By Dennis Santos, Judy Quiros
Inquirer Mindanao
First Posted 21:58:00 10/08/2010
Filed Under: Trade (general), Financially Distressed Companies
DAVAO CITY, Philippines — The Philippine banana industry is getting caught in the crossfire between Iran and the United States and could shed up to 64,000 jobs in the process, according to industry officials.
Stephen Antig, president of the Pilipino Banana Growers and Exporters Association (PBGEA), said Wednesday his group expects to lose up to P7.5 billion in export income as a result of Iran’s ban on products coming from countries allied with the United States.
The ban is seen as a retaliation for increased pressure from the United States on Iran’s nuclear program.
Iran’s row with the United States worsened when Washington stepped up efforts to stop the Muslim country from using nuclear energy.
Most banana companies here produce for such major US labels as Del Monte, Dole and Chiquita.
Antig said Iran remains to be the country’s biggest banana market in the Middle East and consumes about half of the 50 million boxes that the Philippines sends to the region each year.
“We are at a loss. This came so suddenly and we are not prepared,” he said.
Antig said his group already met with Philippine government trade officials to discuss what possible steps to take.
“They are already aware of the situation. They pledged to look for ways how to solve the problem,” he said.
Antig said the domino effect of the job losses would be tremendous.
“At estimated 64,000 workers, with an average of six dependents per family, the total number of people that would be affected would reach 384,000,” he said.
Antig said the situation could be disastrous especially because “Christmas is approaching.”
He said Iran has stopped importing bananas from the Philippines since last week and there was no indication it would resume buying Philippine bananas and other fruits any time soon.
A banana firm executive said his company sends 15 million boxes of bananas to Iran a year.
“There is a feeling of gloom among us,” he said.
http://newsinfo.inquirer.net/inquirerheadlines/regions/view/20101008-296680/US-Iran-row-collateral-damage-64000-jobs-in-RP-fruit-firms
