Researfl':h an~ Wculdng pape'rs, Third WDJ'ld ·Sfwaies

lJ'ht~rJi~y.of the PhilippiAes

'.
J

..

Ccmmodit.y

£t.uo.ies No. 2

Cpntm,Sl0 S't;ydi0S: i:tl... ThcSD l'es'oru"ch atdpublicati ens series of '~he Third rtJorld, StudiGl6 Cent.Qr iH'lElly;zc the pc.lit.ical economy or majm' Philippine agri.c!.11tuJ'''al CxpCli!'t OGmfrloditios. Tbe.;;c stvdies seek to clarify thenata,1I'c of t.l'lQ produotio'D prceeas in th'tiJSQ.imlustries as highlightEiQ by tho ~PQcif'ic 1·010 of' t.h~ transnational cQI"wZ"'ations;the direction and implications of ste ta pol1c:ias I\l.n,d £itra't.o,,!iga Qr.~ groHt,h in 8@':riculturG 'j, and the aooio-poU .... to 10a l :i,~ ci. '0£ the 1':1 0 indlJ ,str los on tho d f r'oc't. produc or' III r.if va 1 U(l .'

,.-,

--

... .-. - ~- ...-.-.

,

--

--

-----------~---~. -

PAT1UClQi ti. A.BINU~S

OLHFJI: G.. TB\1'F"iS ~ and mOCO!"IO' :)., M~Jt.mloL~ JR '.

Th.:i:rd T~rot"ldStudies mg:ram Gcllega of ,ilrt.a ood. Science :!! Urd. I;1~rsity oft he Ph.ill:ppd.nes "
l

YOSHIII.JlKl 'l\SURlIMI and. Klliot'll :8H1GERUHrr.ICHI,

HIGtJCHl"

and T:lDJ{Q lAlOOl'lIfO

Pa eiU i 'C-~sia.l;fl;sOm'ce'S C:1!f'llt~~ T~, Japan

Tila Uni.ted. Nat.ions J.Gint. Bangktl'k;ll T.hailand

crc:~p

Ul'J.it on TNCs

tue~n

JSl1'ue.17 ~98:.1
G:it.y

P~lrl..lippine5

PREFt~C.E

Novct.m'bQJ" 197$

to J'!.ln~ 1979,

the second from Ap:ri119~-O

to

Jul,y 1980.

al130 bcnofltt,e.d

from the pa.ttiqipa~..:..ion of' Eugenic.. n8migillo~ .~~5D a

Fe110'", 0 f the Third ~·rcrld, Studie s , A~ this R€port

dettLons.trate'~~ the Fhilipp:i,.ne· Hanan!'! Export , .

Irl'oustry

if':! aJir..ostt.otJ.lly

dependent

upon tbe. Ji:lpa..'1e:ser~la.rkl~t. Tnus~ Whflt is , .

of the

J~panes.e .l1l.arket
Paci

,'JaS

prel=O)~"cd by an, ·as sc.cia:t.e 't.pat'tL 'of CDlleagues

from the

ic ... s'ia. 11'!:1s~U1'ces Center- Jed by Ycshiyuki A

T:surun:d~

He

The fu8J.'keting wrtion

CQIDucte~ from

"Wasbased on field. interviow,

?,iW-

observations

March to September"

1980.
Joint CTe,.~SCAF Uhit on '!'NCs"

ThltS p;:.per was: (;olllJl'!.i;:;,sioned by the headed by Dr-, Benny Wi4yono, gl"eatly beneffttQ.d
the

fr'om,

W'h.aStl.

idea.s and cenmerrbs :thestwly'

if! it ~ various

st-age:5.

Dr.

B-LetrV'enLdo Ro1'9.~:3 <ftom

.s.am-eUhit)

suggest ions and. cotrmen t:ii> on th.e first draft

ar-e als("'i

" ann tJXpensi:vo \lnd()rt(i!king~

Our introduction

to th~.. baoon,~ -phntatj.or:1s

-oOo,~

nota::

ThE!! field

.OTIlff'orking'

C'ondit.:i.on? in thG J3.anarJl .Industry .. A ($.~taih:ld account, ot 'bhese , condd, iOt'l8\',rill be pliblis hed Mp.:3: ra to ly t as a papel' on lfrorkers in th~ ;Fhili,ppi.ne Banena!<~}::pO'rt

d.;:;.ta. t·oU~c.tt?Jd in the course of this r-seear-ch inGlude informat :i.Qfl

Industry.

TABlE

OF OONTEHTS

1.

INTiI;ODUCT!ON 1 1~:2· Hap of Ban.."U13 P19.'ot.ati:-ms in Da;.vaq Del Norte and Davao City 1•.3 Ca·sh Orops in the Philippin!'!l Export Pr(}ti le. ~, • ~.'.;;". ••• •• •••• ..... • Ba:n~na Export R.B0ord ,a •• ~•• ,•• ~ • ,',••.•
2

3
5

1.:4 The Philippine

~•• ' •• ~••

+•• ••

1.5
1,.6 Responses t.o tlw. Crisis of Oiler hcdtic:ti.on and Dec linirig IrrrpQl"'b 'Prie~s .~,•• "", •• ,',•• , •••• ~•• '•• ~• ~••••••••••• 1.,6~1 .~STANFn£d~13, Pinnua.l Cropping Progra)n • ~. ~•• ~• 1.6 •. 2 Other Corporate, Respo'D6'es
TAD,F;COlsAdvant~ges
II II • ., .. iii

~•• ,
~ • • •

12 13

g, •••••

,•

~ ," ••

•.~~~ .....
....

~ ••• ~~ ••• ~~ ~•• ~••••••

i! ..
Ii

~ •• , •
i i Ii ,iii !!

19

't

t'

...

oJii

II •

,.;

!I

..

Ii

.'

!Ii

"

oil

!! •

II

+ ••

2Q
2.5

2. THE :Effi:GINrfING.01" THE K.XPORT BANANA nrouSTRt

.IN 'l'HE PHILIPPINES

3..

34

j.,l,.l

Kimarr.omA

Ga.$S

Stu.dy of an Original Settlement

6 ••• ~. • • • ~ •• _ • • ., • •

~• •
• • •

50

]'.1.,2

STANFILCn at. Ki_mamcm--: Changes •.~~•.~...

S4

~,.2 C61'po:r-at,i{in Acqu'i0ition "of Land ~. ~'••,.:. ~•••• ' ••• '••'. ~~~• ~• ~. ~. ~• • • • • ,.2.,1 The Le~~'~'Arr'angeme.nt The' Farxn MP~gement ••• ill" ....
#"illilil
~til!!!. '!I.!I;;II!.,II!i! ~ I

59

iii.

iI+.Il

••

...

'i

", •.

61 67
73

:3 .2.,2· .3 .2.3

Contract

,.• ,

~•••

* ., •• ~ ,

f' '•••

'. • • •

The TADECb-Utrlted ara·OO Land Acquisition

Scheme

•••

;0

••••

'..

Government.. Control on ·.l0'3.:ndl.c:quisit"ion: J Lcttol~S of Instruction Nos. 58, and 790 ];03.1 Some Trends 'and .Implica.tious of Land All,~cation Und.er lOI No. 790 , . ~.•. ~••• '..~••.•.• .
of Allocation

ao
,0 •• ' '•• ~ •• ~

82 84

J ,.,J. 2 Problem

for 'Che Small Gl'owers

i

....

, •••

, ••

,. ••

'.'..

- ii

'U {

dry'

~.l
4.2

U:ni~ Brands ted

andTAtlEOO l·ndLu.s'try
Fa.rtking \.'rod'lJPin the
!!l";"

The De,l Ymnte--!?hilippine

Export

.:Ban.a~

Ii! ii

i!!i

iii

iii

iii

,ill]

''ii

;II

.'

_,

i!!

iii,

·i

il

.j .!iil ii· ii,

!!!

L!!' !!

!!

T,ha Ec,qnom.itTrs aoo Politics

Collt~~-qt '~
lh~~'2

Dell1~nte ~nclits

of the

C~li' pOr'il t.e. Gr6w,era

~werl

13

,!!!

!!!'

fi

~.~

~I

101.

104

Pri)bl~s

,of :Price n~termi~-ti6n

afrl 1.07

'The. Supplemental
. nd P;!!,'IIQ,blems: a

Price. 18saa ~..,••.~~'. ~. '•.e ~ ....

Is;s'U.E;!·s
iii iI ~ ~ • '.' iii

~ ~ ~ '•••••

,•••

' •• '

The Tecbni.cal S·€!:t'\riQ,e·A!F.e.ement~

!II! Iii! i@l ~ ,!! Iii '!Ii
Ii ~ iii Ii • ~

<!II!

iI!

[Ii 'i!i

III

.•

,.,

i••

'

ill' iii

...

iii

....

'i ..

,ill

LiI!

108 109

The Ro~,l mlOert.y ~ ROOProollc.tiou ..... IS·16tle~·8 and Pro ble·ms~

i!,!i!
Ii

loan l!:gr'esment:: fl 'ill ~ i!i i!I! ~

i!i!ll!'

!iii'

ill!

~.~

I' ~

[Ii

0lil

.Ii

!!!J.II!

~'III

_,

II!

,Ii!

"."

L!!

ii

Ii!

!!'

110

119

5:~1 Histbry and Rhetoric

of the. Inda:peu,cisnt :Gtow~rs PrQgl"?m ~. ~~.' ~. ~

132
;t;3B'

5 ~1.1

The. Me:rnorm.d.W:o.. Agre we.nt. Bertween Sinall Growers .and STANFILCQ (Dole).~. ~• ~• ~~• ~• to
Social dha,ra,ct;el'istio's
J

• ~ ••••

, ~. ~ .~

• ~ • ~,

5~1.2
.5 .2
])0 ler

0·;: the STAMFIWO (Dole)

,," ..
Ii! Ii lli • oil i i!!J
L!!iJ ~ "

Srn.a.ll Gr\o;rer 6

iii

·iI' •

"'" ••.

1Ii-.,..,

-lI.~

oil

iii

,iI

Ii!

ill

••

I!

I!!

'I!I

~ • .Ji

!j!I' ~

145
151 151

am\ the

Snt..all (]rowe.l"5

Poiuts

of 'l'sTI;fdon.~. ,•••. ~••,~• ~• • •• •

6~ .' ••••••• ~~

5 ~.iP,~1 Priciq,g of l3:a:nal'¥l'~B~$ed on G!I/T) ~ '. ~ '. ~ •• ~ • ~ ~ ( 5 ..2.•,2 Pi:"iC:.ing of BaJl:.~).laS:(per 'box) ~.~. ~~~••. '. ~.•.

OJ. ~

,0 .'

~.

•~

~ ~. ~

.,

1:57

5. 2: ~j

Polnts· o:f Tension: Compcm;y harg6~ for C .roo,du-ct.ion 1Ad."V'ance~, il II· + '"
ii, I! .' • ;iii iii iii .. _ • '.. !I! •

i'

it

ti

Ii

fi

'!!l

!!I

ijIi

,!iji

iI!

!II

I!i!

iii

164·

_, ill ... _f.a:,ges

5,..3
5.4

Sm<al1

Grower.s

Indebt.edn~
!II .. ,

sa ".'. ~~,• ~• ~• ~•. ,.•• ' .. ~.. ~• ~. ~. ~

I.

••

'

175
181 182

Gl'O:wers'! RIC!actions

i!Ii ..

I II • !t " ~

II!

Iii

'I!I

I!I

;j

Iii

", ~ ,

.,

••

' ~ !II

;I

~,

!I

..

iii

!Ii

ill

!iii!

",

iii

The Need ,for

185
'.' ~••••••••.••••• ~••• ~..• ~•• '.••

5.,4.3 '5e_10, of }1at~rials

18'7

5.4. 6 ~(:onotniz:fng 'l'ec'hnique'.8 to Save on Costs =

_The Case of Garonimb Obl:igacdo .,. ~ ~.' ~ •••• , •• ~ •• 1.89'

6. 1

The D~velQpu.ent of the Philippi:t)'C l3a nans

Marke't jr-n
JSpar.l it. '.
if!! • '" i!

I' '!Ii ••

I!!

..

-!Ii'

•••

";

....

!iii .•

!!'

it!

ii

!Ii

.'

...

iI

.....

II!

!!'

!II

iii.•

!Ii

210

The Stl'Uoture of' the Distribution 197'0 ....... l~ri,d. 1'97'9 .. ~

=.:
!II

Syst.em,
•

it

.!!II

I'

lII"ofIi

II

..

'IIi'

iii

III ,.

!i!

,Ii!

Ii!

"

t!I

!Ii

II!

iii!

ill

iii

III ..

,II II

!Iii

II!

.'

!II

II

rt

ill

••

219

Shippel' 622: ~,

- 1m.porter Group

tI 'iii

ii,

I;

!I!

it

I!!

II!

....

.,

;j

!ill

'!Ii

II

!Ii

I!

!Ii

iI

iii

!II

,Ii •

Ii

.......

219
2:2,2

.Gro'Up
ii1!11";Ii:
Ii!
ijJ .. , .... IE • '" ,•• .:. • !II I!I! !I! !I! 'I!!!

fI

i!i

;226

6 .,2.~4 Dcamstream Dis trib1i:ti I')m Dis tri but,ol"s

to fI: :Lpener 50
•••
,;0 ~ ••• '0 •••••• ~ • ~ •• ~ ••• ~ ......

+ ••

~, ••••

'.

••

230

6 ~2~'5

Banana Distribution.

Pk.ldel ~. '•. ~•. ' . ~••' '•••••.

~.,.••• ~. ",',•• ~ '. ~. , •'. ~• "~, • • .

,. _ ~ ii!i ..
IiIII • iI'IE •. ,. .. .. ...

,230
,2J3' 233

6~J Price t'~echanism and Composition of Costs . '•••••••••

6,• .3.1 IlJl}Jort Costs ...
Q !!
A •

-.!

!I

!I' .....

ii

!!!

!I!

III'

j:

'* •.

iii

II!

oF

'..

6".3,:3 Shore Price

6.1+ Disruption

+ ...

'" '" ....

'••

' ••••

'••

, + •••

-oO ••

.,

.'

••••••••

•••••

'.

'.

'••

235
2l~2

of' Di.stribut.idn

Syst.em • ~~ .•••• '. ~• ~••••••..

,. ;,..... ~~.

:tv

6.,4 ~1 Disil'i blo.-t S er

V3.

Agr 1.busine s s THe 9'

.~", ~ •• ~ • ~ • - • • • ~ • • • •• ~

~.ws
244
2.46

6 ..411):' Im~Q,1f bf' Dir'ec.:t

5al<;'l: ~ •• '•••

+ ••

~ ., ,••••

~ •••

~ ••••••••

,•••

' ,••

7.1

Bananas

i;).the

FhiliJlPin~ Economy ,...... "••,'.~., ....... ;;••• ~, •,••••• '... •

;iii ..

255
256

7,::2

T'Nes'in the Industry

'iii •

,!!!!

••

Ii

!iI!I

i!!!i

...

.-;

ii

tIi

I'

••

n_

'II

II

Ii

!I

!!

11" ..

!i Ii

o!i

'II

"

,II

II

!I

;t;1

7~}~

Can the ,Export

GlosJ,tl:'Il'H

T-ax be 'Raised

• ~.,••,~ •• ~""••• ~••• ' ~••• ~•• ,~••' ,••' ~••' ••' '

