Farmers in a Philippines city have signed a memorandum of agreement (MoA) with a banana chip maker to cut out the middlemen.

The deal involves at least 95 tons of bananas which will be sold to Philexon International, a city-based banana chip maker. Farmers will no longer have to sell their products via a trader, which means more of the end price will go straight to farmers.

A basic price of P3.50 (US$0.068) per kilo has been pegged for the launch of the agreement, although market prices will determine the price payable in future.