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INTRODUCTION
The Philippines is one of the major producers of banana in the world. In fact, it ranked
fifth in global production in the year 2000 with India, Brazil, China and Ecuador on top of the
list. Banana also accounted for 3.3% (P6.6 B at constant price) of the total value of production
in agriculture in the year 2001. Moreover, it ranked second among the top Philippine exports in
the year 1999 and 2000. This makes banana a consistent dollar earner with export revenues of
more than US $200 M annually.
The strength of the banana industry lies on the big hectarage, which is a little more than
half (53.8%) of the total land area planted to fruits (621,861 has). The country is also blessed
with favorable climate, well suited for growing bananas all year round. There are already
existing banana cultivars accepted in domestic and export markets. The major cultivars are
Cavendish and Señorita for the fresh export market, Saba and Cardaba for processed products
(chips and crackers), Lakatan, Bungolan, Latundan, and Señorita for fresh local market.
In the year 2004, the total area planted to banana was estimated at 414,510 has, 44% of
which is planted to Saba. The total volume of banana production in 2004 was estimated to be
5,631,250 metric tons. Of this volume, 29% goes to export as fresh fruit, 18% goes to the
processing sector, and 49% goes to the local market and used for various food items.
As earlier stated, the Saba variety is often used for processing especially for banana chips.
In Mindanao alone, there are 26 processing plants for banana chips with a capacity of 20-60
tons per day per plant. In a survey conducted in 2003, the total plant capacity is estimated to
be 440 t/day but the actual average daily volume of banana chip produced was only 242 t/day
or short of 198 t/day. The total banana chip production on daily basis of 242 tons is far short
from the estimated 600 tons daily requirements for banana chips. The total banana chips
export in 2004 is reported to be 36,538 tons valued at US$ 36.86 M. The top ten export
destinations of banana chips is presented in Table 1. Recently, however, banana chip
processors have reduced the buying price from P4.30 – 4.50/kg to P3.30 – 3.50/kg. Reports
indicated that the main reason is the reduction in volume of banana chips being imported by
China, the second biggest single country market of the product.
Inspite of this, the growth potential for banana processed products remains high. The
country has still a large area of land suited for banana production while its population growth
rate remains above 2% annually. With more effort to disseminate relevant information, more
people can be enticed to go into business of banana production and processing.
Objectives:
1. Identify the strengths and weaknesses of small banana processing businesses;
2. Analyze the availability of information and services for small rural processing
businesses which contribute to their efforts to compete;
3. Analyze the potential of small processing businesses to contribute to rural
development;
4. Profile the mechanisms for information flow and collaboration and areas of non-
communication among the important agents linked to adding value to banana through
processing;
5. Analyze the experience of a project which promoted small rural processing businesses;
6. Identify possible strategies for improving the conditions for the start up and expansion
of small processing businesses which contribute to rural development. These
strategies may depend on closer links among specialists from production, food
processing and business support.
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I. Forming the National Team
Figure 1 shows the organizational structure approved by the National Steering
Committee organized in relation to the holding of the First International Banana Uses
Workshop in the Philippines.
As to the Country Study Team, the National Steering Committee agreed that this will
be composed of the Head of the Technology Packaging Unit of the Technology Outreach
and Promotion Division of PCARRD, the Director of the Crops Research Division of
PCARRD, and a Technical Expert on post harvest handling and processing from the
University of the Philippines at Los Baños (UPLB).
The Terms of Reference of the Country Study Team include: 1) profile the different
small-scale banana businesses and the service providers that support the banana
processing businesses, 2) organize a small group workshop to validate the data gathered
and 3-4 banana processing enterprises to conduct an in-depth study, 3) process and
organize the results of the survey, and 4) prepare the output of the survey for
presentation of the team to the international workshop.
After organizing the Study Team, it was agreed that the study will be conducted in
Southern Tagalog provinces, Region 4 which is composed of 10 provinces with Quezon,
Oriental Mindoro and Occidental Mindoro as the leading banana producers (Figure 2). .
