Anflo to export bananas to Japan, Middle East

MANILA, Philippines - Local firm Anflo Banana Corp. (ABC) will invest P216 million for the export of bananas to Japan and the Middle East.

ABC, an affiliate of the Anflo Group of Companies, has entered into a contract with Unifrutti Growers Services Inc. as the exclusive buyer of the bananas produced. The bananas will be marketed by Unifrutti under the brand name Chiquita, which will be sold to Japan and Middle East.

The project is expected to create 306 jobs and is targeted to start commercial operations this month.

The banana plantation is located at Pantukan in Compostela Valley.

As a registered new export producer of cavendish banana, ABC has a capacity of 14 million kilograms a year or 1.1 million boxes annually.

The project cost will be financed through 49 percent equity and 51 percent through bank loans.

For the first year of operations, the firm is expected to earn P232 million after selling 1.375 million boxes. In the second until the fifth year, it expects to earn P189.511 million by selling 1.125 million boxes.

The proposed product line may be qualified for registration as new and thus entitled to a four-year income tax holiday. As per the guidelines of the Board of Investments (BOI), the ITH shall not exceed by more than 10 percent, the projected income.

For the first five years from date of registration, the registered enterprise shall be allowed an additional deduction from taxable income of 50 percent of the wages corresponding to the increment in the number of direct labor for skilled and unskilled workers in the year of availment as against the previous year.