By BERNIE CAHILES-MAGKILAT
September 30, 2010, 4:20pm
MANILA, Philippines - Filipino-Bahraini joint venture Dana Fresh Agri-Development Inc. is developing a 250-hectare Cavendish banana plantation in Sarangani province for export to Middle East, Bahrain, Korea, and other Asian countries.
The Board of Investments has already approved the project on a non-pioneer status entitling the company to four-year income tax holiday and duty-free importation of capital equipment.
In approving the project, the BoI cited the P306.042 million in net cost benefit in favor of the government in terms of tax contribution and foreign exchange earnings of $77.575 million in the first four years of the company’s operation.
The company’s banana plantation in Malandag, Sarangani province is expected to produce over 1.310 million boxes or 17,809 metric tons a year of Cavendish bananas, all for the export market.
Initial planting of bananas has already started after having established a banana nursery in June this year. Commercial production is expected to start in January 2011 with 392 employees with annual payroll of over P52.553 million. Project financing is 88 percent stockholders’ equity and 12 percent bank loans.
This activity is listed in the 2010 Investment Priorities Plan under export activities.
The company is 60 percent Filipino-owned and 40 percent Bahraini. Its major stockholder is Nader & Ebrahim S/O Phils. Inc., which owns 99.99 percent stake in the project.
The group has an existing banana production operation in Davao del Norte province, which is 50 kilometers away from Sarangani province.
Nader & Ebrahim has P427 million company asset and is primarily engaged in wholesale trading of agricultural products.
The company will acquire several farm equipment and machineries including cable system, cross guying, irrigation system, powerlines, transloading hub, farm spray equipment, deepwell, vehicles and radio equipment. from local manufacturers.
Published in Manila Bulletin Oct. 1, 2010.
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