Monday, May 14, 2007 Banana growers bullish over Japanese market
TUPI, South Cotabato -- The market for organically-grown banana in Japan is growing but exporters are not happy because the appreciation of the peso against the dollar has reduced their earnings by at least P27 per box at present exchange rates, a local industry leader said.
Lito Apuzen, manager of Tupi Balangon/Bongulan Growers' Association (Tubaga), said at least three more groups of Japanese buyers expressed interest in buying their produce for distribution in Japan.
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Bongulan is a native, table-dish variety that the association has been supplying to Alter Trade Inc. in Japan for distribution to Japanese consumers in the last three years.
While he declined to identify the new possible Japanese buyers, Apuzen revealed that "one is a sure client while the two others are waiting for a key development regarding the association."
"They are waiting for our certification from an international organic certifying body. We're on the last stages of application and we’re just waiting for the foreign inspectors to see our banana plantations," said Apuzen.
He was referring to Ecocert SA, a firm based in Germany. It is an inspection and certification body accredited to verify the conformity of organic products against the organic regulations of Europe, Japan and the United States.
The Ecocert certification mark is one of the leading international organic certification marks, enjoying a good reputation and trusted by both consumers and the organic industry, the firm said in its website.
The 124-member Tubaga, according to Apuzen, ships an average of 21.6 tons or 21,600 kilos weekly to Japan through Alter Trade, which has a captive market of consumer cooperatives in Japan advocating organic products.
Apuzen said they expect a massive expansion of bongulan plantations here once the negotiations with the new Japanese buyers will be sealed.
He said the expansion will be driven by the market demand of these possible new clients.
Presently, the association maintains 211 hectares of bongulan plantations in this town.
But while the horizon looks bright for the group's product in Japan, Apuzen rued over the impact of a stronger peso against the greenback.
"The appreciation of the peso is hurting us. It failed to stem the high price of oil. Our production cost has not been reduced by the stronger peso such as for our packing materials," he lamented.
Apuzen noted they earn $38 (roughly P1,800) per 13.5-kilo box of banana but since the peso breached the P47-level mark against the dollar, the profit margin is reduced by P27 per box.
To address the plight of the export sector, the government has instituted measures, including the exemption of exporters from paying the mandatory "container security fees."
It is imposed on container cargoes that will pass through inspection, translating into savings for the sector that has been hit hard by the strengthening peso and other costs.
Executive Order 592, issued last December, directed the Bureau of Customs (BOC) to order all its port inspectors to collect $50 for every 40-foot container and $25 for every 20-foot container.
But in its Administration Order 4-2007 issued more than a month ago for the implementation of EO 592, BOC "held in abeyance" the collection of fees, but only for export products.(BSS)
