Japanese-owned company Sumifru Banana Corp announced it is terminating its operations in the towns of Antipas and Magpet in the Filipino province of North Cotabato.
The move comes in the wake of Iran’s blockade on Philippine Bananas, which the Pilipino Banana Growers’ and Exporters’ Association predicts will cost the industry 64,000 jobs.
A source in the industry told Fruitnet.com that Sumifru had indicated it would scale-back operations in the Philippines if the standoff with Iran lasted more than a month.
The Philippine Daily Inquirer reported that Iran ceased importing goods from the US and allied countries following Washington’s ban on trade with Iran over its nuclear energy program.
Sumifru will continue to operate its plantations in the towns of Arakan, Makilala and Tulunan - all in North Cotabato, the newspaper reported.
Head of Sumifru’s human resource department Ricky Tagabucba wrote to the mayors of the affected towns to explain the company’s decision.
“After a careful and exhaustive review, the company has decided to shut down our operations in these towns to maintain the viability of remaining plantations in the province,” he wrote.
The Iran ban exacerbated the company’s existing problems with high production costs, low productivity, chronic pest and disease issues, and inadequate roads, he told the newspaper.
Tagabucba said at least 116 employees would be affected by the shutdown.
Magpet Mayor Efren Piñol told the newspaper the pullout could also be the result of harassment by the Communist New People’s Army.
Early Tuesday morning, some 50 rebels stormed Sumifru’s banana plantation in Magpet and burned a boomtruck.