26:2 26h

7.;; 'total..
APPENDICES

An Opti.on? "" ~•.•.•.•.

~~~. ~. ~•••• _••• ~. ~. .• . • • . •

/ M--"iaucl JIJILJ Q _ .

~ •.•~Q~~

.1~.~1&~ ~.i~l~~)/::
~t~~3§gi!~~ ~

'~1I

~.

,J'l 'Jiil

;3

-2-

Map ShQwm,g !theBanma PLantations in Dav,a.o riel or-re and Davao C:I'ly

nns

~,

1.3

Cash Grcus :in the Philinpine Expo)'

Pl~ofl.lo

e13l1'neroft-he fol"IDof' colony,.

eeon~ In, the

is

a h.istut':ical
S'J

Lega ~y of'

he Philippine~

as

So

lSOOt

aft-a .. mo~e than houses

200 Yllal"S of Spani.sh

rule" Eur-opellll ana Amorican merchant

qUant:li.t,io6 of Philippine agricultural 1._ _
Tho d~JMnd :feu' sugar
i'

began to l.utroduc(J

large

m...arkot.,

prod u.c't.s into tho intorns tional .. abaee and tobacco Led to t hn o poni.:ng been
plantGld

up of la 1"10 tl"act.s
to rico.

cd' land

J'

B 01110 i"Jf' \<:JIhich had praviously

By and lergCl}

t.he SpenisJ'ds

\~ho had l'ulcd to,he !,.;oleny l't:)!'

transformation.
Me se-F'ilitd.no

TnQ lands were mainly under' the contra:!. of' ttl

mCfltl ~o:;j, who, t.hl'OUgh a comb1:w tion and d.Qcei t in

Chi-

cf' a ggrfjssi \,1'001'\-'

b:rOpl'i9X1eUl"3hip~,ocJ!ll1'lorcial

nus tlingJ,

l~nd

t,rranBtJ. ot. ;,'ons,

ahj.p., On the other

hand,

Chinese traiers

had succeeded in deaDly

the oantact~

they develaped

alll'linfPd Lhorn to nearly

mcncpc Hee the

economy. By 1S54,j bal"el~r a. few deesdes

srt>er the intl"oduct.ion Census recordod a total

'ITa s

of cash crop culti-

vat ion for exporc, thePhili!)pine Us$6, 726,000

only t.hree
1

expor-t,value Qf'

0 f'

whi e h 7~:,

or ~.k, 721::. ) 000

mado up. of t he pro e F3'e s !tom d

ba c Co • ~
f

~XpGl"t

era ps ::~·i!lga

r , hem,!, (a baca J and to

In pi),gt--colonial

'times, about a hundred years let er

the

C:O'untryl6.

tial1:v unchanged, joined in. this, role

Sugar cont.inues to be a "Pl"im.o ollar d

by eoeenut

earner

and hss been From 1969

produeus ,

b¢lniUWl!l

end pincapole.

to 1975,~ 1"01' instance"

exports

under the cet"agor:iea of fccd

Incl

an_lfllEll and

m_etablo of the not yet

oils

(including
III

fats

greasG:s and. 1 e1"ivativee ) aceounced for 4, O.l.,Jft. fot' t.hat ptlriod, '.J to be a sigrrificant This. figure
Pl1il1poitm

(lOnl'ltry'

tot-a.l export. earnings

\,mich

docs expo:rt.

:I.nc:tud.e tobacoo

centdnuos

Thl))principal into iltradit ional11 principal ticm~l. coppor _'xpo:ra,

~XOOl~ts t)f thl;! Philippines and I1'nC'ln-"radi

ovon

are convont.iClnally IfIr 1tt78~ of th'

c1a.:::dfieo top ten

. ene.L exports. ~'II exports

''''ere traditional
1C':XPOl't.S

and threo Weire non-tradicoconut

(jil~

The- s(;.I-called cr:;n1cerrbl'a tea,

t.raditional

ara t.he follo"'-I~~ oopra

J

CIoU' fugal sugAr ~rl

lege"

I'umber

a rid cl'osilice ted

coconut.

The non-traditkmals

are the follo~$itI~~

s'flInd.-oonll..lc'or devicea, "rrti:n.glJish:5 of their

:iron ore Cl.JJ1omeratosl

i:.ionAls from the
Q

and b1Hl:BnB.S"

'~s.t uidnly

the

nOl'l-tl"adi-

trL.ditionals

is thl3J r'clatiy"e recency

!n:tl'od'tlct1cn

omPSl"o<3 to 1.he ot he.l" ~rt Semi~e.m:1d. uotor

devices
j,

oomn.oo it. iDS ",

which
0-

oceupf.sd

No., 4 in. t.ho 1978 l"~nking of top

tan Philippine
is controlled

cXpr"rts, began
by TNC,s 'WH~ set

be' exported

o'ftly in 1973.

ThE industry take

which

liP in the

eou.Yltry lM.i.nlyto

advantage

of and

the f!ener'ltill investment. the chea,p1.a.oour

the other Mlwsaki hand, Sintcring

incunt1ves

of'[erec:l by t.he M.arti.e.l Iron

Law· government

guara;1t,eed by t.he same gov:ernm£1nt. stal"tsd P~nt to be shipped in ~oI'thern only

ore aggllJr.o.ltH'ate~, on oontrov~rsial

The Company

Ln 1'9"77; ,~rtfjr the began operationS4

Hind~nao

La 99.99% J'a.pa.ncs9 list

o~~1'ftud.4 I!'on Ore aBglomeratt.c~ now rank number' 7 in the

00'"

of top ten principal exports Ba.na'Ms constitute the: th.ird

the ("·)uutry. non-t.rad,H .. cra.L cxpJ!'t·s of the L amrg the non.... tr'aditiona~5~ bana
«

largest.

Philippines.

The cflrlicst

to be .wtl''Jdu.ced

00,90 rank 9th ill. the 197'8top t en list

of priJ c:ipal expor'ba, firtit

'rhe cultivat.io!l

of giant

Cavondish

banana s s artod

5rJ,196?" and the

signiCj cant ahi'P~

mont ws.s made in 1968~

- :; All of tlwso three flon-tr",-di LonaL exoort.'s ... elactroni,c semi-conductors, of foreign.
01"

iron. oro agglomera.t.es, and bananas - flourished. under' the aegis companies, most. of Wh.ic,h are 1ated with them. lobal IK:s"
O'l'" iU'~

intil:nately

liJ:Ii[cd

affilfirm:3

fil t.he semi-conductor' Intel~,

tI

inCltlstnrj' thl'ee of the top five

&;uIIi-conductol'
j,

are 100% American-ovmed:

DGlvicetl.'
r.

Nat.ional

and Advanced l.ac:ro~ gJ ,rlt. conglame~

In t,l"Mliron

ora

gglomerat;e5 indutl ry

c: Jap~ncB(j

l"Bition, holds
the Ufldisputed

tl""tsl

aWRy.
ara

all t.he other hand,

in the export

bel.1ar.8

indu.stry,;
Ps eking Cor-

loe.del'$

STANFILCO (Castlo & Cool!oo) ~ fhiHppine

IJoration

(Ollll 11c-nt.o),IJrdt.e'CI

Brands

(Uni.t.cd r'};~uit)" and Sumit.omo.

Del 'Mon~o

and Castle &: C-aoke are relat.ively havin~ laid

r")ld-timers in the! Philippine pinea,ppl.e indwtry

l'ruH. itrlust.ry~

:r il'rrI

cont.rol

ever

t,he canaed

41111inctl;ln.;lO long

bofor~ the introduction

of cxpcr't bBo.ana s. 6 Record

cavendish bananas

1~4 1Jje Philippine BanenaEXpol"t

In 1968 t.he first
'sisted fully of ;357 J 783 kgs~.

major sh.ip!l'!ent of .P.tdlippine

A year later, l'.1hen the

con-

first

plant~tions kgs.
1

became

oper-st Ions.L, banana export-s rosa

",,-,2.)"J20,OOO
begi_Jlning

with an f .0. b.,

value of $1,340,,000J t-hus signal.lingt;be

of a period o£ phenomenal

1969 to 1975) expor-t, earninrr5

I

from bananas registered

e yearly Lncreaee

of

533.12 per cent ,

Such, perforrwnc:e eatapultedl

By

the indusrry to 6th p'la ee in 1978, banana earnings fe'll to

in

the 1975 lil3t of top ten Go1.lar earners. 9th place 01' t.hi:s top ten the top ten list, listing

.. and by 1979) bananas

no, lo.nger appeared

dElspite all. Increesa

in both the I1tLa::':tity 0'100'lalue of BX-

iron or-e agglomoratoSl~ and bananae

,~

- flourished \l]1i'jer the aegis

of foreign

i~tfid. wi.t.h tl"!em.

;5Il"',(9

In tho

semi-conduct.or

indust.ry,

threo

of tho top five

tii'l1ls

lCQt Ame%"iean-Orwn"er:h Intel,.

National !lCmi-aonduotor
006 industry
J .Fi.

and Aavsf.lcllJd Hicl'O-

D!jvio,ss. $

In the

iron

oro

fI gglomere

JBp21neS'o

gia:lt

cong1.omofurpo-

rate" Ksw'asski .9~oe L, l""ationJ, holds

'the undisputs{)

hrou,gh its

local

subsidiary.l' hanJ;, in,t.he

Philippine

Sinter

tr:-tal

swa;y.

Gn -he other

expor t banl!lna :1.nPu8try~ fhil1P'PJ no P'i1 Qldng 00\('DEll MrJute

l~ad(llrs

Bre 5TANFILCO (Ca,st.lu&: 'Cook",), Brand L1I (United,

Fl'uit),

pora.ticn

(Del ,Mout.e) J United

and ~UIllitomo,

having laid finn

cant

Cl'll"'er

tho

canned pineapple ba nana's ~-

indufltry

in Nillda.na:o long

bllfore the introduction,

of

e'Xpol"'t

1,,~. The Phi11__p_pine Ban,aM, ExPort

Record

Tn,1968 th9 i'iI"st major' sldpment.of'

Philip!line

ca.vendish bananas

con-

fully operational,

banana axpor-t s ro:se t.Ji 2:),320,,00

kgs.,

with an f.o ..b,

value of' $1,,346/000,

groliJth .and staggering

t~us sigmalling
Increase

"he be ~inning of a period. o_f phenomenal

yC>8l".

in va]_Ue l""r'Omyear to

FbI' the pel'iod

533~12 fler cent.

Such performallce

c.atapul" ed the indusrry

to 6th pl4iC(;) in

the 19'75list of top t'en dollareamel"s. 9th pll3co of this '~hc top t.en list, top t-el'l list.i~"

ay 1978.1 banana Iila.rnings fell to

in

and by 1979 i banana s no longer appearoo aId value of ~shipped FroIn its

d.,8pito an .increass in both the quantity

That, year,

perote over the 1978 rigu:r~s '.

L979; ,the PhllippinHs

thousand US d:olli.f'S~

S~.5,1.7~.1 ,m With a book value of 95,517,.5

in-

,_ 6 csption i.n th!3 lat.e. 19601 8, the Philippi.ne been E1ttunod to the requit"ollKmts reJAt1voly restricted until
banaM

.e:x:po.rtindustry

has always

of 'the JapalIfJse: market,; \ihich had romained

,Jap211e50 gover-rmenc

]-963 ~~llonthe
this rr'ui t.

decided, to

lib~:tallzl,;l t.ha impor.'tat.ionoi' bananas ~ th(! Japanese.

bQntJrme J which

Prior to tho ~ntry af Philippint;)

)1T'CSSl'V9

madceb M.d been an aJ.rr.o.st ,rorc 1 llSi ve stable presence

mnan'Ul

of Ta1wen

rAve ,enj..,ynd a fairly

(I! t..hc Ja pa':le8e m~rl(ot

C:1VlMinllnoarly

eo

jliEH.1TS.

Eut because los

Tai'dan

could

nr t be supplied ~'oquil:'emon~eJ

j.n ;!I.uffi'ciiently la1'70

enough quanti

1li11aet'

ot;'ll

J&p..i.ruJ~iU1

bbe bulk 01" t.ho ~arJenese imports

Am€ll'itl8.

had come :mainly tronl

EC1J.acLor a:nd Clcnt:f'al

(Seo 'rEi bID 1 1, Ann.ua:l J.a.paa eo Inpol"tE: bt Pr<lduoing· Area,) Philippim::

baJI,aUIUi had c,aptlli"od

B~t1972~ howoV\(lr, mal'ketJovBT'uldng:

nata

32,.2% of t.he .1I!!ptl.uese to domilast

Ta.i.... 'llU'8 (J;>ormosa) 20.,2$ ~ha'f"e.

th<'!1;.!y~ar Nith 43.9%

E.cm~dor cQntinued
Ottt, to

th~ market

(1912)" and it t ur-ncd

8.,

be the

y-ear of' :;J,:l.lprcma of !i:cuadorian cy 'bien resulting

banaM

Fer in 1973,~ 'With expanded Philippine

p.rodue~

from the opening' up o_f ne~ plantation:s,

eapbur-ed

banana pro-

ducers and expor+er-s

,47,.2% of' the JapafJ.ose market,

as oomparedto as Japane s as

Taiwanl e 2:4.1% and Ec\J2Jdorl a 2a.0%~ top banana 6upp1i8i' the: Philippine Up till

This

dubd ous Fide

of place

and as tJ. sja I' s IIIBaroOllr.:;a Kl-ng"r became even mor-e secure

share rcae to
j

8'3.1%

in 1978"•. 'lltere sold. (m;ainly- by Banana TNCs)to

port gpod

1979 Philippir.e

ba:na~s
at
3

JBpaD9Sa irn,pDl'te:l'S,

and distriou1;ors

prices

that

W'€l:re negotdat.ed
C·US't.OID'Ol"st

from

yoarto

Y'ear~

TLfuenbananaa

enjoyed

siw,r'e

01'

Japanese

at·ten-

t ion, the pra-clioe

or buying pl'o,-dat'ermined

q_uantities

at proviously profits.

51St

price-a BS:SUl'en ,J8par.H~ss import.el'5

and!. dist,ributol"s

steady

Over t.he
in po-

years., hOl~Wl" i a number of' factors

ha"ffl contri 'Outed bo the dee lino importers, culmina:t:ing

puJ..arity of bananas With Japa.rwso f'rui total Ptt:U~ut

in -the evontual fmpa;rt,-

of' th,a' tMjoJ" Ja,pGl'lase banana

imp:n''i;,(Jra from the banana

_. .~ l'
ing business b:n'l6rdathe latter part ·o.r -9'9.. The May 1979' Report of the i:.he:Ll" if.ficulties d
~::l

Japanel;;;(3 Banana .Importers to the doclino fruits. :in tbaper

Association

(JBTIL) attrib\!t~,s of bananas

8

capita. consunptden

agidnst
0

other 10 kgs~. The

J'gp.;t-

In 1972, per capita consumption.

reached

high level
ell

Tl'li~ e 0 n~nllIl'P'tiQ 11. won t down r: Q B Io W 0 r 6., '} kgs ~ per Rilport ~uccinctly obaerves ;
lI&r:uuulis
lCI,l:"O nO~f

pi ta. in 197 A,

ElvailAble anywhere in tbc thus losing

tn(lit'

!lose l'Gta,il mID:'ks'l. at any t:line throtlghout. ~onali ty Wl1 ien is' vital to overy from t ,

t.he yearJ

:\'l/3El-

,;oreover ~ thera·

arc v~riou.s in Japan

11:100s r.rf and

del1cic)'uG :hI'lPr'Dved fl"uits fw- each season e:upplied su£'f'ici~nt.1y so that. Japan.ese

\,m'ich a.re, produce

baing

CO:ll5UIDe:rs arc

cloyed with bana-

nas ,and ragard.in,g them as ona of tho· lowcst l"'anked fruits The im:reBl;icd demand enjoyed by &It';rnative kc:t.has tbe late iflfact been tf'loubling Jeranes6

.117
100.1"-

f~uit:3 in the Japanese

banana Importal"-S ovaro t.ha years.

by
l'esort

In

19701 B, they managml to :minimi~e losses a tm:n ",·hic.h refer-ste tho cutt.ing

tng1;;0

II chop-down I'I

cpel'ations,

of pre-harvest

bananse

in

order to l'eHeva social

t.or market of excess fr it..

Because of l:..blO understandable THhere notor-

sensf tivity of this

practice ill a conntJ:'1' li1~o the Philippines

to sbield

many people ait.ill liP' hunf?)'YJ'local banana grow~s tend

ious pra'ctice from the pu.blic eye. them. anything b~cause the .Japa.nese B~t since

this

chopping down does net, coat, f'or the frtti·t

j

p2:.y II inde-::r.nitie:sl'l

Filipino vo lunta 't'if oft-

producer-s :in gcner.alhla've

mJ?8SUi"@S

not been vary keen in ta.king; a.lternativo

Hnnce,

to limit. I:.heir Pl"oductio:n~

one stumbles

upon

C.12.5Sic

rep~atod complaint·:;;,

frtlm ·the Jap,Elflese: like

thi.s~· g'lT'h~r.fj is such a great

and.

:Lm.balanee bet·~reen J.apanl S liIonthly reQllircl.'>I~nts pl'oduction that the stable foundation

the

Philippines'

llL<:mthly

cf produce:;rs-e~rtaj["s-irupoI't'era..,promight.

cSJ:3sQ!'s-ltInol!esa.le1'5 ~ retailer's

and! supar'lll81'keta

be shaken.

lOr iM.-

tan~mi J' panese

import.el's h~cl to pay imcmnitles

to chop down sut;J1U5 banenas

ae many as 2 .z69,oOO cartons in 1971 all.d4.,4Cl5~OOO carbons

J I

in 1978 in Pl'C-

duoing sreae,

Partj_cn.J.larly~

in, the month'S

f ,Jam13ry"" Octo ber , Novembor,

pro bltlm in pl'oducing area syst'am. n8 rlthdral'.ra.l

1lOBvifl§ th~ (J~or'to:rs ~

9 Ell

without

a substant.ial like this

cha~,e

in !:.he production

OnQ.rni~ht vie\\t

c:)mplain

as the p1."elude to 'the fina~

busiil,O as
l

of the li,ajor i111l=Or Ol'S from the banena imWf'tin

fiolO' to subsidiaries or firms

thu,,s

in :il:M'tol,Y- affiliB:l.ed wi t.tl t,ha TNC 'I'r~C o).-portQl's af 'I;;ho

It. may be lnf'cl'l:"od

tho t 'tlle'l;,.ake""'IJvar b:y~hQ

1rnpo,rting; buSi.neiSs in J8pan in late PMlippinc banana busino

iSS .0

1979

!!Day halle oncoUf'aged I~he l1NC9 in the

0 [I

find a 1 erna i ve 't.I'8.ys !"ogu.lRt:Lng pr od uct.:i of

Ef'tort.s

dU1:'ing 11 pi':lJ:·ticularly

bad market.,

tnt-his

direction were in rae"~

:LilitiatGd a 9 ea:rJy as 1976~ tl""Jt,ably by thoa,e expor e-r.:3 Whd did not enjoy
gusl'!lntr!led insuJ.stion from. a Japan08le been eelli.ng

:i:mpor'ting finn to t.heir

- in ~hal"t,
01'

the TNC:=I

who have from the .start a.i'fil1ated importing

,Tim sub~idiaci(ls

elu

SElly

firms.

Those ,efforts

h8ve ,coma mainly

in th!i:iform of

1.5 The UQn-,Japs'nese ~rket

Japanese ~rket

is perhaps

ffi'JI:st, cle..a!'ly . ..:ndicateU by the fact

outs:iirl~ Japan

'that sigmfiJ

cant banana shi]OO1entsto

markets

took place cinly i.n 1977

But

with

Iran and Saudi. ltrlab:ia ,SeT'Ving a~ the prineipalmarketa. banafla shipments; to

BVeo tben~ total

destinations
,ia

out.sido' Japan came up to 001;11" 10%, of' '~ohl

exports ~ with Japan srt.ill Iran, SaW! a ,signil'icant Arabia, the markctJ,

boor bi ng 9D;ll of a li. Ph ill npi ne oontlllB exports. Has comp1e:t.ely lc~rt on the laBt quartor
,lMIrket

of'

197a~

sec('oo, l'l"!(1Ist. fiOlZishi'

in the

~licJ:dJ.e' F..!;\st after

~9Iran
rJl'J,

in 1977', continues to a'bl1!Orb an increasing

j

quatltity

of Philippine

bana-

s~ going up from 10, 597 ',ofr in 1917 This;l,$ still :MTfor

Ttl

to 75;_,104.,8 1([' in 1978",

to 13',327.6

M1'

in 1979.,

a pa~try ahipmG!ntlt'men col:rj:Bred 1979.

A~

to Japan's

imporb ....

M,on of 690,097.9 put it:

one '''ff'icial

of a banana

firm ruefu11.y

"The tl:'oUble

·th the Niddle

blzy' WaM
5~

PAst IM.l"ket :Ls th!IiJ:1:. wh11e th'illl'e is so

much money tor,ith lWrJichto

there arc not

8

so many

paoplfl to eat ma,rkct, tha thID banana

Vf:Jty

them,,11' S1:.ill and all, intbe oollJJ,JrJ.nles .find that sma 11 markots
(Castle

face

of

saturated

Ja,~lUl,9(1

U1aJ" mwt

nO'" oomperta agg;re~.d v,oJ.;y even fol'

J

in the ,~fjddle East

whicht

he big COl'p:ora ti,ons

had
lBr.gely ]nEIl"1mt"

like STANFll.JCO
bcfOI'fI

&: CooIt€!) ~ EI.!ild TADECO (Un '1 ted Brands)

ignored
[1f!,l'I

1979

OJ

outside

of' the Middle EBst - the' oth&r promising

bean South KOl'ea,

a markot wh1eh has been qui toa t a ole thou,gbst.i imPOl"t q'llOtl;l 6Y:~t,e'm., ,Fell:'1979', ship S, 946.1 M1' t·c the. t country, M1ndle Eut pecti vely)
de.:;;t.i.rmtions

11 re ~t.ri crted 00causa of its onl1 trrf.LnIJ,ged tn

fol" lexample'JI the P~dlippines which is at.ill

way

belc)W' figures for ,other

I"ee-

like haC!

am

Qatar

('9J,;ne~g NT and 6,598.8,

fot", 1979_,
00 t

The figure ssho,wn ahove tor t henan -J'apane~~ n.e,st ina t ions ere tic1!.llarl;y .impl'es·s;iv's-"'ihel1: l\I'i~4e~
Ja:pan~ Yet W'b.€O ora looks at the

pa.r-, to
to

s\1d~ by ::ddls 'the vol'umioo'us

sb:ip:m.e.nts
,BB,les

prop::rl"tion or Pbilippilnebilnana

Japan to t..'otal banana shipm.enr.s f'mlli the P',ilippines of 19n-1919~ t'h~ decline is quite dramatic,. 'tananas ;,.mnt t,o Japan; in 1978. th~r".rent.

over the
j

3-year period

In 197/

9a:; of all Philippin€!

to on!."

d.olllll slig_htly

97%. But in
Je,paneae

1979~ on:1.y 90% iDf Phi11ppi:l::lo bi:!nena 'e'xporls market. While.in

were abso:rood by the reduction

1979 "thBre was an

1:1 bsolute

in the quantit.Y" of Phil1'p'"

bananas sold to Japan, as compared to 1978, this pin,e 'producers ha\!ie at Laa cut.
d011l1

has not mean!:.that

pro(hl:ct.ion..

Tot.sl eXf()rts for orth~

979 r· c1;. that

groW'oy S% from the 1978 performe,nce~

lin:! in 1980, iaspU,e

,_10at lea
5

t one

T~ independen.t

~I

firm has ,de OUll'ed, ba.nkr upt,ey (De sidE! 1) and is

f"')I'

clqsing down, export

figures

Janual'y to July have already

reached

AJ,41l;,J6la

12-kg., cartons" l,fhic,h La t"o-ughly

6U

of the total

expor'ts

for

1979,. Memrers of tho indt!.Str~ have pt',edie ed a dramatic tion, lanae; owing to the
emauI"le
01'

decline
QU't

in pt'oducof

Desidal"

the repo:rt.ed adopt,ad

phasing

som.e tiguree

and. tho one-crcp-ia.~year system

by STAt1liFlLCO.

Butl:.ho

foI' tho :i'il",et seven mon'chs of 19:60 do not reflect th:i:;; at. all, IHnts tow:m,rds t, ha end of t.he year w1.l~ indeed
[I'IUQhtlhf,r~hl!l:r s-lO~f

and if 5hip~ 'very

dQwrJ., one doubts

TIl8t.ic
1'("1'

the er.re

wlll

taJc:o the fom of

to b~

or

deol1n,a.9 Philippine bs.M,na

Tho year 1980 ha5 pro.,en growers" aM poQpla

e. very rcn~gh year

in tho inchlstry have anticipated. that ino!",aasedi pt'OOuction costs

tho' hat·d, times Will continuQ in$olvlit,n.!ly·

ohi!l::r£l.ctQd.zar: by low demand and until this 1990. ~ar Apart from the
hB.S
IP

indep.eooGnt," DeBidaltihich its lands for sale

decla:red

snd whicb

of.f.r-ed

to T!\DECO(Uni'l:.~Q.Brand~),
follom.n g

'the OU\l"l"sntyear

hB 5 ba.d

other u00 sualt

1~3 ,.ti

C10 se'ly

the '.sept amber

1979

ta:ke""Dver by PHILPA.K(D(;1 Mo..1!te) of one of its

associated

produ.cers, out

Delta Far:rns~ a.nother

'816.0

r,irrn. - 'Ev,e:li"groen,- nBS boon l'BJ:orted another'

CUH;=,

to h8'\!"e sold

to

PH.ILPAK. StIll

.!MS F8F"!!',s)

al so a gro W'er." for

PHILPAK ~

has been reported offered

to be in such dlr,e f1Mnc':a~ difticultie:s PHILPA}; Such dev,eklpEne;[Its, .e ,

00

that it Me lilso trurp:-ise Pe~ple

to s.ell o'u,tto

longer

in, tha industry.

The k,~ imrdto

describe 3111Gb develo~cnt5,

one official

Bn'Oll importers

end dist;ributol:'s
Igt"OlYU"'fi"

:in ,JapanJi but a150

eRi

upon 8!';soci.<'1ted grower's.

oorporate

producer-a, the global

li1nd,epandent.l1

Sl1l<'Ill 'coi:l'tl'act

Compared be

TNC exportors,

their

limited. firum-cia 1 c.a:pac1ty dC-Elsoot 8uffl. r a moQo~rkct.

'l'hBY' wDlllot

ol!.:lntly protect survive,

thorn !:r,omthe rlcisaitwes

6Tldonlyth-e

beJt.ter managed t,op 'p,rorlu~ers lld.ll rmnain

ints'ct

and

-11-

be

rollnd.'

(A lrea.dy, the

pr-05!

pa ct

,6;

0 f 5 hilt

ina fi'o:rnLbanana

'ZI

to pa Jm 011 ar e
e:: ~

excit..:i.nl'£ in,va s tOl"' Bin

M11'.da MO ) '.

I t. is the

MIP.Ill Cotl.'l':,ra. c t. grower

n'wililberi~g

tenos

farming

families

6·ufifered

d1spiacenmri;
6~rQuted
al"OlJl'ld

to m,a,kc W1lIY tOl' th i s ::i.ml'1!!lstl--Y,.

The now c:.)mmuni'l';iea

that

have

tho pll'1'lta.Ur:.nls

ar e jW3t

st@'!rt .. ~

-12ing to Btabilize. their lUnda:nao all is filled

Cl":1S is
Ololl'n.

plant.~.tion.....o'rient.ed excited

oultlll'e:s..

But a.lready"
C'l'OP -.

the

"dth

t.'1.lk about a new cash

palm oil ~

l! 6 SeaPOMOS _'f;~~-e,_

of Qv.er-:Pl'oducti he various

,em end Deeli ning lru'gQ!'t ~r ig a& FAOf',cports on th .' s in ,vai.l.ablc

ban~na

It mAy bo gloaned from

inoustryl0

th0t~t.ba"inol"alZl;~g int{le ~\l:JPll of ba an Qver-all docline j-n import prices.

he ~I\forld,m.arket.· b."'.s';~J.l';Qd1:lCled. PAO f"i,guree; show tha;t. :i n the

caSI9 0'£ Philipp1nf.l

ban.anS,6 jl 3S thol supply tons in 1977,

grow by '74$ from 1~65. Ficos at

thOS8

thoUl;I'UW

tons
:1:'0-

in 1973 to 9'10 thousanrl

gistG1'9d en i.normlM of

import

