Business News

BUSINESS NEWS: Banana still top Davao export, Trade Fair in Paris, Cacao a big hit, start-up business

joanna-balanzaBanana and its by-products are still the top Davao export despite recent typhoons that ravaged the region’s major banana producing provinces of Compostela Valley and Davao del Norte.

davao gulfExport of fresh and dried bananas reached P 877, 054 million in 2013, or 46.7 percent higher compared to P 597, 849 million in 2012, data from the National Statistical Coordination Board (NSCB) 11 show.

National Economic and Development Authority (NEDA) 11 regional director Maria Lourdes D. Lim said that eight months after the devastation of Pablo in major Cavendish banana-producing provinces like Compostela Valley in Davao region, banana farmers started to harvest and export again.

The fast recovery of the banana industry, according to Lim, contributed in the increase of banana exportation in the global market.

Business chamber joins Paris food fair  

The Davao City Chamber of Commerce and Industry Inc. (DCCCII) plans to send a  team in October to Paris, France for the Salon International de l’alimentation (Sial), said DCCCII president Antonio dela Cruz.

Dela Cruz bared the ‘exploratory’ mission during the recent DCCCII general membership meeting at the Seda Abreeza Hotel.

He said the Sial fair, one of the largest international food and beverage trade exhibit, would be held from October 17 to 23.

Davao City businessmen will have the chance in the food and beverage fair to to study European market trends for potential export opportunities, said Raf Vlummens, Small Business Development Center committee chair.

Dela Cruz said about 20 businessmen into agriculture and food processing will form the team to the Paris fair.

 Start-up businesses told to avail of coop loans

START-UP micro, small, and medium enterprises (MSMEs) are encouraged to avail of financing packages offered by cooperatives rather than banks.

Raf Vlummens, Davao City of Chamber of Commerce and Industries Inc. (DCCCII)’s Small Business Development Center (SBDC) coordinator, said cooperatives are giving easier access to financing than commercial or rural banks.

He said access to finance remains a hurdle for many start-up MSMEs since there are certain requirements they cannot comply with if they want to avail of loans from banks.

Vlummens said when MSMEs go to a bank for funding, they are required to present a three year bank statement and income statement, which the MSMEs don’t have during the start-up phase of their business.

Vlummens said under R.A. 9520, cooperatives can provide business loans to the start-up MSMEs.

He said the interest rates imposed by cooperatives are a little bit higher compared to the banks but it is much more feasible for the MSME to get funding from other financial institutions. SUNSTAR Davao

More farmers turn to cacao

More than 250 hectares will be planted to cacao in selected Agrarian Reform Communities (ARCs) in Davao City after seven agrarian reform beneficiary organizations inked a ten-year Cacao Production and Purchase Agreement with Kennemer Foods International, Inc.

Among the involved ARBOs include the Biao ARB Cooperative (BARBCO) in Tugbok District; Carmen Agricultural Multi-Purpose Cooperative (CAMPC) and Balacan Development Multi-Purpose Cooperative, both in Baguio District; and Suawan Proper Multi-Purpose Cooperative in Marilog District.

The other organizations that signed the agreement were the Fatima Multi-Purpose Cooperative (FMC) and Latungan Farmers Multi-Purpose Cooperative in Paquibato District; and Callawa Bonggan Employees ARB Cooperative (CABEARBCO) in Buhangin.

The CPPA was recently signed during the yearly gathering of ARBs and stakeholders of the Comprehensive Agrarian Reform Program (CARP) in Davao City, dubbed as “Pakiglambigit” 2014.

Provincial Agrarian Reform Program Officer Ernesto B. Tan said that with this venture it is expected that at least 300 agrarian reform beneficiaries who are into cacao production shall have an increased net income of P90,000 per hectare with 1,100 trees per hectare in the next five years.

KFII President Simon Bakker said their company is engaged in the commercial farming of cacao, and has the technology, technical and management expertise, and marketing capability required to plant, cultivate, harvest, market and export cacao.

The ARBs, who will be provided with high quality cacao seedlings, will be trained and coached on the proper care, cultivation and harvesting of cacaos which shall be exclusively sold to the company.
(DARPO-Davao City/Fraulein G. Montañez)

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