DAVAO CITY — Attacks from the communist New People’s Army (NPA) continues to be the biggest concern of banana industry players as they prepare for their annual conference slated this year on Oct. 12-13.

“We are afraid if this continues, the investment of multinational companies will fold up,” Ferdinand Y. Marañon, president of the Philippine Exporters Confederation (PhilExport)-Davao Region, said in a media forum earlier this week.

Mr. Marañon said that as a rule of thumb, the banana sector, especially multinationals, never give in to revolutionary tax demands or extortion by the NPA. “Once we do that there is no end to the amount we are giving.”

“One of the main concerns of the industry now is security so we have invited Defense Secretary Delfin (N.) Lorenzana to be one of our resource persons,” he said.

Investors in the country’s second-biggest agricultural commodity, he added, need reassurance from Mr. Lorenzana that the government is addressing the long-standing threat from the armed NPAs.

One of the recent NPA attacks simultaneously targeted three facilities of Lapanday Foods Corp. (LFC) in Davao City, including two farms and a packaging plant that was completely burned down.

LFC has announced that it will not rebuild the plant, which would cost about P2 billion.

Stephen A. Antig, executive director of the Pilipino Banana Growers and Exporters Association, Inc., previously said that a multinational company decided to close down its operations in Surigao del Sur after losing about P20 million in the last five years due to NPA demands and attacks.

Mr. Marañon said none of the big players have indicated plans to totally pull out operations in the Philippines, but they are adopting a wait-and-see attitude. One company, he added, has started leasing more areas in Latin American countries instead of considering expanding here.

Mr. Marañon said they believe that the only long-term solution to this problem is for government to pursue the peace talks with the National Democratic Front and Communist Party of the Philippines (CPP).

The government has pulled out of the new round of peace talks initiated by President Rodrigo R. Duterte upon assumption into office in July last year. Mr. Duterte has ordered to put the discussions on hold following pronouncements by the CPP leadership that the NPA should step up attacks.

“Unless that’s (peace agreement) done, we don’t see a solution to this issue. I can’t see any solution if we will cut the talks, but let us not lose hope that it will be solved,” Mr. Marañon said.

Meanwhile, Marizon S. Loreto, PhilExport-Davao executive director, said other issues that will be discussed during the banana conference are production improvement and competitiveness.

“We need to address both the technical and nontechnical issues that have confronted the industry because this is affecting both our competitiveness as well as our marketability in the global market,” said Ms. Loreto, a retired regional director of the Department of Trade and Industry.

She added that small banana growers must keep up with technological innovations to become competitive. — Carmencita A. Carillo and Carmelito Q. Francisco

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