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The Philippine Pineapple Industry L.P. Balitoa Dole Philippines, Incorporated 9504 Polomolok, South Cotabato Philippines Keywords: pineapple export, industry, pineapple products, prospects, market Abstract
As a leading exporter of fresh and processed pineapple products in the world next to Thailand, the Philippines export industry is increasing. There are a number of processing plants in the Philippines, some of these are owned by multinational companies: Dole Philippines and Del Monte Foods. Dole Philippines is one of the largest multinational companies in the Philippines, operating on approximately 20,000 ha of land. In 2009, Dole had 57.8 and 47.6% shares of the US market for canned and fruit cup products, respectively, while Del Monte only had 9.0 and 36.7% market shares for the same products. Biggest fresh pineapple exporters were Dole, Del Monte Philippines and a farmers cooperative in Basud, Camarines Norte. Importing roughly 65% of fresh pineapple shipment from the Philippines, Japan serves as the biggest export market for the Philippines. The huge demand in China and South Korea for fresh pineapple prompted Mindanao-based agribusiness companies to expand their capacities by 10 to 20% this year. The new Queen Pineapple cultivar from Camarines Norte generated the interest of buyers overseas and recently, trial shipments were made to South Korea. According to the Department of Agricultures Agribusiness Marketing Service study, prospects for the Philippine pineapple industry are bright with domestic demand estimated over the next 10 years to be growing by an average of 4 to 7% every year. Other export markets for fresh Philippine pineapple are the Middle East (Sharjah, Jabel Ali, Abu Dhabi, Qatar and Kuwait), New Zealand, Hong Kong, Canada, Guam, Russia and Germany.
The Philippines ranks second after Thailand among the leading pineapple producers and exporters of fresh and processed pineapple products in the world. Along with Indonesia and Thailand, the Philippines comprise nearly 80% of the worlds canned pineapple supply. The Philippines and Thailand also make up 65% of the worlds supply of single strength pineapple juice. In the top 10 Philippine Agricultural Exports (2007), pineapple and pineapple products were listed number three with a 7.8% share of total exports. The Philippines annual exports in pineapple concentrates increased by 42% from 2007 to 2008, while its exports in pineapple juice increased by 34%. In 2009, the Philippines produced $ 94 million in processed products for export.
The Philippines have 28 processing plants and 85% of the pineapple processing operation belongs to two companies: Del Monte Foods and Dole. Pineapple is processed into puree, dried, juice concentrates, canned products and fruit cocktail in syrup that is intended for export. In 2009, Dole had 57.8 and 47.6% shares in the US market for canned and fruit cup products, respectively, while Del Monte only had 9.0 and 36.7% market shares for the same products. Dole Philippines (Dolefil) is one of the largest multinational companies in the Philippines, operating on approximately 58,425 ha of land.
The countrys fresh pineapple exports are from Mindanao growers. Exports jumped by 305%, from the previous years 59,000 to 290,000 tons in the first 8 months of the year, largely due to rising demand in China and South Korea. Coming in third from a [email protected]
Proc. 7th International Pineapple Symposium Eds.: H. Abdullah et al. Acta Hort. 902, ISHS 2011
big pineapple exporters like Dole Philippines Inc. and Del Monte Philippines is a farmers cooperative in Basud, Camarines Norte. The biggest export market for the Philippines is Japan which imports about 65% of fresh pineapple shipments from the Philippines. Other markets for fresh Philippine pineapple are South Korea, the Middle East (Sharjah, Jabel Ali, Abu Dhabi and Kuwait), New Zealand, Hong Kong, Qatar, Canada, Guam, Russia and Germany. There is huge demand for fresh pineapples in China prompting agribusiness companies based in Mindanao to expand their capacities. Pineapple producers registered with the Board of Investments have expanded their annual production capacity this year by 10 to 20% to accommodate the growing demand particularly in the export markets.
Total volume of harvests in 2009 was 2.198 million tons (Table 1 and Fig. 1). This was 0.5% lower than the 2008 production of 2.209 million tons. Even during the first quarter of 2010, production of 497,988 tons was down by 1.25% compared to the previous years level. Among the top three producing regions, only Northern Mindanao reported a production increase of 1.97% due to area expansion of Lapanday, Del Monte and Sumifru plantations. SOCSKSARGEN which shared 46% of total pineapple production reported a 3.66% contraction in 2009, which dipped further to 5.39% in the first quarter of 2010. This was attributed to dry spell and smaller 1R fruits, thus lower yield. Likewise, the dry spell affected the pineapple producing areas in Western and Eastern Visayas and Cagayan Valley, with harvest down by 3.82, 2.57 and 10%, respectively.
