Growers and Exporters Association on Friday said the more

stringent quarantine measures in China could jeopardize the country’s P4.75-

billion banana industry.

“This will greatly affect the local banana industry. Not just exporters like us

but people on the ground, those who work in the farm and their families,” group

president Steve Antig said.

About 50,000 people depended on the industry in Mindanao alone, he said.

Floresta said the Chinese traders had been told that the tougher restrictions on

Philippine fruit exports was in retaliation for Manila’s strict restrictions on

pork and chicken imports.

But Customs Commissioner Rufino Biazon said China accounted for very little of the

country’s pork and chicken imports, most of which were coming from the US, Canada

and Europe.

Abono chairman and Swine Development Council director Rosendo So said the

Philippines stopped importing pork, chicken and Peking ducks from China when that

country was hit with foot-and-mouth disease and bird flu.

“We stopped importing pork, chicken and Peking ducks from China way before the

Scarborough standoff,” So said.

Floresta said the farm gate price of bananas had been dropping. From $4.50 per

13.5-kilo box it went down to $3.20, and now the price was only $2.80 a box.

“Even at $2.80 no one is buying anymore,” he said.

“During the same period last year the farm gate price reached as high as $7 a

box.”

Floresta said Mindanao’s plantation owners expanded their farms when China opened

its market to the Philippines. He himself expanded his banana plantation to 300

hectares from 250.

“From 30,000 hectares of banana plantations in Mindanao, the region now has a

total of 50,000 hectares as a result of expansion,” Floresta said.

Antig said Mindanao growers would not be able to export their excess production to

traditional markets since they were already saturated.

The Philippines also exports bananas to Hong Kong, Korea, Japan, the United States

and Australia. China is the second biggest export market for Philippine bananas

next to Japan. The banana exports that country accounted for 19 percent of the

total in the first two months of this year.

“We do not want to believe that the situation has something to do with the

ongoing territorial spat with China, although some say that this could be

politically motivated,” Antig said.

Figures from the Bureau of Animal Industry showed that the banana exports to China

reached 358,000 metric tons in 2011. The pineapple and papaya exports to that

country reached 1.165 million metric tons and 309,350 metric tons, respectively.

Animal Bureau Director Clarito Baron said the Philippine government was already

taking the necessary action to reverse the trade restrictions imposed by China.

“We will do our best to restore China’s confidence in our system and avert

possible ramifications to our banana growers and exporters,” he said.

Beijing has ordered 100-percent inspection of all fruit coming from Manila after

it allegedly160; discovered pests from a randomly inspected shipment.

On Friday, the Palace ordered the Tourism Department to “work harder on other

markets” amid reports that Chinese travel agencies had suspended travel to the

Philippines with the escalation of the standoff at the Scarborough Shoal.

Presidential spokesman Edwin Lacierda assured Chinese nationals that despite the

ongoing global protest of Filipinos overseas to denounce Beijing’s actions in the

disputed shoal, cultural and people-to-people relations between the two countries

remained “very good.”

“We’d like to assure our Chinese friends that the government did not have a hand

[in the protests.],” he said

“It was the decision taken by private citizens who feel out of patriotism that

they have to speak on the issue.”

An official of the National Association of Independent Travel Agencies said they

were still gathering information on the Chinese suspension of tours.

Group president Robert Lim Joseph said they were coordinating with members to

assess the impact of the latest developments. With Othel V. Campos, Joyce Pangco

Pa241;ares and Macon Ramos-Araneta

160;

(Published in the Manila Standard Today newspaper on /2012/May/12

Sorry For wrong place!
 
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