iSu.pply lovel!.!!

only I,.";'

from

1973 to 1977
lIn~"'l()rt iC08 ~

1'l8sumil'l@; a co:nsta.nt in

value

of th, J- panoae ;ref! for that ave:rage of ¥ 35~~jkg., ~,~hile

pcriod~
i'Ol:'

1973 registered

~n

1977" they

::;toad at, ¥ 52.

J.

Uo~rew!' ~ in tho

\tould ~le8:rly

shDw an actual

docline in real

p:rie,es.

In 1970~ tho import

"'I~g

price of
deflated

&l

kilogram

of bananas from the Philippines

¥:

6~,.5Jl

in

19'77,

i'i!.t

priees

usin:~ 1970 as ~se troubles,

ye"lil!''', the r ea'L pl"ice m'erl: iGned,

';-lBS

onLy ¥ has

.:n.o.
been a

Ao.-!din@: tb ese to

e S pl'ffiriQ'lJsly of' matetial,

there

steady inCl"lf)aSB

in ·the price

inptrt.s,~1 euebae

ch~mi_ca.l::'! and i'er'ti"-

nz~,ts. In .responae

to those. prob16illS,
bsnena

1,rarious. attempts

at theinteruatj,onal tagf;lther
supply-in mainly aneh

lovel have been made to 'orin"

suppliers
serve

and impr'l'ters

to forge

an arran~ement

,-"mien 'r.QuId

to IOOnagc tbeworld

tad ood ", As desc.ribed 0:0 banaaas II

j

in thet..rorking pr.incipaJ..

papet":!lof'

1;.11'8 mte'r~govermoo·t.ltMl this

group

the

liJID.C:hani!'Hilf.or enf'orcing

t.,:ype of' agreoment

~~\sonable

average

price

from furlh€'r

orosion.

In simp1e.l" Langua .._e, "chi3

with the

mGana essentiaJ.ly

'cut-to ru; productiDn

dO\lfflJo a leva] oompatible t

des1r~ble ~vera~g ~r1ce.

- 13 -

'Of the Filtp!r:wc'Q:rpo:L"ate

IlD llBreG1l1ent.

growers

to

8'i1,y

after'!!;

to push an int.Cl"f!st :].ot'la.l

to d i.slodge

b200~

It. 'WaS ,ea,sy tor

m.ainly

thm P.M:Uppines

EcuadOl' as Japan,·' a
fi ~

principmJ. 'ba:rJ~ supplier na J·ap&r1O:2If.! rnal'kfJt~

MflrllllA rnarketcan

oocauso

Qt Uile Philippi:n!i

proximit.y

to 't,hf.)

An3
only

att~pt

thoN'fQI"e

tiC alh-rcater.l'l"1l"kct8hm'Gl~

in thQ~loQa,l

b~ pt1lrceivedi by PMlipplne

:produc91's

BS

a, move to di.-

-14conl'Jumption. lrl'ay and doa~ nat

J\m9

'l'ha banaPA when not

is

p<;lrticularly
entil"o

pre::farl"e - in Je.pan

in fo!'

1<~1rch, Apr.U, bhos

€I

even tbe

Ph ilipV±nepl~oduC't.iQn demand.,
l

m.onth!!l

suffic,e

to meet

the Japanes'9

'Fhl<! 0 1a es

t b,e,na M o)o;.-porter in t be region

f0r sBv\ll"al
same mcnt.ha
o:t'

T a hla n,

ha a be P3'ns Upply:l.llg 't.he ye~n~ ~ ~ingl6

th e

.fruit

to ,Japan

docFI.rlas
1</ll£.,n

I,

but only

f""ll"

Eo'llt' rnonthf.'iof up pr-Leae , This

uBuall,v th060

hi,gh d '(!ir.and jacks

CfOP

16 not

a nl&.tt.ar
1:1.

ohoia(l~ btlt somr-itJi..i, -, cnf'ore,ad

Clf tho

by natur(l.

Strong wioos In

'Pair,.'uJl,n for thO! at,har an~

graa t part

yoo.l' P!l"'oV'o'1'1 the llppcaran

ee 0 t~ t.he fl"ui t durin ~ 5eldorn~

ODG

month B.

ttl.ndar.mo,

,:.1hQre Philippine
loSt" cue

banl,Hlils alee grOl'm,

it' ~t
big

eXpe:rim cea winds of sl.c:hve1ocity.

STANFILCO I' h,e
5

il'Oni c",,-Ily J at le'ast

banena firm, lsunoh,ed

t.akon

tho

from the Taiwanese ~rowel" ~ I and has

a bold

and

lI;('oC!lif.lhll'

(!!If!. SiCm~

irdus'try

people
crucial

call(lrj,

it) scheme
montbs

~lhich

QoncQnt):'el'tes massive ha:rveat.ing Je.~ncse JlBrket..

TADECO (United

I!!ithin

those

fo ill' ~ak

of t~e

Unlikie

Br"8.uds,. and t he De 1 .Mont e grOWt;ll: s,

STA.[I]FILCa did

wt aS6iduously
bil'itywa·s

cultivate the Middle East.

mar.k:c!',. not

In this r,egard"
' ,5 ~~sily

itf! flexi-

sevcTlely

constrained si.nce i· could

divert shipmen.tf5
.&:l.st.. banana

froMa saturated
withdrawal of C.

Japa.nsse ~::tket Itoh"its

to. dest.il13tlon-s i:n the Middle

With Lhe impO'rt.-

eI'st.l'· iMJ.I;p>anese
.105S0$

imp:}rteI"j f'rom the

:Lng scene, followi.ng big

absorbed c:y it ~:riii its distributors

du~ing the

early part of 1979, Castle &. Cooke bad to take over.

M\'l'1

Haring no insuls.tion
st.emming

G & C prep8red to absor-b ·&11succeeding

While

losses

from very low to ragu.-

pr.ices in the market.

lat,a production,

in the p9.st it did no

h'l. VB any reason concerned

now, as imporber and distributel'

'nth p1'ote'cting oolllpGL1od t,o ins-

Pl'iCC9 in theJa:pe:n;e6'~

market., Daatle 8 Cooke round UseIf'

Qj!'

titut.e changas, STANFILCO'i s Annual

It is in the light
Ol'oppin[ll Pl'ogr1l1'n

his s1 uatio'n that ')fie must view

(I.e p).

-JS~
The pr:incipa.l
nese ma:rkat
dlUl'i,Ilg

ob~ec'tive: oft-he
th a.t c ruoialpariod

loep

;m.s to unload th~ f'rui!:. in the JapafrollQ Mal'ch, Apri 1,

&y J' aDd J Ul1e;1, when highest ~ Undsl' t,hat basicall~, tc

I

pl ic~s oj' bananas in thelru3:rket. arecxpec' ed t.o be at their this schema, if.hH :fa.nn beecmes the Dfl-t;lJral sto,l"~'(l for .a fruit reei,sts

ntorage,.

To:) tlothis
JnA:9Si'if't:'J

ft',om 'yuar to year, howevQr, quantit.iea

1.0., to be able

h~~'VEJst he fruit in t

mei.n!y aUt'ing the If! vor-od man tha chop dO\1/in !"ollo\;fQJ;"s
j,

moons th9.t bbe produce»

Should tho follovreJ's

IIIWItc:!ont.inua.lly

i'Ll'la
(}QlnO

repltu:I'~.
out. in~nr1-

be 1 tt mdistUl"i'Hld

t.hai 1'" fruJ t ~1O\lld

tably cisht months aftar, is

lo\oJ.

in mos

cases

dur1ngthese

same man hs l·rhen demand

The annual

cl'opp1ng

,S~.9't .cm .

is

It

big

gamble because the

Company gooran'i:;(;!,Qs

th.~ ~pected

incomos of iti3 indi ,idu21 I~r.owe:rs tro:m WI,,1n'th be month r(lgarolcss from their farms.
f'uJ.ly during those

o:f'~rbether any fruit is h..llrv,eBt,ed vane-as. it then seeks t,o recover

Whatcver tour

capiteJ.

itlld-

months of peak fll"'icss. such a

Fromthe point ..If vie"" of the entire industry in the Philippines,

achoma has both ad vanta ge,s and disad'vanl;; ~ges ,. 11,e eho p -dawn oper~t ic ';l~ ta ve
thel efr~rct of l",e]j_e\r:ing thema.:rk:et of a i',~~ million boxes 'E!s:pecially

dur.ing of' .:,

tho'~e lean

man th s ~ • ..ri·!'ij;:n bana

Il~

pri:ces

aret'ea.lly

low.

The di s advantage lean months

course is that 'l'lbatever

huit

23 ~,dt;hdFaWti. dm-ing the

is unloaded the! other

lOOssive1yduring the cru,c:"al folll' months of good prj_ees limen all corporat.iol}s are expocting would be f'rust!;rat·~d by the
t,OJ

r-ecover

SOiTIlS 0"

their losses. large

Suth 'IJ.x:pectation

entry

,of an. unu.::naIJy

s"I.rpp1.vdUl":i,.ng the peak-

price months.
lol-';)reove'l'~ thel'e lMinly

i.8- tho

probf em stemming

fromtbe

fac.t bhat ST'A~JFILCO deals provide net

w:·th neal"ly 400 SlIIBJ 1 oontr.tlct ero'tr.rersi'l'ho theoret1.'c.ally A program

only tho wnd but ~15o the lAbo:r needed In the fl\nn. QUltivf.J.t.ion" pL'l.nt eare and har'V'esting
,to nSB'W"e

of' intensivQ
Cdm(;l'S

the:t t.he froo;t

out

- 1.6 Facis'ely during that crucial

~-

e:riodW'hen it is progratmned

to ceme out noc:ees.i-

~ntd19
placin~

tAldng tM t.h:is

prelt'o@ativo

out. oC tbe hands of'tnt!J

~nw.l1 grewel's and only

liIl1 I3X-

in tho h~nds

of STJl.NFI.U::O~,tm.1ch is

t.hO{lrlCticl'llly,

porting firm.

HOl'\!'docs one acc.om,plisn billt.ies

this

wit.hout

ne 005:921'1 1y R®sumin,g 8-11

U1Gobliga:t:LOO.9 ~r,c~po.nsi

and typical pro,blollls

ot

a Pl'ClducH';:r~(:mrploysr'(

t:r~ctiI'lS.

'fh_is 5(lh~rne

a ssie;ruII t.ho rc,sponsibili workers

toy

0 f'

supplying

the neceseary

fal'HI end p.~eking

the, small

plan,t

,to Ji.J!'oor 'con:tf'~cto.r-G· (de:$ignat,~cl from amon~

gr,owers them,selvss) ," t.hus f1"eej.ng STlNFll.CO from. the l"esponaibili"by

lMlnag~lTIen.tg1!i:ned ~o:n.trol

Q~V'i

t.al

nroas.

of

too

proci!.H;tion

.rn'Oce6s.

[aOOl'

tence'mocney
thE! grower

thl'CHlgh a; sl:ta:ring
2?% ·oi'f:);a;ryget

sehe;"O!Ieli!.w~e:reby It..ile {J.::Jmp~I::IY $.·ut~ticrally

give~ to

proe~ed;sJWh:U~

re:taim.I1Ig'

78%· for p:roducti:o.ncost~

~hal'~ is same th:i11g 'that. he is pro ~~To ly not ~ihollY' ent ;Ltled to (00 OEL1lJ,:s;e 11 a i
a.ctual

tlEit earnil~5

m~y re.Al1;y be.

[liIUch

lesl;!):1

but

the·~CompaillY' lw.i3 baan'1b;!M-

-,18 What kind

'ofb3M.llB

grow~r' do we ,oove

hm'B

then?

It appears what
8

from the

a~,ta. col~

lactoo in this

~t.'ucl7, t:hat. in oumsrO'U3 instancE!sj

we see i.s a fa:rmer who, piac,m of' land over which

while he eJepE!nds his labol" antJ thl1l,t of hf.s fami1y all

bEl nQ19,s

.a

tithJin

ord,g:l" to

produce

Dafl,ol'lJ9:S

f'or

the

CompB,n:;r" ends up ironicalW01'8e

ly not .r!lcctlmuhting
ILlllJ3:t

earnings

but. only debts.,

ilJ'hat. is pl'obYlbly

1'.8 t.m t ho

1iv~ COIUI'e,fintly ;;,:Il'th thE' t.hought

oxistenco.,

'that

'the Comr·qny is ~ctu.n l1;vsub:;;;id.;Lzing

r'O"lPS,

his Qnt.il"e :fawllyls labor land mRk~'sfnll

!!lIIllG,t imrll~t

The Gom~:tV in e,fIcct land .~ Witho-ut ~yi!'~

the fruit - whl1e~

of hi:s iQt thl!.l

use of hls
s uniq
M

an:yt.hi11i:;
,"L 160

hroughthi

d Gbt .... r,ol.~ t10 n ship ~ it

a cqtrl.J:·€I:i!I'l claim that the

WOX' S to i'l. IiPill cU q

over the fa 1 tnm:-I

s:

tut.Ul"~ 1a 001".,

it 'o'ifOiuld S~6Im!I f rum th is

of tllGl old .11I.nd.1or'd-te-na:n.t relat1'Qnahip

- minus the person-orl.1e'.nted

havre been reSW"l'£lctoo t. in the' pest

in

now context;

,Ch:1a.M.crt.enstic9;t.ha

so:m€ihow mitigated

the viciausnes"5

of tenancy ~

1.6.2 Qtboll" COl',];!'lrateRe spona ea Apart from ri'::i inE prod uet.ion oasis ,. ttl e dustryiP the Philippines

ot h€!r f 3 etc!'

tlIa t

bUrd€lJ;:lS

the in~

has been thepe'I'sistently

lCW'f.o,. b. ~rice~ p.!\.idt,o

United pur~

1ccal growers,.

Tho ,major TNe ~t,e1:"9r.eiusE;:d~

Castle. '& CGc'kel DelMonte,

;@;tld.la.rge.i:;o

&an(i~ and Sumi tome ....~vs ,. eMa&eprice : levels.~

budge f'no:T:rt eJdsting J~pa n market

,cla,.inting that <3..sJLo.n~ ~:s pr.:Lces in the

be ,e'lfe'fl jJIDre disast.ro'lii~toal1 Sin'ce t.he TNU ~jor local

rema:ttJ,

d.ep.r6flSedJ, it would pri...ce5 were

growers

if. r~ b. o.

inCre.f!5100 ~

s ba siC<1:ly l

cml.tro ItlJ ~ mrfvems.nt 6.f

the ba.rga.,ini.11g positinn

thl1l 1'Ilfri.l5era:too. wets

on Hhich 00 nana a are C8:l'riad.J

.01'

of 1009.1 y()war,i5", whetheraroall

r,~,ally for
Meet
O:G

1JlgcorFOl"ate~

is not :seeur~ enough to

to bsrvest

ttl e is sue of pu.rehas e pr ice .•. Th<ey may reTh 56

and to

Sihip:pi:ng commd t.roo nl B J blll.t, in the am, the

fi na lanal_y.sie,

be C..Qu~~ o.f th,s iir OWifl,

J.J:mlited 'capital

]ld.evolopm61nt.l~loans

atLll Q\'.'Il!!dto the! TNC~ they: cannet

~ 19 :sustain a stubbornness that i_,s :for~,eful

enough:

to trulke one T~
HOB

listen.

The

lndi vidiJtl1 grower 'I' s strength" expor't volumes tr!'D.ctuol-iers;

lllU"

i'n the ,final analy,sis,

Ila2qJ

in his control of ecn-

e enQug:11 to h'U.l.~ the T [C

rtar'.

STAlI.'F'ILOOI's small

numel"O~ but rant though

by multiple splits
&

')00 mutual SUspiClion, do thE:] bulk 01' it,~

no1. hays suoh contro,lj exports from t.hesla. small

1l'ldGH;di Castle

Cooks obtBine

growers.
U9

Th(;l dtU\El:.t ion of Del Noma

:iJ!

oo:'!'p')""ete ,grow-era
tOEetncr niM' firms
9•

i~ in!:in:i't.€I1y< better.,
t.hAn

It

for one th:3."n_g 03.910l" to hr~

s T o::rg'tlrrl..za t ion

t,e AttQIIJP"t R W'lif1ed it hfl

S b!1;l()t1po B~

gt'l)Wll"

a.mo:n,g J 77

91M.11

gro\\'eI"

Co n8 equcntly price

ilble rot' the Dill MOnt.D corpor~te '~'1thDel ~Ionte as a g;t'oup'. aOOlevsl of indo btadneseto

Izers to- lont.er into

bp,atI1!151E1

nagotiat.io~~, in productivity

or

eOI.lll"SDJ

of differences

tbe Tl!JO"thEinine:

firma a lao differ'

Among t.heJ'!l~
the main-

selvas in extent

of "V'Ulnel'll ilUy,;, It is sueh factors which h

atanc9viS~-'jdsl

Pl'~Vf)nt

tenance 01' a concerted th.is year (1980), price,. De:l M::lnte

Del. Monte,.

Ne'vcr'th,ol.ees.t

in September

Del Iofonte anneuneed an in.cre~se of 17% in f.o ... .. purchase b

hSr;!

s'ta1"tMpayi.ag 13

~. flve:rage

0·1'

$1,.90 per 124rg ,carton to

its eo:rpo:rate

gJ"O\~l"S"

It is t.o be Gxpected t.ha t even at Ure~e adjusted ductiv":ity

r .o , b,

prices;l1 t.he pro-

Q,r

some of the banana !'1M labor

firms tdll

.t!.ot be:

gtlC-d

enough toO ·off's€t in.-

cN:as:ed, material .raise pri'ces fast

eest.s ,

Del Y.ont.o's dilemma: is th€llt if' it doea not

bre<lk

en,ough to ,8,110"1 i't,s g..li"Owe.rs to a.t least. !'r-om its

Olfi'll

cven~ it. Wtluld them. out. Thi~

be ~wamptJdldt.h offe.rs hes occurred

asso,(~jpt,ed produ.cro:"~ to
gr'O~rsJI
J

oo,y

in the case or two of it.s

Delta and Evet"green, l.mieh

Wit hPlU1.p,8 K (Dal:. ' .-

" ~.~MVD been. taken

0 fli"lI' .ijjr ind iv ichm 15knOM

to he' & s ooeiat,ad

Mantia s wee 1 su.bsidia.ry).. I obviously onol'mOUs,. not wish. 1.0 further' Besides;

The capt III requiJi'ements of such tak:e.-oVBl'S

are

it is ~e:rtain t.hat baing a TNCl Del lltort~c would local ptibli,c di8Affc'oti£lf.! with its tot~l cantrol

aggravate

- 20or tht<3pineapple ly S\I,tarfJ that

B.

il'ldU15tryin numbel" o I' U.s

fukidnon

iindanaQ ~

Yet, DQl ~I{onte is alsQ keenoa1J8,.fl,B.

p!'oduears nay
(1,

be d±vertine;

earning,S! into 'llhls would

=

other v~ntures cm;tBinly

bL;;,

in antici pa.tion of

long slump 1n the industry.,

irritating
01"

to (J(Jl Monte"

but it is lon only with t.Wi:l optione Tho

IfHJt

bo take ,o\rer

to allow ti em to fold up,

option

hB6

it~

OWl

oeste.

Th.eb nsne bus:i:n.eaa :is pri:ma:::"izy ale'o I'i II up i h the namo of bee t s ~ the
h game.,
COat

€Ii if an

8Jq.'O'r'tSl"C{1;rmot

eft

he f1' W t gee s up t.:r'i2:r:no Uf.ll,y • ndo

lIo lllDk! is

f.l

JS()

1.6,3 !r~lnECoi S

,Ad.vll.ntages

Ma:t~katinstabi.li tiQ:e test hard times, ths surviving

the lim1h

0.,1

oorpq:r'" t.e l'esilicncy.

During

banana corpo'l";;,tions look to thtJir

Tll,era is general.

cornp('~titors and th,'l.t one rntWt. Con-

ask \ffl.9.t koops them. above lfater. first of ell have good soil ~nd,s are also

consensus

and sufficient

reinIall~

"f not irriga.tion.

tiguous

much fe-vor'etd because th~9, allo\'¥s such as !lI.erial spra,ying '.

the grower After

to econc--

mi~a onmflny farm f\ctivit.::es, ptl",el" may be ascribed

bheae , staying Givan. bhe

to good man.:1gement and low oVCl;rhead CQsts. bar".l3m,industry

is

£'Bat t,he!t the .Philipp:ine and 'tho brightest

enjoys

ii.

generous

shar.e of tho 'best

J

among the countryl

011

corporate

t,echnoeracy

differc~lc8s It fix

&Eiong tho competing fir:lm~

this

factc,r

shouJ.d not. vary toaw1dely~

ia

rather on othsl" their att~nt:ion,"

.14vB:ntages ("!:njo ed by ecme big f'irms that· competitors

TAr.J.ECO uemally :le Wlus\lally

cited

by trhl' otherbattam ifith

finns

in Mindanao a~ an cultivat.ion,

!ilucky"'1 company. L'il.rgest

,SOOll, ;',.500 hec.t2rell"l under

TAbECOenjoys the

pie'Ge' of' contiguous of this lard is

lam in th.{l {l!J:'ltire imustry .. OW'IDdby the government' s

More~hBn .3,OOOJ1.ectaree Davao Penal Colony-.,

~ctt'ru.l,v

T his

land Is leased at a prefemntial

r em. of only

- 21 1250.00 pel' h!;ilc:taro in an, area

i1he 10w rent ali
wne-I"e the ge,ins rate

is at leaat

fl,OOO already.

s exp:La 1ne d b:l Cbmpa n:r 'of'fici.31s a. s part.(J f ·the . jo1 nt-von~t.\IT,a Buroau of P'rlsone.
(nmed
'by

ligl"tll3me:n:t.between TAtJECO,and the

TAtllliOOI s banllna plantatiolla

In short~

theoretically,
the

are j,ointJ.,

the FlcdrendQ tamilyancl of about

Bureau of PriBons,., ma:t profits

Tb1.s a.gr@iMrICl1t

pro1rwea

thapayment,

lO% of the

of the ,ComparJ;Y t.o thQ Bur'~'a:u ot' Prisons

aDd t.he emplo,ymsnt of

engfLged in various

production

activities

i_n the Company, notably

in the most,
pa50C!

r.l1fUo\llt

and strenuous

't~,!l!ks l~a JI

hs~·1Ijr'f.JoBt:tn:8 They •

are

paid 10
tiC tho
I

a day

like moat of the :re:gulB.r workeT,s" but they ar'llI not entitled i!virig:"'~llowallC'O'

c08t~or-

(COLAj\\lhiol1

1s n€!16I,rly eQual

t,ng

minimum W2~

T'ile nOI1";

~YJllent of '~he COLA to 'Pt't,son labor

,111000 cOMt.iiutes a

b!8'
of

decTtu:tion

in

TADEOO!Ul5OJs ,t'lthel' b16s13,ing,s: tha,t, ~e firms. Tbe

the

BO'UI'c:e

envy- of 'the ,other arc those

best i"a.l":t7-to.."hari

roadn

'in. the 1o.nole1nclustry

of TADECO

but the principal

US'eT

is wit hout. doubt TJ!.~DECO. This is not a trivial say t:ha~t th.e IJapa ne':!h1!1 uy wit. btheir b

Ina

tt er •

People:in the industry

their

eyes and not with

to protect

taste buds.,
f3 •

ThO' fruit

t,be:refore: :slrould be handlladl gently

it

tr01lJtbruiBe

This is

the re8S,o:ft~1a

hl;gjh premi urn i,e placed,

c.:mceme:nted,

truction.

was begUn on. a. hu.ge carton

riUl'~at]"lWlhich

i9 int(;lnded t,o elUPP}y all

is in thi~ X';ega:rd

the ca.rton ... ox requirements b

of t.he ,onttr,(l, indust17,.It

~22that one can p1'obab~y better pine government .enterirl,g appr,eciate rhe persis;tont pleas of' the Philip~ boxes .
not

to remove or' loW'Ol' t.het.ar:iCt

imflO,s,edon all. carton W'hen 'thJ:rt is grant'sd,

J:;IPOO tha'j:; flrB not made in Japa.n.

on1;y

\'11.11 hilippine P

bana.n!l6 enjoy campetitiv,e

pricing

in ,Jo.pan TAnElCO will

dso beJ enj~y:tng b1~ business iJ"lom its

,carton

ooxv,ehtUl'e~

- 23

r
I "9j1

N
ViI

I
I

J)-'
","

v.>
~,

..::I

<.;(J

CJ".

0"0~ ~

co

F'

Ii.

i!!liIi

i.

11..+

iii!

II!!

IHII

[!I1ii

",!I,

... '

1I'Ii

111'11

iii I!

iii!

_ill

lilt!

Iii II

Iii

ill

II

iii

iii

hid!!

w ~,

- 2,4,Flco,toot-es to 1 lnt.roduction and Jim Hichf'ili'os'onJ, J'oots_Q_f JJepeOO6tl,cy, Quez,on

JonEl;tll~n FRst

City) Foll.Ildation. for i ~tioooli5t 2 Ibid. p, 27

St.udIes,

1990

clio 2.,

,ll 1'1. TS'u.d..'1,Pr,e1im:i.nary SJ:..udy of J'apaneIllEl'-P,ilipino Join,!- Vent.1.ll:'es Quezon City ~ F,oundation fQr Nat.ionalist Studies i 19'18.

5 6

r..

PI"l,gll'l,bBn, lI\!l:,:,Z'kcn:os in tile ,Philippine jl/3!e.ific J1,aseulrch March-Junfl 19713

Ele,etl"'onic

Indust.l"'J

J tI

Further d is C:UIllsion of this issue maY' bo ,found in Hl-UJC~ SpeflrheAC Expo.r-t Dr ive II ;; Busino&sS_l2!I, Phi1i_RP_:l.Ms l.cJ.!,~~p

E:xpo:!:'t(3rsj
JSIA,

1919. P,. 2S

'7 Ileal 51toot1cn 0 t the JllPI:ui.cse Banaoo lilarket. MCLy 1979,

AppencU.:x s p, 1

8 JBIA Situati'on 9

R'eport.., P,. ;

The Pl\ilip_:pines Daily Exp,1"ess, p", IJ IJan~ry 2, 1991, reports toot at tho 000 of 19ao" banana expor-h hit B tot;nl of $106 m,illion as oompAred! $91 million in 1979. This to B a em.st Q s ugge s:t toot 1:980 was· a.ft.er' all not a t'J..~dyea!' for the banana. I~ort industr;y.
FA.C Gommitte-a

10

en Commodity Problems,. en BanaM s , aCE'~ EJ·AlP l' 18/2 ..,

I:nter-~vernment~l

Group

11 Ibid,.

12 It h313 been noted

that 11"the 1]1'~.ximum t.ime tbat can elapse between cut.ting n.mretailing .is four to .fiv6 weeks, t.he haMrest.ing period bitdng limit 00 to t wu we·ell: ~It s Jacque~ r~usbaumerJ The lirJOl"l.d Banal"ta Econ. Pros cts
,I' '.'.

for - Cha.:n"ge J-74,-19_SO

I&iD Co_~odit.y

Fa er
-

~Jo. 1;5 _ 2.

1; , ·Bulletin 'today, Sept., 19J19aO~ p; 2,2

I.

... 25 -

TtIE BEGINNINGS OF TflEEXPORT INDUSTRYIN nllirnn..,I?PINES

BANMJA

~ 26 Th~ ~giunill&l E~fo.rethe

_of ~be

~P?ry_ :e~n.1!.ro Industry,

iq_"tbe J?hilippines

196{Js, r:r~6.h oo'·rulna produotian , in th:e.?hilippin(l:sW"€J;s.·

:lntali'OO-

ed,sol.i;"l ly' for the domestic marko:t. Bananas were grown in the backyard gar'~
d:epsof small i'ar.rtler·s or 'in 5mall ...s.fzed' pJ..aut-atiolle\! whole year round and ~t'e
of

Less than 'five hectares '.

They ware aV.BiL."ble the

,Bold in avf'!rY Philippine

grQM1. ,\,ere 'lUi.ka-

toorkst place at .minimum Cost~

The ~ocal "i1\ll'iErt.ias tha.tvrei'9

It

we.a not 'Until 1958 that the Philippioo Governmontdr~w up

<'.l

policy

of e~rort:tng. bananas ptu:'pbrt,edl,y to incre,as'6' its

• mote
lIooonomical

do.llar earning,s and. ·t.o pt',o:~

By 1960
JI

:rolationship

bet'tiroen

the Phili-ppines and Ja.pa·n+ 1tl

,tl1f3l Jimboras

at the sugg:as.tion of Presidont ·already m.·ld~ a two-year me'l1tas well

oS ,S 0

G~rcis.,

Co,.,

Ltd,. of

rbpan :haQ

~tudyoftbe

ii'Q~t
,

po:li.c;y of the In March

J';;:fpel1f',Hl:'eq{lvt;!rn~

f the

Jap1lin~se Banana ,Market.

ot

that

year

'th~

first

i"Eanana

MQ(l;t1tlgU

wtween Philippln~

G'QVGI'.:nIDSttt

orticla1 .. and Japan~~e s

tra.del'~ wa~;l attended

by Jos.1;!Marcelino,

promoter

of the Philippine BaMna

Ind.·us·try, Nob:uhi,kDJimbo, Prosident

of: ,Jimbors.s

of the Jimbol":M

Co.,

E. ijurai.l' Director !ll..nd Jovito

eo~,
Acting

Manuel

Lim, Secr~ary

of ~ Commerce ~ ad InduE,ltr.r,

.A. Rivara,

Under,saCl'at,SLry

of (bl1lllli6r,~e and I Diustl"Y •

N. Jimbo and ·tour

co.~ti.ct spot surveys of r;xi,s-tlng plantations proo~d:ure6' ·and eyst,ems .. of the eXported. fro,m ''1''a1 an to Japanw

