Mindanao exports grow 23% in 2007; coconut oil, bananas top products sold

DAVAO CITY — Value of Mindanao’s exports grew by about 23.33% to $2.59 billion last year from $2.10 billion in 2006, with coconut topping the list of traded commodities. A report released late last week by the Mindanao Economic Development Council, or MEDCo, showed that coconut crude and refined oil exports last year amounted to $561.60 million, 53.66% more than the $365.48 million in 2006. The island’s total coconut exports in 2007, the report added, accounted for about 21.68% of the island’s total. Surge expected Lornito U. Orillaneda, regional director of the Philippine Coconut Authority, said he expects a surge in coconut production within the next two years with his agency’s coconut farm rehabilitation program now covering about 12,000 hectares. In a previous interview, Mr. Orillaneda said he believed that coconut farmers will be persuaded to develop their farms due to incentives granted by the government like seedlings of high-yielding coconut varieties and increasing prices of copra. Copra prices here run as high as P35 a kilogram. Many coconut farms in the Davao Region were devastated by dry spell in the last 10 years, resulting in a significant hectarage being converted to cultivate other crops like banana. Second biggest export Fresh bananas, ranked second among Mindanao’s top exports with $392.8 million, or 2.28% lower than the $401.95 million in receipts recorded in 2006, the report added. But the Pilipino Banana Growers and Exporters Association, particularly in Davao City, has warned that aside from the threat of a strong peso, local banana producers are also bracing for the possible enforcement of the city ordinance banning aerial spraying in banana farms. The Court of Appeals office in Cagayan de Oro has yet to decide whether the ordinance is constitutional. The third major export of Mindanao last year was nickel ore, for which it recorded $351.84 million in total receipts, almost a threefold increase over the $123 million recorded in 2006. The main source of nickel ore in Mindanao, mostly bound for China, is the Caraga Region. Top buyers Other top exports of Mindanao last year were tuna at $192.1 million, iron ore agglomerates with $171.82 million, preserved pineapple with $117.23 million, iron and non-alloy steel at $66.2 million, fresh pineapple at $57.15 million, and desiccated coconut at $41.2 million. Japan was still the top importer of Mindanao products last year with a 24.22% share at $627.47 million. Value of Mindanao exports to Japan last year rose by 33.53% from 2006, the report added. The US bought $558.64 million from Mindanao last year, or a 35.83% increase from the value recorded in 2006. China’s imports from Mindanao grew 87.6% to $305 million over the value recorded in 2006. Among the key exports that China bought last year were nickel ores, fresh bananas and organic chemicals, the report added. — Carmelito Q. Francisco, BusinessWorld