Banana Growers usually earn on a per box basis which is priced in US currency. The problem that Banana Exporters in Davao are facing now is the weak dollar which lowers profits while basically keeping operating costs the same.
Compared to growing banana’s for the local market it costs more to operate a farm that grows banana’s for export to the Japan, Europe and Middle East markets because of the strict quality control that these countries put up. Add also the aerial spraying for fungus control, irrigation and labor that is a must have for each farm. It truly is a burden to the grower when the dollar is low.
In line with this, the Philippine Banana Growers and Exporters Assoc(PBGEA) have requested to the government if it can cut down on the fee’s charged to exporters permanently in order to stem the onslaught of the weak dollar on the profit margins. Further slide of the dollar could mean that they might have to retrench workers which is an action they don’t want to do. The are concentrating instead on increasing farm efficiency and productivity. They have also asked for a reconsideration of the P75 labor adjustment that Labor is requesting from them.
On the flip side however, the high dollar is good for importers and foreign exchange and currency traders.
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