The
cost of bananas from the Philippines has shot up, but farmers are struggling
with losses, so where is the money from consumers going to, ultimately? The
series For Food’s Sake! investigates.
DAVAO,
Philippines: Of all the types of bananas his family’s fruit business sells, the
Philippine Cavendish variety is the most popular, owing to its appearance.
“They
look almost perfect. There are fewer blemishes and fewer scratches, compared to
the Malaysian ones,” said retailer Ben Phua. “Malaysian bananas have black
spots.”
Those
spots are actually sugar spots and thus equate to sweeter bananas, but “not
many consumers are willing to accept the look of the bananas”.
The price he pays for the Cavendish variety,
however, has gone up by 25 per cent in the past three years. That works out at
around 50 cents more per kilogramme, which is passed on to customers.
The reason for the hike is a fungal disease –
one that all banana growers fear – which struck the Philippines hard in 2015
and has since wiped out plantations.
The country went from supplying 49.5 per cent of
Singapore’s bananas that year to 37 per cent last year, or 21,900 tonnes –
although that is not the only issue, as the series For Food’s Sake! discovers.
Shockingly, many farmers do not get a single
cent from the price rise. Instead, they must bear the twin burdens of the
epidemic and of continuing to produce bananas for consumers. They are given no
other choice.
PANAMA
DISEASE
In
2014, the Philippines was the world’s second-largest exporter of bananas –
after Ecuador – with the Davao region in the southern island of Mindanao as its
banana production hub.
But
by 2016, the country dropped to sixth because of what is known as the Panama
disease, which blocks the banana plant’s water system, causing its stem to rot
and leaves to wilt.
To
date, the disease – which is spread through the soil and water run-off – has
destroyed more than 15,000 hectares of bananas in the region.
There
is no cure; the only way to arrest the spread of the fungus is to burn the
infected plants to the ground.
Farmers
are also advised to replace their bananas with more a resistant variety. But more
resistant means more expensive and a lower yield, and is no guarantee against
infection either.
“In
the older varieties, the infection rate is at 50 to 100 per cent. The infection
rate for the resistant variety is lower, at 20 to 40 per cent,” said plant
pathologist Rogelio Gutierrez from the country’s Department of Agriculture.
There
is little else the farmers can do. “Once an area has been infected … even after
three decades, if you replant bananas in the area, the fungus will always
resurface,” he explained.
The
impact on farmers like Mauro Jonas has been severe. “For every hectare I’ve
replanted, I’m forking out about 350,000 pesos (S$9,150) in expenses. So our
debts ballooned. And we’re still not earning any income,” said the 42-year-old.
“Until
now, I’m struggling to pay my workers’ salaries on time. Sometimes I even have
to pay them quarterly. That’s how tough it’s been.”
WHY
FARMERS AREN’T COMPENSATED
It
is thanks to a land distribution programme in the 1990s that small-scale
farmers own almost half of the banana farms in the Philippines now. But many of
them lack the capital to produce quality bananas for export.
To finance their operations, they enter into
contracts with multinational companies, which help to pay for the pesticides
and fertilisers needed, among other things.
But there is a caveat: In the contract, the
farmer must agree to sell his bananas exclusively to the company and at a fixed
price for 15 years – epidemic or otherwise.
“This is why farmers are struggling,” said
33-year-old Elizar Diayon, a farmer tending two hectares of land in the
Compostela Valley province.
He gets paid 180 pesos per box of bananas, which
is “too low” and “not even enough” to feed his family. And yet, “many farm owners
don’t have any choice” but to accept the prices set by the companies.
“The cost of the chemicals and other farming
inputs are also deducted from what the company pays for our bananas,” he added.
He, for one, is trying to find a better-paying
job. But there are around 45,000 farmers locked into such contracts. And their
work is not easy, as bananas are “so hard to care for”, said Mr Diayon.
“You need to place a cellophane sheet (in
between the layers) to prevent the bananas from bruising,” he cited.
He added: “We also cover the bananas with
newspaper to prevent sunburn. Lastly we have to cover the whole bunch with
plastic. This prevents ants and bats from gaining access to the bananas.”
Harvesting is also done manually. The bunches of
bananas are heavy, so padded carriers are used to prevent the fruits from
bruising.
All these steps are taken in order to pass the
checks of supermarkets overseas. But in Singapore, the bananas may retail at up
to 11 times what the Philippine farmer earns.
