Banana exports to be hit by Scarborough dispute- industry insider

By: Dennis Jay Santos
Inquirer Mindanao

GOOD PROSPECTS. Arakan, North Cotabato women wash Cavendish bananas ready for export as this mountainous town has become a center for agribusiness in Central Mindanao area. PHOTO BY PINOY GONZALES/PDI CONTRIBUTOR

DAVAO CITY, Philippines – The tension between the Philippines and China over the Scarborough shoal may eventually take its toll on the banana industry, a ranking industry official said on Thursday.

Stephen Antig, president of the Pilipino Banana Growers and Exporters Association (PBGEA), said that China recently imposed a tighter rule on incoming banana shipments.

This, Antig said, had surprised the banana industry – which has been exporting Cavendish there for over a decade now.

He said China rejected a shipload of bananas sent from the Philippines because it allegedly failed quarantine tests.

Antig would not divulge the name of the company that sent the bananas but added that other companies in Mindanao have been using the most advance and high-end technology to process their products.

“We have been very careful in shipping bananas to China and see to it that there is no problem,” he said.

The rejection, he said, sent jitters to the banana industry in Mindanao – made up of about 18 companies – because it was unusual.

“We recently held meetings and shared the same apprehension that we may lose the valuable market in China as a result of the dispute over the shoal,” Antig said.

Antig said the Department of Trade and Industry (DTI) had asked Chinese authorities if there were plans to stop imports from the Philippines.

The answer was “it’s not yet happening”,” Antig said.

“Anything could happen and we are keeping a close watch,” he added.

While China has the right to impose stricter quarantine control, Antig said the move came in the wake of the shoal dispute.

“It is only now that they become stricter or stringent,” he said.

China remains the largest consumer of Philippine Cavendish bananas.

Of the estimated 75 million boxes that banana companies send overseas each year, “more than half goes to China,” according to Antig.

“Much bigger than Japan,” he said.

Antig said if the Philippines lost the China banana market, it would trigger the economic downfall of the banana industry.

The Scarborough shoal issue might be viewed as a political one but it could have a devastating effect on the trading relations between the country and China, Antig added.

Source: http://business.inquirer.net/57081/banana-exports-to-be-hit-by-scarborough-dispute%E2%80%93-industry-insider

Personal Reactions

i am very disappointed with how China reacted to the controversy on scarborough shoal. Its not appropriate to implicate the trading between two countries (China and Philippines). China has taking the dispute personally or politically. If thats the case, Trading will be substantially be affected between the two countries.  we cannot deny that trading with China has been greatly been accepted by the Philippines but what China is currently doing is very unprofessional or unethical and unfair. It is really surprising how the exportation of  Cavendish Banana to China has been rejected even trading with that particular product has been active for a decade now. No doubt its about the controversy.

 If exporting Cavendish Bananas in China will be stop, The Net export of the Philippines will decrease. As i know, Philippines is trying its best to make exports exceed more the imports so that we have a good gross domestic product. Since China has been the largest consumer of Cavendish Banana, so it will be a big lost if China continue to reject imports from the Philippines. Not just that, China has been doing very well in their economy and i cannot deny that they are now a big influence to other countries. China can influence other countries to resist or to not accept any imports from the Philippines. If these will happen, this will result to the downfall of Banana Industry and Philippines will experience a decrease in our national Income. There are possibilities that supply of Cavendish Banana will also decrease because the demand from foreign countries decreases. And its not impossible that Banana Plantations will also decrease the number of employees and so Unemployment rate will increase. In short, we are in trouble. supposed that if the issue about Scarborough Shoal  or problem with China remains unresolved we will not only losing an income to one product but may also to other products that we are exporting to foreign countries and it will leads to another downfall of other industries.

However, Philippines should still continue produce such product to other countries. Its maybe time to do more outsourcing and its a challenge to our Banana Industries or even to other Products to not just import goods in Asia but all over the world. Instead of feeling bad about what happen and producing less, its best if we still try to show to China that were not only dependent to them, with our good products we can export it globally. In this issue, it may gave us negative effects in our economy but if other countries will know the reasons behind the rejections of China on Philippine products, that will sound dirty for the China. And somehow, for our advantage in this issue, China is like saying that we really have good resources and they get envy with it and it sounds like they always claim the good resources of the Philippines Spratly Island for instance. If other foreign countries know that, they will get curious with our resources and this can be a way for inviting more Investors.

