The Philippine Pineapple Industry

L.P. Balitoa
Dole Philippines, Incorporated
9504 Polomolok, South Cotabato
Philippines
Keywords: pineapple export, industry, pineapple products, prospects, market
Abstract
As a leading exporter of fresh and processed pineapple products in the world
next to Thailand, the Philippines export industry is increasing. There are a number
of processing plants in the Philippines, some of these are owned by multinational
companies: Dole Philippines and Del Monte Foods. Dole Philippines is one of the
largest multinational companies in the Philippines, operating on approximately
20,000 ha of land. In 2009, Dole had 57.8 and 47.6% shares of the US market for
canned and fruit cup products, respectively, while Del Monte only had 9.0 and
36.7% market shares for the same products. Biggest fresh pineapple exporters were
Dole, Del Monte Philippines and a farmers cooperative in Basud, Camarines Norte.
Importing roughly 65% of fresh pineapple shipment from the Philippines, Japan
serves as the biggest export market for the Philippines. The huge demand in China
and South Korea for fresh pineapple prompted Mindanao-based agribusiness
companies to expand their capacities by 10 to 20% this year. The new Queen
Pineapple cultivar from Camarines Norte generated the interest of buyers overseas
and recently, trial shipments were made to South Korea. According to the
Department of Agricultures Agribusiness Marketing Service study, prospects for
the Philippine pineapple industry are bright with domestic demand estimated over
the next 10 years to be growing by an average of 4 to 7% every year. Other export
markets for fresh Philippine pineapple are the Middle East (Sharjah, Jabel Ali, Abu
Dhabi, Qatar and Kuwait), New Zealand, Hong Kong, Canada, Guam, Russia and
Germany.
INTRODUCTION
The Philippines ranks second after Thailand among the leading pineapple
producers and exporters of fresh and processed pineapple products in the world. Along
with Indonesia and Thailand, the Philippines comprise nearly 80% of the worlds canned
pineapple supply. The Philippines and Thailand also make up 65% of the worlds supply
of single strength pineapple juice. In the top 10 Philippine Agricultural Exports (2007),
pineapple and pineapple products were listed number three with a 7.8% share of total
exports. The Philippines annual exports in pineapple concentrates increased by 42%
from 2007 to 2008, while its exports in pineapple juice increased by 34%. In 2009, the
Philippines produced $ 94 million in processed products for export.
The Philippines have 28 processing plants and 85% of the pineapple processing
operation belongs to two companies: Del Monte Foods and Dole. Pineapple is processed
into puree, dried, juice concentrates, canned products and fruit cocktail in syrup that is
intended for export. In 2009, Dole had 57.8 and 47.6% shares in the US market for
canned and fruit cup products, respectively, while Del Monte only had 9.0 and 36.7%
market shares for the same products. Dole Philippines (Dolefil) is one of the largest
multinational companies in the Philippines, operating on approximately 58,425 ha of
land.
The countrys fresh pineapple exports are from Mindanao growers. Exports
jumped by 305%, from the previous years 59,000 to 290,000 tons in the first 8 months of
the year, largely due to rising demand in China and South Korea. Coming in third from
a

