The Philippine banana export industry is the 3rd biggest in the world and the only Asian country among the top 5.

The local industry is not spread out around the country; rather, it is concentrated in Mindanao, the southernmost island among the three main islands of the Philippine archipelago. Beginning in the 1960s in Davao del Norte, the industry has now spread in eleven (11) provinces in Mindanao with some 50,000 hectares of farmland used for planting bananas. In 2008, about 150 million boxes (each box weighing a gross of 14 kilos) were exported to the industry’s main markets, which are: Japan, Korea, HongKong, New Zealand, Brunei, China, Singapore, the Middle East, Indonesia, Russia and Canada. Some of the export-quality bananas are also sold in the Philippine market.

The Philippine banana industry is the 5th largest export industry in the country and the 2nd biggest in Mindanao. In terms of local tax contribution, the banana industry remitted about PhP389 million worth of local taxes in 2008, including Business tax, Real property tax, Residence Certificates of Employees, Withholding tax of employees, Withholding tax at source, and Income tax.

About PhP700,000 is needed for every hectare of a banana farm, which includes the costs for planting, infrastructure, offices, and distribution. With about 50,000 hectares of farmland used as banana plantation, PBGEA members have an estimated PhP35 billion investment in the industry.

The banana industry’s impact on the economy includes:

• Provision of employment (minimum wages, job security);
• Development of related industries (transport, food, consumer goods, entertainment);
• Increased income opportunity (cash crop, i.e. corn, rice, firewood gathering vs. employment);
• Prompts improved infrastructure support from government and private organizations; and
• Increased tax collection for local government.

In terms of social impact, the industry helps provide:

• basic needs through the availability of food, housing, clothing, and employment;
• education – increased number of students;
• health care- availability of institutional care;
• migration back to family instead of having to look for livelihood elsewhere;
• equal opportunity for women and indigenous people; and
• less occurrence of domestic and juvenile related crime and conflicts.

Furthermore, the industry also makes positive impact on the cultural and political aspects
through:

• Minimized contact with and influence of insurgency;
• Improved peace and order situation;
• Effective local governance;
• Integration of indigenous people (e.g. Bagobo, Manobo, Muslim) into mainstream society; and
• Better understanding of cultures.

As part of the agricultural sector, the banana industry also ensures that it contributes to the protection of the environment through the observance of globally-accepted practices and abiding by Philippines laws.