I think, the best way to make things right is to resolve the problem between Philippines and China. But the question is, HOW? i agree that we cannot just give up the resources we treasure its one of the assets of the Philippines and that has become one of the sources of livelihood for some in Luzon. But if we don't,we will really face a huge problem in economy especially in Trading. However, it may be the only way to resolve the dispute. For now, i know the Government is still finding ways to resolve it since China government is still not carried with negotiations. Things are getting worst now.  Department of Trade and industry (DTI) should remain updated and still try to find ways and also still continue having negotiations with China. And maybe ask help and advice to United Nations for the reconcilations between two countries (China & Philippines).

The war of the billboards continues

The War of the billboards continues, as bigger and better endorsers are coming in to

endorse local retail brands. Gone are the days when a local celebrity would be enough to cause a stir among the masses. Now, people wait with bated breath to see the next big international star gracing the stretch of Edsa. Penshoppe has already brought us Thai cutie Mario Maurer andGossip Girl’s bad boy Ed Westwick. So, topping that would have to be with an A-List star.

Zac Efron has never done an endorsement, so this partnership with Penshoppe is a first for him. So what made him decide to say yes? “ I got to know the history of the brand and I like how it’s an original Pinoy brand,” he says. “ We have this good family friends who are Filipino and they urged me to say yes. They said it was the top brand in the Philippines, “he adds. In fact, Efron’s father has been to the country several times. “ I’ve heard stories and seen pictures so I can’t wait to see it all myself,” says Zac, whose knowledge of Pinoy things is quite impressive. He has eaten and cooked chicken adobo, likes halo-halo, and mentioned “that purple stuff” (ube) as something he thought was really good. “The fact that he chose a 100% Filipino brand is something all Filipinos can be proud of,” says Berni Liu, Golden ABC’s head honcho. “We are a 100% Filipino brand that is going international. A great way to start is when our clothes are proudly worn by global superstars.”

Efron's claim to fame started with the teen hit movie High School Musical, but unlike many young actors who completely disappear after their brush with fame, he has continuously been challenging himself by carefully choosing roles that will take him to the next level of his career. He recently voiced a thirteen-year- old character in the movie version of Dr. Seuss’ The Lorax and his next movieThe Lucky One shows a more mature side of him. “I think that’s what happens when you are doing what you love-you raise the bar and continue to challenge yourself,” he quips. He hopes to visit the country sometime this year. “I’ve heard so much about the place,” he says. “The food, the beaches. I can’t wait to visit.”

Looks like we’re the lucky ones!

source: http://ph.she.yahoo.com/pinoy-brand-taps-zac-efron-as-endorser.html

Personal Reactions

I am happy with the improvement of our business firms such as this clothing store. Its not just they have a popular star but the point that they afford to invite such star for the endorsement of this local brand Penshoppe . Some people may think it’s just for the best of the store or penshoppe in particular. But if you see the logic, when our local brand producers can afford to have an international star for endorsement, its not only the firm will get the benefit but also the country itself. The star Zac Efron has many followers or shall i say Fans. Some avid fans or most of them purchases what their idol or Zac Efron is endorsing. And with Zac Efron’s statements hes not only endorsing the brand but also the Philippines. As he stated he had heard some good things about Philippines and he seems to have eaten some of Filipinos local foods. This will also encourage everyone even internationally to also try those foods that Zac Efron was saying. Some of them would probably visit Philippines because of that. And having these people visiting our country as Tourist, it increases the income of our country. There will be more tourist to entertain, souvenirs to make, Tourist spots will get more income and more labor needed to cater the needs of the tourists or visitors.

However, it’s a challenge to the people and other local producers that since they are competing globally and they have a chance to compete with the imported brands, they should make sure that their products are good enough for the competition. And they can supply enough not just locally but globally. The local Firms may Pay High Talent fee for the endorsers but maybe their marketing style is within their limit where they still get more profit than cost.


Disadvantage maybe, there will be another billboard in Highways or along the roads which added the risk of having accidents because of these billboards. A threat that whenever there’s a storm or whatever calamities we may have in the future there will be a high risk for the life of the people crossing or walking under those big Billboards. though putting those billboards in the city would probably show that competition is getting more interesting between business firms not only in the city or Philippines but globally, business firms should still consider the risk they may cause most especially to the people. if they cant control the number of billboards around the cities in the Philippines they just give another threat to the lives of people and there will be another conversion of land properties. For instance, the land should be planted with Trees for beautification and Environmental concern but then business firms or advertising agencies lease or rent those lands for their billboards for their business.