BESET by major challenges in 2015, Davao Region recorded only about US$716.6 million worth of products exported during the first three quarters of 2015.
This was 39.8 percent decrease as compared to US$1.19 billion of the same period of 2014.
National Economic Development Authority (Neda) Davao Director Maria Lourdes Lim presented to the Davao Regional Development Council (RDC) recently that the decline in shipments was brought about by the lesser demand from the major export destinations of the region.
She also cited the economic slowdown of world's big economies such as Japan and China, the major export markets of cavendish bananas, as the reason behind the significant drop.
Recently, Pilipino Banana Growers and Exports Association (PBGEA) executive director Stephen Antig expressed fear that the country might lose its international markets to global competitors this year in what seemed to be a global market war.
He said banana-producing economies in Latin American have started to enter the export destinations of the Mindanao banana growers after markets like US and Europe are down at present.
He said that countries like Russia have refused to accept banana products from Ecuador, which prompted their local exporters to divert their focus on Asian markets where the Philippines is selling its products like Japan and China.
He said these countries claimed they can produce bananas half of the Philippines' production cost.
The banana industry in Asean neighbors have yet to fully realize their export potentials, namely: Vietnam, Indonesia, Cambodia, Myanmar, Sri Lanka, and Laos, according to Antig.
"You identify our neighbors who are basically an agriculture economy and those will be able to compete with us and give us a run for our money," he said.
The PBGEA recorded a total of 85.324 million boxes from January to September 2015, down by 5.35 percent or equivalent to 4.822 million boxes lost, as compared to 90.14 million boxes of the same period in 2014.
Mindanao reported a total of 42,316 hectares planted to bananas in 2015.
El Niño threatens.
Department of Trade and Industry (DTI) Davao Director Ma. Belenda Ambi said the El Niño phenomenon that will last until May 2016 has already been identified as a major setback in the region.
Citing report from Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa), Ambi said provinces such as Compostela Valley, Davao del Sur, and Davao Oriental will experience drought while Davao del Norte will be hit by dry spell within this quarter.
The High Value Crops Program (HVCP) of the Department of Agriculture (DA) 11 prepared the farmers in areas that will be hit by the long dry spell through vegetable subsidy.
Melani Provido, regional HVCP coordinator of the DA Davao, said the efforts to brace the affected area are needed to maintain the supply of vegetables and give the farmers livelihood for the time being.
Among the areas identified by DA Davao include the upland Marilog District in Davao City and Maragusan, Compostela Valley.
She said the DA Davao shelled out P8 million budget to implement some programs, including irrigation projects, to cushion the impact of El Niño on the high value crops.