and to ~tudy the different and informa.tion

oxport

Philippines .• Records '

til nd

on banana s we'en

the genera 1 banaoo trad e r·elati enabet

JapP.;nand ·T.aiwan were m!.l.deavailable

by the ,J.:Lmoo,!'9.S Co.• to Philippme Govel'n-

At. about. tl'ris time, American banana

ban_S'oo nk'l:lt'ketp,tential ~U Cprporation of J:a,pan.

ccmpardee beesme interested

from. the

in the
United

In 196,0" r~preeHmtatiV'ss trading

Owe)

and s,e,ve-ral :Ls.rge Japanese

:f'irl'~s laokod' in:tn

- 27 ...
the po$sibility of' eooperat.ing 'rhe per capita onepound 1937 ~r or a total
to ·e:K.pa·nd banana
00 mmID.pt

ion in Japan.2

'ban:"ln?l consumpt,ion

of' bhe Japt:~ne~e in 1959 .... Less t.han '8S Th.is

\\TFl,S'

o-fS2j.300~OOO pou.nds pel' year.

only 26% of the

capit.a

cQrl!;l'L1m~tion

of fi've 'pound,s o.r a tot~l

per 'ca.oita.

of .313.,OOO~OCQ pounds. :d.X-

The drastic tie'S

\';18,6

drop in Japan~8e

banana consumpti.. n in thrJearly o

the

r-€liimlt of very high ch~rgEls j:mposed

by

the Jatan-ese

..

Gove-r~nt

t,l"icting:
~5tilIl! t$d.

'the V'olt)me 0 f banana

i:riJ.ports ~nd raisiI'),g donr@:!ltic

l:'BSt:rict:Lons.

pr.ioes.

It

'WI'\S

tJ14't w.tUlQ.'U,t .impOl't

b!U1~a cronsunrption .. n

in Japan

IDuld rise

to 460,0001-"000 pounds with a population

of 93,000,000 (1961),. using

the 1937 P6l' e--apftalev~16f

According. to the,
to ..a et,udy'

cons:tml:pt.ion a.s b8$is.3 reportedJ_y undertakEm

b,y

th$' UFC a.nd matle "tIVEtilable

Philippine

government

th:rcnJ"gh the· Depe.r:tmcnt of C~:nI11IJ.@rce Industry~ a,nd

tion 'tihich and:ri.pen.in,g ch8J1t'eri~

WOl.llct

t'henr~llrl"re ..

tht'i: establishment \
'.

,f

El

suitable

b:mana term.inal 01'

f"::kCi.li ti,e."s in ,J"'spa.n. It. ~'Tould, ?lSQ lead to 'b:he' acquisi tior! , of refr~eat.od

ships; and th,e dE'fIrolQ·:t:mlep.t 'o.f banena s1)pply sour'cas.4, Amelt'ioona,s··

'We

Not aurprisi:ngly,

as Japi.'.neae tr:adeirs so,ughtt-ha Taiwan ~.nnually supplies

:r~mo-

val of' impo~t restrictions

on bananae ,

only

B.a.; 000, 000 pounds of bananas to Japan worth $5 l.fillion. estimated. ,80,000,000

'.ofith the consumption

iro}"

t-o :l.J1CreaSe to 4-6°:1000,000 :pD~.$

,.S'upplY~KHlI"cei5

the remaming

pounds wo'Uld have tQ be ,pinpoini:.ed

·and fully developed .•. thst

=

UFOIS pr€lliminal,'Y 1. there

walS

inve'3tig~1tion5' of the Mindanao area r~vGsled

a lar_ge quant.ity of good banana land~avBilablG

~Rl:S

and 'I:.hf;!

cultivati'on

of :a,. total area .of lO'JOOO to :25,000 acre::;

ontirely tea sible

.3 •

cleve lo-pment

WClulcl be

fl'ffl;

loom,eO. by,govr;f' nlIIent a·nd h1Js·inesa

bno f 9 lqcal,

.int er as

t,Sj

4.~" th$ banana indtJ,~'trywovlQ, fini9.nced ~

.i.o the sa Ls r opsr8,ted by, Philippine.
0f

natur~ and it shD'llld be IMk~ contr<'l.ct arf"angefnents port bas is, •

i·nte.rnB'~\'lho

banana s on

,!l! n

F..0 !t.. -Philippine

i

.rua:~ke:t. 10rPhilippine
not l",eCCJlllUoond. that

bananas.

·B].trtherrnore' ~UFC." Wlder this

00

r.d:l::bo n, i
rosp·ect in

iT

can-

any f\ulds. he cqmmitte.c;l

bsnana

0.1' ,a.,a.tion tp;lilln 'with

1;.9

the dQvelopmetl t of a Philippine .Japan" tI unless re-strictions

iridustry

dependEtnt upon sales

\.s:ere r.emoved., Th~

nw

then was pressl.ngJ

span

to 1ibera~iz'e it,s import restr1.etions. 6

. At ~lrnost the same

t ima, in 1'9 60~ Sta.nd,ard Frm. t

(Phil.)

,"1. nd

St eat:rn~l't p COIil,paI.lY.; i
1

·mother

oompa.U1" o-f Sta~aJ'd investigations

Fr.u1 t 'Comp;my (S'TAWFn..co)

began

A.. S91'l.GS

-of -intensive

an the p6$s5..oili.tyof dEnro10 ping; commerc.ial (ba7

The' :Phil. ~.v,el'nment 1 s cooperation Santos (;:ita. City in

nana) production

in the' P..h'ilippines. establishment

'Was ~Ireque sted.1r in the

of STANFILCO. Generfil pl;)nta:ibion

South CQ ta.ba to- was ehosen 'The Fhilippinesmade 1960,.

ftL

es. sTAN,nWOt s :f1:rst

t'ne

fiii"~t tre~h

ba.naq.a. 'Ire:x:port!:t to Japan in .March

,

specia~

~:rr.anlS~ment was made :to' send 20. baskets th~rough the Philippine

of nJ.;;1Jcatanrl var'"

iet-y (J:.1uao, ,ap;ientum) s

Embassy in Tokyo and AlilbBssadot'

cam.e fro·Ill:banana
Wf.!S

fa.rms in Baguio; Secrete:r.i.es

F ot'~ign

l30ngust PrC;Villoe, in Northel" n Philippines ,of Corrnnel'c(i and Indu,B;"tf'y, ~gr:icultUt'~ and

approv:ed: by the

,NaturAl lil.e,soW'c·e$, and

fl.f'tairs.
of tre~h bananas
Wa;-s

In July ~960,

trial

i~poi'~atioll

anno1;U1!.cedrr the b

Js,plu}_C!se Ministry o,f Int~rn,sl,ion~l T;r'ade tl.ndInd. ustry..

The IJFe{) ;md oth~r

'~n~na

corpora.tions

m-"de wq:lerimenta·l

s.hipment 6 f'I"aD'r Gosta Ri ca1 .Panama and

nfes @xpr{9ssed" :Lnteres't

in Philippine

bananas., in developing

By ,June 1961,J~p3ne6e pine ~nflh<-' industry Tile l;sso.Oiation government;

Japa nese

busine:ssmen interested

tho Philip-'

€stil. bl;lshflcl th~' fh!lippine Fruit s Imports

A5~ociatiQn.

sugg{jsted. a Pilot Bansua Plantatio.n Pro.ject Sakura·i 'as Tec,hnical

:for banana.

to the Philippine

w:i.'th Prot ~ Yoshiji:ro"

l1dvisel", cit,ing t·he

fol'

gOY'8:r'1!!lIlCntI's

c~11ar' e.llo.eation

imports

the ·following pet-en-

Y(l3r (:L962) as -an incentive tial of' Jr~p'f.l;n PhilipPin;e, .'frj.,~ Through the persistence
of

and an indicl;l.tiorl
benam;'i.

'of the dB'lfelopin.~' market

ofJlIipanesc

tradf:jl"::land with the

g~nero14s support
and
1*l..S

Philippine goverf.)ITl.ent he:aded'b;v

Clff.icial~b a ,Japartee,G Banana N., Jimbo·

wt",s;

Technicsl Aesiat,a,'n.ce.
'SWV€jr

SUl"VIlJ.y!1.ssion 1

sent' to bhe Philippines and a

and size of the banana pur-po sGS. thEt.t. after

quickly undertaken
the cll1ti vfl.U-ion ol

t.O det.amnine the location the l~lakat,'3.n.r!'V'a.rie:by

Iands for

ferr', export

'I'h~ two ....roon:th eonside;J:'ing

st-udYI fro.m. December 1?61 to

J anu.~1"y·1962., reported

tzye's each for Baguio highland-s,

Northern Mindanao,; and 30,000

Oriental ltindoro; M.:'1nila andvioinit.y", ,

fOor SanthernIUndans0. 9 plant8.t::ton,

.end

hectaros

Asiele ~rom Lcca tingareas mission; also

'Cl'])91"t,ing'

for :po$sj.ble-~.na:na cultural

II

'the ;SUl'Vey

$uggested.

seV'-!;tr~ banana 1

pract Lcee , impl'o:v~.en ta, iu

(IuIu~.t!i!; 8ap:i.entumJ as

te.chniqti<es;

'_fl.d. spa eifi~d

the

lc"'lk<;l:tanP1 variety

the preferred

eXport variety.

The ·e.xpol't banana p:rO"Ju.etion

developed interest

expressed willingness
ttI.."f:·
.. ,1;',",'. •

to operate tne&r plantations

l'rith the as'sistance

of'

t:' k' ... Qa·ura,J.. 9

f'MtC'Jr'S

tb inQi\l1cethebj.g~sc;al~

ex;po1"t 6£ thePh'.:iilippine

b"aI13ffl:l, !5.t'T:.tfi.icll

was non~

ot:hertb8n
ton

the re"f'}!i-gera~~d' ~lpBnitna....oo'st,.'tI

A.co6~inc~ t'o "tht! Nlssion,

? 3,,-000

banana.~boat.

with speed of 1~~15 knot.s Qan load per t["ip~

Kobo

15 jOOO~~JJ~:o6045-kUQgl'8ttL from. five. to six day;:;; to Ph.i.lippin~s.

COmp3l':eqto The

baskets
~~ach

of bananas
tnepQrtsof

It would t<ike~ the boat

Qr Y@koi1sllif). in Ja~p:m :from the

short-

er trav'{~l M.ine is .p. matke{iadve..ntag_e i:Oi!'thePhilippin.fHl

d~j!' t:rip

tbe 1,.-20 1:iha

frpm South

Am€J',:r~ic:a Furtherm.0:re, with the ~

hope,d":':fol' i.ncr~a:s-ein

dema:ntl .for

Prdliw~~

~n~ru.rs

in Ja~n~ mission!

'-bhli'GO

G;ugb vcs~els:. would. be: n:e¢()s,sg.ry~ l>:I&nuelLim of'

Responding favo.rably

to the

s J:'6}_JlQwt, Secretary

s&tGl jI trH~inH:;_rri;st"flr

fmterna t ion~l

T:t-a-dEh'loo

hdu,stry,

Ithaw de,epl:_y""e

3P"',

p.r.'~ci~te·and a~oktJ.(jNledge the v~luli..bl~ ~ont:ritKu .. t,ion and. it.s (-the, 'pX'aj@ct sigpif-iCBt1t' ef'fac:ts. .. . ...
,"'

fftu.dy-)

it!! thl1!eeonomic .". ~

-~

:)I.nd'l.cu1t;ur.!'lil Bspa'"cte . _.. ~

.

of both·c01I.Iutriea!Yf .
Lj_1ll,tm'th:tfr

J~pAn

and i;.;h~ Phl1ipp~-::S.

lORega;;r"diI~

the,' e~:rt

~f' ban,qms,

Bt·at®d.th·a."t.Japan

ana, tne

Phi.1ippifW a ~hou1d:. nfo·plliulde and n.nmes1;3, into

're<'l,~

S.~JlI'll 1. FriQ r to the

;:two lcrpm€.ln t ol't.h~ bmann

oocport indll~.tr;r,- inth~ M1UJl~

try in toe 18t,e ..19"60113;, the Phn.ippine~

hr'ld been gNmng~ bQckye::rdbananal;i

1

The lo.c;m,l va.r.ieti<es

which are much pre ...

- 3l -

bananas 'W$s a di.l'ect 1'Ihote astronomical The Japanese llh.eralize

I"E!;sponse to bhe pro:;;.peJ)t- of .increased ].m;po,rt duty and tax had· rais-oQ the retail

imports prj.ca

fr'Qm .Ja,~ifln,
tOIZl

high .•

gGivernment in the earIr

sixt;ies had demonst.rated

a l"eadines:I;I to OS
8.S A

irnpor t l'ostri eM on e )! p;~rtJ;y in r es,pr,.a:'i!!i€l to .pre ss ure fromtha operating in South and CGutr.al ,America,anci pal'tljt

banana T-NiCs already {lem.onstration -stRbi 1i 3. of the

confide1!i.ee61

the! Jap?;nesegovertmJ,ent

in the. econeml,c

t-r

it ha 5 r,e.gainoo· ih t he pe ill t''''''!BI' years.

It 1J[as the ,Japanese investors landiS in the

woo

were the firglt

to seriously

pursue

t-h,e Pl'OSpo:ct D.t opening :dljction f,ol' e:1qlort. 'fruit. Wis

Philippines

for l~rg~~eJea.le banana proefforts did not boar much

&8

.Som~.Mw,th~i;r- early- earnest

is, POl"h~p.s also Bttributaol-€l

had refu8,e~ ·to sign

'to the f'q_et that

late

as, th~

,1-96015, 'thQ Philippines

a treaty (l'f amity and eonmer-ee

'sc~le basis ·neaeto start

mig~

h~,ve serioufJly hampered the initial

in ·the Ph.ilippines.

att,ompt.s of the Japa-

"banana..production t.)'l~tec-hnolagy

In a.ddition, it i-s aha bananA-production

lrorth .notingthF.Lt had. by this

required

fo.r large""-scale

time, been. ftl.lly developed

andeontrolloo

by theiutlerican

TNCs.

i~., Aa a consequence

of the fae 1or.s.. cited export

above ~ t:he entry of Unlt'1i:lo

banana productd.on, l\rllichwae

Frui.t &nd Stander,rj Fruit -!into Philippine

'alrao grentl.y f.aeili,ta.tect,

by the ~pec:ial 'ties po li.tical

hebo:!'EenAmerioon business hi'"

1(i3l'cat:saodthe '(:on~lus1on.

Ph±-lippine

an:d e ctjnom1c eli t8s, beca.mea foregone'

011 bana!JP,S in the, Japanes,e

Tha suba~1Jont

lO'i'roring' of thQ tal·iff

- 32 market pr-oved to b~ extreme·ly ben~ficialto ~l'tMr~,

both th€! TMCs and their local

such that Del Nonte which hadi. been oper(3..ting in the si-nee,· the 19201 s also do.cided to branch

c.ount:ry es a banana

pineappleproduce-r prod uet fa n ~

{)'ut:lntc

- 33 -

nhospects fot' the Establi,anment of a BananA Indust,rff in· the Fhilippim.~~ ~,TI ,PhilippiO(j ~armers Journ.a.l,. D@c. 1961~

4 Ibid ..
~'-

~.

Ibid

7 lIeotabato
Aug ..

S·et.~ F:i..rst Banana Export, 'T!Vill3kly Nation, 19.'1' 1965t,

8;

N. J:Ltnbp~cp.•. cit"

9 Jb:Ld .•

10 ,Ibid.

- 34-

.'

The &nana

Landa geogrs\phic a.nd pol1t1ca,1 eli_~te fer inv'est~

in.to

A combination of favorab~
ment,s in t.he banana

industry attracted

the major banana. T"NQs to venture

,Hindanao.

Lal"g~ tr_a~ts

ot l.;l.nd in D~Nao dalNorr.e

a.n:d South Cetabato ideal

are en-

dQwcrdwith fertile,

alluvi~l

and e1ayla.1~:mac;li.l which is s'cale •

for banana Pl'o~

duction on acot'l1:lller~ial export

:t-rcus

The:re has not been any record of disasideal

tropi\'l:'C.l .st.ol'msj;n .th~ al"'aa,. for

flle..9,

Th.¢' S~\tl'le pl"'OvitK:e:1i sz-e hles.sedwith

!poaetlines

v€lsaab

which (l,an dock wit,oom much, ~if:t·~wlty. ar ea of the. banana operations of all in

It is sign;iticant tonot;e that a large IlAvaodel Nort'9" th~: site

'tiDrtS

of 92 percent (lW~O estimate)

banana p1a:ntaas be ...

In Mind.a,.nao !a:re lo.cateGi in rnunie.ipalit'iestha. t

twere

considere.d

longing

to the most. tlproot\ct<iv-·¢ clt1~t~r~fI in thili' provinc@ in 1970"

v:e clusters'"

Those

bel0.ng.ing ·t'Q tho fl.producti

show an 3bovc~ve:rag,e per .!ormp:nce in,

The rnuoi cipfl:J"ities

.:dce;

cor-n and coconut. producthm other

per uni.t area.,

of

Panebo ,

T:agtJmattJ. Mawa.l; t.optlW

in. all

municipalities

in the

pl'ovi_nce -with hi_gb yields

t,hroo crops ,_,rice,

or:;.rn, and coconut.. plant.atd.o~ls

Some. 0 f the major bananacorfIlun1cipalities. 'Tb:e mtm.ici-

poration.$' have put up their parliti'cS ldth

in

theses

above average. y1elds

in b.oth :ri,c~ and corn .in'lthich banana plan-

tati,cns are located

a.re Na.bunturan" Composteila, am S,to ... Tome:;:i.

A banaIl~

plantation- nae a.1'so been put up in 'Carmen, anrunicipality

lilhicn. was highly

~l'od;uctivein one c.rop (corn).

in. Davab del

Table:3.1

shor.n~ a list

of' the mUAi~ip.,'llities

NQrte whe:r.e ba,oonatlol"porat

ions be ve oper-abed thei:!- banana plan~ be Ions

t·ations· as ot 1976~ As can be seen,

to the m<ls-t nl'prQd~ctive

seven out, or eight munipipa.liti.es

clu~terG~' .in Dav{lQ 'del. Norte~ 1

mapped basad on thei~ :re.ooided prbduct.J_'vit,~· bet'lileen
qf

When these mu_ni.cipali t.ie5~l"'e'

~ ,QOmpal'e~ to the: bana.1Is map for

Davao del Norte,

theco:trospondence The banana plantat,ions

the twp :i's .almost.perfect,.

See l!!ap 2 and lllap).

Da~Q Qo.lW.o-r-te aN sit mt:ed

in t.he.- mast pro duct iv-e: :l,and~ 0f' ,the. provIne c. of the provin.ce and within

They area locid:.ed .in the Itagricultura1. n:e.;J:rtlandu

ox the
I:)a~

area planted.

to tempor.ary

amp~~nt

"l'OPS

in Davao del .NOl'"te ,.

in .o.nly2. p~:dOd'

landes:. 5l\QW<edt.he :lig-hest

(686%) inc.rea.s~

in· hec;tarage

o.r frve yeal",s., 1970 - 1975.

This'; can be seen in 'fa.ole 3'~2 below ...2

tyPically. plant,g,rj. to. rice

'Wm'i;!.

a:nd

corn", if 1lC:lt. to coconut

.

oz- abaca,

'rhtdr 01me'r!li'

"00t bi"lE"lai:!.dlord,s
..
~.

but lndklpendent. ." .

owner -eult.::L\!,~:I:; Q~S Who usual ~,~~ 'Wal. t.ed. ~

Tho .ea.rmnge lJf;ua~

derived.

fro:mthe.t.1i'a:d:itloml

erops

of' the-se fermer-a

\'UeJ'e-

'not. etro1;Jighto sU$tai:~l the' Mads of t;l1~ir ·:families...

Hence" even when

s,!¥p:p1emente.!.ry .income was ·g~ne~\ate-d..from od.d. jobs;:I these

ind~bt.ed.t0
01'ral<:l.· 'Sl~

!'a:rmers "Were normally

ttl eil"

monev-:".lender 5 J .~f not. t.o t_he m.ddle;,.r,~n Who pui¢hased

.O,"",~,el" 9I"OpS
lI'.k,:··

.. "~'.'

copra J'

.. ~ ~-~'t. :

c.

".' elf

t-h"

. dl-rid p.Ldn~·:~
'In'

Tna usual

soIling

point l;.It ·theb.anana

corpora. tio,nwnen

it))loVOQ i-nto

8;..

oommunit.y WJS theprQffii:'oo' of reenJ.lar

.5·teady in~'1me{oo

jobs in t.1uJ plap,ta.tio.n~

apa:rt from the

be der:i:V1oo fmm t.he :roental. ·of t.lle .1and.~

*.

ComI,iat"OOc to ·the W1-

Uutly ·vie$..ted ~~~

·t·ra·~t1.V{l in: it.s:ill

8):'(lCl,S

.in Mindanao,

this

brfer of lea.se was aheady

otherp~e$stJJ:'~s

a.t-

y~t tJ~el'.a1i'/€lr.e1Jsually

9i-pplled uJf,'Qn the'

i· . In 1978, the ,going l"Q t'e ;per hect.ar~ in the Da.vat)del .Nort€l are 'WaS .1$00. In 1990,tbe ·same: Jands werG being leased fo:r~'l,OOo t"o 11\!!,500 per. 1"eJl.l" ~

37 f'armerq ~ Itrl's. tioq Bome 0·£ these prCSEtI1'ct came front

the National Irr:i.gs. tion AdminisdecidGd to dh-c:ont.inueirt'ig;a-

(NlA) ind:5.:rtlctly w:hen it conveniently

t i~n ser vi Cea in giV'en area s , thus l'iii6e:t ases,. th@ toWn and b.al'l'io, c

Les vi ng ri c e and corn grOw?,..l'is

.dry.
of

Ln
l'€.aBQUS

dfficlll..1s t.he·mselves, and Increased

for a vaJ'iety

normally ~ss:ociated

"'lith

I!d~velopmu:Q,tH

income

fql"

the I,.unioipa~

Hty t . actively persuaded .these small

COl'po:ra t ion e ~
Th~ c'OrrtI'M-r.·s ~V'er-niI'l$ oom.plexity.

lZlndowrier.~ t·oleBse

th~il' Lands to the

-the lease o.f' these la.n,ds display a bc1tdld.EYring hay~' a maturity-of ~h~ peasant each .f'1'lie-year from 15 to 2;iyeal'5 Olmer is given the period provided Qut are
to

T ht3Y 9r.d.inarily

rcneVl~bl€ after

:every five yeare,

aft·or

option

·withd:raw ti-qrn. the· contl"8:ct

be pays for

one lI'dth a casual

familiarity

with the costo!

land prefiaratioll.

for benana
capacd, ty of

planting .. W(LlUld know tha.t .such costs the ordinary ~mall landowner to pay, ent€l'l'ing .intil su~h a cont:re.:ct, the

aro simply beyond t.he normal

V-JImt.

is clear therefore is that in

owner vir·tua lly aur r-ender-s his. :rigbts

o:vel'

An int.o resting

.f.' as t ur e. o:f such

contra.ct s it:'! the t in Some ins tan ees t1:l.ey

aTe·'dritten out as str·aight

lease contracts." l..th-ile in other3·, t.hey take the In the lat't·er, the landowner '4th Ls teclmi-

form of "farm management It oontr~cts.

cally th€t planter

who has. entered ln~o a service

contract
f'-QI'

the farm mana-

ger
turn,

(i.. . t:.he- o ompany ) for tl;"le lat.1:..er to run his .farm e

f

him am to oorl'ow farm. (not In.

l"€";-

~-ney en hi.s account

to harVest;

and sell.

hanana.s grown . on his

the landQVIDS'f' (planter)

is·guaran.teed

an annual f'ix~d income

sur-v-

pri6ingly ~ equivalent
theinCOltl~

to prevailing land rental) or a certain

pencent.age of seru:tin;r~ it can but a ~:rbyliMd

from the .;f'.a,rllhl,michever

Le higher.

Upon closer

:r.el'r~ily be ahQWn that

the I!fam tr':arraS'eme1.l;l)1 cOntract

is nothinf{

lease contT'Mt, typically.re,::')orte,d Co:nst:i'1mtional rsstric ti.ons

to by' cO'rP9rati·O'ri~ ~s a, way of' going aro'vnd to the lW'3xitr:Lum land area (1, 0?4 has ~) here Ls

pertain.ing

allO~ .Top_toa,ny ~ingle ..

c()rr::o:ration~
control

The a,sS\~m:pticn beingexp.loit.cd,

that a I1farm ni.anag~rU doers, not

the land to the salr.e degreo that a

le.:ssee qae~.

...39Ta;b~ ,2~1
MUl1iQigality Pensbc

Hectarag,e. In Banana Prqduct ion By M.unicipality Davaa de'l NOl'te: 1976, .

Dapco Farms,

St anfilco

5061

Diamond P,arms ~ Stantilco Nabuhay Farms, Stanf.ilco Ghe ckered Fa:rms , nfi Leo Tagum Development Corp. J ·Un-ited

m·ta

Desidal Fal1l'l Evergreen Farm1 Phil. Mt.i bUhe,y Agri c, Car'p • Sarmien.to Farm 1

Packing,

Santo

'TO~6

'T~gUJ,ll DQvelcl'pment

CO·rpi.., Uni~G1d Farmingto"WIl, Ph1l~ f'&cl_dng

Pa~iog,

MarSlf~n Est at, Et! J Phil. Luna F-;;u."lTIS" Bte,nt-iIco,

I~

Em~ll Grcn.rers andi '6J lde-n Farms)

Corp"

MabliIDay" Agri.C.

Ri,ja .Pl.ant;~ti~,

'rwin

Da vac Fruit

~ Corp.'
F~m,;

ll.. 5tt!llit omcr

P:acking

River.s

Fb:tL

RaYne

A., M. Soriano ~ .Phi 1•. Fa cldng Luna Farms , Si;.a'nfilc,o Delta.. Farms'j Phil~ P·a-cking

Dizon Farms:t Phil..

Packing

375
:300

TotalHectar-ag~ in~' Prciduc~iOnJ

1976'

17274

ij:obert A., :aa:1keriberg", The Economic Impa.ct of' the Bamna EX.Wrt. E14~lrl on the Economy of DaV't:l.O del Nor.te,. Ifj""t1

M:a.I Showing: the 1VI1,mlcipallu'es

With
.... __ ---_...----.....

}ugh

of Dd.vab del N(.rrte

( I,1:J70)
"~ ...

J;\gricultul:a.l r;)r{)dUcUvity
Ii[_lif.:!:~."~--

-... \"""-: ~~!WflL .

... '.__ ·• .. ...

,",!i!iii"'_ "",. ... .. oi>1.-

.........

I' ....

i'

tiIi-!iiiii!'

....

__

..-,

","".-

,..oj.

"""!

..
-

Il
\

j;,~:' , I ' .~

.;..... ~ ..

i ' ;.'n i '\Ij~);>o

...... _

....Above

bot·h

average pro6ltct.'t.rm ('ice and COlon . - ..

- 40 ~

'rable 2.2

H¢ctara:ge

Dav@.a.del Not"te (1970 ~ 19'75)

of Agricultural

Orops

Crops

,Heetal'Qs

1970

P1..~nted

He'eta-res Planted: S9~62;O

1975

Increase
48,.5 36~':3

·60 ,~~ ';l3.·9· .. Corn Ric'!SJ

44;,25G
16,7'09 8.,7,S-,

60,337

4•.6
619'."'' '
_~,I

-28.5

Eanams* Abaoa
Soybea·ne TOTJlL • ,•••••• ~

'2.,521*
"3.,747
4,i3Ci~

6S6.0
14~9'

a,.o46

~~-----. ---~~~ *" 'Caven.dislI DaMnas

Region
~Hi·Annual .

.only. Annu;l!,J.., _R_yEWt 8) July 196.9'- J une 1.97Ci

Bur-eau of Plant

Industry,

Report,

.BPI~Regi on XI ji 197.5 - 19"76

Robert

Industry

A. }L~tckenbetg,.

cn rche Ecooomy of Pavao, de 1 l\.lorte~n

ItTh:e Economic Ir.npa,ot 9':1;' "the. Banana Export

Tbid,~

- 42 3..1 The Original. Set,t..le,£! Thepliese:n,t bsnana lands wet'e Provio,usly ~,oplet1 by settl{ll"8 who oame in

colonial

gove:rnmont adopted a policy of acti vc~

.1

e,ncouraging peasant

families

to settlo in }ifind!aOOf).

The ma.in reaeons 1. ltmd scarq:ity

.fo!' migr,ating ·toO ~lindan.ao w,ei'c as, .follovrs: due to the: large .l'itio, cf WP]llat:ion lloqo3 to o1,ll:t,.ivs.ted All of under

land in provine:el;l like

Sur)

,IIoco.s for

Norte

Ge:bu and Sohal.2

_Eo,hol proyin,C-I;!'IS cu.ltivated

lands,

exq,mple, lflere pra,ctically'

~uitivation.

3..

the loridas;pr'e?-d. tenanc;'l,

'usury' and pcrvc'l'ty combined \.1i tih im.ebtedn~'Ss

which ~bad been the

cause

of ,major PQasant.'::J,_andloYid conflict-a,.,

4.

the

tmGOQp,omiG,al ,si~es ... ntanyfarms .•3 11:'

Recognizing

the .potcmtial

of Hindana,o in 191,3J the Insular migta'fion to Min(janao through

