Limiting the Hectarage Planted for Banana Exports

February 22, 1973

LETTER OF INSTRUCTIONS NO. 58

WHEREAS, it is to the national interest that exports be promoted in order to hasten the economic development of the country; cd i

WHEREAS, the Export Banana Industry in particular, in which the private sector has investments exceeding P300-million, is beginning to reach its maximum capacity;

WHEREAS, it is the intention of the government to protect these dollar-earning investments and secure the employment of those directly or indirectly employed in the Industry;

WHEREAS, a concerted and determined effort to establish and maintain a stable market and stable prices is necessary to sustain the development of the Industry; aisa dc

WHEREAS, this market stability may be obtained by achieving and maintaining an optimum hectarage planted to export bananas;

WHEREAS, a stable industry, a stable market, and stable prices can be achieved by regulation of production.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby direct the Board of Investments, the Department of Agriculture and Natural Resources and the Central Bank of the Philippines to take the necessary steps immediately to limit the hectarage planted for banana exports as follows:

1. The area to be planted for export bananas shall be the optimum hectarage which can be absorbed by the Japanese market and other markets as may be developed in the future without creating a surplus situation and depressing the export price of bananas. cd i

2. Under present conditions, and until new markets can be developed or an unexpected increase in the Japanese market occurs, the hectarage to be planted to export bananas shall be limited to not more than 21,000 hectares, to be distributed among growers as follows:

(a) Only growers with actual plantings as of November, 1972, as shown in Annex "A" (which is made an integral part of this Letter of Instructions) shall be permitted to make new plantings of bananas for export;

(b) Such growers with actual plantings as of November, 1972 and listed in Annex "A" shall be permitted to increase their hectarage planted to bananas by an amount equal to the lesser of the following:

(i) The area indicated by them in the industry survey made in November, 1972 for additional planting, as contained in Annex "A" hereto; or

(ii) The area reported to be actually planted by them as of November, 1972, as shown in said Annex "A".

Provided, however, that any grower registered with the Board of Investments as of the date of this Letter of Instructions shall be permitted to expand to the total area required to achieve this production capacity by the BOI as shown in Annex "B" (which is also made an integral part of this Letter of Instructions) hereof, even if the new plantings exceed the limits above.

3. At such time that the Japanese market has expanded sufficiently, or new markets have been developed so as to make available additional hectarage for export bananas, a committee composed of the Chairman of the Board of Investments, the Secretary of Agriculture and Natural Resources, the Governor of the Central Bank and four (4) representatives of the growers, representing not less than eighty (80%) per cent of the area then planted shall meet to decide on the additional hectarage to be planted and the distribution of such hectarage. acd

DONE in the City of Manila, this 22nd day of February, in the year of Our Lord, Nineteen Hundred and Seventy-Three.

Annex "A"

HECTARAGE OF REPORTED PLANTINGS, PROJECTED PLANTINGS AND ALLOWABLE PLANTING OF BANANAS

			Planted as of	Not planted	Allowable
		Plantation	November '72	but to be	New
				developed	Planting
				(Per survey)
1.	Stanfilco Group
	a.	Checkered Farms 1	900.00	100.00	100.00
	b.	Golden Farms	887.40	112.60	112.60
	c.	Diamond Farms	415.80	184.20	184.20
	d.	Stanfilco Farms &
		small growers	3,128.40	271.60	271.60
			________	_____	_____
		Total Stanfilco	5,331.60	668.40	668.40
			________	_____	_____
2.	Philippine Packing Corp. Group
	a.	Hijo Plantation 2	1,309.00	- —
	b.	Marsman Estate	956.00	150.00	150.00
	c.	AMSFC 2	639.00	186.00	186.00
	d.	F.S. Dizon *	198.67	259.32	259.33
	e.	Lapanday 2	369.90	130.10	130.10
	f.	Farmington	330.00	110.00	110.00
	g.	Evergreen	292.50	207.50	207.50
	h.	Delta	147.98	264.02	147.98
	i.	Jose Fernandez	--------	450.00	---------
		Total Philxpack	______	_____	______
		Group	4,243.05	1,756.95	1,190.91
			______	______	______
3.	Tagum Agric.
	Dev. Co., Inc. 2	2,300.00	2,200.00	2,200.00
4.	Davao Fruits 2	2,405.00	595.00	595.00
5.	Twin Rivers 2	308.00	692.00	692.00
6.	Desidal Fruits	240.00	1,560.00	240.00
7.	Mabuhay	178.00	2,522.00	178.00
8.	Mt. Apo	90.00	1,710.00	90.00
			_____	_______	_______
	GRAND TOTAL	15,095.65	11,704.35	5,854.31
			______	________	_______

 

Annex "B"

BOI-APPROVED CAPACITY OF BANANA FIRMS aisa dc

	Firm	Registered Capacity
1.	Tagum Agricultural
	Development Co., Inc.	144,327 Mt/annum
2.	Hijo Plantation	4,440,000 cartons/annum
3.	Twin Rivers	4,440,000 cartons/annum
4.	F.S. Dizon	1,000,000 cartons/annum
5.	AMS Farming *	2,821,500 cartons/annum
6.	Davao Fruits *	11,100,000 cartons/annum
7.	Lapanday Agricultural
	Development Corp.	21,600 MT/ annum
8.	Checkered Arms	36,000 MT

^1. Source of Data: Industry Survey as of November, 1972 made by the Banana Growers Association.

^2. Registered with the Board of Investments.

^3. Registered with the Board of Investments.

^* Approved but not yet registered.