An agriculture deal worth P2.3 billion involving a Japanese firm and local banana growers is part of the investments that will be secured by the Philippines during President Duterte’s state visit to Japan.
Agriculture Secretary Emmanuel F. Piñol said on Tuesday Japanese firm Farmind Co. is keen on going into the production of Cavendish bananas.
“Yes, we are signing a ¥5-billion [P2.3-billion] agriculture investment in Cavendish bananas,” Piñol told reporters, when asked whether the state visit would involve the signing of farm deals.
Piñol said the agreement would involve Japan-based agribusiness company Farmind Co. and Philippine banana growers in “conflict areas”.
“They are interested in importing 20 million boxes of Cavendish bananas from those in the conflict areas,” he said in a separate phone interview.
Farmind Co. is a subsidiary of Fresh MD Holdings Inc., which is engaged in ripening, repacking and distribution of kiwi fruit and bananas, according to Bloomberg.
The Department of Agriculture chief said he will also try to hold talks with his Japanese counterpart regarding the possible delay in Tokyo’s implementation of more stringent measures on imported bananas.
“I’ll see what I can do with that matter,” Piñol said.
The Japanese government is considering stricter standards for the maximum residue limit (MRL) on tropical fruits.
The Food and Agriculture Organization defines MRL as the maximum concentration of a pesticide residue legally permitted in food commodities and animal feeds.
This means that if a certain chemical compound in pesticides used on any produce exceeds a specific MRL standard (usually measured by parts per million), then the produce will not be allowed to enter the importing country.
Piñol said he will also make a pitch for an exchange-student program between Filipino and Japanese agriculture students.
Data from Philippine Statistics Authority (PSA) showed that Philippine banana exports to Japan in January to June reached 174,525 metric tons (MT), valued at $99.3 million.
PSA data also showed that banana exports in 2015 reached 1.795 million metric tons, valued at $658 million. Japan is the top buyer of Philippine Cavendish bananas.