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 Agriculture’s 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 world’s canned
pineapple supply. The Philippines and Thailand also make up 65% of the world’s 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 country’s 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 53

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

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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 country’s 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

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and thereby encouraging cultivators for self marketing. In recent times, grower’s
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 piňa 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 Agriculture’s 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 Change January-March Change

Region
2008 2009 (%) 2009 20101 (%)
Philippines 2,209,336 2,198,497 (0.49) 504,268 497,988 (1.25)
CAR 711 716 0.62 77 76 (1.00)
Ilocos Region 206 195 (5.13) 15 16 5.12
Cagayan Valley 30,815 32,574 5.71 1,000 900 (10.00)
Central Luzon 1,363 1406 3.16 18 18 (0.79)
Calabarzon 86,168 88,375 2.56 11,180 11,845 5.95
Mimaropa 223 233 4.85 54 63 15.51
Bicol Region 111,530 109,967 (1.40) 25,599 2,602 0.01
WesternVisayas 15,184 15,424 1.58 2,348 2,258 (3.82)
Central Visayas 4,887 1,867 (0.41) 560 499 (10.81)
Eastern Visayas 7,397 7,476 1.07 1,450 1,413 (2.57)
Zamboanga 2,436 2,289 (6.03) 317 236 (25.66)
North Mindanao 1,007,022 1,026,905 1.97 213,071 219,479 3.01
Davao Region 22,303 22,440 0.61 6,947 6,981 0.49
Soccsksargen 913,280 879,836 (3.66) 241,322 228,304 (5.39)
Caraga 4,738 4,684 (1.15) 162 156 (3.48)
ARMM 1,072 1,109 3.42 149 142 (4.40)
1
Preliminary.

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Table 2. Area (ha) planted to fruit crops (Philippines), 2008-2009. Source: Bureau of
Agriculture Statistics, 2009.

Crop 2008 2009 Change (%)

Banana 438,593 446,371 1.77
Mango 186,770 188,114 0.72
Calamansi 20,956 20,912 (0.21)
Pineapple 58,251 58,823 0.98

Table 3. Quantity and value of exports by product form and country destination, January-
June 2008-2009 (Quantity in MT, F.O.B. values in ‘000USD). Source of basic data:
National Statistics Office.

Product 2008 2009 Change (%)

form/country F.O.B. F.O.B. F.O.B.
Quantity Quantity Quantity
of destination value value value
Pineapple 286,583 119,402 254,579 123,459 (11.17) 3.40
Fresh 150,687 31,939 125,668 29,167 (16.60) (8.68)
Japan 112,910 24,307 85,334 20,035 (24.42) (17.58)
Others 37,777 7,632 40,335 9,132 6.77 19.66
Processed 135,896 87,463 128,911 94,292 (5.14) 7.81
USA 82,021 50,569 82,617 56,801 (0.31) 12.32
Others 53,021 36,894 46,293 37,491 (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.

2008 2009 Change (%)

Product form
Quantity C.I.F. value Quantity C.I.F. value Quantity C.I.F. value
Pineapple 1,112 654 1,858 1,053 67.11 61.02
Fresh 2 4
Processed 1,112 654 1,856 1,049 66.93 60.37

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Table 5. Pineapple cultivars grown in the Philippines.

Cultivars

Queen or African
Smooth Cayenne or Native Philippine Red
Queen or Cabezona
Hawaiian or Red Spanish
Formosa
 2.3-3.6 kg and  0.45-0.95 kg,  0.91-1.4 kg, medium  Size ranges from 8-
considered as the small type and in size and cone- 12 inches long
heaviest cultivar has tapering shaped when fully matured
 Cylindrical in shape, shape  Flesh is in pale  Cylindrical shape,
flesh is light in yellow  Flesh is deep yellow color dark green to
color yellow in color  Sweet and coarse bright yellow
 Sweet flavor  Sweetest spicy in flavor
 Slightly fibrous texture cultivar  Fibrous texture,
 Best for canning excellent source for
piña fiber

Figures

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

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

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

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

Fig. 5. Mindanao periodic rainfall, 2010.

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Fig. 6. Mindanao weekly rainfall, 2010.

Fig. 7. Polomolok periodic cumulative rainfall, 2010.

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