government the Public

under the United Stat·eseneourag.ed

land, Act of 1903 which int.rodueed th~ QOmestE!a:d system in the Philippin~S'f This Act. empO"lEll"ed the gove'rMlel.'!l,t o (a) dis,pose' of lands of public t and. ~t thB same t,d.me pr"escrib.e publie land tlj unestablished; of public1a:nds
( 0)

dO,m~in

r:e_gu~t.ory

mea;~nll"e';;: for

thJEl !;i.ale. or le~s·e of

thi'il. t wares

exerci so: the right

to con! irm titles

ti 11

and,

(c) ilgrantU froe patents

,to occupants and cu1tivatnrs

who had cultivated

these Lands for a c,@,rt,l1dn length' of time.

irk

The sale or lease of public: l.&nds by government. to ueorporatione· organized the Philippines or the United, States Ac,t. 4 Corporate
II

regardle"'H3

of the :t:l3.tiCirm,lity

W~5

also

pr"Gs,cr'ibi(ld under the

acquisition

r;ta,s how,ever limi,tied to

h61dings

in the! Davs,o aro8!!rhich

were t~or:.· planted

··too abaca,
o.r

The earliest

sett.lers

CfJme 2S

early

l\S

191.3 a.m 1917 m.th '6 co:loni(ls,

pl'Ov'j:nce taf)a.'Q~ 'Thi1lS~

founQled, in the PrQvlnoe'

(j.r
'.

Cotab·a.b:l and in tha 6,

early

co len,les were h<;M!9:'wir failur'€!s. 1~y- 917, the Insula:r 1

govs.rnment-~ diflCOl1:I'~ge.d by the .failure gpverMant as

of th~ early

colonies (the sett.lers 'adQpted a policy

owed the colonial.

muoo

as 1372',000,(0), to

of encouraging
ye~n' i• I

on1¥' Ildwantswho 'Ibese,migba..nt

5:

u:ha:.d funds. sqj'ficient.

tid eth-e:n'. Qve-r the 'first

~Iere informed

that tho, SO,vern-

ment oould not provide them withl(Ja.lla,

could expect wAlS the ire·a tl'anspo.rt.ation of de,stina.t~n~

and tha.t t.he o·nly a.ssistance. thoy _'.

trom the place
0,1' arigin

t.o. the pla.oo

7
of r'6.Mana,o wti~uppe,rmo~t
'Governm.ent.

The ncolon_ization·~8:
nljwly·-fOl'HlcIW, Comm.onwealth

am.ong 'the, e:onearns

'President

,of ther

On June ), 19:;9",

tf:a.nuel

Quez<:tn,dgped Adminis'tra-tion.

Commonwealth A.!ct No.. 441 eJ;'e,a.~ing th.e Na:!'~ion:alLand Settlemant (NLSA) with the follewing 'objective-s~. the. 'acquis'it,ion,
, ,

1. To f,acilitate

se'ttlmnent and cultivation

or land,50

methel' acquired trom the ,Government or from ,private parties; 2. 'To, affo:rd QPpor,tunity to own fa1"m$ to t.erwnt farm'era and small fa;- ...

mili.t.a::ry tra,in,ing;

:3. 'roe.neourage

migration

tospEll's-ely

populated. regions

J'

a.nd faeilit.at.e

t.he amalga.xnation of the peop~:in

dif'fBl""e~t; sections

of the Philippines;

4. 'To de1fclop new mone:y erop$ to take the place of the J)rese-nt. export
OropS-;) which
t_~ ~. ,~r;j.can

'may suffer

from

the

los

5 0<

Prete.-rene

6!

Whic h

the,. e:njoy .in th 0

fp~ mari.e,,~9

- 44 ..
Ge ne:ra 1 Pa 1(.'l.lino 'S"af):tos
,0£ the. Philippill~
s

f' orl1l.9l' nil>ecto:r

·o·f P X" i s·.ons and, 9f tho areae NLS.1\.

G h fe!

o'! St aft

Al"iI\F, was' appointedManag~t" c.t Mtential Valley the

P.i;S,

'It

was Santos who

und.0irtoo:k. ,8 swvey scl.ect.i.ng Ko~onadal

settlement the

in Mirtdanao s!?'ttlamen!:. Santos

ih N:ovember 1938,
s,rc.a.. , e This

one o.f t.l1-e first:; of presant.-d.a:y

pIa'c'€; eventually

became

site

Peneral

C:itYi On

Februery 22·,. 193.9 ,Santos himself .

nad.a,l Va l}ey .' Under

headed the fi:r$t.. batch 'of se1ttlere to' Koto-

_.

10
MLS1l.,

,t,be

;oou,t:raet

bet·T;feelh the

s,ettter and. tm

Adm·inistration

was 4r~vm whicQ.~ ,among other a;nd cult1vatp tb:e land. given

things"

p:roviq,edthat

t.hE'.! 8·ettla.r mu.st IIplant

M

to him, usi:ng: such plant

had been pres~ribed

by the administration; othe.r trade tra.nsfer first

to devote himsplf withcut

'B.xc.lusively 11m.not to enga~e in any

or occupation

hi,s lam

t.be approval Qf the adminiit!tr,~tion; not to

in any

1<ta-y, except b;r' bequest"

on

to any ~o,ther person for the for

10 years. H11 The Adm1nistra.tion

tho
,

other hand was resp:msibls bui.lding· mat~ria16,

supplying the ,settler \';rith sU.ch time on

i9.

l2-hoctal'e·

lot.,

f'ood (until and in!')ut5

as he would become selt ... ~fficil~nt), pl.f:Lnt.ing implements s

I

credit

OOsi$; prcn!1de him.the title! the settlers set-tliir

t-o the la~ bebalf

·after

all

oliligatiQll13-

have been met, (4nd, sellon. Iand.,12

Nqt a

thepl"odl.lct. 'Of the s~ttlerir applied f,or hcmesbeads

i.ew of these

I'amilte.s later

whoood

in the fllY'.tilQ Koronadal Valley

evictGdby

w.~l:',€fi

fe,l"cibly bought out or e.iruply for the land

a .~'Vernrn(!nt agency ~:o mkeway of Dole Philippin~s

concentration
of pineappls ~

'W:lder~·

taken on behalf

.for the cultivati.oIl,

It "is aga'inst, this original s,ett,lers int:he

historic~l backdrop that ens must vlew the eXisting pl"'esont banana plantations. 'lh~r STANFn.OQ ~mall of' the Ul.SA., ~hege s-at-

'growers of .General

Sanhos City

wore most.ly Bet,tIers

'tIer s-t urned-gro'We'r-s almost ·Santos .•, This wtiuld e:xplain

oame .in at th~ same time with the

Geoora,l.Paulino

un1ro'rmityl~ the farm. sizes

o.t tchesJMll

contract·

g;'owers·

o·r

STANFIL'cO.13
canUii'

On the athol' b.a..ttl ~ thQ Davao frettlers eeme as' early STANFnCO

in at different

timEt pr:idods.¥

as. 1926-29 and ethers ai't(!l" the

SecQndWorld War~ In the smtlera ·ttlho beeame

li'ihen.f,2smen ...

Luna Plantation

a.t .]JaVa." de1 NO·l'te.most, of the 1920! s and the

gro'trer's 'cam,e in the late

ea.rly 1930'1' 5, a period

':failure ,ofit.s

aar l.y co.1o.nie s .~iarw:

of the .settlers

nlO'VOO

into these areas

area· such as Ka.palo~~

Guiangga"

'I'agum,

L'upon and Ba~nga

Sto.

To'ili3.s the J

muni$'Jipali ty of loihieh I\.im.amQnIs a par-t . (see rmont ar sa 'under the of the other NLSA"l,j':ith tb-e! settlement

local

case

~tudy)wa~

a. 6ett.l~...
But ~ot .set-

name of nTibal..-og".*

'b,anaria la'nds in. the a~ighbo:ring

'P

t·owns ?;lfere not recognized

t.lement area.s 14
S!;)ttlel"S

continued to pour into Mi¢anao aftel" "the SeC'ClOO Wor-:ld War.

flol\fOO 'i~lti:ir tho P}E..teaul' ~st~:rn trict

follof.rillga·.reas!
Za.mooa:nga d... el

Cot,abato Valle:y,

f.,guwm:Va.lle~rJ

Bukidnon

SUr ~ Not·thern Pav.Bo and the D.igos-Padada

I5cttl~~.nt Plll,tt61"'n c'Qutinue-d
Lo

dis:-

in

Sou'thel"J.1
.

navao.,
. ;'"j'

This

up to the- 1960ls

and even as late

as. 1915. 15 ~

Tr' ,'rJ"t

1 . th,.. rout b·' fi·,I;. o:f~'gov'~rnment d• ..ene, ' .'ar-eot a.on, '~~"J

sequently

,appl1.:ed: for under

existing

homel;1tead am ..free

patent

lcn..S. '

In many

instanoes, elsa.rod

such laMs jncluded.those

that had already been set.tle;d

wn.o were pu'$h(ld .far ,~r
~

end;

by nan,-Christian.

minor:lty groups

,into the

inter iorr .for€l-st.s.

plant.ed .t.o. cash' crops 'the al't:.l~ or. pre:!Scribed

ttl plant

which 11er'~' sitoor by the

government~

deirJ.arid,ed.by the

domiMnt

groups. in

'The NUiA settler,s Wl'H,"'eencouraged p~iod

cash crops lik<l .cotton and peenubs , ,end for a 'c(insid'Sl'sble

of time large· areas in General Santos City l.,Tere devoted to sucbcropa, pj'::i,n,clpal pUl'"pOs'e of this ·was to insure that 'revenue which
~"Cl.1,lld.

'l'h~

the

farmers

had a sour-ce of to NLSA~16 ,Japanos,s

eV"antually

be used

to pay thcd,l'" debts

also lnfloonced total

the sett.l!7l"i'l within

the are.~, to plant t.hB export

crop.

The

-area und.er Ja.panese O'I'mer,shipor

c.oritrol amoun:t.ed to57.~J50 hecta.res

am Aril$ric;":ll'ls;, weI'S

in

19351 wh!ie another" .29~2:52 he ct;a.r ee owned ~by' H.J..ipinos

e:it her leas Not a
GQ

t.o the J epa nese settlers

0.1'

piant.ed,' to aba oa to sell

,

to the J apane s; e ,.,17

wElre abli;! to cwn1auds

in. lUndanao ~ A good number

Dwood by other:1r

became· tenants, fe110"W'setctlers, :in t,hee-xpand.ing

shareCroppers
a"nd in

anc} j3,gr'i,cultu:r.e:~ 'WOl"kel's in lanqs pJ.:;!ntations.,

L'lI'g'C ebaca and coconut industr-y., 1$ particularly

worked

laggi~g

Cash crop pt'odu.otiQn, c:ont'inued pectiveJ,.y.

abaea , ootton

a.nd PQ~muts 'wei'G dds ... lat~1970T s

rf.l:8-

or

graduall:y

pha~ed ont in the early

1'950~ sam

In the General

&l,ntos area, in!c.st.ation

of cotton

foroed the

sGttlel"s to shift

to cO:.rb and coconut while

at t.he Ili.vao· del Norte area,

aame Cl'OPS

l.men mos.ai-c disease hit their

"Of . the competition

plants

aUQ abaca

rev,enm!lS dipped

d01ffl,asa result

or

synthetic fiber

in the internat,ional

- 47 -

Rei1,7ieI"~al f~Qd c~pi:l d.id. not diminish to l1k~, drought Mdinse:ots bt¢ f'al'm.~Jr~sett.lers. them.
a"

the

t.ru:\ea.t of' mttq'al

oolami.tie.s

mane,g,edto W'e"St1,_e.rthese diffichei1¢E1lW st"Qre ric~'orci(j,rn tor

CUlt t:l.m:e.a s.ince family

food 'croP;;;. of:f~ted St:aokpiling

c;Qnsu.'npticn. 2:0

or fooa ,Deerune e spo,cia :L1y imp;:l.:rt-.a.nt. in time:s

the 5.urplu8 :usl:.l..al1y found ite
l'Ji9.Y

·of' 0&:1"harv1:'Js't.

In t1J'l1.'8s,ot gc10d hEirv~st"

tlers

sold' their surplui;l

food c'l"9'PSo' Chinaso to

lik~

ent:repl'e.neurs

'who in tU1'ns.up-

.plie,Q them. wi'1!h no oess.ary ca~moditiea

salt ~21

- 4.8 ...

·Ka.'l'l J~ Pe.lzer~ ?;i,sm.eer Set'bl~tinj:,~ll_~he As.i~t1c TrQRi~s ~. Studies: i~ 1.andUt..ili.zat.:tpp: __r'f.L~g;ri.cllltull;'al qaJ,.Qnization. in _Solltn~_a~~ern a Asie. Alfie,l'ican Qscgr~'p,hical Sbeietjf". New Y-OI"k~ 1-948, ·_page 129.

In 1939'th~ a.V01'Etge density

O'.! Iloc()s .sur J Ilocios Norte and (,h~'bu wal'e. ,804 ~:3 per-lSon per squar·s kilom!;:ltel' of" culti va ted .1&:q.d 666 ~.5 sed 76, ~,~ re spe ct i'Ve'ly • Ibid •

. _._.

Ibid

__ :

II

pp • 104-106··
p~ 106 p... 129

:5 6

.!214.
Ibid. ~

7 Ibid,~ p•. 132":13'3

8 On FebruJ'l~ry 12~ 1:93'5'; the Qllirino..Jlieo'to Coloniczat.i.on Act, or 1eg~sla... ti ve Act NO. ·4,197'rtms paseed but it.s imple-memt ation ~s not 'P-llilhed through as the CQImnonwe8l1th ~ove-rl'.@etlt. was estab1ished~ This part 1-0ular act ga V~ 5 pee i8 1 mmlt.iOln ~ind anao a nd the use of land settlem.(!tnt as ··.9.:n, u~,rf''€IQt.ive solut.ion ,to the Mindana() pl'o ble:m..•• 't Cited in R.ad D. ·5.11v$ Uliro Hills .'of the 8.9.Ifi6 Land'~" ltindanao-Sulu Cri';~.ieal StuOi.es and Research Ch-d';lp. September 1978. p~ 37.

to

9 'Common1W~lth Act. N'o ~ lr.4l, J.!lW~ 3, 1939.

,

Section

L, Lett,el:'s A-D",

10 Pelzer',211 CHf~,p. -').42.. O·th'f:f:t', reports, rowevBr ~ mf)'ntci,on ~nt~sa5 , the Hea.d o f the "S.ecooo Ba t ch .o:f' Se'tt leI's to- OOIllJi~' to KO'!'DnadAl Valley, See ,variety H.agazine, Sep'tember 29~ 1.969,. page 4. II Sect,iron I.

the S.ettler.
12 Sect:1,on II

Contract

Between t'he__JJ~tional

(Rights

,and ObligatiQn~ of 'the Sattler) The Standard Ia·nd Set_t_lementAdministration and -. -- j

(R.ight.$ and Obliga.tions Thig"

o£thtl

Administra.tion),

Ibid.

13

No .l,.

S'i),ctio nIl,

15 HadD.

Two HUh qf the' SOOThS 1atlldL'l'he Truth_ BehiOO the Mindanao::Sulu Cl"1tical-St-wlii.es and Re'6Ci1arch G-roup. - September 1976. p,. 41.
.fl.1fndanaG P1"obl9m.,
j

Silva~

16

Interviews With Genel"a..l Santos P91zel' ", OR- ci t. , p. lJ.i;.7.

5TANFILCO Small Growers ~

See also

- 4:9 -

18 PateflKri~E.

tlOid Tiline in a Nel~ Jl;.tt·le i· Land Battlement end Agl'~rian Problems in the: P·hl1ippine s.j 1~ ,JoUl'nal of Sout·he·aa:t Asian 5!:._udie,,s. Volume 1.. l;974~ pp" l .... 17.c

19 From original
2,c}Ib"*.l
~,!

settlerst acecunt s in. Cien9t'a.lSa·ntos Cltya.nd Kiml.imon, Sto I ~1i1:~;U3"~ Davao d.eINCI,rte~, .
r;,' '.'

21

Intcl'vlJ!1oJs with Guillermo. tg8yan Ofttcer of STANFltco~,

Jr. May 1980. ,P,ga;va.n1al,o'ngs. to OM; ot the oldest f'a.mili,es in the STANF!Lro Luna Plante... t1o'n' area and ha is pre.sent ly F.1.eld Ind.U8t:rial llelAtions
j

'

I·

~ . .50 .S.'i.l
Kima)'Ilon:

A G~s,e Study Qf an qIj.gj.nal

one,

Sett,le.mmt*
ba;rri$'B·

, 9al'<'Nngay'K:i:.n1AJ;fian is

6f t;he fi"lle

ld,ca1jM

'',,'Jithin

th-e ';5T.aNF'[l,C0 lJOVuhi-

banana .plantationat

Luna J

]JaVelJ.

del Norte (se.e I1ap)..

It ha s a total

Han ·of 3;182' at present., enton. b~!1ana-re.latee of Sto. Tomai'!· ~_.rJ.d. tion.

out of 't-rhich appI'oXimataly

9:7 per cent are depend-

1 occupr;iGions ...
l~c:at~~

Tbe barriOI is ptr"b of t.he .municipelit;r sdutherl! portion

of the

is

in the

STANFIl.c.O planta-

Access t,Q th~ barrio

is t]trCH:ign

m.oto't'ized t;d.eJ~cle·s 'Wtd.ch regu1ah"lypl~l

the Sta. TotrJ.a,s4-t~niki (anoth:er mun:i,cipality) The barrio· deriv'ed its

:rout,e.,
Kimamcm. The s~ttling

name fro,m the river

of

tle~In to

pionner settlers

like 'a. certain :~ 'his

Fmet.el iQ Royo started

Pl"'DVinCC

to cl~ar t.he .anea, ~fid 'came back Aner

1926,-2S~ Rdyo:ret:urneo,

("d' or~in;,

Romblon,

Pavao Hith \'lar

j

,grO'UP5' af Sibuyan:Qr~ he convinced

to' settle
"

mth him. in into

the'

m"'r-~ S1buyanon f~.milles aoo some q~bua.no-spour'cd

Kimamoo,; in. all

the area,
l.;rhich spra~ up

probability, a es i st a nee.

is

ens

oi :thoso

srittlement,:g

r,.n.thout gov€lr-nment

It: is worthwhileto

.no't o 'th,a t mO'D or- the t

set.-

gl"aticin to Hindamo,.

A.rt1ill':' the

bri,ef

-oor.:periment in. settlenlent

colonies

in the

1917,

Whichended in tailut'o,

government

inte.=,cst TiiaSnot revived until

enough initial

fundijftre.:re. given

snc01.U'a.g,erlIf,mt most likely

to 8ott.ie .in .Mindanao.

Tbe

pe~opl~ng of Kima,mon ~l',as·therefore

under oaken by ·\L',i;g:eants. Who'did at their .own expense or at

:not co;m_e a-s part err a pr'ogram but rather

migrated

the prodding o~ old pioneers like R6yo~

* Bas.eo. on .intOrv:i'§llffS 'witho:r;igintt:l

h tro c'inio
RalIlO s,

s'e1;;tlflI's

,Fernand.o

To,rollo end

U.1(ul:r1a:!a.11l who clIIn®d --

the

land ,and planted :l.t to

crops lik~ uplacnd. :ric'S and

·(f.3UHri.bd:t

t :teB .likeci8."ar et t: e.s ~ ntl p-ah.t s w:i:'t.h

'2

p.~

m ti yes

l~nd:s or by ~endif1.g

~hAm suoh

cornwbdities UIilti~~ J1~airi1y indl~b~ted" they werte. fu.rcEJd 'tq offer

th~

lfind as ·P§lym(ln.t.
Th~CQJmtIOdl.i
"(H'lly

ty \'\la.s·"fo1r:'m.e!' .an."sbsea ly
t.he ~0ple

plant~

tion..

It be came barrio .schoQ L.

@'

"Oarri-o

.after

:U:'Im war~nd

o·l-eet®d thei..1' first

capt-c..in only in

1..-9"0~

By' 1956 ~th~

b~l:t'rio had it {5 fi;r:st. elemsDtA..!'lf

l~ost) if 'l1o:t $11 9'f the .eaJ'ly set.thirg; oJ KinlAmon ¢~!l1:efrom thta isJltnd

t':ton. of' Sibu;yan as -'an i~J..alld togethertt;ith ·.'s~.tto:r Roy:ot.Jo. jq:inhimin l

.~:Jin.dana.Qledt

th~
0

standingi.nvitatlon
ofa

.of number'

pio.m:e;r
oJ'

t he m~ra;t.ion

fami.li·e s to pre sent -da:y- Kimamon.

MajoritY'

of U).fi settlers

$0 &:1"l'i,V~d ]a tM::'
,

111crrkod as: sh~rsc:rop'per:frjl

t~nM't s: ~nd ~gri.l;lul t.ura.l lan'dolrn.~l'SI, in the th@ a.:riC!!a together Roy-a himse1:r· (with

La bgl'W 6 a t ~!lI:Ml::cara r!.H$ o'l'f!ltl:o; by sIna.].l MO: .m;l.dq,le was him.!l,clf on~,

are<=\,.Royq with

of the ~ad1ng
luorepro,r.oinent.·

J.. .nd,o·Wl;l€!"l'S. 'of 9

on~,s
t>lGre

his l"O.1a.tives.
ct·al:'()S ),

Among the F1:oyo

40 he

P,quilino

(12 ha!Ei~)J Micolas, Royo

+ ).,.

(12 has ~).jlvIaxim.o ...

R.o0'O (24 'ha.:;J;~) _;j' Pedro ..

Royo (12 has .

Teoclora

Villil'oS'a,

ra~J ..1;y" O\i'm ~ piGee. of

land gi£:g~ tha.n IOhectare~~ :i:n clearlng

:Fcinanci.alGori~tra·intd3·" la"nds preven:t,~d: most,

howe Wl" " 'l'llu:'iithe .physical stI'scin involved

oi'thi3.
.

seV!:;lffiI':S il'omowrring

lots

as

la,,;r

ge a'6tho se of 'thea b'!)ve~menti()'rre.d

landolme'l"6.,

.P.ost s·ettlers

a Iso ha"c\ t.o,

r's-pay tl1a1.l' debtstio

ROy?' who finaucoQ

most, of' their ti~lly.~

. ;L.a borer-s •

expenses

fl"om tr-anspor-tati-arl

to Kiili.8mon to settli~g

down ini-

A·!ld lllOstrepaidt:hoir

debts by becQmin.gtenan.ts

or ag:rieultural

or through
paid. their l8inde;"t-rol]t

a. mutual aid debts to the

La t tel" •

system pi.cneer
'f.h~e

calledpalusong.. settle,rs
were a.lso

'These •.rere· people 'liho' ha~ re;.-' .

RoyQ and Who had managed, ,.;rhQ VB nt1Jl'{~d t Q
0 pen

like
F eo ple

to. .~u;Y
~l" EH~·S

t he

new

wrdch loJe:re hitherto

\:U1c,la:a,.1"·ed~t. i:s usuall:r I

these

sma11 tillers

'Tifho devoted

Worker's in the abaca f'arms u90011;v did.st::ri ~""ping,'m QPping {~,lhdW(H'i~Ung

~rk 'a:nd were cQmpens:.a,t eo
£'01'

as muc.~·;as

yO,50 c·entf.vo s-. per

day

der-en..ditg

on

free' accommodatdone t;ythe

d~bt~, the lan::;oWileI"s

land:.m.,ner~h

For,' t~ose

wr.o ,.,.era· able

piece

to repa.y their
of land or to

gN;'ciously allo'1,.ore,u 'them' ·to. buy their

,

cle,al' lands.
Muslim. fa.milies

1abol' supply could then be -::-Elplcnishe:d.

who were. paid

by ·hiri.ng semi-nomadic the same

on a per ...day basiS ~ Interestingly,

pattern

of hiring

semi-:nomadic .N:uslims to moet ;5hQrt~terrn needs for lclbor con-

Of' the t.otal

popula.tion dW'ing th.e pre-banR~1.. days~ E!O,%l\!e're on. the 'propllcti0n

depBndcnt· on

abaca whil~ 'the l'ettI.Bining 20% Were dependent

of food crops.

,other municip<;!.lities. l;r carabao-drawn carts

Access to the

Clo.mrounity was through The only contact

zw:rrow ·t:railirl usus I» eommu-

c;;l:lled cangt;r;a,

~Ni the other th

... 5:3 it bacs production,

the' villagel

i5

maIn eccnerrdc

tl cti

vity, C0m::. inucdup

to

th6 ~l"'1,.v 1960ts ~ tions

in Dava.o del

In 1964" !(l(Hsaic di:f;H3:2isa 'began BLf'f',ect ing theabp.!ca. p1ant.a~ tJQrte,!lin.cl1Xlingslllali f'a,rtns like
sa'lll~

Ki,mamon.

Inf4';rstatiati suff,er.ed
QbJ.?-

~.idlla Hy wO:r~}300d. up to 19'.69'0

At the

time

abaca 'Pl'oducts

~ider:ably from competition :~(.;m synt_hetic fiber., en oil~based p::coduct~

lack of the· capabilit.y techrrLcally and. finan,cially

The

to counter'act the infe:&w,·-

~l:'S

throughout

Daveo del NQrte decid€J to shift to' sUDsi.stenee crop,s. rna,tor c.rop .itter abaca s:nd H.,s lO1'1'\1lr market

In K'itI.a'mon, corn beca.me the

by .infes.t·atiQn.

Tho I'fIf)st ellisily pinpoint.ed

11188

i17!d:icator of the economic d.iffieul~ in enrollment of children

t~es 'tha.t tha shift. to 'cern produced

the decline

:in the·barrio' .~'only o].em:e!n'ta:ry schooL Corn, be.ing a food ,crop, however barl. harvest Mon.
,nlo-s·t

provitl'ec;i c.ertain
,

advantagee

In timelii of

f'amilio·s

were B.hle to

save

.!I..

sack or t.~iO 'X'Qr' ho,me eoneuT.n::p~

Tho-ucgn Income fromc:orn

was flo,t enough ,to send chi ldre n to 5.~hoo·ll at' to the fam_ily all ye.;n· round. Blthough suoh

le8!5t it. eould. provide

sustenance

i~olat,edcha1"aotcr

up t.o the· l.a te 19601 .e.. corporate grower

In 19691' aoldoo li'a,rnts InQ.'o·rpor&t,cd qanvassing

€lnd of the

(a STANFILC6:...a.ffiliated lands; t~ be leased it!;lelf eame into

started. too

in. the

area

for

fo~~'bana.na produCl'tion.By

yea~), STANFnCO

the az-ea R.nd hired

ea.n:v-a:sser.s who ,",uu.ld. go ar-ound ccnvfnc lng

~ 54 ...
lication
0.£ the int,roduotion
o '.

of ·bana.M cultivataon
-

to ·the General Santos far..' • -~... -

JQ:ers·. Fi.rst),

thrpugh

the

STA~FILCO Q.orpora.ta growers;I

l:Uce Golden

Fa.rIlls, land-

~91ders ~'ere enticed to ,sell en" lease their

lands.

\lfhenthis

d.id. notw'ork" the

The entzy

Q,r

st~ndar¢l, (rhil~)

.1

J,f'ruiit tb~9O"rat ic·n (STANFILOO) into in the economic ,andsoci&~

I ,

the LunrT

area brought abQut I"aQiealchange.5

~\t6.taining" ,changed s,:emi-i.s-olated

life

Qr selt-

oommu.:nitde~ like as ST"ANFlLCO,

Kim1il.m.crn~ Eco.n.oiniG r-el.-"ltlonship with Oolde:n Ft9:rm-s" Inc, (OFl)

Ag,reament

a,lmost 'overnight

together

:ihtl'9dlJ;ced the

lea.sc'agreement6

an~. th.e siiall

gr:Q'W'$"S.~p:randllifi M03tot

in

1969.' GFI
of 10 years

.tir.st, 'offered

tl~e l~:1-Beagre~ment~lj

.sbese had a. duration Jf2·50~OOper hElot·arc. whioh went for

ahd the lea5-G payment was,· init :tally

ilegged! at

Thosc\\1'bo opted a.s high as

r,pq

tor

8.

15~ytI,al' duration Espeoially

got his.;he1" l:~~te·e ayments p with adyan.ced

to '!'~s1~t!i
"

pel" .heet,ar,e.

lum];H:;:um, .lI;ymen1;.sJ' p

~hf£e~ Wfil'S off~rs

that

'were d.tffi,cult.

I;lir .Septembel'

1969 ~ it was STANFILGOt·s t1.n'n. to hire

, So

local

'oan:vassel"S to

ind:u.ce,other farm owner

to' enter

i nt-a

:9.

oo·nt X'illct

gro'\'fW

.a.greeme.nt '1rlth the

C,om~n;1' l'hollle w.:'lo a.g-rt3ed to the

arra:ng,ement

·gave the

.following; r.ea~ons

tor

the.it"acceptanc,sz
the,i1:"~ ~bana.na

(a) the ine,ent iva of l"'Elcei:'ring e. higher incom$ eompal"ed to.

e~ps Jwi th the' income e ontr.~ .in eVGry