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Figure 1. Organizational Structure for the First Global Banana Uses Enterprise
Workshop
TOR
• Lead in the local arrangement/coordination and
implementation of the international workshop
• Supervise the activities of the Techno Fair Team
and Country Survey team
Leader: Dr. Simeon Crucido, CvSU Team Leader: Dr. Arturo Argañosa, PCARRD
Members: Ms. Edna Vida, CvSU Members: Dr. Jocelyn Eusebio, PCARRD
PCARRD Staff Dr. Perlita Nuevo, UPLB
DA-BAR Staff
TOR
TOR • Profile the different small-scale banana
businesses and the service providers that
• Organize the Techno Fair support the banana businesses
• Invite and arrange participation of exhibitors • Organize a small group workshop to validate
• Put up physical facilities for the exhibits the data gathered and select 3-4 banana
• Organize techno forum/symposium enterprises to conduct an in depth study
• Document the organization of techno-fair • Process and organize the results of the survey
• Prepare the output of the survey for
presentation of the team to the international
workshop
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Rizal
Quezon
Map of the Philippines
Cavite Laguna
Batangas
Marinduque
Oriental
Occidental Mindoro
Mindoro
Romblon
Palawan
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Table 2. DTI list of companies which are into production and export of banana chips.
Name of Company Address Contact Person/Position Contact No.
B-G Fruits & Nuts Mfg. Corp. 621 Building, FTI Complex Ms. Benny T. Badenas Tel. : (632) 838-4434
Taguig Metro, Manila Vice President 837-0378
Fax: (632) 838-4563
Celebes Agricultural Corp. 60 Lapu-lapu Avenue Mr. Rory Eddie Ong Yiu Tel. : (6385) 342-7777
San Antonio Village, Lahug President Fax: (6385) 342-8888
Cebu City 6000
El Coco Mfg., & Trading Rm. 2309 Tower 1 Cityland 10 Mr. Leopoldo Estrellado Tel. : (632) 815-1831
Corporation. 6815 Ayala Avenue President 815-0580
Makati City Fax: (632) 810-0532
Greenville Agro Corporation Matin-ao, Polomolok Mr. Michael Rene Ong Yiu Tel. : (6383) 552-6754
South Cotatabo President 501-0732
Fax: (6383) 501-0051
International Food Snacks 88 San Guillermo Avenue Mr. Ruben See Tel. : (632) 641-0991
Corporation Bo. Buting, Pasig, MM President 641-0995
Fax: (632) 641-0992
Festive Foods International, Dolmar Bldg., 56 EDSA Mr. Philip Young Tel. : (632)936-7246 to 48
Inc. (formerly Jona’s Int’l. Mandaluyong City, MM President & CEO 930-6001 to 05
Phils., Inc.) Fax: (632) 936-7245
939-5828
Koki Food International, Inc. Villamor Street, Bo. Obrero Ms. Marilou Fernandez Tel. : (6382) 221-1528
Davao City 300-5495
Fax: (6382) 300-5494
(632) 410-0522
L. Dometita & Sons Food 15 L. Rivera St. & J.P. Rizal St. Mr. Leopoldo A. Dometita Tel. : (02) 911-7240/2070
Industries Projj. 4, Quezon City Asst. to the Manager 8549/713-4018
Fax: (02) 911-8549
Leslie Corporation 4 Dama de Noche St. Ms. Cristy Enriquez Tel. :(632) 823-2566 to 70
United Parañaque Subd. IV Import-Export Officer Fax: (632) 823-3708
Parañaque City
See’s International Food Mfg. 66 Imperial St., Cubao Mr. Ruben Lim See Tel. : (632) 912-2777
Corp. Quezon City President 438-5837
Fax: (632) 438-4662
421-9149
SUNBLISS Internationale Gensan Drive & Odi St. Mr. Carlos L. Bautista Tel. : (083) 228-2262
ExImports Koronadal, South Cotabato General Manager Fax: (083) 228-2028
Reliance Ore Co., Inc. Had. Candelaria, San Enrique Mr. Ciriano D. Sia. Jr. Tel. : (6334) 460-3186
Negros Occidental Marketing Head Fax: (6334) 460-3186
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A visit to the DTI Provincial Office in Oriental Mindoro was also done. There are
three known enterprises in the province engaged in the production of banana chips.
All of them are registered with the DTI.
After establishing that, the Regional Office in Southern Tagalog of the Department
of Science and Technology (DOST) is actively involved in providing technical
assistance to small food processing businesses, the Study Team sought their
assistance. The Study Team was informed that there is a cooperative engaged in the
production of banana chips and sauce in Calatrava, Romblon.
To get more information on banana processed products, the Study Team went to
the different DOST agencies. The Food and Nutrition Research Institute (FNRI) has
developed a baby food with banana as one of the ingredients. Unfortunately, the
product has not been commercialized. A number of banana processed products were
also developed by the Industrial Technology Development Institute (ITDI), such as,
banana flakes and banana powder. However, these products are still awaiting
commercialization. The development of these banana products was funded and
coordinated by the Philippine Council for Industry and Energy Research and
Development (PCIERD), DOST.