leo.balito@dole.com

Proc. 7th International Pineapple Symposium

Eds.: H. Abdullah et al.
Acta Hort. 902, ISHS 2011

53

big pineapple exporters like Dole Philippines Inc. and Del Monte Philippines is a farmers
cooperative in Basud, Camarines Norte. The biggest export market for the Philippines is
Japan which imports about 65% of fresh pineapple shipments from the Philippines. Other
markets for fresh Philippine pineapple are South Korea, the Middle East (Sharjah, Jabel
Ali, Abu Dhabi and Kuwait), New Zealand, Hong Kong, Qatar, Canada, Guam, Russia
and Germany. There is huge demand for fresh pineapples in China prompting
agribusiness companies based in Mindanao to expand their capacities. Pineapple
producers registered with the Board of Investments have expanded their annual
production capacity this year by 10 to 20% to accommodate the growing demand
particularly in the export markets.
PRODUCTION
Total volume of harvests in 2009 was 2.198 million tons (Table 1 and Fig. 1). This
was 0.5% lower than the 2008 production of 2.209 million tons. Even during the first
quarter of 2010, production of 497,988 tons was down by 1.25% compared to the
previous years level. Among the top three producing regions, only Northern Mindanao
reported a production increase of 1.97% due to area expansion of Lapanday, Del Monte
and Sumifru plantations. SOCSKSARGEN which shared 46% of total pineapple
production reported a 3.66% contraction in 2009, which dipped further to 5.39% in the
first quarter of 2010. This was attributed to dry spell and smaller 1R fruits, thus lower
yield. Likewise, the dry spell affected the pineapple producing areas in Western and
Eastern Visayas and Cagayan Valley, with harvest down by 3.82, 2.57 and 10%,
respectively.
AREA PLANTED
Area planted to pineapple rose from 58,251 ha in 2008 to 58,823 ha in 2009, only
about a 1% increase (Table 2), despite of a 1.65% increase during the latter half of 2009.
The major contributor to the production decline was a shift of commercial plantations to
corn and Cavendish banana cultivation.
PRICES
Except for wholesale prices, there were no significant increases in farm and retail
prices of Hawaiian pineapple compared with the same period of 2008. The average
wholesale price during the reference period was P 1.40 higher compared to its 2008 price
(Fig. 2).
TRADE
Exports of pineapple products amounted to 254,579 t valued at USD 123.5 M in
the first half of 2009 (Table 3 and Fig. 3). This represented additional export earnings of
USD 4.1 M over the same period of 2008.
IMPORTS
Pineapple imports also went up by 61.02% from USD 654,000 in the first half of
2008 to USD 1.05 M in 2009 (Table 4 and Fig. 4).
CULTIVARS
Several cultivars of pineapple are commercially available in the local market
(Table 5). The Smooth Cayenne or Hawaiian is the heaviest and most popular cultivar,
best for canning. The Queen or African Queen or Formosa is the sweetest. The
Native Philippine Red or Red Spanish is cone-shaped and considered of medium
quality. It is also grown for its fiber. The latest cultivar introduced is the MD-2 (Dole
MG3). Cabezona is the largest, measuring approximately 8-12 inches long when fully
mature. Other cultivars include the Buitenzorg or Java, Sugar Loaf and Abakka.
Queen pineapple is mostly grown in Bicol, San Lorenzo Ruiz, San Vicente and Labo.

54

CONSTRAINTS TO PRODUCTION
Political Situation
The Philippines is one of the top pineapple-exporting countries in the world. The
industry is favorably affected by the General Agreement on Tariffs and Trade (GATT).
The reduction in trade barriers will have a large effect in the countrys pineapple industry.
Infrastructure and Cost
Still, inadequate infrastructure remains a key issue. Poor transport and storage
facilities are problems besetting local pineapple growers. On the other hand, major
constraints in processing of pineapple are as follows:
1. High cost of canning due to high cost of fruit, sugar, containers and overheads.
2. Seasonality of harvest (non-availability of fruits throughout the year) and unstable
prices during trading.
Problems on marketing of fresh pineapple are encountered because of its highly
perishable nature. When mature, locally grown pineapple fruits cannot be stored for more
than 4-5 days after harvesting.
Weather
Rainfall is the most important climatic element in the Philippines. Depending
upon the direction of moisture-bearing winds and location of the mountain systems,
rainfall distribution throughout the country varies from one region to another. Mean
annual rainfall varies from 96.5 to 1032.2 cm (38 to 106 inches) annually. Northeastern
Luzon, eastern Samar, and eastern Surigao receive the greatest amount of rainfall while
the southern portion of Mindanao (South Cotabato) receives the least amount of rain
(Fig. 5).
Pineapple is a drought-tolerant crop but its growth and fruit quality are affected by
rainfall. Mortality due to root rot diseases is closely related to high rainfall occurrences.
Although drought was predicted this year, rainfall peaks during the 1st 4, 12th and at 20 to
25 weeks were even higher than the long-term average (Fig. 6).
Long-term periodic average for 46 years in South Cotabato registered at only
80 inches (Fig. 7). General Santos City had average annual rainfall at only 38.5 inches.
Previous 4 years (2006-2009) were wettest years, exceeding the long-term average per
period.
Pest and Diseases
Related to changes in weather and lack of available cheap pesticide control, the
pineapple cultivation is beset by prevalence of fungal and bacterial diseases, such as
mealy bug wilt and TV rot.
Research and Development
Research institutions and agricultural schools undertake research on pineapple to a
limited extent, mainly on fertilization, flowering induction or germplasm collection.
Various pineapple companies concentrated in Mindanao have their own independent
R&D but research breakthroughs and improved cultural practices are confidential or
classified information not accessible to local pineapple producers or farmers, except those
under their contract-growing programs.
Addressing the Problems
Standardization of technology to bring down costs of production of fresh
pineapple and its adoption by growers, assured markets for the produce and to produce
pineapple throughout the year may go a long way in promoting the pineapple industry in
the Philippines.
Steps like regulation of markets for pineapple and integration of production,
marketing and processing activities would go a long way in decreasing marketing cost
55