week;

(b' 'the 'UnIll"e~

,oi~t~bi:l.ltyof pre ..b.ansna crops,. aspeci.a;tly cern due to nat.ural calamities and
i~.ftct

infe§tatiol1!s; (e) t.hethought

of not exerting muoh physical with his pre-banana

'eff-o·rt in

g'J;'owingbanana~ as. ther ·fa.;rrnel' had been doing (d) th~

erolps" and;

chance to' incT6.EI-SCfamil3r incomo when ,sTANFIl.CO .promised

employment

for the' f al':l'll-O~'ner' s cfhildren in the Company~

b8:n¥na. ir:rlu;st,ry;

thfJ

remaining

3% having other

income-genorating

a et.ivitiee

outside the commui1ity)~

The" entry or the banana corporaticms
,

into

the eeono·mic

lift)

of'

the cemau... fir~t b\l"Jt

tiity inevlta,bly brought about instance:» the

certa,i:n change:;; amotffl: the! pec)ple. to' tbe' nout.s:ide the 'WOl"ld't as roadJ

I;l the
WW'S

oowm.mity was cpensd

'by the col"·po'·:rat. ion. to f';t;Lt::.i 1i ta.t ea cc e.s:s into

p1ant ation.

As t he people'r.6 activit.ies emerged.

puTclias.ing; powe,r reletive.ly

\fher'BM"

.imprQved, .more ,capttal-relatecf

there

waf; only

one stor·e u.uringthe part of' th.eir

p.re-:bana.na days,

moz-e stor,e:s the ijs1.,ab-

~oppod up when grot,;j'el'S shiftod 'UMment

ment inth.o

groW'tll:r1 SinC:OJllE! into

or small

sa.ris.'1;ri

(va.l"iety)

stores.

Th~e"Mi\9

(lCinsidera.ble

improvehouses

dom:Lcile of the

gZ"owe!r:'s ·~as pre~t;i,ous c,i)r.s:,n. 'and r,atttl,n~de

·were re"pl;:fc~d withoemant~d, Al~GrnativEi

galv:S.nizadiI~n~c.£lvered

housea, to the people, were

ac{mo~c ,8o'tivities,

hitherto u_nfamiliar
I

no~~ be-ing 'undel"t~e:n 01 the people tion of expell.se~s or the .acquisiti.on

_lng have become iIDportant1il;S

tl'l~m6elviU~,. Such Vf"a'otices as the itemi~;g'of ·at least

,

a Cut'sory Imo1<rlOd59 of ~ccount~ ".roekly in(!:o~a.nd

tit'€) ba:nk)

growl;'n'S t::ry to kee:Il ta.b on the

expens,e~· from banena

&;rower13fot

p:roduction~

paY'Jltent. a.ITan-ge~apt

(thru

to, ,small

'thElit' banan:a~ knowledge

op:e:ned tM bank tot.he

g;:r,o\l.TarS, 1<[:110 then

r,.ml"e quick

to acquire'

of lpan8~ b$ it incomplete. eara.bao-dra~m

and vague..

E:ven means of

tl',o!m~p:Ji't_attoh ehange_d -as the 9J.e~ anp :motorized tricyoles hi~or education

ean~ga gav€1 !tray

totally to bicy ...

td provide

..., And as in,oomec i.'oVOd~ improv'ed

the <l.bility

for the ·chi1d.re,n also

and the rise

in prim&""'Y a-chool

enrollment, drama.tically On.1yoo o;ther

refi:eoted this.

hatdJ: t.h.€l t~nefrormetfon

ot

the coi-n and rice

land'S: 1nt·o

ljan;ms 14n,dsdrastically

reducc.d the amount,or land reserved tor subsistenI'J6

rice

wafs:,.

Stapla

food. like

am

corn :must

001."

be pureffiu,;ed outside

of K:i.rJ:m~Lon

- 56 -

.ingly t.icd 'ill? with the bapana ilidu.s.try:, i.l'lJ:l1"ea.singCQ,stof l'1l~tel"ial;s am se, the

a.nd the-p.ro blems of indebtedness

t!bDrJ.of'it·S~r ac.eruins:

and

to them rro~tn par-

ti.Gipa Uo n iif· the bsnana 1rtdustry

werE! ra.pidly er·oded.iI

€ootlg.e'5

Economic changes also hro·ught about s(mio-cultura.l

pie.. Among the· more noticeablo

.9.mongtbe peen,eed.S and

ones ""as· the "deyalcd:pment

of' no"l

needs he C'aJll€l es sen ti al one s. eXi 6tin g. :s ide conaideI'lad :non~e~~enti.al,

bY' sid'~ wi th n~w 11eed e that

till:l.t

were'

lllnong tho new needs

we.re rutcd ~l'e:

the in-

'tl'«tu,otion of hew house applianCles (tha.·t replaced the oldwel15'

~uQhas rofrigerators~

bieycle:s, llater 'pumps

and even 50ap'~ Oth€l!' non ...e·s·Mntial needs inooftq,tin,kz;

beD!:'~. liquor ~ am

cludG.'ll t.he cons-umption of· 'bottled produ.cts .'

r-he most imp:o:rtsnt

cosmetic

,souiOl-cultural

change"

.'

howewr

wa6 the

disappea<l'ance
A:1:;

cif. t·he :Qe!_lusong Elct;l"vity (among the

5l1W.llm- gr(}];;ferS of the

Kirnarnon e.l'·ea.

t.be."i;lariana industry
ple., the ",rork.-related.

beet.tne. more and more predontin.ant in t.ho live.E;I;,of the pee+ oeeaedcns in which the' peop;te could _fce~ ~. sense of cam~ fm:-theI"
,

munity became i:nf'requ,ent ~ The roa.s~ive :in.trod~lction of wage l.abor cihangod the terro.s of social r'eolat,i6ns:tn .The old rosidents
"(I/bp

the cQmmunity •
f'lGcial problem6within

mre

int~l'v1e.we.d nQtoothat

'b.hrf 'oornmubity also multipliod

as the old type of .relati.otiship

wa:s ,slowly being;

t;iey w~re at-ill

tiedt-a

'the land although having not mu.ch influence

over it.,

... 57 Ilj ~. ·,eV'e;n bel:teve.cl that th~:irl".e1a:tionship wit'hthc Gompany o.li)"sralyapp:rQ;:dthat matc,st:he.-t· of' p' l~.p..dlo:rd.,.,tenant rolatiQnsh"i.p, the, only differenc$: being
~~hey .own t·he Isnd and C8:n d~c.ide~ll'hat to do with
. .

it after

the cOhtl.:'a.ct

e.x~

pi:re$l.

But thEy :r:e,cQgni:za the. t1 t 1.5 th(3 Oom~n:r tha;,t ha s .e·ffectiv:e eontrol
7

Tbc._HUIl;IanCbst of Bananas ... ,

ice.sm(;mgtbe settlers in-the ar-ea; Most ,of ,tJwsQttlerf;l·~turne:d .... gn:n'lTer.s interviewed by-th@ TSiJIDQited to
this pr.:tct·i oa as pl"(rV"a lent ..rhen pion.E"ler Ei who became leading L'9.ridowl1;!,!,s f' the area calOO to. Ol!m bigser tn"oos of land. o

·~~·e: e-n.eralpra6t g

re,L

Re~e8rch

Te~m" pa;ge 17~

'rh1s

SOem9

"

- 59 '.2 Corpora.te Acguisit.1an of land

froD! 't.he fa ct

The po Hey ot'" lBnd. O.('lnc~nt,:r,at itl'lI proceads

th at e no ugh 18 fId.
a.nd marl'll in

.shQuld be COl:ltl'OU~.to,
land should be available the '~"o];'Il{imarket. This

be abletro

put. up an ecorio:mic-81~e
Eli

pl.gnbation

to ma..kca \>:I_.nfiM COl"p'u'a.ticl'n single

via bla competitor'

factor bannM

8,QCOunt.S 1'0:1" the val'J..oua awl ..:oncentrr-J. ....

tion

echemell!l uti.1iz~d by tho

J'

oorporat.ioma in 'the Philippines.

Banan&
too

tiel" jX!t'S t,ians

like

et.hel' f'ora ig n a!Vi - bUll: In'Q'."3sem:,er pr i sea uti liz€! t he nd

1"1.Ith1089

at

creat.ive, innovative
tall

mathoos int.he

in concen.trating land 18.\>fS the 01"

8

land. while' takine

PJ1iliwinos ~
land

ad\l"8,nta,ga of' log81 loopholes

The

ba.1'I8ll8

COl":£)Or tiona B

hrm to take 'ull

vanture into

c:count oft.he

exb'it1ng

la~ at. thB tirr.m t.ll~f made~be1r

12'w, tbe' Public

the

I-h11ippin(;l~.Bet'orf.l

lifartial

lard Act (Commo,n~alt.h Act, 141)

a.m

th{l Ph.ilippin()

G>nst:ltudomain
import-

tion regulated the ownership and ,control of all lard,s (l,f tMi public
i'n t.he Phl.llppinQs,. For Mindi9nR[I.~,these

regu:le:tions period,

\'Ii'6l"'e especially

·aot ,to co 115ide-r ~ Sin ce th,e ,American. colonial subject of many land issuea involvlngY'~st y-1Jgin, with

Mindanao h{lS b (len the ~lin ...

tl1"a:,c~ts a.gl"icult.ural lands. or' peop~d

danae li'ta.6 praC'tici\lUy non-Cm-istian ethnic

very ama.11 s.ettlrnm.ents;,

m'cH';ltly by

gt"'ou:pa (lUi."l"ing -tbe ,early yein'~ of American Oceupatdon,

The American coklnial

re,gime and-tbe

CommorrljlJfea~th Go,v.erment the hornestecacli program"

encouraged

t.he

&ettlf:)ment .of'~·ttndBna06lnd3ItalI't'ed ·growing pea~a.nt um'est in tuz0na.m

partly t.o ease the aoettle·-

Visa,yaG:- ani!: p8li"t.1y to eata.bli.sh

At the time the banana the Fhilippina

iooustry r.-re.sbeg.tnnirlg

to take roots

in l1indan

1;1,

Chn8't.:it'ut.:ionor 1935 pr,avided. Thepoo:-ti:n,'snt

cont~o~
WI1S

ti.e ma.j,o,r guide of U~

linG 15

concerning ca:vering
kno'W!1i

land ri£cqtdsi tion..

la,nd o'l,omersh:ip and

pt'O"VJ.siona
echoed

193~ Co:nstH,u Han

Act., 141

by- C'o:mroon.~alth

,o,therwise

as tl1a Pubhc land Act.

ArticlQ

nn,

SOc ion 1. of -t.he 1935 constit.ution

uILll a: gr1 e 1.11'1:. w;'I~l. timoot" and ,minm'EI,l laRiiS o,t.' the public domain 11 wat.ars,l' minor.e.le" coal" pe'".rolcewn end ather mine.rel'oils, alll'oreal!! of [pot.en.t.:ial 6l'10rgy, and ,other natur 1 reecm-ces (lli the PMlippinee, belongs to the Sta:t.i)~an.d'thlcir dispo5ition,ex:ploitPl.tic:mJ developlOOnt~ ,or utU:i:r.a:t.1,on shall b.e limited t.o CiilO1zea, of the Philippines" Q,r to c,orpora.t.ioltS, ora.-:n'cH;lia \t.1o'n,s' ,at lea9,1:, 6~ of' ,t.ho@B.pi tEll of whiol1 :til! o'Wnsd 'b:y sueh citir:ens" Isubj'isct to, e:n1 exiet.1ng' rig)'tt" Sl'snt, lasso or cencesedon, 01" lease' to,l:" the: exploitation" devel-Oj,ll:nent, or utilization of' any of tho nat1l.lN.l rcsoUJ',oes shall be uantcd lor EI pen'ioC: J1Qi exc oed1ng 25y9&rS i' 'l'cn,eloeblo' for Moth-a!' 25, J'~9.t cxc,ept ~B -to wat~n" r::l.s;h tor 1rrl gat-ion, 1\i'a,t'I:r' 8, UPP'l:1 f1 Rharie's JI 0'1" 1ndust rio 1 Ul!(I e othor ts than the d;I!JVewpmilot of water power" in, !:.mi,ch ca;Q,1:Ioonefi,oi.91u6e My be 't.he lIlese,Ul'O am 't'ile ll'mit 'Q,r 't.he ",-:ant ~I~
1

Saot1'on·,2 further

stat,e.! that::

twent.:y- f'QUl' hectarlls (~~Q2:k), or bl homee,t'ea,Q in tII'l(cces Qf twen'ty-tow' h~:H;lt&r.tl'B (,:2.4 ',,~, Lard.s. ,adapt.ed. 'to,. gJ'a~~ .not c'Xceeding, t~ thousand hectarEl B (2,000) rna,. be l.eased. to an imdi.vidul!.l.; private corporation or
a~i5,floiation. n \Uth
an, ecooom1c~s1ze'

II No pri va:te corpor,at ion or R,e; 60 tiD ti.,on IMrc eq uire, l~a.B"" • c r holl,1 public agricult.tlTal lands in ,o;:.eC"Q:\'I.I9 of 1,02:4 baatar'es, :nor 1001 any' 1n(1,1id,' us, 1 ac'llli.r, e ~u.eh lando _by pur,cne,S(I in, ,e:x~el!l8 of one. ~undrOd ~~ .or.~' v .rorty~f'Q1Ilr (lii 4) he~tar'B'BI' or by .L.oase in,exce'S!B of' 'O'no thou~and ami

pla,n:t&t.1,o.n 1n mindlJ, tho oonlflllEL corp:n.·'a.tioni:3

:in 2,r;:q:uiring

were

1r.JitleJ.ly fa.ced with (lilfi'culty

Wia made mor-e d1ff.icul:t

lands OV(Il" 1,,024 h~ctares

~ This in.

bythe,

.taCit. tha,t enough

Land m'lU:it be ooncentrated

the Hijo

.F'.unt.ation)1 fOl"J!nel'lY an, a.b?ea .f:e:,rm_,.

was converted in 't.he mid,-s1xtie5 into
a. 'banaM (Gros

This plan.tation Miehel variety)

fa.m by an 'old Jap-~na5€! bus:ineasmall ,Putnam. aw.\ont.h Fn.t,1i Fruit,s

mmed FUkuda together ,oj' Japan. Apparent.1Y','

w:i.th sn Amer.l.c,an. called

the Gros Michel v.al'iety it

\129: grO,\;!lng

ws es~ilv
At ,t1:1is

slJaeeptible

to. Pallm'lWL di-

5j,eQ.:SIiI''The ccmp!l:fl1 1o,9,t a lot ~ otoclfh,o,].de'Z's D,r nija" tbo

,of :~ne1'i'

'point, t h a pre sent rnaj or:i t1

Putmm

,J,. VI' .Ayala

srouP. 'came in and bougbtout

_ 61 _,
:snd Fukuda,.
FujiI

Ilowe,var, did

not sell
,0

Old;,.

In this

mann,el', the JVA group

r.:equil'Gd ;LM first

p1'9ce of ban ann LBn:i

~'8.B

abo'ut

1",024 heCtE!.:rSB.
H1jool)uld

It seamod

that this pi:!!c€i of lan\1

oot ,onough, but sinee

not acqw.r't.'l roore 2 i Article the Tw'1n .Riv~:rs ani

Farm IV);;

than l,02t" hQctal"ss bocauso XIII),

of Cons titutio,na: 1 pI'iQh1b1't.ions (Sec" put 1ilp ttH,'O at-h.",!, c-or~rat,1onB:Ii Farm III

ita major1t.y

m.ockhnldeN

.Farms and Davao Fruits TQ~~thfl:t'; Hijo, Twin

Oorpol'a-t1orl, (Farro I" ,Farm IIJ, ,Rivers,

,aM Da'lol"a.'o Fru1:t.s ma.de up an aggl"oga:te toMl ct' 761 hectares

he a,... morCi

i!lllaso of 5,350 h,aote.ros as 'of 1977 with an allocation

as !J1l!ntoo by WI 79.0.. Itim

easy

onoll8:h b:l

9 'CIO

t.~o'U8Jl. t.he Hij'O,-TR~D'fC examplD ~ bow I on the

lOT;ill1ng !roI"1:3

e,or}Xlt'~ta lev'i31, the lool'N9n1antly'

Illnitat.1Qnsto,

than 1,,024 b0ct,are~ could ccneerned, !Ujo, Twin

Rivers

be overoome.

As rar as the

],aWlS,are

.and DFe, upon registration

·u separat,e cor.porate

\otith the Sec:Ul"itice,s am Exchange

C-omrn:ission, exist een-

tlI'nt.:l.t.iea~ ,each en.ti tol,ee!:to' o·wn, 109~e o·r otherwise

ne.ctare5,.,

trol l~nds not, in exce 55 of ~ 024

:S'ut still
'th~sa

,rt hesa oorupe.ni ElS• and

other banana cornpan:&s do, not dil~ectly s oontro,l over theJ'll..

,own all

laros b,ut merely

plantati,on

€!x,GI'ci~f!

The ke1 to IQ,sta.iblisb:ing an e'Gc.nomic:-sizGJ

'but in Is,ecuring

is llOt

in direct

o)'m'E1l" snip

ccntl'ol over

'tbe· land. fo!' a de-fin,ite per-

10:11 ti.meh O'!'

Tn.is can. be .fac.lli t.at·edMtl'\ough

'rhe as.sist:ance o,f

Ml":i.Olll8 lega.;l.. a nangament a with best legal minds in the country

inihidual1and.-owners~
tv;9i5:

too

thus

utiliZed.

by 'these e'DJIl']:en:ie a in. formulatiJ:Jg

lease agret;!ffi,l;!nta and f!lI'm in c.ol1.'centmting

lUi!oogement co'ntracts,

the tw,i) pri:r.uapa.l leg~l :ins,tnwents

lam:

,for .t.hQ banana plantations,. All ,of Ute Mna.:na ~orp:n'eticrni!ii Mve en:bln"cd into land!ow.ne1"'9 in the, DaVB?and
a.rJj

3.2..1 'lIbel .lea-Isla arrang,QID,_ent. -

lene
1l1'08

cont-rBcts, with Wiv'ich.al

1':01' the
purpO'it"6

Gena'l'al Sa-ntos fer the ,gro'W1ng

of cQncent.rat.:!I..ng

oontrol.liJ1g

lands

-,62 ...
to

tif bananae.

rt.

is de.cidedlY 'its

m.ore: 8dveniflige,e,us

for

Eli

,oomp!\lny t.tl lease

then

to,

p'lU'clmao lllnds fgr

oonanA plantation,.,

FCiIl:' one t.hing,

'the company doee< not Fo.l'

have to WJ n'Y about land taxe9;

tb,e'ss ar,a paid b,y the

lBrulcnm,e:r :1tseil'.

batton.

Flu:·thermorej1
~!i.ullt.'ec:

,the

,cromran:r can aa,s1l:Yr.llO'le01.1 of 't.ha lea

'tho' lease 'Wrttl
~,j.I"Ofll' (01'
J

SQd,

area to
.in tJ1e

mar'G
d'Ut'FI,-'

raHiliIJ~ less

lends after'

!ll'V'On,

t10n IOf 'the I1lgre&.tlBflt, \1pon proper

WDuld

JJot1!lcert1on).,
th,ou laMs
lllC'ul,d
'O'VOl"

Besid.es

vcl,i.'y ,tew' land.Own~l'lii

actually

\im.nt 't.o pBrt

with

by ISa.kJ"

Tho land,cnmer
i,l,lth()!llgh.

who lGiaae!tl h~a

hie: lanes still

feels

seCUIIG

that no
,control

not his

lolll"a

it,

he only

'Dlmllnal ownel~ship 'ot it since

A Lea se ql"eamsrrt;, e ili lc,e

land is exer,oi9'i::d by the lesaee.

it rn\l"l,lv,os t,he :rea 1 p'l"Opeirty 'of a la nd.o~9'l" mnd

(bda pro'Y·is:l.onscm een-

a private entit:Y:JIis,

covm:-ed 'Qy the Pb.iliWim;! Cirll

or cOl"pol'ate d:1l'Ilt'my~ 'Thtt"S" ~'Iba.t appea:r's on th8 records is that the .tr8lnsEI.,ctions a.I'ia between ,ind.ividuals .. 'This peculiarity , is. tt"tJit f'ort.bo5e tl',@n&B, ctions involving la rds~a;ntoed
Land A.ot attached to iSettle.I" at

official

bra tlghthe

homestead

or tH'e f'r·ee o,f pur-

p!>ltertt s,wardsunde('

th.~ ,Publ1,e ia.nCiliet.,

The Public:

~eve~al

:r'a~triciUQn.s
,Or

in th,Cil'dis,position
(l"

public lands acquired chu e ~ ona o,fw!i.i than educational"

Uid,er' the homest.ead

rre,~ pat'ent
(I

individual

cn

p.ro,h.1'bits

tffile' a. cqw 1siti on

f ,t h(;!~e hrrl s. for

pur:p:J-:1l"e (l·t he%' (;l

,charitable'or

l"elig1,ou:s or fOI" a, m,ud right

'I'D

of we.y,.,

tmc1er t.h.e free patent, hemo'stead, or W1v:id.ual stale provisions of th(J PUblld land Act;, 10 that nOI,core;u:ation; ,BssQlc1at.:lan or R~rtnl3r~h~R mdy

u'Another ro str1 at ion :l.mJOsedby 1&w with

speotto

lands ,granted

Ei:o(!ui:re 001" have M;y right" t.it.l0, inteJ'E:Hst.~ or p;r'OpaTtyright whetsof:1I'ei:' to ,sucn :lendsor to anyparmBJ'J:!!I:1!.t impl'Qv,e,men.t 'thereo,n) utll.e'3!S 50lely f'qr tr!dlJ.~atj,~:mal W'flli!~ou;sa,r 'chsritabl~ pwoPQ,s.ms ~ 101" f0t.-.&- road right of J:1,'fJ.'1, !;\~ s:i,lbja ct 1;.,(1 th~e ons'om 0If 'tl1e grant ee a~ 'the i!Iopp:rovru. CI r the ,scaJrata,l"y of Agricru;tul'e and Natural Re80·urees,., n',l (Unde'I'seorJ.n~ Eupp15,ad)

such '],qrI,d,'5ElO longf'!.9

tlhQ:y

f'~,lkw

t.ho otMr'

gmidcil'ine9

9Qt,. :r,01"

the

d:t.Jpos.:[,tion

of' !i!uch lAnd,s.

;f1'ViIil

'o1"ancGs or a.llenattc.!n~, nor ,shell 'trl'l~Y be,come lia.ble te theBa.ti B:fa.ction 0,1' any d,ebt oontr'8:cto_c1pr.:Lor tel the ~at1on ~e:.td. period, exceptm favor 01' 't,h,e G'o'V'crnme.lCl.t o:r -:1 Qf' its bt'C!lnehl@s"uni'te or 1t1:\l·t:1tut-1oniS,~

la,od B

:veal's
~

rlF:rom tho date of the 3'PprovAl. ot the applica.'t1on, aM for 8, term of trom. and.!l:f't.flr' t.he C1, a'toe of iS9uBnc~' ,cithe pat Bnt .or :srant j

CiC]uil"(ld 'un::lsJ;' fre.., pa:te!nt

'e)

t' lu:u'rll.)lS't,DBdi

cannot

btl eub j 0 C to toe:nQ'LItn~

or

~t.Af't'9r f'iw feBl"S, from the iJ99uane~ OJ f the pa,trent ami W;t thin five yeRrs s.tter the iswan!:H:I ,of t:U. lei " no alienatior:lll tran:lilfe:r VOj1'Bl1eeof a:nybQmestead nqS,7be aedlSI ldtlll0u't the ,approval of tbe tar-y of'Agricult:ur'i;! and ~t'Ur-a.1Ro,sourcesJ \o;~1eh~ppr.oV'al eennot mecl excs'pt Illf]: Constitut.:l;on s 1 and legal. grounds ,.

tw~nty~ or OQn, ... Secre-

be d~-

br indlvidwl
or :tho

pe'l'sons --irrlividual

Q'~,ffi:"S

of t.hecol'"pol"ation

or:-shareholders-,

-OWllOO"SI

rel;e.tl V'eS (~M'rmltjF

orb,. bl~-cd] ,Ono .~.

fo:rmm"'Mn~naCOl?po-

'Qpera.tiQn.Recol"dsat

the EavaQdel Naf't.e- Pl\Qvmoial

Register

of Deoos !3how

that offic:ialSl!o:Nnel',!;I of' c'orpol",a;tion:s growing 'b<a.n.::n a.a r,OI' De.l .Monte am the

Amended, To Allpw

Qw·tlfiootliu-1:d:ical

E:n.t.:ii.ties to .Aoquil"e Lands Qrigire.lly'

~t.ed

Under' t.hG Free Paten.t~, Ho'mestQ~H5 Wlvidue.l 'Oi"

Si€!le 11xl'visions ,of SGi!.d

mantoit

~ia Doerc"'::' is 'ventures

significant

in the

llght

or

the

expansion

of foreign of mBl'hial l"3.w,.,

au1-eueincse

in the fhillpp1no's
fQ!'

a.tte'r the' dedera.tion

It :t.s specially ~1gn;1tlcant

'on thili Sth po~it;wn

,the 'bolUHU'IS bdUBt.ry

'which, in 19'74~hed ,la:ndod earning B?mO P'308 mil!nd incro'p

or

th~ Phillppioo811top
9,S

ten oxpcl!'r'ts
,0 t'

lion whi:le i't :l'eigned

d.ulltria1:1t

'th,Q '~BanQMK:1 ng

Asia.,

Thc'! n comrmr cial ICOUl'e,e~ tho ~rt

purPOS,Q,1lI rateITod

t,o 'by PD ?I€>J lnclud,ed,ot

plantations

in M1ruian'lo I'ttId else.'W'h.of'C1n the OOW1:try ~ of vie 1~'lttl15

ameliltl'lnent

From tho gov,9rnm,ent 1 B poin,t ly 'oo]:::rood u.p

BS

'k1y' Docr,es

1s PQ!t"fe,et-

it 16 by

all

mme:.ndedl. ICol."ISU t.ut.ion~

Wher,efHI

t.hQ Public

Land.

ww
1973

'.imi't~d I~H)q;ulsit.iofl. ,of la:r.ds oj"theptd:lH,Q charitable' and l"o,~d ,I"ight.o.i

wal"

do,mpin fot" educotio,nal"

I

1"elig,1o'USji ot

purposes

t,tlfl Phllipp.-in~

Constitution

ole XlV~ Sacti,on

8:

or

'tha1973

COnstitution

re~5~

"All lmldtl of the public d.o-m.ain, 'io."a.te:f'5J, minerals;, coal, petroleum, landother minaraloils, all .fbrces of potential erle!'gy" fisheries, wild~ 11fe,a~nd, other nstural resowce::l!; ()ftha Philip~;dnes belong to the st8t,C~ With.' the f!!xbepti.on ,of am:-i'Ciul't>ura1Jl' .indnstr:ia.1 Q-I' ool!llJ;ie:;:::cia.l" re::.d:.dential and resettlement .lands of the pUblic domain,I natural l'CSO'Ul"cea shall not be aliei'Jat.,ed, and no license.:!! eeneesedcn l..esse for the exploratlon, developr.mnt,exploitation or utiUzatiolli d an_yof the mitural l'C'!illsour'ces shall be gt'antcd f'or ,I p~cd ,e.xc'eed,ing:twenty-fi\li'e yearsJ eJii:cept as to l'm:t,e;r right,s tor irtig,ation", ~t,9't" St:liPP]y ~ fisheries; ar indw:;,trial usee ot.herthen the developmentol water power, in whi.ch cases, be,J\td';1cial U~Q m21!1 e the measure a:nr;l·the lindt. of the glriBnt,.* (Under5'Coring supplied) b

or

Section

lO, la't.iele

,XlVj,m.e amtihi le ,;; [",Cd,stiMs

land.s

D,f'

the publl c domain;

~ILand8 of' 'th'eI public d.omain ,&1"£1 cl8e~fi.'!lId into ·agricult:Ui"alJ industrial. or commel'·cialJll resid'ei:'ttia1" r,es·atlem€lntJi miner,al, timber or for'&st, ina. gI's'Zlinglancla B,nd' such ,otml" class'eel as may 00' provided by law. (Und ere oOl' ing 9UPPl.L::!,'if)
i

,M-

.Compare

1:I.l.EIO

q_uot od

with lIrt:icla

nu"

&ilction I

or

t.he

193'

ConaM.tut1on

a!s

SboVI'~

- 65 All oan be sgen~ t.he, matter Uoo of

C!,f'

of Conatltut.i·OMl

or legal

l.im1t.s to ·the axploi·ta-

the :nationsl govermnent. '.

patrimon;y

0'1' t.he Phill.p;p1nes

is l<1ft t.o the dhG·retion.. consti.t. ut1.()ooll!:'Qviaceess to and aequ:1si-

too

'The impliee.tion

'of this:pAl"ticular

don JlOO PD 763 for the tior!: ~nd control

OOM.M 1ndnSlt,ry Is s.1mply" that

of agr1~ult.ursl lan'ds
Il'l IX!

suitable' to baWims

aJXllj1l'1c:r~ 1n the

PhiliFpines is ssnet 10ned

easie r faei.ll't

ed by geve-I'M.lC'n't. lAnds c5,paciall1 t.hrC:l'u:gh

NOl",rM;~lyj la'l:'lClown:ers would not ,art,

'with t.he1r
lI2.~

edo And ovcm, 'through

ow'tJ,etalk t

10890

I'

''fha' 'corporations

8 variety
pI'Q5p!3Ct:1

o:r tact1cl!l,
V(i

rror~l

to v:!Dlont

~jeet.J.on

of' oc:'cupant5 o,fthe

b~nel'l:11!l lAnds.

Ii t.;yp1eel. IGs':s,Mol.-d egr0am.ont

tJ,'dvan,C!ed f,l!lyment

is s,€tB~ed'-mon 't,bc col'oor.at.ion bhe

Sc'I:,
1.JmyjO'nl1\ef' ~

otr,al's has not

five
even

Y'Bar!a

of

ront

to

T,ne lessor'" past

~o

seen,
~

much lr:=,ElS e~f'ned,~, aucb amount The lfJlle:a, rental inthelat.'e ~300 par ,hactal'€i per yser tares
I'

,c.nu timo in the

'u.sua lly

grabs ia

t.heoffer

fd:xtillli5 u.p to on. theave:r3g:e,.

