AgriNurture heads off ASEAN integration, expands banana farms in PHL, Indonesia

Listed food producer and trader AgriNurture Inc. is set to expand its banana plantation in Kalimantan, Indonesia as the company steps up efforts to boost sales in export markets.

 

"We already have acquired 3,000 hectares of land which is allotted for the production of 40 metric tons per hectare of Cavendish banana," said Antonio Tiu, chief executive officer and chairman.

 

"We are preparing for long-term areas for expansion. Our acquisition abroad is to get AgriNurture ready for ASEAN integration. Also, to avoid some political risk and weather disturbances in Mindanao," he added.

 

The company recently bought 1000-hectare banana plantation for P1-billion in Mindanao to raise its output for the export market.

 

Tiu said AgriNurture has been focusing on expanding its plantations as the company expects high growth to continue in markets outside the Philippines. 

 

Planting in the Kalimantan plantation will begin by first quarter next year.

 

"We intend to ship the bananas to China, Middle East and Korea once we are able to harvest, of course the land will take several years to develop," he said.

 

The firm already ships out bananas and other fruits that include mangoes, coconut, pineapple and papaya to China, the Middle East, North America and Europe.

 

Clarito Barron, Bureau of Plant Industry director, said Cavendish exports increased by 111 percent to 3.8 million metric tons (MT) in 2012 compared with 1.8 million MT in 2011—despite the restrictions imposed by China. He attributed this performance to the increasing demand by other traditional markets, apart from China, for the commodity and the opening of new export markets.

 

"Shipments to new destinations like Indonesia, Pakistan, Jordan and some Middle Eastern countries has added up to the increase," he said.

 

Barron noted the additional volume bought by Korea and Japan—the two important destinations of Philippine Cavendish with combined exports of  more than 1 million MT—made up for the “supposed loses” from the Chinese market. “There’s a significant increase in volume in major importing countries like Japan and Korea,” he said.

  

The restrictions on Philippine banana exports to China are easing, Barron said, noting that Chinese quarantine officials have notified Manila of the improved quality of banana shipments arriving in China’s ports.

 

In 2012, China imported roughly 400,000 MT of Cavendish in 2012, roughly the same from a year earlier.

 

“China remained our third biggest market, next to Japan and Korea. But they still play a big role as one of our biggest banana export markets,” Barron said.

 

With the export of the commodity to the in the offing, Barron said they expect banana exports to further increase this year.

 

 “We are just waiting for their final ruling on banana importation. We have already provided them our comment, the ball is already in their hands,” he said, adding that Dole Philippines will conduct the initial shipment of 3,000 MT. — VS, GMA News