and thereby encouraging cultivators for self marketing. In recent times, growers
marketing co-operatives have come into service to undertake marketing of fresh
pineapple.
Development of infrastructural facilities (transport and communications); primary
markets; improvement in packing, storage and handling facilities; and subsidization of
inputs are the various aspects which need attention. This also includes the establishment
of farm-to-market roads in order to reduce spoilage or losses due to bruising and injury. It
is necessary to take ample care to avoid any injury to fruits while transporting to major
consumption centers.
Government Support
The fresh pineapple industry provides livelihood to about 420,000 farmers
nationwide. Unlike top money-earning fruits like mango and banana, pineapple growers
do not have the so-called council or growers association. Coops were created in pineapple
growing areas to provide manpower and services to pineapple companies. Admittedly, the
availability of inputs at the right price to farmers contributes to agricultural productivity.
Thus, lower costs of fertilizers should bring down production costs and enable local
growers to gain a sufficient margin of profit.
Research and Development
Government needs to strengthen its support to research institutions and state
agricultural schools with adequate research funds for agricultural research and
development of commercial horticultural crops, like pineapple. Government institutions
like the Bureau of Agricultural Research (BAR) coordinates agri-research and
development activities with the view to modernize Philippine agriculture through
commercialization of mature technologies geared towards helping Filipino farmers.
Global Competitiveness and Global Market Expectations
The commercial introduction of similar or new cultivars by various pineapple
companies provide consumers with an array of choices. In the meantime, a new pineapple
cultivar from Camarines Norte, called Queen Pineapple, has started generating interest
of overseas buyers. Trial shipments of this fruit were made recently to South Korea. A
Korean company has signed a marketing agreement with the Municipal Government of
Basud and the Provincial Government of Camarines Norte for the shipment of Queen
Pineapple to that country.
Demand for pineapple fiber in the textile industry is continually growing, such
that, a multi-purpose cooperative (Labo Progressive Multi-Purpose Cooperative) has
promoted livelihood projects-integrated pineapple leaves processing-utilizing discarded
pineapple leaves into hand woven and machine-decorticated fibers (for pia cloth and as
substitute for cellulose fibers). The cooperative has targeted to export hand woven
products to high end consumers in Japan, USA, Canada and Europe.
On the other hand, small-sized or reject pineapple fruits can be processed and
marketed as dried pineapples, which are nutritious and fiber-packed snacks or desserts.
According to the study carried out by the Department of Agricultures Agribusiness
Marketing Service, the prospects for the pineapple industry in the Philippines are bright.
The domestic demand over the next 10 years was estimated to grow by an average of 4 to
7% every year. There is a high growth forecast for pineapple subsector and rising global
demand for fresh and processed pineapples. The US, Japan, Canada, China (Hongkong)
and EC are still the largest import markets, with pineapple dominating the world trade.
Literature Cited
Bureau of Agricultural Statistics (BAS). Department of Agriculture (DA). 2009.
Philippines. Situation Report on Selected Fruit Crops.
Bureau of Agricultural Research (BAR) Digest. 2008. Volume 10. Issue #2. April-June.
Crops-Philippine Council for Agriculture, Forestry and Natural Resources Research and
56

Development (PCARRD). 2009. Department of Science and Technology (DOST)

Portal. Pineapple Industry.
Department of Agriculture, Philippines, High Value Commercial Crops Program,
Pineapple Commodity Profile, 9-22-08.
National Statistics Office. Republic of the Philippines. Foreign Trade Statistics. 3-09-08.
Philippines Department of Trade and Industry (DTI). Small Pineapple Farmers in Bicol
Stand to Benefit from JPEPA. Press Release. 10-11-07.

Tables

Table 1. Pineapple volume of production in tons by region, Philippines, 2008-2010.