the m:lta!l.d10

:J eVGnt1,ce

00 IrLO,re tha.n
tr,;.Q

Ii. .1andO,WTler avi.ng 'only h

hec-

of mar,gin.d1.y productive

land (dl!le l:I:IIainily

to

POOl' technology)
Q1"

1'5 offered

an ad.vance of 16,000 and signs aro' glvensp~ci$l 'offal's

the

contrF.!lct.

Mi.mi.eipal for

Bar-ria Offici.a.ls,

of 10 :ye,a:rs ,adtl'iElnc,e:-peyrnom

'their small site.,

plot,~'ot

land loa et® d wi t.hin the area oftoopf;Oi,jec.t.ed

f>QCW"(!s for

plant, etio,n

This. US'u.ally
who

the. oorporationa

core

of' influentia:l

e;:mwmnity p.e'r:sorel;it.;hll;:3

help the thi.s

corporations

,convince oth,er landowner,s

,to lesse their go,ea

,8

land.f.i. 3

But it

.ill dwnce

pa:,vment is oo't e ffectiViB', the corpo ration

:m,or At t:rtH::ti VEl . On top & ~
(I

at ep further to

Dill.keit 8 0.1'fer

r t hQ

leass

l'ent.e,l ad yam: e,

t he corf:OI'

p:lra-tlon looJ.::!i!i for another' plot of l.aoo forriee'

landowner so he can c·onti,[I~e planti.ng
l"iCQ
O\offlG

f'arming and buys it

wants., So the

the

:if'ho

f srmel" now ha a

a cash advance,

Fl

M'W

le:nd" and st.ill

hi.a lea sod lam..

Tbia offill:' is

r~B1111rrGs1,~t1ble"

ll\l.rld.s. illl other'

agricultural

lIInds

or

~2,t'vler

si'zoJ' arc

OXCh1d1Jd.

To avail

t!t>@m~ s·of elyO

~ort crop

ttl ian

,r;::x,'9l1i1pti en " II landowners siJnply

convert

the 11' rice

Tbete:hante
the
j

.le:nd:8: to
lOOan~
~r.;;

lamB e,nr.i aXAcu1I;.(] ~.n JlLfridadt

of'Non~TGMn'Cy.

14t.lilG, ~re~ic

'of'r by thedLr landlo:rQ:Gtlitoht.oo

Dt'

mone'y gi v'(In to

L":lrtda'mWl'
0 f'

~dvA:.'1Ce nntel
n_q,rmcOlnptlnw,

are' simply
m~ t.t.el' is

v'1011ll:1t.1:re j e e t ad •

Fr om the vitlwpoint
flo);' hlIl:tself.

the

btl'-

this

for th,e lMd.lord t,o :sottlo ~leh

Tho Ct:HIl'-

p!tny for' 1tspal'c

c'annat Leaae laws

arc 't.enanted.

It is t.~('IT'~!0l:'10QX-

deeper impllcf.lt.ion 'thG, land

l:'GfOl;'m.

of' t,ha£!et.tif\~U.pOr
§:fV0~n.t.,

'banan.a plant,ations

irlilthat

it. Bu>bv6I't'f!

p:r-e'g-:r,am of't.he

n The t.erm 0 febis lease :is 1:;'9'1:1 .( 10) :i~8rs, erie cti.ve 'upon the 6Xe cution 0,.£ this !l:int':£'a ct ~Howev',e:r' ~ :it. iamutw: lly a~ e~.;_,tba. t the lESSEE sMll haV'et.tq~1 opt.ionto .l"i€oIU;l:',;'l!this lea s,a OO'fOl':sthi![! o,;pns;t.lon of this ocnt:r'e i;lt tior anQtne:r live (S)' year S j ~/!9[, t.he sama cond ll:.ions and cove~' nant5~ o)::OQpt th~1 amQunt of' 'the' ,ye'l1"ly 'rental ~ttich shall. b9incl::'G8:,'H~l;d but t:ha 1ncI'1ell. shall not be SQJ: i( Qftn.o l'mlt B tot he 't.ime of l'ene'\\'llL1 ) • sa HOWOV8l' ~ inthe'ov'oott:hs IESSEE deiteI'm,:ir.leE'6t any time during t.he ef~ .feat,tv ItYflf this cont.rll;ct that:. ;tOI' 'C;HilU,&!,Hil bqyQ'Iid hmnan control, SUM as :r~."',!l!.g~.sr di seas 9 e ~th a LESSEE IIfi!l, 'I 't9.rtlllllRte this o C 'OIrW1:.1'a Wly t:ims be~t

,_67fOre its akpirat10n upon, a t.hirty (30} day l~i'tten notice' sent to 'too LUJDOWNER; in such event, i't is unders'tood thatw,natever rerrGEll which J'IIaY hp.::vebeen pa id in advAnce b,1 tile lESSEE 8M 11 be d f.! ElrntGd fo r foi ted. PI 4 Whether thQ campa ny tenrdnates dur :lug i t.::J t.erm, the tho agr'Ei'Ellnentat the t.ime of ita a lOrJ:o do wM to he,
Cfln

expiration,
J' est

Ol"

lB nc10wn or ahall

to

ore t hm Land

Clover

t he ~ r& 1m:.ge

ant:! in',igat

ion (1.1 ~ 98 d ~ t I,

by '~be bane

[18

Qom.pe.n;r,

a'Qd t Q Be

8.pp~ the need,ad, soil

amendments

to' rest~t'9

t,h'J fertility

o,r the land.

leng heon chop,~d saen below; S

QOIfifn

O'l"

mowed by tho

company f,or

,2,

Ill!eager pries

a,B

can be

C) ,F'rnit~bear ing co f_f&e .',.,. d) St.r.i.ppa bole a-bacB

€I ,)
'f ~ '•• ' ~ ,I .'

,j

.'

II' '••

' ••

' ,.

••

' ~ ,••

, ,.

~ '••

' ~ '••

' ••

,j

'.

3~ per tro e 00
:3.00 per hill

••

~ ••

'

'i' •• ' '•• ' '••

" •• ' .' .' • ,. '••••

'. • • •

Fruit t,r,ees be,aring ,.•' ,••''••'.'..'. . ••,. ,.

~"Iii!
II' Ii Ii .. Ii !i ii •• I!i
iii

,j ,.

.'

,.

• '••

, ••

' ,.

5.00 per
,2 CiCi
!I!

tl'G€!

r) Bananas

OIl .1 III

!I

III Ii

.'!I

!I!" ,••

",

...

' ,ill!

"

11- ..

'II'

ill

I!!

!!!

,I

.11

iii

,I

ill!

..

'par ellml,p-

~.2.Z 'i'hc Fam. ~nag~ent

qontractl

Cr;nJ.t:zosc:t The f'am maMg~w.'lnt 'eoV1e:roo by the CIvil

c'ontract,

like the l'BFiz€

on C(J,>.:l-

i:=: an agreein£!l!lt that is

Code pl''OV'isions

tra.ct s, :i It":hs

ant ere~tinhD t,by t·,o)'·:PU":ei~'U, thaoret.,i(!:'a.lly thro~

lira negemem.o,f

in m.ut ua 1 agr eeffieu:;J of' 'one 'pal"'ty (,in La

ihvol ving ,the use, this

tile' prl.vat spr"ope'rty

ceSQ 't..he landownatr'

and his

land).,

."'6 suoh)!, What is of legfJlin:t.e:rest.

t'he 1a nd, ~ the ):)riva t.e pre pvty whioh is

t,M o'bj0Qt part.i8~

of the rnamgc:lm'ent c~o'[\t act. r

s ign.ing the f.Arm
rM'l-

~oo ,fc'l:1I1 U" is E

~' ..~ ..

oss11:y

~ul,t9.bli9had

q,

'both

m.91"Q;ly

nag~ment ,eontrs"r:tt.
Ol.'mer a: titlE!
i ,

The 18tt.er,

on ,!t.he',ot.her bBn.1:}1 is ClO'nf':it'lOOld by the

land-

to

to'he ,]sM,.

for

tbe Ctilllilpfl~,.

The documents

AffinDing

th,'e' ,cl'lrn.raet do not

1'1£v9 to gO' All

the wa,y to Manila,

to the<
,e,

Secretary (no" Minis er) of ,AgriC1JIt.ure , 101' !i\]j-proval

laase ap.eeoont but 'lIl'Iur'Gl.y a contra,ct,. As no:ted,
the

sinoe it 19 nett. legally

flbovo. 8111 l~!!!!IeiS

ot

lend.s U'l'nll;.cd1 t.hrQ':4h 'tho Pu'OUe lJlnd. lict muet have o:f' Il,grkulm r,Q ,aI'd t~at;ur'al R,osom'
C CI B ..

,e:,p!Jl'Oval ,C)f t,ng Se CI'e't.1l7

Qo:rpo'X'a:tlc)f;I,1II

Fa r bsnana

1"a~1ng a,gainat, each other rcguht10ns

f,o'r t.he, Jnpa,ful8~' mBl"kf)t\<d1ich l1bQl"lllth,!! f:arm ma.nagoment co:nt:ract

lzed 'b!l.ollna import

in. the ,s1xt1e,8,

t.c

t~e ;t$ssiehold

cont:ra,ct,.,

.In the'

DI8,;1oo del

Nor,te Roeis,te:r of Dgeds~ _jor:.t~y l"eoorded are

r,Ql"

it not all

of' ttu!lfurm

'JDScs,gemaltwteoJ\},g.a,cts

grOl,ling

ba~,m.B~6

Add,s f'ro,mtbeaxpe<ii,aneyN1tn

nh1ch. it

l!I:aabil,es ban,aJM

,eompanieD W con-

as mare priVll.t~ contra.ct" thro'ugh ColDlID.')rlwealth

f1ct

e'\IIWjwIJen th~ ~ib'jectof No, . 141Jtbe, .

th,e cont,Met

15

and

granted

.faD! WtMgeJnent, C1ilntra.ct efffe;cti"V'aly

~j"

:i.nvClJ:,:VQland ,gran:ted.

'by 'CoA,. 14,1 artlll

Tdtbin

thc, i'ivi!;r"'Y'e81' and 25~ar

pro,-

hlbito:ry ]:la:rioosJ, the oollt:.r'act. still

oa,s legal effed ~ As, 'tbe :egiet,er

t,o tho, Db:e'cto,t' of the
19;ricu1tlJ!'lB

of' ];)~OOi3

5.cpll:rat,eCi int.o the H1n1gtry or AgricultUN am the' co~. The :D'ireetor Lands is U!id'eT the Miru.st;ry ,e,f.'~le.tural

alap in ~n:i.l.a '. The

"*

Th1s f\m.ct.i.on, he.9 'been delegat.ed

Dapa,rtmentof

am

or

Euroau. of L Gnds, Natural R,esoUl'cl!.1:s ~.s now M:in1st:ry of Nat.Ul',alRa,sour~

ReBotr'H':~S~

of Davao CUy opined; alwa:ya bind

Jilin

ront,ra,c:t&, arWI, agreegnts, '. Riegi A.rati'Of;l, 1,s only

bt1t\\W1),n the ~l"ties~ an 'Qpel"a:t,i

V'ti

it.

1a

~s:

t"So ~J to: p,artiea

ooprotectod..

B'O wne:l'ein t

th1rd.

]:iel"SOru;;eM

Even ~,f the contract

01' ,ag:r"'leme.nt if! not l"e~

gisteroo,

it fa ,~t111 birding betwe:en t.be F-u-tls.,~7

In th.is i?lstsnoo

thG

Civ'il Oodo 13 ,l\Iuperior tal tho pUbUc

lia'nd lo'W' a,nd is c'Omioo:otebly- inv'6ked any-

t1ma

hr

tho be.nBna companfJOt'

IV''0n

an:;y of .ito dumm1,c!I:, to it,s B,dvantB~'6'.

QJXIEI,out oj ves BR:y

Ia;WJ'\'l'ra arid
~ra(';t. :t,a noth~
itJ,

oorpoJr",ato'

,t 'he It thfl, fa:m

managemon t. oon~
!llelUIi!1lrl

'out soother

wor~ to,r 8: lea S',g'holli but whora th,e 'WO,;,rd

oxplic:1t.l;y a,'Vc'ided ln

order 't.o ,avoid complictlUons

with the Pu,blic La~ 'Ii'appointslt a IlIMaooger

itlliFo,wmcnt

An.
'Iil

In tbe farm mnagOOIant contr:lict~,

eng'

lsndo\itD8l"

Bn:J "dm1n1stratJi)r~'1
"

ot

hili! land

fi.fl:ir tha d,E)!valC1lplmt., cult.,ivat:.ion"

00... f.ldrnfrd'.sl' ation,am t

g'e;YIo:ralmaMI~mlt
for'

(or

h11 1M1d)iP"9 an 811!;t'1 urAl de ~ ~ Clult

valoopmont pr,oj~~,t:l'

!!LOre part1,e:uJal"ly

'thQ p;ur['JOSO of pil2.nting

em

grow.tng

!f)f oot:!!:u\.aEl and/or ether

creps a:nd or mark'e-ting: .he produat.s and fr-uits theret

(I'V'_'

or.,,8 l'ha la,nd.own,er pr.actlca,ll;yturns

dura,tion of t.he contractwhleh,

all

t,he righ,ts
15
:r001"8 ~

to his ]A:nd for The landowns.l'

J

'the
BS

13 m;J!rmaU,. IOta

in the l~a..se a,grecme.rlt',:Ii .1,8 pr.oMhited from, aUer.a tin! the land within, dur,a.tion Q·f the cont.rac.t. mana'gomenttl by thamanag!!I" :Mol"eOve:r~he :m:ust ~ke the

too

lam.. Ni!ad,y rot" ItRc,ti ve

in one :r'ear','S time.

'lhis means either

to 'reloca.t.e

oeS:li~~.

He mtll5ltalsioclear

his, land, of ar.w' .ptil'S.ical

obsta.cle-Iii to ~he "8tab~ ,fr'uit trees and

li$hmetl't of a banara h",:rv'eat i:n,g

planta.tlol'Ji. by. t::hopp1m.gdom his c'O~o,rnrtor ,pt BP:W crops

81"ID ,a[,'61

mel,t e-v,ar

planlt.ed

,Sine'a

1OO5't JI if'

not

8L 11, ,Cif the

farm mnvlgement. com.l'8.cts

'h6tw~8n lmda..meTs

and. individual

per!3ona"

the

latttr t;rpical

being titeoretically mansgem,ent oontract.

1nCs.'pab1oo,r

naging a plentfltion ... slze. fam, a. : a.l.lowing tho ma.ns:g'er

pe1"80ml,

1:n,el:we3 MveralprovisiOflll '8xp9rtige

to l!Ieektho

19J1iBtl:nc:O 101" t,sc1uncal

or a,t.belr

or entit1,efl, ~

... 70This' ·1;;8.n seen in t.he folloWing be

~nbB,t:lt:9 previa.ions

CIt a sample farm

IM:tl:agelilfmt

mant associatioN<
and improvement

1. TO neg<ltie;te, 'ml1ko, Sign.f execute and 'Jntel' into s.uch growerT 9 ,contNtcts \lmor such toms ,a.nd.tonditions as t] c W; NAGER I;Ihall thinlt fit or 11 !vi za ble and to l'iep:re'8ent tho (lIrn'mR In a 11 a. S i9 0. a i<l t. Loria, MQ i ad t1esJ a.nd c:rga.ni1,;et.;t,ons" im::ludJ.·o·· irT'lsBtiO'rli. s50cietiofl.8, land dovolopji

Andthfl

ofthil

moo

like,

ld'lich JlWl btl ,e'iSsbUshed

fer

or th,o B1"(la.•.

tone be'nofit

xxx
The' Ot'lNER hereby' IIIgre·os. and autho"izes. the ~fANAOERt.c ELGsignJ ccm:vGY or tra.nsfer t.he r.1ghts ·thl!! ·Wl.Nt.GER acquired under th1s Farm Ma·nt'Lg'oment Contr!l1'ct to any perlon or ent.1:ty a ~mrtim~ during t.he d.uration of 't.h1ii1

FSf'm ~Mgemen.t

Cont.rs'ct:.

'j

s~;·moin

tho

laai!illll errre'erIlQnts,tho

Gompany,. ,av,on withQut laasing e land,o~8J"~ h

able

o.r nmnagi.ng

~ ~i!l:rm d,ir'eetly

thJ:'iougb a \:l'ont.ract.wit.b

''00 cor..oontrate

:tnto by any of it s e::tecut1vea On the ,otiu)!' hard,. tha as. d1fferentiated

or dummios.
lafld'O\<lClJeJl"

is

r-emunj3ratcQ IlY a tlgnaranteed

pro:f'it~ This

dl

.from a Lease

r·~fi.\t,el in Lhe ease of .8 le.a;se agreement.

; f$.rc~nt of the gi.~OES·salas
1'BJIt

ar.n1.k"!.,l ng1JSra:n.tead. pr,JfitUor

(ba~an.a:5}J ,micilever is higher,

of

the

r.-n-m produce
\'f'Cre'

is actu;Jllly the

paid to ·the lando\~r

le~M a gre amen t a s can be tf:n::hed an original to liThe OWNER shall

Pel"

6 een

f'romthe

·text of the

5 u?plGmentaI

agreement states

at.-

contract~

l'lhel'eaSi the' odgin..a:~ contract

or ~.....

for 1st .5 years, ~;oo/ha~hrt·

sub je c·~ lflnel,
C (;;In
l~

be ,cntitledto,

i chaver

t. (_

J'> - f ·0

auaranteed profit of .oa/ha ./yr. .•..for 2nd ;JEi6:r5~ Philippine iCurr'ency

t.h.e grose; S'ala 9 of per h 'EI·dare'

r4

ths.t:, 10

i B greatol'

t. he prod uce from

per annum ••• .;

- 71 ...
1~:It x
herein

x·that
partios

P'lragraph

agreo that

.flQaordao;o9 witb

X of tho .Farm MaMge.mernt 'Oo,nr.rA,ot is here q,r amendad and ,MANAGER shall J.l81 eMuall~- to O~·INER. PAI;ytn(ints in tl'l'ilI r",llow:ing :scih:ediul'EIi:~

nl Four Hundl"ed. (;400,.00) pesos IIPh111,ppine C"W'r"onCl'Y par heot.,ar.e per:year, rental for the first f,iv,s (,5) 'years of the' le6a8'; .' •• r,(!ID'talfor tho leass
~LthgL!U2.'
I

b) F1."Ie Hy;ool"'oo ("500.

Ita rttng fro'm the first

'DO) po 6019 ~ Ph:lLllPil'i:n...3 Cun:'enoy pW' b(l ctare per ~,8:r month lot the Smh (6) ynA.l' te:[.m

c) Six Hundred (,600.00) pesos:"PhilipiM Curf"eno;,r p:'!f' hoetaN M1.Ital for' t.hQ :r~mBininB; flv,a (5) ;Y~8!l"~, 'thD aBBe ~ o,f d) That. tbe 1OFl, S 8 .rental tim 11 be ~ id pl':I:mptly
Within tho f1rli!!lt .. m~nt.h or Qi!J:ch ,

pet' JIie'lr

oC'l"res1pOrd1ns:

:veGr ••• '

B nd

f'

ogy~ ly in edvenc,

(All under£:oorWg'

e:u,ppllcd,)

c:.."ntl'a~t in'YOlving su'hj.aet l.and,.,'U

119 can. be, IEten~,this ·and.UBing legal.

likath& II'Baru.na .F':',r,lJduc".ion, and Purc:ha.!e 'gr".,.eme.n.t ~u ·'Real ProImprovem.ent and Benane ProdulC'U.on Loan Agreemantei~ and llMeltlOrandullI J~gJ'eemelllt6U mth 'Third Pa,!'ti,us in cQr'n.elct;1a'll 1II1ith the: .Faml Msne.SOOlB~t tracts party arraD!1l}om.e.n.'. 18 a ,ol.ea,i' C3.9G 01' going land, conc;eJ.'lt.ra: :to!!.. ar01.!nd
l'

iiTM.t

tho

OWNER hOl"C1by

grants

thE!

IfA IIi;GE,Rthe

rigbt,

to

~ntar

into

eon-

the law can

.1Qo,pholes to et'tact

Howewr

thb,

i:lUll be 1e'17,a:lly contested

and, deelarfld null am void, but not illega.l; unfor-

tunately,
aruilAa:m

,In eontesti:ng ,i't a thiN

pa_rty mlat express its

topu:vsue

intel"@·gt in the deal. the rease to its

f'e:a:t it is! oppiJ'si tio n ~ Although

am

it must ble:~llint
CM

juat resolut.ion.

the' ,gove'ntmEmt

b€. t]:la,t third part,. ~ it h:M ao

law by 'using legal

,apparent that.

loopho,lo:s and t,eki'ng advante.ge of ineo'Da'i.ste~t

gtlv'91'nllJent

1aws~

It Ls

the

m9

OJ dI9SUiB

to 'las et..ho

ttJ re:ign:-oontr,o J.]e: d

~us1:n,ei.l'.s sector

\l~y uph,oJdingthe

larui 12"l'9 of'the

'eount.rJ!'~

~ '72 ~.

.1 NarGdeo PQfia" Re~i9tratiJon ,of lam Tft.Jdes andDeeds~

,2,

1970

_Ibit!.
th a for:1OOtr' Proskient
of aD.aMrta Apell1do'

:3 Tnt-en'iew·~ 4·

Corpora:t1on.
V'j A.yala,,; 19'7~

Ccntl"B,e,t c,r LoeS,G be,t·,\!CM'I,;Se~

an1Jtntonio

S al;l.S9 A.greemG1'l!t betweon Philip :s~ Dizon an! 'Fellman PSS'ulolfJg, 19'80 ill I'nt.orviGw 'Wit.h t.'tt7~ J'IJ'v1,to Bermude'I" A~ting Begi8te(l" of DCQ& ,of

"

Da.va" dol No'r'te, Aprol1ll' 19',00.,

April

Interview

with. Att.:y., Lurlovim IOaelia" .ttog;ist.cro£ 19'90,.

bot-wa,en l!.iho ,MamaSGl" Gil'
,8

Deed!! 0': Dava.o C1tr"

BaMfU!
10£'

8' F'ann Keru!.gemlem.t C.,ntreet 9 Farm 11aooganent Owner B:n:J a

and ~J'''I1Ddol' MQ,reJU>., Own,iW#1 .23: Ju_Ja 1971

CC"n,:t,;l."s bat''"teDn a ola ct
SlnBll

CCm.P!UIY,
Ilan£l.na, COmp8.Ill

laoo,o .... JI 24 m.er

:U3

f'e lat i've

IJanWl.l'1

197';.

s.

10 Ftn:"m:Mana,ge:mant.C'ont ra,ct batwes:nttliEl' ~ge'r &lvftd~l" R~ l.fbrQr:l'o, Owner:!1 23 July 1971.

of a Be: nona Company a nc'l

... 73 ... J,~~'~_i.AJ;.l,IE:90-UNn!PBRANDL~:

A9gyi~lt:l:,{)n
ScnQlnQ

Tb;e TABECO-'UnitOd :Srend (UBI" ol1.tr:1g1it gover.nmentcollusion

lam

:eoncent.ra:tlon

echelOO pr.t'!s.ants. a cage

et

with a corporation United

in ,appropl"iatl,nB lanQS ror a

banana plant8t,i(H\~. In1964:1!

fruit C:Smpa-n.;y'(,lJFC) J after

:!l.nveat1,gati.n@;'

ftPss,i'iW9· are·aa for th-e establi3hm6nt

of a' b{1na.na plantll,tion in Mindanao decid."Eid i.d:e.al becr:nJ~,e of its "Sc.:U feil."t.ilit:r~, already
und.,t)f!

Urt. tbe Dav,l!IO Pena.l Colon;y Rrea.wo'Ul-dbe

flil,i,cclBfi:ibili a~ ty
typogr,aphy';,

s:mQngoth~r

tacto,l's. nl-

The Penal

Colo~;I'

~2 Y91i.rSold at that ~~ dil''Sot1on ot the ID1r.octor Genel"sl

time,

.covered

some 5O,0Xl becta:res.

It ~'as s,at t,lp and the

late Chief

J'l'.lsti,c·e J,asa .A~1d· Santos

la:t.f1l.Pris,ons penal sYl:lt.em

:P~,'ul:ino Santos: ae l!lstep d.urln,g

to,-wa.rd mo;:lextniZi-i.ng the

:In the' Philippines

T""l1e ,original

the Ccimmomre'e.lth. .p€lr.1od .•

~J

Un:1 ted Fruit ;9;t.teitpt t. 0

cq~e

land ~ in the' DttP~OOLarea with TADEC01 acqUisition s

.is

1mwrtant to extlm;ine because

it sho-ws

J!.

pa,:t."'o.llelislIl
intmti!!)n
I

.of

\hfloland$ -it now p~cup1es.

The o·rig-iMl

a.nd the mannerI' of eendU1'll catEid by TADEe 0

~ntraing

la nets in 1964 • as can bes e(!n~,wa 6 e B~entielly In both cases,

1ft 1968-1969.

the Ph:illpp~iw ,-. . go'VerlTD.e.nt nd' a number of its a . in secu,ring' very ,:terti 1a hlnd$
and :i.t.s 10c,11 partner.

ti:fli'lc::ia ls a._nd, gtmci es "tel' e, ;In:s,trumen~al a bi\ll'lataa OO (United T

tor" th,s

Fr'u1ts or United

'Brands)

Tbe ,o,l'.ig:in,l,

we

sene-me ;involved

thoC!NatJoo
lea.se

of L!: we~-eontrOl1ed
lar~s

oomp.f!n.y"

tWa,~o

Fx u"it Cmnpany (MINFRUOO) ~ whichwoukl

from the GOvernment

'through the Nindanao Deve:lopnent .~'v:e\r11Jaa'nt 1I1!:)uld "thsp turn

Autbori toy (MDA) Ear growing

baaanaa,

The

";Vel" the Dj~PEoot JAnds to' MDA tar to bo rented

t.8!,).

thi:s p'UJ:":I;ofJE'", The

tot,g,l, area involved wo~ld be ·B,OOO, hec.tare~1.

at Y:L.70 pe.r-- ton of

"e ":I'
~'cdV$d
,,.,

~rt"ed.

banana s e:nn'l,lal1y...
hQ,ctare of ba~n$

B.r l:anq"

1970,

the

yoor ly ran
By

we uld Mo,t 00 lower titan.

he'v's

planted..

~96.6,the govmolmlentwould

13.13 mllion,
3 8"S&l-ets.
..

dBlivered

in thre-.e imJte.llmont·:s;

as tjFCis, p!l.;yment for

~Ie

'fi_'!._

1<I.VJ<I"myf

2;

Li¥e the £:Inn ma:n1l:gml1ent ~rjntract

deal rg~tdl.'edthe
0!lCUpan1f;:l~';

and lease ,agre·am:aJit f la'ter yews, th~ c

prisone:t's and other ifld:1rtdu~l
by MlNFR UC:O.. This

MDA t.o c:lcar the a~e.a 01 "all the

otmrwise

1'.1.'3

mUlioll
QOU;0't'S

would :not be paid

m,e'8,nt.th~t the r€lh~t'bi11ta t edpr:i. Wo,uldbe uproobcd.

prisoners'

who bald be€\'\ cultivating

the land t.helre

At that timethern
some 350

were about 60 released. -andrQl1abilitated

In the Teng,lao stJt;t le:m.€int." ma"e

ti lling

heeta::res o:f' lilneh

oC

thS_Il 400 .satt ler5

and their l'emilies

cUpl,e;d :more-than

;00

he:ctarea.

Tl:\t;:l'Y J'

This

lmole:

phn

W~$

presented.

by UFe
II think

to the government's
tankil headed

Progra.m Imple~ Qener:a.l

mant.e.tiQtl AgencJ (PIA)" lrnaoo Fa bella. the banana proj~et fa':ihio~,~

w.!8

an economic

by Direct'or

Fabelli

even per sam lly

a tt-eD'led tOo the

UFe

:when it ul)do,rt oak ·worked

atud7 a ~al" eall'li&r..

but wrere~pede.lly

The :P.IA1tbrlghtboys*l

nard

in

the deal

q.1·senet government'
I

at?out 't,helr taCk:.

0

The public such

not informtldi Qf

it and ~e:ry

r,tlW

ffiCilll15

were:

aware tha,t

a: ~ea:l waS! i.lGing ,cooked up by a gover'mont

~ Fe.parat; iona.wG're being fiM lized, in Septerriber,

agency together

with a tore:tgn firm ..

"tne tJ'FO:establ ishad the MindamJ) F:ruit The s(!:creey

;d,th Which th'9 ~al

Company (MINmUOO)

1904..

wars

'being £m-m1,llated wa;s due mainly t~eat'e

:1$

t¥c tha public

months

u.proar \1hidh

it might

tend did)

1rd1at ha:pp0ne.~ only-six

P~'vo~pme:nt

ea:rlie'r with. a s:im$.lal:' de81beitwsQn

$ S.n t.na

thel Nat,1:onal

COmNllY and, Dole Ph illppine

la.tterf.s

,a'oquis1-

Uo,," of' pineapple

land~ in tb.(l equally

.fel't·11a .Ko,ronadal Valley

in Cotabato~ urc infurmins·

On A,ugnst. 5, 19(4)1 Fabe.lli bya'uthority

'the .lat.t·el" thatl'lyo1ll" (lnly the signing
If())revGl'',

o,t the President· wrote

iBM.
O:Ul"f;lhava reached

.r-epresantA.tfve,s contract

f.il).:9J_,.,a,lP'erement~ 1'1

of the sccret.

Wfl.s. needed to sea.l thQ dee.,1. old Cbngre's.5 of the Ph:Ll1pvi.rtual\,

the de.al 'NlAa pubJJ,.,cly exPO,SCQ i'n the

pin~:s;bt Senator ~Lor,enzo Tsnadll.

T{;l.nada opPa,s,ed the deal becauoeit pUblic laMs

11 hand.ed

on a si.lve;r

plEtt.t,~

1"1oh ,ani productive

t,o ,an ali.on.

- 75 ~.
0Or~o;rat:ion. Th() Lease

WQul<i

e;r'ct;'3e the 32 years

'of wback"';breakirlg

effort

and
At

hard lab,!,· arid sacr.:i:rh~~'of

not.<:1 fel-r li1!'f3su to establish the penal colonyl s t'otal ~8set.s amounted to

ctllcny~

the time, the. deal was exposed" the m~illion, earning

?5CaQ

8oom ..pe

some P'BO:O~OOO annually~

It, hfl'd 4,0,542 e,off'e~ trees" 4~230

tre€l3.

trees ~ 39.17'20 coconut. tr~es, and 46,74?' -rub~er

It had the largest.

8ibaea pJil:ntia:tion

(.2,,,]31. hect.ares)

in the

entire

PhiliPPlnas.3

'd~al,.

The MD:A l<lhich was .gr'anted

.;I

the S~OOOhe ct<'l.res Cl.t public Rep~blic

In.nd by the go,v-

'el'ffi'aen~~ was

corpor-Fl.tion

ereatedbr

Act No. 30,34 which could not CO.Magr'ic~;llturS!1 lands. l;

,sUJ,ppos#o.to
8,"110·

titu-tiona:11y

hold more then

~ pl'i

1~0:24 n~ct9t'es cd' public

c:OrpoOi'1alion.

N1Nrnuro.

W,t),S also

vate

am

was not

acq:ui-re

mof'·S

~p,an1,024 hectares

of l:ind eith-er by lease. or by

l

a.s provided

by Section

43; pal"agrapl1 5 of th.e J?h:i.lipp1ne Corpovat.!"::: u\'\,r which states pOl"_a:tionauthol'izedto

tha.tll.Evel"Y Cor-