PACKERS
SHORT-CHANGED TOO
While
the farmers take great care of their fruits, do the multinationals do the same
for them? According to Mr Diayon, the companies pay for crop dusting, but are
not issuing enough protective gear.
“We
can’t wear the gear any more because it’s torn. They should issue new ones
twice a year, but they only issue once a year,” he said.
“I
can feel that I’m getting weaker (from the pesticide). Sometimes I can go to
work only a few times a week. Sometimes I’d vomit. I’m also having difficulties
swallowing because my throat has become dry.”
Lawyer
Irvin Sagarino, from the non-profit advocacy group Initiatives for Dialogue and
Empowerment through Alternative Legal Services (Ideals) Inc., Philippines, has
observed how the companies are putting farmers at a loss.
“The quality of life and the financial situation
of many banana farmers haven’t really improved. In contrast, banana companies
seem to be getting bigger and bigger,” he said.
“The problem lies in getting accurate data (on
the selling price of bananas). Without hard data, it isn’t easy to prove that
only the big companies are profiting. (They) will never share this
information.”
It is not only the farmers but also the banana
packers who have been taken for granted. The latter are the ones who sort, wash
and pack the fruits at packing plants owned by export companies.
This
process is hard to mechanise because bananas are easily damaged. So without the
legions of packers, the production chain would come to a halt.
For
years, they have been fighting to be hired as regular staff, and not
freelancers from agencies under contract with the banana companies. If those
business contracts are terminated, they would lose their jobs.
Last
year, a decade after a case was filed, the Supreme Court ruled that there was
“substantial evidence” of an employer-employee relationship between one major
exporter and its workers.
The
court issued an order allowing a trade union to represent the workers in
demanding the regularisation of their working arrangements and the granting of
benefits.
These
workers have also not benefited from the price hike. For years, they have been
paid around 100 pesos a day at most – equivalent to what Singaporeans pay for a
bunch of bananas.
BLAME
GAME
If
so little of what consumers pay goes to the farmers and packers, then where has
the money gone?
Philippine
Banana Growers and Exporters Association executive director Stephen Antig
claims that the exporters are also tied to a fixed price through contracts with
international traders, including from Singapore.
“Big
corporate farms sign contracts with importers on a yearly basis, and prices are
set annually … That has always been a sore point,” he said.
“There
was (once) we proposed that there should be a sharing of the profit, but they
never agreed to open their books. And for that reason, we didn’t bother to
insist, otherwise it might affect our relationship.”
It
is a “known fact”, he added, that wholesalers are “raking it in”.
The importers, in their turn, blame the
exporters. Although the For Food’s Sake! team asked both sides for months,
neither were willing to show any concrete numbers. What is certain is that the
farmers are at the losing end.
In
a 120-page study published this year, non-governmental organisation Oxfam found
that banana farmers in the Philippines, especially in Mindanao, were “food
insecure”. This means that they or a family member “had gone without enough
food in the previous month”.
Of
the 147 farmers and packers interviewed, 37 per cent were moderately food
insecure and 38 per cent were severely food insecure.
There
is not much consumers in Singapore can do about that for now, until Fairtrade
bananas become an option here. Fairtrade guarantees farmers a minimum price per
box, which could possibly give Filipino farmers nearly double the current
amount.
“But
that doesn’t mean this trip (to the Philippines) has been for nothing,” said
programme host Lennard Yeong. “We’ve taken a big first step in realising the
imbalance of power and profit in the banana supply chain.”
Source : Chanelnewasia
The Best
Small Businesses Opportunities for 2018
Welcome to my list of the best small businesses
opportunities for 2018, chosen from across a variety of industries. To make my
list, these businesses must:
have the
potential to be profitable now and for many years in the future;
be able to
do well even in uncertain economic times;
not
require a PhD or decades of experience. Some require trade school training, a
university degree or a prior apprenticeship, while others need only some prior
experience and a passion for the industry.
not
require large amounts of startup capital, but only what every startup business
requires: dedication, hard work, perseverance and a desire to succeed.
Most of these opportunities can be operated as
home-based businesses.
If your goal in life is to become very wealthy,
chances are you won't get there as a small business owner. But you'll have a
chance to generate a healthy income, be your own boss and make all the
decisions. You could potentially have a more flexible lifestyle. Building
something from the ground up can make starting a business very rewarding in
itself.
Here are my picks for the best small business ideas
based on current trends in business and demographics.
01. Virtual
Reality
young asian man with VR in modern cafe
Virtual reality computing (VR) is a huge leap
forward in immersing the user in a realistic sensory experience. Hardware and
software vendors are working furiously to bring new VR products to the
marketplace and the industry is growing at a parabolic rate - according to
statista by 2020 the worldwide size of the VR market will be in excess of $40
billion.
