“Exploring the Case of Banana Pole-Vaulting in Company A, At Davao Del Norte, Philippines”

Davao del Norte is famously known as the Banana Capital of the Philippines due to its vast production and exportation of cavendish bananas, a high value variety of banana. This case study investigates banana pole-vaulting in Company A at Davao del Norte, Philippines. Pole-vaulting is a locally dubbed-word for “side-selling”. It is an agency problem where a contract grower sells harvested-quality bananas to the non-contracting buyer other than the contracted exclusive buyer or company. The study examined and focused on the issues of cavendish banana pole-vaulting that affected the grower-buyer business relationship to determine the significant reasons that influence the pole-vaulting activity. The study used qualitative method wherein sources of data were derived from key informant interview (KII) and focused group discussions (FGD) through purposive, snowball sampling and volunteerism participated by 16 key respondents from the growers and 9 key respondents from Company A. Data gathered were then processed and evaluated through Thematic Analysis. Descriptive method was utilized for detailed documentation and description of the participants’ profile were taken with highest ethical considerations. Thematic analysis identified four reasons to pole-vaulting: (1) contract parties’ commitment to the contract farming agreement was unstable due to unforeseen economic considerations; (2) financial position as the common interest of both parties; (3) management control in a contract farming agreement is absolute to one party only; and, (4) the existence of communication problem due to the growing gaps between the parties. The results have brought up the importance of effective communication and the role of the government in establishing robust economic policies not only for grower, buyers and exporting companies but to the holistic economic sustainability of high-valued cavendish banana.