Cavendish banana production in Davao is significantly dropping, especially for small-scale farmers, due to Panama disease and El Niño. Ireneo Dalayon, CEO of the Federation of Cooperatives in Mindanao (FEDCO), and Ed Bullecer, EVP of the American Chamber of Commerce in Mindanao (AmCham-Mindanao), spoke at a forum in Davao City on April 11.

Dalayon stated that while large producers grow, smaller farmers face a 10-15% decline in production, particularly in Kapalong, Santo Tomas, Asuncion, Tagum City, Davao del Norte, and parts of Davao del Sur and Davao de Oro. He cited the impact of fusarium wilt, erratic weather, and rising logistics, fertilizers, and chemicals costs as major challenges. Access to financial support is also tricky.

Dalayon explained that if a grower used to produce 5,000 boxes but now only manages 4,000, high logistics costs would prevent profitability. Developing one hectare of banana plantation costs about a million pesos, which many farmers cannot afford. Banks are reluctant to lend, fearing loan defaults due to high costs, further threatening farmers' livelihoods.

Philippine bananas are losing their global competitiveness, with costs higher than those from countries like Cambodia, Laos, and Vietnam, which are closer to major markets. South Africa also benefits from better transportation infrastructure, which makes its bananas more attractive.

Bullecer mentioned the economic decline and changing food habits as added pressures, especially with younger generations. Dalayon suggested that small farmers consider switching to Cardava bananas or rice, both in high demand.

Dalayon called for financial support and better management to help revive the industry but expressed doubts about recovery, given the high costs and limited government support. Without intervention, he warned the country of the risk of a further decline in banana exports.