'Pablo' kills first PHL Cavendish shipment to US

The destruction of banana plantations in Mindanao, in the wake of Super Typhoon Pablo last week, has forced Cavendish growers to call off the maiden shipment to the United States that was supposed to be this month.

 

Instead, the shipment of Philippine bananas to the US will likely happen as soon as there is enough harvest next year, the Agriculture Department said Thursday.

 

"Growers and exporters are already feeling the pressure,” Agriculture Secretary Proceso Alcala told reporters at the sidelines of the National Convention of Food Staples Producers at the Manila Hotel.

 

“They said they have to prioritize earlier commitments. The US market will have to wait," Agriculture Alcala noted.

 

The Philippine government and was able to secure an initial shipment of 3,000 metric tons (MT) of Cavendish to the US after China enforced stricter import protocols on Philippine bananas due to geopolitical tensions in the West Philippine Sea.

 

Banana growers and exporters said it will take at least nine months before they can fully rehabilitate their plantations.

 

Early estimates by the Philippine Banana Growers and Exporters Association placed the damage at 14,175 hectares of plantations in Compostela Valley, Davao del Norte, Surigao del Sur and Bukidnon – home to Cavendish-exporting companies.  

 

The group noted that "there are still some plantations that could not be reached, but damage will likely settle near the P11 billion mark."

 

Due to magnitude of loss, the state-run Land Bank of the Philippines opened an emergency loan facility of P2.1 billion for large-scale banana growers in Mindanao.

 

It was one of the quickest responses for the banana growers' cry for help, Alcala said, noting the bank will start processing loan applications within the next two weeks.

 

"I cannot recall the exact figure but the interest rate for the loan should not be lower than 6 percent per annum," Alcala said. LandBank is eying an 18-month grace before the first payment falls due, he added. — VS, GMA News