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 Agriculture’s 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. INTRODUCTION 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 world’s canned pineapple supply. The Philippines Phi lippines and Thailand also make up 65% of o f the world’s 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 country’s fresh pineapple exports are from Mindanao growers. Exports jumped by 305%, from the previous previo us years’ 59,000 59,00 0 to 290,000 tons in the first f irst 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
53
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. PRODUCTION 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 year’s 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 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). TRADE 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. IMPORTS 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). CULTIVARS 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.
54
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 country’s 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. Weather 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 adoption by growers, assured markets for the produce and to produce pineapple throughout the year may go a long way in promoting the pineapple industry in the Philippines. Steps like regulation of markets for pineapple and integration of production, marketing and processing activities would go a long way in decreasing marketing cost
55
and thereby encouraging cultivators for self marketing. In recent times, grower’s marketing co-operatives have come into service to undertake marketing of fresh pineapple. Development of infrastructural facilities (transport and communications); primary markets; improvement in packing, storage and handling facilities; and subsidization of inputs are the various aspects which need attention. This also includes the establishment of farm-to-market roads in order to reduce spoilage or losses due to bruising and injury. It is necessary to take ample care to avoid any injury to fruits while transporting to major consumption centers. Government Support The fresh pineapple industry provides livelihood to about 420,000 farmers nationwide. Unlike top money-earning fruits like mango and banana, pineapple growers do not have the so-called council or growers association. Coops were created in pineapple growing areas to provide manpower and services to pineapple companies. Admittedly, the availability of inputs at the right price to farmers contributes to agricultural productivity. Thus, lower costs of fertilizers should bring down production costs and enable local growers to gain a sufficient margin of profit. Research and Development Government needs to strengthen its support to research institutions and state agricultural schools with adequate research funds for agricultural research and development of commercial horticultural crops, like pineapple. Government institutions like the Bureau of Agricultural Research (BAR) coordinates agri-research and development activities with the view to modernize Philippine agriculture through commercialization of mature technologies geared towards helping Filipino farmers. Global Competitiveness and Global Market Expectations The commercial introduction of similar or new cultivars by various pineapple companies provide consumers with an array of choices. In the meantime, a new pineapple cultivar from Camarines Norte, called ‘Queen Pineapple’, has started generating interest of overseas buyers. Trial shipments of this fruit were made recently to South Korea. A Korean company has signed a marketing agreement with the Municipal Government of Basud and the Provincial Government of Camarines Norte for the shipment of ‘Queen Pineapple’ to that country. Demand for pineapple fiber in the textile industry is continually growing, such that, a multi-purpose cooperative (Labo Progressive Multi-Purpose Cooperative) has promoted livelihood projects-integrated pineapple leaves processing-utilizing discarded pineapple leaves into hand woven and machine-decorticated fibers (for piňa cloth and as substitute for cellulose fibers). The cooperative has targeted to export hand woven products to high end consumers in Japan, USA, Canada and Europe. On the other hand, small-sized or reject pineapple fruits can be processed and marketed as dried pineapples, which are nutritious and fiber-packed snacks or desserts. According to the study carried out by the Department of Agriculture’s Agribusiness Marketing Service, the prospects for the pineapple industry in the Philippines are bright. The domestic demand over the next 10 years was estimated to grow by an average of 4 to 7% every year. There is a high growth forecast for pineapple subsector and rising global demand for fresh and processed pineapples. The US, Japan, Canada, China (Hongkong) and EC are still the largest import markets, with pineapple dominating the world trade. Literature Cited Bureau of Agricultural Statistics (BAS). Department of Agriculture (DA). 2009. Philippines. Situation Report on Selected Fruit Crops. Bureau of Agricultural Research (BAR) Digest. 2008. Volume 10. Issue #2. April-June. Crops-Philippine Council for Agriculture, Forestry and Natural Resources Research and
56
Development (PCARRD). 2009. Department of Science and Technology (DOST) Portal. Pineapple Industry. Department of Agriculture, Philippines, High Value Commercial Crops Program, Pineapple Commodity Profile, 9-22-08. National Statistics Office. Republic of the Philippines. Foreign Trade Statistics. 3-09-08. Philippines Department of Trade and Industry (DTI). Small Pineapple Farmers in Bicol Stand to Benefit from JPEPA. Press Release. 10-11-07.