The potential uses of virtual reality for business
or pleasure are practically limitless, for example:
3D movies
- watching a movie in 360 degree VR
Real
estate marketing - imagine searching for a new home and being able to take an
online VR walk through of an advertised house from the comfort of your desk
chair
Gaming -
VR is revolutionizing the gaming industry, with new VR titles being released on
an almost weekly basis
Team-building exercises - shaking up team building events with a group
VR experience
Social
media VR interaction - friends will be able to interact in a virtual online
space
Training -
VR can inject a much higher degree of realism into training scenarios. Many
businesses (such as UPS) are launching new delivery driver training programs
using VR.
Meditation
- VR is ideal for customized meditation
VR "escape rooms" and lounges (where
groups of people get together to play VR games or go on VR adventures and/or
solve group puzzles) are experiencing phenomenal growth. If you are tech savvy
and interested in the technology, virtual reality could be the business
opportunity for you.
02. Skilled Trades Welder
It's unfortunate that nowadays that some parents
have a tendency to discourage their children from considering skilled trades as
a career choice, in part due of the erroneous belief that trades are poorly
paid. In fact, skilled tradespeople are generally very well paid and enjoy
satisfying careers.
It has been estimated that 40% of current
tradespeople will be retiring in the next decade, creating a huge demand for
talented workers in trades such as:
·
Welding
·
Carpentry and general construction
·
Plumbing, pipefitting and steamfitting
·
Electrical and electronic control systems
·
Heating, ventilation, air conditioning, and
refrigeration (HVAC)
·
Machinists and Metalworkers
·
Masonry
·
Steelworking
The nature of skilled trades makes them ideally
suited for self-employment:
High
salaries and strong demand for experienced tradespeople in most locations
Most
trades can be operated as home-based businesses as the work is performed at the
customer job site
Compared
to many businesses, startup capital costs are relatively low for most skilled
trades, and most cannot be automated to any degree, ensuring future job
security
The
ability to relocate to other jurisdictions where demand is stronger. Many
experienced tradespeople take advantage of opportunities in remote or overseas
locations to command much higher levels of compensation.
Why not take advantage of the demand and consider
one of the skilled trades as your next business opportunity? Using rollover for
business.
03. Software Engineering and Development
Young computer programmer at a startup company
Software engineers and developers create, test and
maintain software on a variety of platforms, from mainframes to mobile devices.
According to the U.S. Bureau of Labor Statistics, the demand for software
developers is expected to increase by 17 percent each year through 2023, and
the median pay in 2014 was slightly over $100,000 per year.
The nature of the software development industry
makes it ideal for contract employment. Many software engineers start out as
salaried employees and eventually become self-employed contractors. Cloud
computing and ease of remote access make software development an ideal
home-based business.
04. Children's Services
Small children jumping on bosu balls on training
class.
There are business opportunities in a variety of
areas in the children's services market, including:
Quality
preschool education, including environmentally-focused offerings such as
outdoor preschools
If you enjoy working with children and have
instructional training and/or experience, why not turn it into a business?
05. Home Renovations
Contractor
If construction is in your blood and you think you
would enjoy making clients' home renovation dreams come true why not turn it
into a business?
Ask almost anyone who is needs repairs or
renovations done on their home (or business) - remodeling contractors are hard
to find and the good ones are always busy. Home renovation is one business that
always seems to do well, even in uncertain economic times.
Statistics show that the average home owner in the
U.S. spends approximately $3000 per year on home improvements - generating a
lot of business for carpenters, painters, drywallers, roofers, tilers, and
other tradespeople.
The home renovations business is ideally suited to
self-employed individuals for a number of reasons:
Most
renovations are performed on a contract basis
Startup
capital investment for tools and machinery is typically much less than required
for new construction
Business
premises are not required as the work is performed at the customer location,
making remodeling a perfect home-based businesses
Remodeling contractors provide services in a number
of different ways:
As
individuals, where the contractor performs most or all of the work themselves
As general
contractors, who hire and supervise employees or subcontractor who perform the
work
As specialists in a particular area, such as
bathroom or kitchen renovations, or niches such as restoring historic
structures, improving energy efficiency, or solar installations
To be a successful renovation contractor you should
have:
Extensive
experience in building construction, with hands-on expertise in at least one of
the trades and knowledge of the others
Good
contacts within the industry, so if needed you can call in sub-contractors to
get specialty work performed in a timely fashion (such as architects,
structural engineers, licensed electricians, plumbers, tilers, etc.)
