Mindanao’s Economy Humming; Agriculture Up
August 22, 2012 at 15:00
MANILA, Philippines — It could be better but no one is complaining. The economy of Mindanao has not been better for some time now. Previously, Mindanao had depended heavily on the price of corn. This has been good at about Php 12 a kilo. The shortage of corn from the American Midwest, because of diversion to ethanol production, has prodded corn importing nations, like South Korea, to look for sources elsewhere. And a logical source is the Philippines. Right now, a number of Korean firms are looking for large tracts of land to plant corn. But corn has been supplanted by other cash crops like sugar. The price of sugar is fairly good but it will still be next month that the milling season will start.
But in the agriculture sector, the real bright spots are the export products like banana, pineapple, and rubber. The price of rubber which was 5 centavos cup lump kilo a few years ago rose to 95 centavos. In this situation, a couple of trees would be able to support a family. The potential is big for rubber plantations and the government is doing all it can. The danger is that, prices can drop but this is unlikely since many of our rubber producing neighbors have shifted to even more lucrative products like palm oil. We have a number of Korean firms looking for land for palm oil. Exotic fruits like durian, mangosteen, lansones, dragon fruit, and meaty varieties of macopa, rambutan, and others are all doing well.
One of the causes of Mindanao prosperity is the removal of the negative factor of fighting. There are still some hot heads like Kato and some NPAs but they are now operating in very limited areas. With peace, the poor people of Mindanao can go ahead with their livelihood. (Our small micro-finance operation, Milamdec, is lending over Php 400 million this year.) A good number of former NPAs have moved to trying to make a living, like raising of catfish and planting corn. We have had a minimum of brown outs and with the FIT price of renewable energy, big companies have gone in to power production and should bear effect in a couple of years. We should have adequate power in a couple of years which will improve productivity considerably. There are even small BPOs and IPOs operating in some cities of Mindanao. In contrast to European unemployment, there is always a job for anyone who wants to work in Mindanao.
Another bright potential is the operation of mining companies. We have the potential of the largest copper mine in the world in Tampacan. It still has a long way to go, but it is getting there. The three faults that pass through the Philippines all pass through Mindanao. Right now, only the eastern fault and to some extent the western fault is being accessed. The middle fault has hardly been touched. There is a lot of potential in Mindanao mining but we have to see to it that more people share in its bonanza. We really have not been able to regulate small-scale mining. But this is not only a local problem. It also is a worldwide problem. How to help the small miners and at the same time make sure they follow environmentally necessary rules.
Agriculture, especially export agriculture, has been good to Mindanao. Mining is potential. Power will soon be sufficient. The next is development of industrial clout. Then Mindanao can be of help to the rest of the country. [email protected]
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Source: Fr. Emetrio Barcelon, SJ, Manila Bulletin (16 August 2012)
