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Copy of Pineapple production in the Philippines

production processes
by

Carlos Maningat

on 7 November 2011

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Transcript of Copy of Pineapple production in the Philippines

Agricultural production Processing Sales and Distribution (cc) image by nuonsolarteam on Flickr (cc) image by nuonsolarteam on Flickr Land
preparation Planting Weeding Spraying Harvesting Mobile
Packing Cleaning Sorting Packing Slicing Canning Warehousing DARBC Contract
growers Private
lessors Private
lessors DEARBCI How do companies acquire land for pineapple production? Shipping Distribution ARBs Labor cooperatives Agricultural workers Growers' cooperatives Contract growers lessors oganized under big cooperatives Planter Weeder Sprayer Harvester Planter Weeder Sprayer Harvester Mobile packer Mechanic Boom operator Field maintenance Economic sustainability issues in the
PH pineapple industry Private growers Poor peasants Local communities Foreign pineapple companies Local pineapple firms Big landowners Local government units (LGUs) Labor cooperatives/ agencies Industrial workers (Direct-hired) Packer Sorter Palletizer Mechanic Packer Sorter Mechanic Machine operator General utility Trucking companies (third-party) Local communities Foreign pineapple
companies Local pineapple firms Local government units (LGUs) Palletizer Subsidiaries/ affiliates Supermarkets & other
retailers Fast food chains Consumers 18th month United States Japan New Zealand Middle East South Korea Foreign market Domestic market Hotel and restaurants Pineapple MNCs pay unreasonably low rental payments, around P13,000 per hectare per year Baseline situation #1: MNCs also buy pineapples at very low farmgate prices -- as low as P2.50 (0.04 EUR) per kilo Baseline situation #3: Sustainability indicator: Policies that favor growth and expansion of pineapple industry have spawned land deals that deprive farmers of sufficient lands for food production Baseline situation #4: Abuse of dominant position Sustainability indicator: Baseline situation #5: Baseline situation #6: Sustainability indicator: Provision of financial services at exploitative terms Farm workers and growers are provided access to financial services, though on measly amounts and under padded interest rates Adequate financial services for capitalization rather than for short-term consumption must be provided at low interest rates Tax perks and fiscal incentives Dolefil and Del Monte Phils. enjoy tax exemptions and incentives since they are located inside special economic zones Sustainability indicator: Gains from the pineapple industry should be maximized by eliminating market-distorting tax exemptions and fiscal incentives Controversial agreements Baseline situation #7: Dolefil and Del Monte Phils. have pushed controversial land deals which evade the agrarian reform agenda; terms and conditions were even breached for profit Sustainability indicator: Land deals must be line with the genuine agrarian reform and strengthening of local agriculture; terms and conditions must favor equitable gains Baseline situation #8: Contract growers and ARBs leasing their lands have limited power in bargaining farmgate prices and rental payments Contract growers and ARBs leasing their lands must have increased bargaining power and decision-making roles in determining prices and rentals Sustainability indicator: Corruption Baseline situation #9: Cases of corruption are like open secrets among members of cooperatives, especially in Dolefil Sustainability indicator: Democratized auditing of cooperative's fundsl as well as accountability mechanisms must be put in place; Other economic issues: Baseline situation #10: Pineapple industry has low linkages to other economic sectors; contribution to employment is very minimal Sustainability indicator: Pathways between pineapple production and local markets and other economic sectors must be built; this will increase employment opportunities in the industry ECONOMIC SUSTAINABILITY
ISSUES Traders and distributors Baseline situation #2: Dolefil and Del Monte have control over the entire production process, giving them the upper hand in fixing prices and concealing profits Small growers must be provided greater access to technology, inputs, support services and market for them to rise up in the value chain Growers must be given more power in price determination by enabling them to develop and climb up the value chain Sustainability indicator: Production areas for food such as rice must be protected from the encroachment of pineapple firms in order to ensure food security DAVCO Contract
growers
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