The study team also visited Divisoria in Manila, the biggest trading center of
agricultural products and supplies in the country. Indeed, one could find in the
Divisoria market not only the raw materials for banana processing but also the
processed banana products as well as supplies and equipment used in the processing
of banana. The fresh Lakatan fruits are mostly coming from Mindanao while the
supply of Saba is being sourced mainly from the Mindoro provinces. The bulk of the
Saba is being bought by banana-cue processors from all over Metro Manila with some
even coming from the nearby provinces. The study team was informed that overripe
Saba is being purchased by individuals who process it into various banana products.
Repeated follow-ups, however, proved futile in locating these processors.
The banana processed products found in the Divisoria market are banana catsup,
banana extracts used for flavorings, banana powder, and banana chips. Even banana
leaves used as food wrappers and liners are sold in the market.
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The different supplies being used for banana processing available in the Divisoria
market are: bottle and plastic containers, bottle sealers, plastic sealers, strainers,
large frying pan for cooking, and cooking.
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Table 3. Different organizations providing various services for the establishment and
operation of small banana processing businesses including product certification,
promotion and marketing.
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Financing Land Bank of the Philippines • Financing and cooperative Cooperatives
(LBP) development
LGUs Livelihood Funds • Financing Microenterprise
Technology and Livelihood • Financing Micro and Small
Resource Center (TLRC) enterprise
Small Business Guarantee and • Financing of SMS enterprise MSMEs
Finance Corporation, DTI
Barangay Micro Business Enterprise • Financing Barangay
(BMBE) enterprise
Development of Processing Industrial Technology and • Prototype development All
Equipment Development Institute (ITDI) – • Technical assistance on
DOST operating the processing
equipment
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representatives from the banana processing sectors. The participants in the preliminary
workshop are representatives from the following groups/agencies, as follows:
1) Processor – Zcorcuerra Food Products
2) Financial institution – LandBank of the Philippines
3) Department of Science and Technology (DOST) Regional Office No. 4
4) Department of Trade and Industry (DTI) Provincial Center in Laguna
5) State Universities – UP Los Baños (UPLB) and Cavite State University (CvSU)
6) Department of Agriculture – Bureau of Agricultural Research (BAR)
7) PCARRD
The participants in the preliminary workshop conducted a focused-group discussion as
to their role and activities in relation to banana processing businesses. Each participant
shared their organization’s programs and projects in food processing. Likewise, the
participants shared information as to other groups and institutions who are involved in
banana processing businesses. The outputs of the workshop are mostly reflected in Table
4.
At the end of the preliminary workshop it was agreed to meet again in the final
workshop to validate the results of the survey.
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Certification: In progress
Clients of the products: Local tourists and residents
Oriental Mindoro and Manila
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pails with water then finally to the frying pan located at the farther right of the
chipper. After cooking, the cooked banana chips are transferred to a strainer on
the table just on the left side of the frying pan. After draining the oil, the chips
are transferred to a container for final cooking before the chips are placed in a big
plastic bag. A day after, the chips are transferred to small plastic sachet
(polypropylene) with a capacity of 100 and 150 grams. The sachets are then
sealed with the brand in it.
The peeler being used is an improvised knife while the chipper is made of
metal sheet mounted on a piece of wood. The furnace/burner is made of an
indigenous technology which is being fed with rice hull as fuel. The frying pan is
also locally made. The newly cooked chips are harvested using a strainer sourced
from the Divisoria market and is mounted on a 2-meter wooden pole. The
strainer is made of a galvanized screen mounted on rectangular wood framing.
Right now, Mikkos’ banana chip factory processes 2,400 banana fingers per
batch. It takes 5 hours to process the 2,400 banana fingers from peeling up to
the cooking of banana chips. Three persons are involved in the process. The final
product is an 80 kg banana chip. Two batches are processed each week.
The quality of the product is done through self testing which was acquired
through experience.
The cooking oil is recycled and so the oil is not wasted. During summer, the
banana peels are dried and used as a fuel for cooking. On rainy days, the banana
peels are just thrown in an open field.
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5. How is the business managed
The business project is personally handled by the owner-operator from
sourcing of the raw materials, processing, packaging, and marketing. No book of
accounts is being maintained even if the business operator claims to have getting
profit from the project.