Area planted to pineapple rose from 58,251 ha in 2008 to 58,823 ha in 2009, only about a 1% increase (Table 2), despite of a 1.65% increase during the latter half of 2009. The major contributor to the production decline was a shift of commercial plantations to corn and Cavendish banana cultivation. PRICES
Except for wholesale prices, there were no significant increases in farm and retail prices of Hawaiian pineapple compared with the same period of 2008. The average wholesale price during the reference period was P 1.40 higher compared to its 2008 price (Fig. 2).
Exports of pineapple products amounted to 254,579 t valued at USD 123.5 M in the first half of 2009 (Table 3 and Fig. 3). This represented additional export earnings of USD 4.1 M over the same period of 2008.
Pineapple imports also went up by 61.02% from USD 654,000 in the first half of 2008 to USD 1.05 M in 2009 (Table 4 and Fig. 4).
Several cultivars of pineapple are commercially available in the local market (Table 5). The Smooth Cayenne or Hawaiian is the heaviest and most popular cultivar, best for canning. The Queen or African Queen or Formosa is the sweetest. The Native Philippine Red or Red Spanish is cone-shaped and considered of medium quality. It is also grown for its fiber. The latest cultivar introduced is the MD-2 (Dole MG3). Cabezona is the largest, measuring approximately 8-12 inches long when fully mature. Other cultivars include the Buitenzorg or Java, Sugar Loaf and Abakka. Queen pineapple is mostly grown in Bicol, San Lorenzo Ruiz, San Vicente and Labo.
CONSTRAINTS TO PRODUCTION
Political Situation The Philippines is one of the top pineapple-exporting countries in the world. The
industry is favorably affected by the General Agreement on Tariffs and Trade (GATT). The reduction in trade barriers will have a large effect in the countrys pineapple industry. Infrastructure and Cost
Still, inadequate infrastructure remains a key issue. Poor transport and storage facilities are problems besetting local pineapple growers. On the other hand, major constraints in processing of pineapple are as follows: 1. High cost of canning due to high cost of fruit, sugar, containers and overheads. 2. Seasonality of harvest (non-availability of fruits throughout the year) and unstable
prices during trading. Problems on marketing of fresh pineapple are encountered because of its highly
perishable nature. When mature, locally grown pineapple fruits cannot be stored for more than 4-5 days after harvesting.
Rainfall is the most important climatic element in the Philippines. Depending upon the direction of moisture-bearing winds and location of the mountain systems, rainfall distribution throughout the country varies from one region to another. Mean annual rainfall varies from 96.5 to 1032.2 cm (38 to 106 inches) annually. Northeastern Luzon, eastern Samar, and eastern Surigao receive the greatest amount of rainfall while the southern portion of Mindanao (South Cotabato) receives the least amount of rain (Fig. 5).
Pineapple is a drought-tolerant crop but its growth and fruit quality are affected by rainfall. Mortality due to root rot diseases is closely related to high rainfall occurrences. Although drought was predicted this year, rainfall peaks during the 1st 4, 12th and at 20 to 25 weeks were even higher than the long-term average (Fig. 6).
Long-term periodic average for 46 years in South Cotabato registered at only 80 inches (Fig. 7). General Santos City had average annual rainfall at only 38.5 inches. Previous 4 years (2006-2009) were wettest years, exceeding the long-term average per period.
Pest and Diseases
Related to changes in weather and lack of available cheap pesticide control, the pineapple cultivation is beset by prevalence of fungal and bacterial diseases, such as mealy bug wilt and TV rot.
Research and Development
Research institutions and agricultural schools undertake research on pineapple to a limited extent, mainly on fertilization, flowering induction or germplasm collection. Various pineapple companies concentrated in Mindanao have their own independent R&D but research breakthroughs and improved cultural practices are confidential or classified information not accessible to local pineapple producers or farmers, except those under their contract-growing programs.
Addressing the Problems
Standardization of technology to bring down costs of production of fresh pineapple and its ad