MUSA PROCESSING BUSINESSES ¿ THEIR CONTRIBUTION TO RURAL DEVELOPMENT

Processing is often proposed to solve the seasonal surplus of bananas and plantains (Musa spp.), to reduce losses from spoilage and undersized fruits and to increase farmer incomes. To examine the contribution of small agro-industries to rural development in banana producing areas, study teams from nine countries in Asia, Africa and Latin America categorized current Musa processing businesses by type of product, size of firm and technology used, determined their strengths and weaknesses, and surveyed diverse categories of business service providers used by the processing businesses. Country teams met in October 2006 in Manila, Philippines, to draw conclusions across regions. In the nine countries less than 5% of dessert bananas, about 24% of plantains and between 30–40% of cooking bananas produced were processed. Common products included chips, dried sweet bananas, beer, wine, juice, sauce, baskets and mats from banana fiber, and banana-flavored milk products. Although Musa processing enterprises play an important role in the livelihoods of thousands of poor households, their significance as tools for rural development is limited by a number of factors, including seasonality of production, price competition from the fresh fruit market and quality issues. Limitations can be overcome to some extent by systematic and sustained investment in the business services accessible to rural populations and in the management capacity of micro- and small businesses.