By Alladin S. Diega / Correspondent
TO maintain the profitability of the South Korean banana market, the Department of Agriculture (DA) is negotiating for an extension on the enforcement of a new and more stringent protocol on the allowable traces of pesticides for cavendish bananas.
“We have asked South Korea to give us enough time before we can actually cope with their new requirements on pesticides traces in banana,” Agriculture Secretary Proceso J. Alcala said on Wednesday.
Alcala said the department is planning to ask Korean technical representatives to meet with Philippine banana exporters to see for themselves the current process, adding that “we cannot change the protocol only for South Korea, [if ever], this is going to be adopted to all bananas being exported to other countries.”
The plan was discussed after a recent meeting with the Pilipino Banana Growers and Exporters Association Inc. (PBGEA) held in Davao recently, the DA official said.
Early this year, the Koreans told Filipino banana exporters it will impose stricter rules on maximum residue limit (MRL) for chemicals used on banana. The MRL is a method used to monitor pesticide residues on crop, more stringent than the SPS Measure, which is an international treaty of the World Trade Organization, “sets constraints on member-states” policies relating to food safety [bacterial contaminants, pesticides, inspection and labelling], as well as animal and plant health [phytosanitation] with respect to imported pests and diseases.”
South Korea is imposing a reduced MRL on certain chemicals to be used on the crop, and reportedly, the South Korea Ministry of Food and Drug Safety (MFDS) has already reduced the MRL for iprodione to 0.02 milligrams from five miligrams per kilogram, starting last August 28, 2014.
In a text message, PBGEA Executive Director Stephen Antig said that in the meeting with the agriculture officials, the banana exporters said they are asking for an extension until 2018, instead of Korea’s proposal of mid-2016.
“This will give chemical companies enough time for applying accreditation for new additional chemicals,” Antig told the BusinessMirror.
In an earlier statement, Antig said the measure “will result in the impairment of the quality of the banana,” noting that if a certain chemical has a very low MRL, it could be ineffective.
Antig also said that the measure in Korea has affected the popularity of the fruit, dropping its ‘saleability’ by as much as 20 percent from August 2014 to September 2014, but added that the industry is not against the measure, except for its abrupt enforcement as adjustments could take time.
Saying that South Korea remains a good market for Philippine bananas, Alcala noted that more than 90 percent of the bananas exported by South Korea is currently being provided by the country.
Three years ago, when China put a harder stance on Philippine cavendish, the country felt the effect for only a few months because the combined increased market demand of Middle East, South Korea and Japan more than compensated for the loss, the DA official said. Alcala said that when China finally resumed the importation of Philippine banana, they had to contend with higher priced bananas as the other countries were able to negotiate lower prices early on.
Alcala also said that the meeting with PBGEA yielded an agreement to forge a closer relationship with banana planters and exporters with the government, as the premier agricultural export has been giving very good margin of profit to the sector.
“Before it’s [Cavendish banana] $3.80 to $4 per carton. Last year the highest ever price for the banana being exported by the Philippines was $8 to $9 per carton,” Alcala said, adding two months ago, the price reached $12 per carton, but later stabilized to $10.
He also added that as suggested by the industry, the government is planning to ask Japan to remove
its tariffs being imposed on Philippine bananas.
“The agency is preparing all the necessary papers,” he added.