Tables
Table 1. Pineapple volume of production in tons by region, Philippines, 2008-2010. Source: Bureau of Agriculture Statistics, 2009. Region Philippines CAR Ilocos Region Cagayan Valley Central Luzon Calabarzon Mimaropa Bicol Region WesternVisayas Central Visayas Eastern Visayas Zamboanga North Mindanao Davao Region Soccsksargen Caraga ARMM 1
January-December 2008 2009 2,209,336 2,198,497 711 716 206 195 30,815 32,574 1,363 1406 86,168 88,375 223 233 111,530 109,967 15,184 15,424 4,887 1,867 7,397 7,476 2,436 2,289 1,007,022 1,026,905 22,303 22,440 913,280 879,836 4,738 4,684 1,072 1,109
Change (%) (0.49) 0.62 (5.13) 5.71 3.16 2.56 4.85 (1.40) 1.58 (0.41) 1.07 (6.03) 1.97 0.61 (3.66) (1.15) 3.42
January-March 2009 20101 504,268 497,988 77 76 15 16 1,000 900 18 18 11,180 11,845 54 63 25,599 2,602 2,348 2,258 560 499 1,450 1,413 317 236 213,071 219,479 6,947 6,981 241,322 228,304 162 156 149 142
Change (%) (1.25) (1.00) 5.12 (10.00) (0.79) 5.95 15.51 0.01 (3.82) (10.81) (2.57) (25.66) 3.01 0.49 (5.39) (3.48) (4.40)
Preliminary.
57
Table 2. Area (ha) planted to fruit crops (Philippines), 2008-2009. Source: Bureau of Agriculture Statistics, 2009. Crop 2008 Banana 438,593 Mango 186,770 Calamansi 20,956 Pineapple 58,251
2009 446,371 188,114 20,912 58,823
Change (%) 1.77 0.72 (0.21) 0.98
Table 3. Quantity and value of exports by product form and country destination, JanuaryJune 2008-2009 (Quantity in MT, F.O.B. values in ‘000USD). Source of basic data: National Statistics Office. Product form/country of destination Pineapple Fresh Japan Others Processed USA Others
2008 Quantity 286,583 150,687 112,910 37,777 135,896 82,021 53,021
F.O.B. value 119,402 31,939 24,307 7,632 87,463 50,569 36,894
2009 Quantity 254,579 125,668 85,334 40,335 128,911 82,617 46,293
F.O.B. value 123,459 29,167 20,035 9,132 94,292 56,801 37,491
Change (%) F.O.B. Quantity value (11.17) 3.40 (16.60) (8.68) (24.42) (17.58) 6.77 19.66 (5.14) 7.81 (0.31) 12.32 (12.69) 1.62
Table 4. Quantity and value of imports (Philippines), January-June 2008-2009 (Quantity in tons, C.I.F. values in ‘000US$). Source of basic data: National Statistics Office. Product form Pineapple Fresh Processed
58
2008 2009 Change (%) Quantity C.I.F. value Quantity C.I.F. value Quantity C.I.F. value 1,112 654 1,858 1,053 67.11 61.02 2 4 1,112 654 1,856 1,049 66.93 60.37
Table 5. Pineapple cultivars grown in the Philippines. Cultivars
Smooth Cayenne or Hawaiian
2.3-3.6 kg and considered as the heaviest cultivar Cylindrical in shape, flesh is light in yellow color Sweet flavor Slightly fibrous texture Best for canning
Queen or African Queen or Formosa 0.45-0.95 kg, small type and has tapering shape Flesh is deep yellow in color Sweetest cultivar
Native Philippine Red or Red Spanish
0.91-1.4 kg, medium in size and coneshaped Flesh is in pale yellow color Sweet and coarse spicy in flavor Fibrous texture, excellent source for piña fiber
Cabezona
Size ranges from 812 inches long when fully matured Cylindrical shape, dark green to bright yellow
Figures
Fig. 1. Pineapple production (Philippines), January-June 2007-2009.
59
Fig. 2. Pineapple average monthly prices, Philippines, 2008-2009.
Fig. 3. Pineapple: quantity and value of exports, January-June 2008-2009.
60
Fig. 4. Pineapple: quantity and value of imports, January-June 2008-2009.
Fig. 5. Mindanao periodic rainfall, 2010.
61
Fig. 6. Mindanao weekly rainfall, 2010.
Fig. 7. Polomolok periodic cumulative rainfall, 2010.
62