Right now, the owner-operator is in the thick of a negotiation with a banana
chips trader from Manila. If the deal is closed, the plan is to expand the business.
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project would also encourage harmonious relationships among the workers,
farmers, banana traders and the business owner.
The business was started in 1992with peanuts and garlic as the main
product. It was early this year (2005) that the banana chips with honey was
added to the line of products. This happened when a friend encouraged the
owner to prepare banana chips which later became a favorite “gift” to relatives
who live abroad. The technology of chip preparation was basically patterned
from the peanuts they are already cooking. Actually, it was the husband who did
a trial and error cooking that resulted in the additional and acceptable product. It
was marketed in the neighborhood and by word of mouth the sale increased.
The operating capital for the banana chips was taken from the peanut sales.
No formal record keeping of expenses and sales is done.
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stainless blade. In less than a minute, a single fruit could be sliced. Frying is
done in a large pan. Single fried bananas are stored in covered plastic
containers where it could be stored for a month or two. When there are orders,
the stored chips are dipped in syrup and fried in gas-fueled big pans for the
second time. Fried chips are removed from the pan by the use of a chicken wire
with long bamboo handle. Excess oil is further eliminated by placing the chips
on a strainer made of galvanized screen with wooden frames. After cooling, the
fried chips are then packed and sealed either in polypropylene bags,
microwavable containers (135gms or 200gms) or aluminum pouches. Labeling is
also done in plastic containers.
Distribution of banana chips to Manila is not a problem since the family owns
a rent-a-car business where delivery could ride on a trip.
Z-corcuera Food Products processes 2,000 Saba fingers per week. It takes
six hours to process 1,000 fingers from peeling up to second frying. There are
four people involved in the process.
Cooking oil is recycled and so the oil is not wasted. Peel waste is disposed
through the garbage collector in the community.
A newly acquired slicer fabricated locally was purchased very recently at
P31,000. However, the adjustment of the blade is quite problematic. The owner
paid P1800 for the template used in labeling of the product.
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5. How is the business managed
The business is managed by the owner-operator from sourcing of the raw
materials, processing, packaging, and marketing. No formal book of accounts is
maintained.
The owner has just recently negotiated with Shoemart Inc., a very big
supermarket chain.
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C. Calatrava Food Products
1. General Information
Name of Business: Calatrava Food Products
Name of Contact: Mr. Dishan Servañez
Municipal Planning and Development
Officer, Calatrava, Romblon
Primary Products: Banana Chips and Banana Catsup
Brand: ACF (Arya Calatrava Foods)
Certification: In progress
Clients of the products: Local residents of Romblon
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making equipment (pulper-finisher, stem jacketed kettles, boiler, filling system,
sealing machine, and bottle sterilizer) including pouches and labels. The proposal
was approved by JICA and the banana making equipment was delivered.
In June 2004, installation of the equipment was completed. Unfortunately, the
banana catsup factory of ACF remains unoperational as the group is still waiting
for the operational budget.
Meanwhile, the ACF continues to produce banana chips.
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Once the catsup factory of the ACF becomes operational, the processed catsup
is being eyed to supply the partial requirements of the province. The people of
Romblon are known to patronize the products produced by their provincemates.
The ACF has learned from experience that their products (catsup and chips) are
easily sold whenever it is displayed or offered for sale during the various trade
fairs participated by the group.
The Congressman of the lone district of Romblon has also put up a
“pasalubong” center (gift center) in Odiongan market where the products of ACF
are on display and being offered for sale. The provincial DTI center is also active
in helping the ACF in promoting and marketing their products by inviting the
group in joining trade fairs outside the province.
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The ACF does not hire extra labor as the members themselves do the different
tasks in the processing of the banana products. Processing is done on a rotation
basis among the 19 members.
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and the banana processors are also expected to gain new knowledge on banana
production and processing from the trainings they attended.
When there is a stable income, the farmers and processors would be
comfortable bringing about better social relations among the community
members. The project could contribute to the maximization of land uses
especially for banana production.
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Table 7. Gaps between services needed and services offered
Waste management Solid wastes from banana Technologies are available to Inadequate knowledge of small
peelings and trimmings are given convert the solid wastes from business owner on the potential of
to takers who used it as animal small banana projects into solid waste as animal feeds and
feeds and substrates for organic animal feeds and organic organic fertilizers
fertilizers. If there are no takers, fertilizers
the wastes are just thrown away
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