enga:g~ in :agricultut'e shall be restricted· to th9 owner-

lard. n

This provision

uftEie

Corpo'r.rat~on .I.aw" :iiak:es land",.5

00

disti.nctio,n

bf;'lt.we&n
(}o:r.tHl)

J>i1blic and pr-ivat~

Dole Ph~lippi.Iia.sin

~gt"icultUl"'Bl April private

If .... refer re

to: the precedent

Qt'

1964, When 000 ·wa~ alJmred to acquire

agricultur~l s.aid_ lam.s; le,nds.by a special

moretban

l,Ct24 ,of pubUcand Philippine's"

but b;;r

ehaI':ter,

Dole

in ac-qu.-iringt.he

ootl-ld .not be governed

It

Oy sueh char .. 9r t

tbe Corporation law since it .i-~ ~ prj:vflt,e' c()rpora-titm.~

that
MIUrnUOO

is, on the
1,024

IHlmegreunde

should

not

also ·be allowed to hold[t].Ol"e than

hectare s

·0 f

to{[)! lands ..6,

~~It may b~ argued by 'the. leg~l. Mvisell's 10,( bhe gpv'er.nment that "What thE! Gorpo:ration l,a,w prohib1te is ! ow.nol!ship and con:tro·l' df mot's than 1~0;24 hect-ares of land, and tJ1.3t ~Jltoougb t l.ea!lle' imro1,vea '·Control' H does not n(H::e~8arily involve I o\fflerahip~ I

- 76 ,_
IiT.be "'~ords .'ownership' ~nd t:;ontTol~ :in the Go;rpqratiQn .lAw ,;:;.re ,to be read disjunotively, noteonjun:ctively.. Th.er law lodfs' ,·dth disfzrltor on I owner'3hip ~ or ! control'! of-more than. 1,.024 hectare~ of lard,. The 1 antl' in a statut.d should r-ead: r61' r if the' j,nt;ent e,.n,dpurpose 0 f the law reQJul',es such construct:i:c.mJ tA.~in·g into account tho public p61iey regarding agr.i.c'ultura·,llandbolding 'i.nthe Phillppiri~s.

1he Sf!iMte.~it

Wi!l.3

l'eportod,

revealed a systematic p13 ntations"

scheme to 7

H C8l'VEI:

uplt Mind~-

n:lO . into 1tpocket a of

alien=controlledir resources'

'Tl'i.O 8enatt'3 GO.IIb"ld_tte~ on f'U'rther revealed

t;Q

'agriculture .snd natural

tl1at ,.the proposed

which Led the investigat.ioh

con:tre,at

·1rn$atly 1;ivoidedn the term nlea.se.r1ohviousIly ltitit.at·ion on purchasBo!" lease

'~1destep the con:=:tit:utional ~9 1,0<:4 hac·teres .• , The fiudi.ngs of the

Ii

of public lands

llimmitt,e'e on A.griculture

and Natura.~ ROSOm"Cle"S on

t~~l~b.,aruma. deal
Ttr&&

wea;'e:

I'll. Th~t the Lega'l, arm of ·tho gover.nmtint" the. DeJial't.msrt of ~'l..\5t.ice.~ not consulted in' the deal"n

more ~han 50 ~a-r6 in direct

112~ Tbat ths te't'~

of t.m

vio1a:ti.on of' "the Constitution~11

Agr"tlN~ment

liou1d:allow

t.he,UFC: ,(it lc~s'~ cif'

~~.3. hat no inq_uiry ha.d been made 1'lh£1l;thcr the home st.ates of the T fruit company .gl"Mt, :t'€lciprooa.l rights. to' Filipinostmder the· terms of the paritY' agreffi:ment.1I
tI4·~

and penal

That no similar cbnsulta~tionswel'e' exp<erts, on the feaeibilii;.y of the

made Wit.hpri..son cffi ci.a,ls project ~n . .

Ii ';"ITha.t no proVision; had bflell ·made .fortb'e r.'elocatioh ·of. ,settlera of the area which 'were 'allqwed by trw ·governm.ert:t to d evelop part1o~ of the re servat Lon Un:ler the' bJlJ;'illl5iO.f_ the a,greem ent;t, thea e settl ers will

to mo:ve out

.I~

t.be ree,;ervationl5.~
President

n6~ TJ:l-!tthe .... rea too, be leased ,constituted the choicest portions of pl$nted with abaca, c;:o·ffet3;;rubbor, rice end corn",!! Mac:;t:l,p.agal tibsequ~n:t ly re'jectedi s Fabe lle
0 if

the

'lbaoara deal'! because

.it·

W~ .1 unac cepta:blfl~ n

er-ed to resign

.from his pe st be as. 1'.l e thi,sr'sU

- 77 _,

pasal said tln t he d1d not know about, bhe deta.ils band; it,~ta~ also appaaerrt that
'50

'Of the ,deaL

On,th~ other

the Pres'ident persevering

}'1ra,soot exactly candid since

010500 vdthout

F~bt)lla would. not.. have. been.

th~ tacit

in h~vi:ng the deal

suppor-t of

Mac,~pe.,g&l.

In 1964 the UF'Cfa.il€fd to get 'the "rchtdcest it's banana ple,nta'tions. 'a n~w adntinist.rat,i-on.,
\omlil

1a:nds1t in Dsvac del W'orte for

Ifut;. in In

1969 it

made ~.:comeback; t,oore

with a new ofilal under

pm ce

of' NINF11VCO,,[I

'Was a T,ADECO, ~ companywnich If MINF.IWc;o e,arl1.er intenged with the Bureau lof Prisons ofsevsra 1 thou ...
with

just adjaccent

,to DAPEOO'L, then growing, abaea , a '\;loint a llow'ed.

that it
.It

'to ,lease,

TADECOin 1969 WBnt into wi.th TADECO being

of l;and on ¢,ol1dition

venture"

t~ grOft,
IlA.PECOLt

bananas

aeCt;15'S ,~nd cent,ro,l

USG

'Iw:nd hectaras
8

prison

lal:x:n.> ,consistent

'il'c:h:a.bilii;ation

~ogra~m

Under

thi-s, arrangem.Grl.t TADECOwould. now

, I,r jo.fnt-vcnt:ure1t

use: land6illGa~G!dtl

to it by DfLPECot, it's
'gt'Ow

p!tl":Gner, for

only of

,;250,pel' J'J.'l'ietare· per year to

bananas, "'lith the

technical

supervi~ion

l~IUFR.IJCO~ he.bean.ana herve-Sit, would tJ'leln, be soId, B.X:cl T u.s1vely However, 'CSlwn th..is new d6~1 was fa'cQ'd with .also r.aiSM, :in Corigr,e.ss,. Ju.st).ce r.eve,ft,led ~
"

to Unit,e'd Brands ~

a snag.

Obje,ction5 to it "I\1'ere by the Depar-tment, of

In~'ddi:tion,

an investigation

that

II

sev¢r.a,l Manila ,

busin ess menit were int,erested in seeing

m~nware eased. out of the. DAFECOLarea and reservation, titer into tho u;pland areas ~*ile TADECO Ill,ono.polized

and

'(IiElJ"6 driven

fltr-·

the use of tho. loT,tf flat

e~~ct~d f'rr.)-nrtheir as TP.JJECO,eXpanded

h6ir!esin its ares,

BB.l'l'io

Tib.un.gcol a..dja cent t·o the TADEGO pla:rrhation

that. ehll:nents of TaskForce

Rfj,$id.ent~, claim

Pag-

Ifi:;li'Qleand TADECO slecur1 ty .S·lJ9.ros W€lrEluslld

in

eject.i.ng

t.he

e.ecupsnt

e ..10

Th,e Const:LtutiQ~l '~!lirlie:r a.ttempt

a.M legal

quest,:i,Ql1S 'rai·:;red in

conooc~tion

'lidth. the

of Unitt?d Fruj.t to acquire lands

in the DAPECOLarea can

The matt er
0

~qual1y heraia ed .in conn€!eti!oil with

tQThndhQlding.a li.'galnst both

the wI' p, DEC Peal ~In 0

l' "limit

13'

ot not

more

than 1,044 bactar03 can (ie.finit·ely be an issue

and 'I'.JillEOO,;

United J?r ui.t ( Un! t.€I!d Brandu)

a) All of the landa n,o.w occupa;t;l;<l by the BanaM Plant~tionili in M1nda.~ n.qo a..e pUblio agrioultwal r lends M1CS·o. ,f):Cqui.6 iti{)u and eontrol B re I'6gu. ... 12ted. by t'hs PUbli:c L:"lnd Law and t,.h,e Philippi,no Courl:1 t.ution,_ b) ·Compa s. make exbens i ve use of legal maneu 'll'€'l':S to in:sU1''S tbl'l ill:" nie 'control of the land~ Some of 'the key exe.cutives of' some cOl"?Qrations ·a1"e l~\i~:rs thema·elves .. 0.1" have ollos~aec,ess to the ba.st law afficea: in tl'l.. e

country.

t~)The gOV'flrnment bas ~lwa:'ys been a:wittillg' and willing accomplic:e in the corporati9ust' drive for land. concentrat.ion, ev-an t.o the extent. ot Vio18ting Its own laW'S or ebanging, tho.sa which r;:e'emt!.) be incon.sistent wit,h i;t:s thrust of' anequraginjj;. foreign: i:nvestm~nt,r.:l.
d) 'rhill lando~"l:ler.s ,aspGc:Lal~illit9ra.tel ·iii:rn.allowner-culti va.tor:5, are' legally disfehselsss aga.inst· vO""eI'fui corporat.16 eJOOcut,ivcs and/or thei.r agents.

- 79 ~
Footnote~
....

to The TADEOO-Um"ED BRAND Land

_

A cg'uisi

tion DeaP

Scheme
~Z$

--

Ed uB::rqR '. Ki unisa l--a:, .31; 1964

oat.

II

Unb~ Ii eVa bIe' Banana

,7Phllipp_i$;lo

_Ft'~e P:re s~

'2

ll;lid~

;, 'lpid"

4,

Sulp;teio

Guevara ~ "1'lhat Abmt. The Pineapple

;, Ibid •
-' .

__

ph1c:,t Nov.

24, 196-4~-

Land DeRl?11

1rre~k~y Gl:::'1!-

,~ &nana

Pro ju at:

New' IDea Ls j Exposed;;

II

~furrl.la Chrordc le

Nov.

.3 , 19.6l:).,

J!:: Manila Chmnicle,

~

Nov"

4, lsr64~
Menila Chronicle,
Nov.,

1'lEanana Deal Junked,iT

5, 1964.

10 Manila TiiIl~S, De~,. 27, 1971 ll:mL Team.,. Tho Human Ob st 'of ]3a~ Ua.s"

l~ao

~.
I

5'8 and.~_'ZQO .•
to"l'

'Th~ aJJ.o·cation ·'o.f' lands

pil.nti:ng

to

e::q::c,rl bananae

(cavendish) 101No~

Le

~lsjo}lll'y .~egQ]Ated. by ··twopt'€!si.cfentia

1 .1ett'e1"s

of' i,nstru:ctiO,m

,9

:ts;s;u;~,on FeOlrf);fu'Y'22~ 19'73 ~nd. WI No~. 790 .issued TbJ:se gQve:r;rml~nt 'polieiGS
~od

on J~nu.~ry 6., 1979.

m,pg1se .an optimum h.Q:ctaragaon

the plant~:ng 'Df

of ro::port.s.

:b~nJmaa m th Mia end. in view o,t e crrtr~')11ing t;ne YO 1~ th.econta'olQf llU'1la. alloea:tiofl;,l!

'r~U;6'~ through

t:hese poH.bies seek toe,sit,a.bliGh

tifte Mr~~tam~h.1W€'SS

prices,.
No.. ,

Le'tt:Qr of Insttucti,on

.,a

(WI ,5S) set a, limit of 21,00:0 1)a~. for the

new

p:W;ijtinga':t pxpol"tban<'il1;l.<iL~~Iuntil ,£lllinqE@}':l{S$

1llUm'

markets M,nbe
the

qeYelopsd
oP1gim:~

01" an 'ooexpeet .. 21" 000 kla,~ maxi~

in the JapE.nesEh Rk'1)t>ket, ceeurs,n .Qf

of'W~

lam allocq, Man 'Undlol"' I .,5S, e total. W

has. r:emafned

W'lut-ilizedby
-

~lm~y.~
f6:~~g

1971 ~ Th!::; ~-u,nJ2lpn ted a ut.h'i'l·l'.i.zed .bec:t.n.r:!;l;ge was a cGo:untedforby /. ----------= ',., .
cOl"'I;lO:rat:iofl's alR,i gI'l.')UPS Qf~oWer:s: 61~?, has. ~ ... 4Q1t1

tho

STANFn{;OQrb.·up.

516 ha.s ... --

32% ---Oava.o

Frui,ts Corporati.on

and, fWln Ri.v~re.

330 has .• -,...~ 21%,--

Fhilip'pii.ne Plantation

P,acldng Gro.up (l.faS!n"·Ul Estat..a

I

F. S~ Di2lon:l' 'Evergrecl1 Fann15 )

wa
V'VVVVV'V

hn 5".........

6% ...-- TADE::O

1~596has~
Wi~hin thi~ ~ame ~l"iod,
.h01tfewr (197:'3-1977)..

th~ uMutho;ri~Efdp'h'lnt;ing
Clelaeto Orl:G,,,;ool.f' oft1he~·e
borI'Q'l!f-

~i~por,t; bansnae s

rea,cned

atotel
engaged

of

1, 562. h9,~~..
in

u.llautho.r,iz,cd planti·ngs:

WEi·l'·C"

"by eompa,nies, whiob bad. already

d'rllOney .bub nad:oo,t· 'yet 'plar);too

01"

,'!lC'ql.lfr,cclt.he land wh~:r:n WISS

was :l.ssu€d.

- 81 TIle,l"e:n ,of th:isUll<'luthori7..oo ' tablished oompaniefJ cashing

l'1aS

pl.8uting

was d,eJ.ibera-'t(8ly done by the 9'tho:r as'".. . in the ma.rket~ This llnauth-

in on tbe good prle~

M'hed plALnting..

a ccourrsed.~. .tar by th.e fo HaWing:2 = Fallr co:rrorate growers

?C?

n9,S '. ---

.4,.S%- ... --

(,l,at1ons 1lmder 101

,9

whi ch d.id not hfl-'!l,es'ny allo(CADECO~ sal"lDiento/SEI, Soriand

}:>Oration)

427

hae, ...... 21% -~Dos"id,alF:rui:ts I ---

)6a has

24$ _-_. F:tve corporA. tp. grmlltll"s of' the

PhiU ppine. Pa ck ing their' allocatJ.ORS

Group (:Oel Monte) wbich e:x~osdw under LOI

.sa

(Hi,jo

AMSFC~,Lap.arday

Dcvelopr.lSnt

Oo'~p,~Farmirlgtow:n, ~
.. 58. has
,j --

and .Delta) '.

Corpore:tio n

I./fJ -.I.et,ter

Ma buhay- Jlgricu It

Ul'a 1

1,.562 has.
F'I'esidcnt.ial arue,ooing the total
Il.eWI 01 provided 1

of Instructiq<rJ.

No. 79,0
I

~3

'issued

on. J~nua.rY' 6, 1979;

by LOI

hectal"8Re

lWt,ation

of' 2~,C.OO has,

mposEid.

58: This ~

~n aero ss-the-oo.'U'd 25% inCl'Jre!>s,a in he ctarago for all. g:ro,¥'ler'S

th 1JS a. uthorizoo

lis:ted in 1.01

;a:l' and

the plant:tng to e:~ rt bananas

o·r a

total of 4.~ 533 more l'H;:ctare is •

The issuance
Wel"!;,

of U)I 790 wa.s;j,ustiiiedmainl;y

on the: ground th'at there ·export

J;:$natk"l.3,

"def"inito incli,ea-tions of a growing demand. for Philippina m9,t.Ket as well

~,oth in the J~panese Ea·st.

as; newly--davla.ope-d marke·t.sin

the Midd.l.e

,.3
Howecyer,by mid-1,97S,
or

months bef·ore' t"ll.e i::isuance

of LOI 790~ the po.li·of the market

tical

~ituation

in Il"an had alreoo.:r led to' a cWal;ltic This was cruc:ial

d,QC1"6Rse

.for oocport bananas ,

in asr5e·s,sing.~he

prospe.et'lii

.ear the M1d~

Pbiltppine

dla Ea~t. m}lI;lt"kctsince Ira.n ;,rus abl;!oro1.ng _an, ave:l"6,ge of 82% of'tota,l

~·g2. -

.¢Xports to the ~:lE from 19.74 to 1977 i

But, the

int:e:r:nal

PQ;lit.ic.B.! .situ~ti.on ~rts

in

Iran wc:~ I"~pidly chang:i,ng and the i~"lpA.ct of tois on Philippin;ebanana. w~.s. h~Hl;~·t...;bro.akingo Philippine t
gro),<!e.ts. From a. high export t~oiIJ!l!l of

78,342,.564

kg. in 197;6~ exports

to Ira.n plur:run~tt.ed to lS,52jJ'OOfJ kg. in 197$ market was completely lost ..

or:'e;de-9reaso of 76%.

.4

By

1979" the Iranian

Asse·tl1bljrnltin

Ragelie

1;r~

Sarmiento

to su.pportth·e
Wf.hS

ind ustryl

So ·claim

that

it .16

W~i:leu'[,1y deproS'B-e.d.

First, it
~lffi

pointed out that the.re ·was an tlovel".Bupply pricesu·• SE.'H::OOO, there. The

sit~t'ion

in the

Japanese

t wh:icb d.epr-essed. mrket

thj;ir.~ has been Ita

wani.ng consumpbdon trend,. ,of the .Ja.panese consumen" '.

stre.sseqthat oil price

.r.esolut.ion further

the: draetd,e ~ncl~ea.i5e .m the costs of inputs hik'e nec€ssitatad the

brought about by the

industryl6

exemptionf.I"9!n

In addit-ion,. A~semlJ~A,finodol.r:o

del

110 oo·:rio, vi.ee:... r.esident p

and general-

·tnMager 0 f 'I'ADECQ( eo Ie
jor a; reductdca 'Presidont

&0 Tt/e~

fo r U:nited Bra:mts) a 15 0' submitted

a p eti td.on

of the. eXpOr't tax from4'f;

to 2:%. pel nOMl'io r-epor-ted that

Har'cos granrt·ed the reduction

fot' apel'iod

of one yeal" (1990)~ under LOr 790 value of oxthe banana

Land Allocation

Inth0

faCia of the instability of the 'mark€:t, the declining

port prices in real·terms" .. ana::the increa.:se,d cost of production,

the provisions 1;17 pcdnt s.d out

crf 101 790.

One of

t._J..irB

leading corpOrate

man.~gerl1l Qf

the indu6-

t:na t

in .3 compa.nies ~~~. Devae. li'ruit s , Hi jo;

and 'I'w.in Riva rs ---

somaIJ 100 hae , 'are' being

0'[ pt''Odooti.On~ 5

phased

out because

of bad. expart

pr1.CGsa.nd h;lgh coq.sts

It :ia a f a.ct how,ever, t be t WI

790

,has lega llz~d

all

't heune utho'r i2!ed

foUl' of
howeve'l"...

p1antings amountdng to some 1,562 has.

engaged in by 10 corpor~t.ions,

Which did 'not even Mveany

is the .fa.ct, that ~n

allocations

under LOI 58..

legal

More importanil
fer

L01 790 no 1\1 pl'ovide{i a clear

00sis

the: continued.

5ioD, 0 f the N!l'Ia;m oompa e ;L(.:to eddit.i anal llie

$,gric ~ltura 1 uutd.$ ~

Tho pro vh i.qns rjf toI 790 work be s-t t '0 th.e: a,dva:iit~g~ ot the bigger' and
a~ron,ge,r cQr~ation6t

.Thus, WI 790 ~fld~tcs

a 25% pro;rata

distribution agricult-u-

:61 a.d.ditiQn~l. hectar~~ge to eXist.ing g;rot-rersu'who have the ~eBs.ar;y;

'ral iexOOl"ttse ~-and ~'BtablilShed ~

Illest position

'w

attain

ro,il.rKoting t,:!B-ups

and

WQU~,

ther>;ofol"e be in the use, of in the

the

Glpt:ilm.III1diLlgree ·of 'economic eiTieiencybeCB the

~Ci()I~?!)mies' ,eu::,a.l.E:l deemed 'necest1ary to enable Qf

;.fiel":cely eompatit:illEl

;iniu.str;y

to ,~mpe.te
stippll,ed)

banana

export

l'OO.r.k,et.s~. c'~erscoring 6
,

The bigger,

esta.blished

corporations, w:ill liln:rWis:e benefit from tbe proI

Vision that a.ll e.dditional

.J~1.:li'Ile 30., 19.92 shall

area allooat.ions

no"t fully pl~ntedon.

or bero·re

Ir.'evert b~ck:tc

tLe Banaria gro'wers

l,rOO

Expor-t

IndUBtry Commiitee for

"
I

distrihuti:Qn

to Qthera:uthor1zed

·have· e omplil3'd with the c-ondit·io;ns,

;.

set. f oreh by' the 10 I,~7 Another seet;,.1,on of LOI 790 whioh also worke to the ildvantage

, ,

.of the e$t.e.bhave ceased

Ush.ed; big oorpo·ratiol)$ is thopiovico· F.o~d!uetion.:i?o:r' any reBson

t.ra.nsf.er to 'Other qualified
wit>lli3.

tha.t f1autho1!'ized ,area-B, th$t

.shall

r~lavert to the Thus,

Co,m.m1ttee .for re-·sssigrmtcnt

Mabuhay Agrkultur,a.l

or

grow;ers~tIS

c.orporat:h:m.

total

e.frc~c:tive bectarago of 414 ha , haa, been phased o,u-t sud its a1lo~

- 1'14 -

their und evelo.p~d, val®ll!tother areas

un,prod uctiv'e deemadmore for

:orig in~,l land ~'11Den ttOfl tl1'IP er WI 58 for e.g1.11.prod.uetiv$ fur ths' pl~!1ting of
6Xp.?I't

ba.m3.nas~,9

~,~.~ Problem of All:Q:,Q8.tjoIl A special cr~l'nB the

th~. 8m,all Grorder-a under LOI 790 g:rcn<rers-of tot-al

001'1-

pr.oblem brought ,ahout by the land alkl,c,ations of STANFILOO,. T here to 7 has'.

5ffl.:-'l1l growers

~1:'e some ,377 small Thes,e s~ll

DaVtilO

STJUlFILCOwith

.farms aver&g,ing from; are in ,(ffirteral

:farms whlch

,a,bout .2,629' ha s.

Santos City and.

del

NorM F.l.ud do not

o,cc,.upy one cb!l1ll:lQncpnt,iguo1lS

Under 1.01

tJI'aa. growers and the· STANFILCO managed farm,

(j,,£,

190~ tho sl1lll.:11

DAP(JO,

'Wer,e 8\'\!aMed a tct'a~ 'bow,ew:r"nas hecta:ra,ge

a.dd,itional al1oeation

684 has ,

No clear-cut

mechanism,

been !lgreed upon for

the stnall gl'l:nmi"s.

t.he allocation

of t.his additional 3uthori!tl.OO a.warded u.ni"", com-

to

}ean'L'lblle,!!, 8TANFILOO h,~d.mlr€lady

l:a.terelly, 110 ha6~or

this

allocation

to Sar~nganj

O:orpor-ation, a. cattle

,pgny bl\~l.nching out into the production -t6r C~stle' and' Cooke, World.wide.,
Indeed., ther'e ,~ complex problem,s

of bana,nas as a d.ire·ct g:rower~exporter

invol:v--ed :in thlil alloocratitm

J::'mi:i •

of a:mall t,o

:UlorOOleJl t 5, of lq,nd to the 'l-tidelY-disper 5 00. SfOOi g_ro wer fa 11

One prO j;losa'l

j

tIlIl:at hi::i' problem.. is to award the t in t?e' formo!

8

,e.11ocation to ~he S:fIlf\ll grower

a assoc:iation

contiguous block of" land !:!orresponding

to the tot~l

or

th~

;lfu\i vj~dua.lallocationS.

gromrs, under LOI 790 will 8enta~ealities

hav€l to be worked out l'Idth STANFIUJOgiven

the pre-

of the small g,rowerl S contl'8l.ot~.

0l'ientea to"'f8.rds export

markets,

am. whose operations

a:r"E!contt'(~.Ued in varying

~a60S and subst&nt1.al degrees by tra.nsnational The ba~naexp'ol"t j.ndustr'y "by tts'Vel"Y

eorpo rat ion 8,•

noa ture , is one 5.eotOl' of the &Co-

~ci,dly

t.he Japana:illemrket

at. t his stege"

like

Internal

govel"rltrJ.ent policie~
policiea,are UMble to

aJ,1Iied .cont,l"o]Ung at ~rfectivelycope

the· supply"

land alla,cation forces

with othel" de'cisive

that aff,(j'ct th¢

ovel~-an supply

Of th_e.sEima.ny-f9I'Ce-s 'policies are the, production tri\5i$. and the TNCsin

1i.ggravate.d

beyond! th.~ eff~Q~i ve rea.ch and control

of ,€;::nrarnment.

and m,arketin'g 'str~:tegie:;l of othel" producer ooun-

·the industry,
an

to name just one"

:lnternatioMl
I

This

problem

is further

by the

lq,clir;: of

effectivG the

organization

(Jl[-mtlchani:';ffi between,

that is able

to !"',ntiQnalize

prod.notion

and. ma,l"kating relations

p1'odue:e-:r8 em-a; imfX? rt ing co u:nt rle a wi't hin_ the

'l'he~m inadequ;;ciea th:e e.oonomy. of nat·ional

re.nam.l. ind:ustl'y.
consequences .for

c;:ontr:ol can haye serd.ous banana industry,

urIDet'

In th.e specifi.c

case of the

for inst.ance ~ addi-

tional ggl"'.icultUT~l lands

allo,~a,ted

tal"' t.ho inchtstry

L01 790 coUld. have mn€lfU the

't-een,used 'for more immediately

productive

projeot.s

·that

direc·'tly

1 2 3
4,

Let t'Gl" of
Th' ___ :l,_d ~
lbid~

Inst.ruc tion

t.Jio¥

790 ~ J~.nuary 6",1919

~<

FTSP? .National Cens'us and ~e:ti!5tie5 Cen;t~al B.;th1<,~ 19

Office ~ 'Vicb~ptesl~ent ~

5 J:iJ:te-rview

with Mr ~ -Carle)s' D,omtngue~ III ... $enior Davao FrUit~ C0rporatiOD"~ (A,pril.:t19$O)~,

S Ibid...

:9 ~~

I'

... 87 33:"
l"he T~riff
Rat.e _~.nct~rton.

Box. Issu$B
to Japan are .im~se.d. atal"'i ff duty ra.n.gi.ngf!'otn

:f!hili,Win.e 'banana exports

3.5 to 56$ of the:ll" value.

If' .imported bet\'1een October

and Ma:rch 'limen.Ja,p1'lDoesQ

Q

t:anger inE!s a 1'8 on the market j FhilippinebnMna!3

r~ng1ng .!l!."om.

ar.e su bj e c teat

tariff rat e $

4%

to

,qt~
the

.During

the off-season

·1b.l" the Japam:rsl,J l2ngerines

~mI1~ l~ikan., the. t,al'iff r.a..te is.35%~

Eyco'ntra.st, '£.1'"mtM United

:~aFirron llnPOrted prang.es or gra.pe:fl'ujt

is pnly

ma.1nl;,r comin.g and 20% during

States

j;.bo'!,lt 40% d.uril1g t...ho: llIikl1).fl season

These a. 1'9: contirruing api':lnf'or the

~\;l,l;l.

h:tgh lllJvBl TIDgO.tia tiou6 .ofthe ta.riff 'bf'ficl.als rate

betwae-n t.he fhilippineo Bnd banenaa to 20% or even

roouetion

on Phi.ll.ppi!1.6

f'd.l

However, even indust.ry

adm:i,t that

lowering

dut:l:es on banenae

.A.side·. rom tho high t~l".:i.ff l"s;t.ea inipqsed.. on Philippine f

banana

~xports

to

'the bananas.

Jlpe..ne.se-nBde ca.rt'c)Ds a:;r,e entered

a tariff d\ltyof

d.uty free

in ·Jap.'i!.n but Philva:tue~

_ippine11ada bo:){'es are slapped In on,€!Qstima.te ,to one-half

ID.ado

40 1.0 50% of their

in. 1979, the cost. of theca.rton box of bansnas

box m.lMicUP close in J!ipa.n ..2.

(4.3%) alf the p:ri.:;:e IOf ~ I;;-kilo

Since 1968,

Ja.pi9.ne~e,_nndeeol"1'"i.i.gated Ml'toneo)tes

h~ve 'been imported of aJ.loloJing the

:£romJapan j:.n kneeked-doxn importcltion. duty-free 0'£ thB. Tariff

form and tax-tree,.

This pl'actic,o

of c8rtoA boxes ,"!et"U.~1.lyviola.t,es (hdffj imposing

pertinent-provisions

and Cus~~s

a 100% ad: valo;rem duty on such imso in the light of tho .fact. t.hat the
S

PQrted 8,rticle~fo' corrugat.ed eentives

Th~ is especially

Icarton iOOi\.U;} tl"Y in the F.b.i1i:ppin.e::s, ha.s t sen gi ven a 11 sort priorities plan.

of' in~

under the export.