Banana plantation size limit lifted

President Arroyo has lifted the order limiting the Order 807 repealing Letter of Instruction No. 58 issued by the late President Ferdinand Marcos which had limited the area for plantations of export-quality bananas to 26,250 hectares nationwide.

“The Philippines export banana industry has gained global market strength over the years, producing one of the country’s market export products and source of jobs. The existing number of hectares planted to export banana increased over the years and has exceeded the limit allowed under the said Letter of Instruction due to increasing global demand,” the President said.

“Improving the country’s global market position in the export banana industry necessitates the repeal of Letter of Instruction No. 58,” she said.

The President also dissolved the Banana Industry Export Committee and assigned the Department of Agriculture to oversee the banana export industry.

The Philippines accounts for almost a fifth of world banana exports with close to 50,000 hectares planted with export-quality bananas.

Data from the Bureau of Agrictultural Statistics showed exports of bananas and products such as banana chips have increased to 537,095 metric tons worth $101.267 million in the first quarter from only 503,198 metric tons worth $98,415 million during the same period last year.

Banana production, which accounts for 4.36 percent of total agriculture output, has also increased to 2.02 million metric tons valued at P3.683 billion in the first quarter.

This developed as the Agricultural Alliance elevated to the Office of the President its request to extend Executive Order 765 granting zero duty to feed-grade wheat imports.

The group, composed of stakeholders in the farm sector, alleged that zero duty feed-grade wheat would enable local feed millers, hog raisers and poulty operators to provide consumers with reasonably-priced pork and chicken products.

The executive order had expired June 21 and government has not extended the order although news reports have indicated that the government will extend the zero duty privilege on milling wheat but not for feed wheat.

Feed millers noted that the Cabinet Tariff Reform Matters Committee decision, recommending the scrapping of the duty feed wheat importation, is unfortunate as this will lead to higher corn prices.

This will cause greater harm to the consuming public who will have to pay more for pork, poultry, meat and even fish products, said the Philippine Association of Feedmillers Inc. spokeman Renato Eleria.

The Philippines is perennially short of corn. First quarter shortfall estimate by the Agriculture Department showed that annual production for the year will be about 600,000 metric tons short.

Corn comprises 50 percent to 60 percent of animal feeds which means increases in prices will impact on the cost of raising livestock and poultry. -Joyce Pango Panares and Othel V. Ramos, Manila Standard Today