Source: Bureau of Agriculture Statistics, 2009.
January-December
2008
2009
Philippines
2,209,336 2,198,497
CAR
711
716
Ilocos Region
206
195
Cagayan Valley
30,815
32,574
Central Luzon
1,363
1406
Calabarzon
86,168
88,375
Mimaropa
223
233
Bicol Region
111,530
109,967
WesternVisayas
15,184
15,424
Central Visayas
4,887
1,867
Eastern Visayas
7,397
7,476
Zamboanga
2,436
2,289
North Mindanao 1,007,022 1,026,905
Davao Region
22,303
22,440
Soccsksargen
913,280
879,836
Caraga
4,738
4,684
ARMM
1,072
1,109

Region

Change
January-March
(%)
2009
20101
(0.49) 504,268 497,988
0.62
77
76
(5.13)
15
16
5.71
1,000
900
3.16
18
18
2.56
11,180
11,845
4.85
54
63
(1.40)
25,599
2,602
1.58
2,348
2,258
(0.41)
560
499
1.07
1,450
1,413
(6.03)
317
236
1.97
213,071 219,479
0.61
6,947
6,981
(3.66) 241,322 228,304
(1.15)
162
156
3.42
149
142

Change
(%)
(1.25)
(1.00)
5.12
(10.00)
(0.79)
5.95
15.51
0.01
(3.82)
(10.81)
(2.57)
(25.66)
3.01
0.49
(5.39)
(3.48)
(4.40)

Preliminary.

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Table 2. Area (ha) planted to fruit crops (Philippines), 2008-2009. Source: Bureau of
Agriculture Statistics, 2009.
Crop
2008
Banana
438,593
Mango
186,770
Calamansi 20,956
Pineapple
58,251

2009
446,371
188,114
20,912
58,823

Change (%)
1.77
0.72
(0.21)
0.98

Table 3. Quantity and value of exports by product form and country destination, JanuaryJune 2008-2009 (Quantity in MT, F.O.B. values in 000USD). Source of basic data:
National Statistics Office.
Product
form/country
of destination
Pineapple
Fresh
Japan
Others
Processed
USA
Others

2008
Quantity
286,583
150,687
112,910
37,777
135,896
82,021
53,021

F.O.B.
value
119,402
31,939
24,307
7,632
87,463
50,569
36,894

2009
Quantity
254,579
125,668
85,334
40,335
128,911
82,617
46,293

F.O.B.
value
123,459
29,167
20,035
9,132
94,292
56,801
37,491

Change (%)
F.O.B.
Quantity
value
(11.17)
3.40
(16.60)
(8.68)
(24.42)
(17.58)
6.77
19.66
(5.14)
7.81
(0.31)
12.32
(12.69)
1.62

Table 4. Quantity and value of imports (Philippines), January-June 2008-2009 (Quantity

in tons, C.I.F. values in 000US$). Source of basic data: National Statistics Office.
Product form
Pineapple
Fresh
Processed

58

2008
2009
Change (%)
Quantity C.I.F. value Quantity C.I.F. value Quantity C.I.F. value
1,112
654
1,858
1,053
67.11
61.02
2
4
1,112
654
1,856
1,049
66.93
60.37

Table 5. Pineapple cultivars grown in the Philippines.

Cultivars

Queen or African
Queen or
Formosa
2.3-3.6 kg and
0.45-0.95 kg,
considered as the
small type and
heaviest cultivar
has tapering
shape
Cylindrical in shape,
flesh is light in yellow Flesh is deep
color
yellow in color
Sweetest
Sweet flavor
cultivar
Slightly fibrous texture
Best for canning
Smooth Cayenne or
Hawaiian

Native Philippine Red

or Red Spanish
0.91-1.4 kg, medium
in size and coneshaped
Flesh is in pale
yellow color
Sweet and coarse
spicy in flavor
Fibrous texture,
excellent source for
pia fiber

Cabezona
Size ranges from 812 inches long
when fully matured
Cylindrical shape,
dark green to
bright yellow

Figures

Fig. 1. Pineapple production (Philippines), January-June 2007-2009.

59

Fig. 2. Pineapple average monthly prices, Philippines, 2008-2009.

Fig. 3. Pineapple: quantity and value of exports, January-June 2008-2009.

60

Fig. 4. Pineapple: quantity and value of imports, January-June 2008-2009.

Fig. 5. Mindanao periodic rainfall, 2010.

61

Fig. 6. Mindanao weekly rainfall, 2010.

Fig. 7. Polomolok periodic cumulative rainfall, 2010.

62