More than a year ago, Filipino and Australian banana growers were at opposite sides fighting over the importation of Philippine bananas to Australia.

They are still fighting alright, this time against different foes but with the same face – market economics.

Both are losing.

Australian growers are losing because of a glut in the market which forces them to sell their produce at very low price. The current retail price of around $1.49 a kilo in Metro Sydney, according to reports, leaves hardly any profit to the growers. There are also reports that bananas are selling even cheaper in other areas.

The oversupply of bananas in Australia is due to warmer-than-usual weather in north Queensland which ripens the bananas too quickly.

Filipino banana growers on the other hand are engaged in a price war with Peruvian growers over supply of bananas to supermarkets in Seoul and other Korean cities.

Like their Australian counterparts, Filipino growers are losing.

“It’s the banana war between Peru and the Philippines and the Peruvians are getting the upperhand reportedly outselling Philippine bananas three to one,” reported the Philippine Information Agency (PIA), an information service of the Office of the Philippine President.

Peruvian bananas could sell cheaper because South Korea eliminated tariff on the the Latin American bananas, said the PIA.

Meantime, consumers, the winners of this current ‘war’, are enjoying their bananas. In Australia, it was not long ago when the fruit was selling at sky-high $16.99 a kilo! That was in 2006 when Cyclone Larry wiped out almost the entire banana crop in areas of north Queensland which accounts for over 90% of banana production in Australia.

Source: A Matter of Sharing

More than a year ago, Filipino and Australian banana growers were at opposite sides fighting over the importation of Philippine bananas to Australia.

They are still fighting alright, this time against different foes but with the same face – market economics.

Both are losing.

Australian growers are losing because of a glut in the market which forces them to sell their produce at very low price. The current retail price of around $1.49 a kilo in Metro Sydney, according to reports, leaves hardly any profit to the growers. There are also reports that bananas are selling even cheaper in other areas.

The oversupply of bananas in Australia is due to warmer-than-usual weather in north Queensland which ripens the bananas too quickly.

Filipino banana growers on the other hand are engaged in a price war with Peruvian growers over supply of bananas to supermarkets in Seoul and other Korean cities.

Like their Australian counterparts, Filipino growers are losing.

“It’s the banana war between Peru and the Philippines and the Peruvians are getting the upperhand reportedly outselling Philippine bananas three to one,” reported the Philippine Information Agency (PIA), an information service of the Office of the Philippine President.

Peruvian bananas could sell cheaper because South Korea eliminated tariff on the the Latin American bananas, said the PIA.

Meantime, consumers, the winners of this current ‘war’, are enjoying their bananas. In Australia, it was not long ago when the fruit was selling at sky-high $16.99 a kilo! That was in 2006 when Cyclone Larry wiped out almost the entire banana crop in areas of north Queensland which accounts for over 90% of banana production in Australia.

Source: A Matter of Sharing

Philippine banana imports

Last week, Federal MP Luke Hartsuyker attacked the Rudd Government after moving a Private Members Motion in the House of Representatives.

Mr Hartsuyker’s statements, also posted in the official website of the Nationals Party, have raised questions on the capability of Biosecurity Australia in securing the country’s quarantine processes over Philippine banana imports.

“However, the overwhelming issue here relates to the science and risk management measures which have been applied in Biosecurity Australia’s import risk assessment of Filipino bananas, ” Mr Hatsuyker said.

“Of primary concern is BA’s visual inspection process which they say will be put in place to mitigate the threat of disease.

“We have no idea who is going to conduct these inspections. We have no idea how thoroughly it will be conducted. We have no idea as to whether those being charged with the responsibility of protecting Australia’s interests may be subject to a conflict of interest.

“Will Australian quarantine officers be inspecting the bananas on the ground or will they be hiring Filipino contractors to perform this role? What processes are in place to guarantee the integrity of these inspections? How comprehensive will these inspections be? How comprehensive will the sampling process be?”

The decision to allow Philippine banana imports into Australia was handed down by Biosecurity Australia last March after more than 10 years of battle.

