The Philippine Saging is Sagging (Part 1)

The world’s 3 biggest banana producers are U.S firms: 1.United Brand (Fruit), 2. Standard Fruit, 3. Del Monte. In the 60s, they saw the markets being saturated, 1. African “saging” to Europe, 2. Central America (Ecuador, Panama, Costa Rica, etc.) to U.S. The biggest virgin market was Asia’s India, China each with 1 billion, 200 million people, Japan, Korea.

They choose the Philippines in general and Davao in particular to plant “saging” for 3 reasons. 1. They are U.S. companies. The Philippines was a U.S colony from 1898 to 1946 while the rest of Asia was either UK (Burma, India, Malaysia, etc.) or France (Vietnam, Cambodia, Laos) or Dutch (Indonesia). They knew we are P.I. used to U.S customs, Legal, Business, Political Systems. 2. Davao has no typhoons; strong winds and rain that can topple banana trunks.

Asia’s storm cycle begins in April in India. (Monsoon, Arabic for strong wind) and by June (Typhoon, Mandarin for every powerful wind) goes up from Palau islands to Mindanao skirting Surigao, Agusan, turns to Leyte Samar Panay, by July or August to Bicol, Southern and North Luzon. The Davao typhoon cycle is every 25-30 years. In 1970 Malita was flattened, in 2007-Caraga Cateel was ravaged. 3. The U.S firms seeing Davao Gulfs delta stretching from Lasang, Madaum, Kingking to Lupon were filled with big abaca and coconut farms (Dapecol 7,000 Hectares, Tadeco 1,000 Hectares, twin river Odell, Madaum 1,000 hectares, Carriedo Hidos, Lapanday 700 Hectares, each Mampising, Pantukan 700 Hectares, etc.) with developed feeder roads, drainage, along national highways were overjoyed. Development cost was very low.

The delta was crisscrossed by creeks, Bing Congan, Tuganay Rivers, Irrigation was easy. The plantations were only 20 to 50 kilometers from the ports of Madaum, Panabo, Panacan, Sasa. Transport from packing plant to ships was cheap. The good roads meant less spoilage. They began planting in the middle 60s, in less than 3 years they were exporting to Japan. Del Monte in 1938 opened the first thousand plus hectare integrated Pineapple growing and canning plant in Asia. Standard Fruit in the early 1960s, opened a 7,000 hectare pineapple farm and canning plant in Polomolok, South Cotabato. It had the softest job in opening a “saging” farm, because the 2,000 hectare was part of their bigger 7,000 hectare pineapple area.