Tuesday, January 08, 2008 Banana firm expands operations in S. Cotabato
GENERAL SANTOS CITY -- A subsidiary of Japanese integrated firm Sumitomo Corp. is expanding its operation in Banga, South Cotabato through a growership scheme with landowners there, officials confirmed on Thursday.
Winnie Osorio, community relations and development officer of Upland Banana Corp., said this is the first time the company is opening up the banana project directly involving landowners in South Cotabato province.
Just three years into operation, Upland Banana, based in T'boli town, operates banana plantations totaling more than 2,000 hectares in the municipalities of T'boli and Surallah through corporate farming where lands are leased from farmers.
"But now, the farmers will directly grow the banana that will be bought by the company under a marketing agreement. Upland Banana will provide them with the needed technical support to raise the crop," Osorio said.
He revealed the growership scheme gets off the ground late last year and that identified lands are now in different phases of preparation.
South Cotabato Governor Daisy Avance Fuentes said the expansion of the company would help generate employment and boost the agribusiness potentials of the province.
"Good things are happening in our province," she said in respect to the decision of the company to expand its operations.
Upland Banana produces the giant Cavendish variety, which is sold to the markets of Japan, Korea, New Zealand and the Middle East, Osorio said.
Upland Banana used to be under the Davao City-based AJMR Group, which is headed by Alberto M. Soriano.
In 2004, Sumifru Philippines Corp., a subsidiary of Tokyo-based Sumitomo Corp., reportedly poured investments of about P2.1 billion to AJMR's operations in T'boli town.
Sumifru eventually acquired Upland Banana, Osorio said.
About two years ago, Upland Banana was put in the bad light after the Environmental Management Bureau penalized it for violating the provisions of its Environmental Clearance Certificate.
Datu Tungko Saikol, EMB-Central Mindanao director, said the agency was meted a fine of P50,000 for unauthorized expansion in Barangays Salacafe and Lamhaku in T'boli town and nearby Barangay Veterans in Surallah, also in South Cotabato.
The imposition of penalty followed the investigation conducted by the multi-partite monitoring team composed of the environmental bureau, an attached agency of the Department of Environment and Natural Resources, religious and civic organizations.
The Coalition of Social Development Organizations in South Cotabato lodged the complaint against Upland Banana.
"The company violated ECC condition no. 35, which states that expansions from the existing approved operation shall be subject to a separate EIA (Environmental Impact Assessment) requirement," Mr. Saikol said in a resolution.
Upland Banana has been accused of four violations but only one was found with merit. (BSS)