Last month, the Australian government decided that the country can now import Cavendish bananas from the Philippines.

Philippine banana imports

The decision made through Biosecurity Australia, the Commonwealth’s agency responsible for undertaking science-based, quarantine-related risk analyses called Import Risk Analyses (IRA), has opened up a market that Philippine banana growers have sought to enter since 1995.

In its determination statement, Biosecurity said banana imports from the Philippines may be permitted subject to phytosanitary measures. These measures according to the determination are designed to limit quarantine risk to an acceptably low level which would assure protection to Australia.

Biosecurity further stated:

A detailed operational work plan between Australia and the Philippines will now be developed. This will need to be approved by the Australian Quarantine and Inspection Service before any import permits for bananas from the Philippines into Australia will be considered.

The operational work plan is yet to be developed. Nevertheless, the Australian government’s decision had, according to reports, “sparked an angry backlash among Australian growers and has become a campaign issue in the Queensland election.”

Last week, it was also reported that Australia’s national carrier, Qantas, was severely criticised for serving Philippine bananas on some international flights.

Qantas, according to reports, may be facing a boycott from Australian banana growers on account of this in-flight menu. As of this writing, we have not seen a public statement issued by Qantas in this regard.

Whilst we understand the position of Australian growers, in our view the current mood of not allowing Philippine banana imports into the country despite the issuance of a determination now focuses on the extent of reliance that can be placed on Biosecurity, and on the effectiveness of Australian quarantine measures, in being able to provide quarantine border protection to the country.

During the more than 10 years of fight over Philippine banana imports, and even to the present, Biosecurity’s role has never been an easy one to say the least.

As Mr Ian Macdonald, NSW minister for Primary Industries, said: “Biosecurity Australia (is) walking very fine line on Philippine banana import decision.”

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“The final IRA report is a comprehensive, science based analysis that reflects Australia’s conservative approach to quarantine,” Biosecurity reported.

The quarantine measures contained in the final IRA include banana export sources being restricted to areas that only demonstrate low pest prevalence, registration of banana export blocks as well as inspection and verification by Australian quarantine officers of Philippine export systems and processes.

Biosecurity reported that stakeholders have 30 days until 12 December 2008 within which they can appeal to an independent Import Risk Analysis Appeals Panel.

The basis for an appeal is that the final IRA’s procedures are significantly deviating from the process set out in the 2003 IRA handbook or that a significant body of scientific information relevant to the analysis outcome was not considered.

Following the appeal process, the final report and recommendations will be provided to Australia’s Director of Animal and Plant Quarantine to make a quarantine policy determination on bananas.

The issue of the final IRA had long been in the waiting.

Import of Philippine bananas was initially declined by Biosecurity Australia in June 2002. About 18 months later, the original findings were revised to allow banana imports from the Philippines subject to strict quarantine conditions.

Between February 2004 and August 2008, a series of consultations with stakeholders, field inspections and technical assessments had been carried out by Biosecurity Australia to establish a final import risk analysis report.

Last August, Biosecurity issued a status report that the final import risk analysis report had been completed and referred to an independent Eminent Scientists Group for review.

Australia’s banana farmers will know within the next few weeks if they have been successful in their six-and-a-half year battle to keep Philippine bananas out of Australia.

Biosecurity Australia reported last month that it had completed a draft final Import Risk Analysis (IRA) report, now with an independent team of scientists for review.

The review group has up to 60 days to establish if Biosecurity Australia has properly taken into account all stakeholders comments in finalising its risk analysis and policy recommendations.

It is expected that the review will be completed by the end of this month, after which the report goes back to Biosecurity Australia who will put out the final report.

Subject of the long drawn and hotly-contested IRA are 100,000 tonnes of Philippine bananas proposed for import into Australia annually.

Import of Philippine bananas was initially declined by Biosecurity Australia in June 2002. About 18 months later, the original findings were revised to allow banana imports from the Philippines subject to strict quarantine conditions.

Between February 2004 and August 2008, a series of consultations with stakeholders, field inspections and technical assessments had been carried out by Biosecurity Australia to establish a final import risk analysis report. #