Up-to-date
knowledge of the local building codes and safety regulations
Licensing
and certification if required in your jurisdiction. In the U.S., the National
Association of the Remodeling Industry offers various levels of certification
for remodellers.
Good
organizational skills
06. Bike Sales, Service and Rentals
Bicycles for sale in shop
Given the health and environmental benefits, it's no
wonder that bicycling has become the second most popular outdoor activity in
America by frequency of participation. According to peopleforbikes:
U.S. bike
commuting has grown 47 percent nationwide and 73 percent in the largest cities
over a 10-year period. North American cities are trying hard to increase the
number of people using bikes rather than cars to commute to work.
Americans
spend $81 billion on biking annually, generating 770,000 jobs.
Anything that’s healthy, popular, good for the
environment and heavily promoted by government is a pretty good business bet.
In addition to pedal-only powered bikes, E-bikes have become very popular.
E-bikes can be pedaled without electric power or use electric power to assist,
and sales are expected to hit close to 50 million units by 2018. Regular pedal
bikes can be converted to E-bikes with a kit that allows replacement of the
front or back wheel hub with one containing a small electric motor and adding a
battery and cabling.
If cycling is your passion and you want to become an
entrepreneur, this may be the perfect business opportunity for you.
07. Senior Care Services
Carer holding hand of senior woman
Senior care services continue to rank as one of the
best business opportunities. Demographics play a big role. The first baby
boomers hit age 65 in 2011. The entire baby boomer generation will have will
have reached age 65 by 2030. Seniors will make up 1/4 of the entire U.S.
population. Unfortunately, although they are expected to live longer lives than
previous generations, it's also expected that they'll spend more years in
sickness, according to a report on senior’s health by the not-for-profit United
Health Foundation.
Fortunately, baby boomers are a wealthy demographic
compared to previous generations. For the most part, they can afford to pay for
the services necessary to maintain their lifestyles. This includes continuing
to live at home in their own communities. According to research by the American
Association of Retired Persons (AARP), nearly 90 percent of seniors have this
goal.
Many affluent seniors suffer from various health
and/or mobility issues and are increasingly uncomfortable or unable to drive
their own vehicles. They may find it difficult or impossible to take care of
household chores such as landscaping, cleaning, cooking or caring for their
pets. Others travel extensively and require house sitting or pet sitting and
property maintenance services. All in all, a wealth of opportunities exist for
entrepreneurs who wish to take advantage of the senior care trend. If you're
not interesting in starting your own business from scratch, various senior care
franchise opportunities are available.
08. Body Decoration Services (Piercings and Tattoos)
Tattoo
According to statistics, the tattoo industry
generated $3 billion in revenue in 2014 and continues to grow rapidly:
40 percent
of American households have at least one member with a tattoo, up from 21
percent in 1999
22 percent
of young millennials have at least one tattoo
30 percent
of people aged 25-39 have tattoos and 40 percent of adults aged 30-39
Tattoos
are also popular with middle-aged adults — 30 percent of those aged 40-49 have
at least one
Most tattoo artists learn the trade via an
apprenticeship alongside a professional (typically three years or more). For
health and safety reasons, some jurisdictions require classroom experience.
If you have artistic and creative skills, becoming a
tattoo artist can be an excellent business opportunity.
09. Counseling and Therapy
The mental health field is another profession that
is experiencing increased demand for services. The BLS expects the need for
marriage and family therapists to grow 41 percent by 2020.
The nature of mental health counseling makes it
suitable for private practice. Many professionals in the field make the
occupational choice to start their own counseling businesses. This typically
requires extensive schooling, however, and often post-graduate degree.
10. Financial Advisor/Planner
Businessman meeting with clients
Financial advisers/planners are expected to be in
high demand with a projected growth rate of 30 percent through 2026, according
to the U.S. Bureau of Labor Statistics. Studies in Canada indicate that only 20
percent of Canadians have confidence in their math and money skills as they
relate to planning for a secure financial future, according to a 2011 survey by
Ipsos Reid for ABC Life Literacy Canada.
Becoming a financial adviser/planner normally
requires a bachelor's degree and additional training in securities management,
leading to licensing/certification. But this is another business that is riding
the demographic wave. A huge pool of baby boomers are headed for retirement,
and they need and want help with their finances. Financial advising and
planning is an ideal business opportunity.
