Imported banana sinks Canary Islands banana costs: “We play in the same league but with different rules” | EUROtoday

He banana from the Canary Islands goes by means of its finest second. This is the conclusion that’s drawn, no less than, from the stability of 2023, when the island producers reached the very best advertising and marketing quantity of their historical past, with 440 million kilos offered. However, this milestone is overshadowed by the challenges going through the sector, primarily, competitors from the imported bananawhich performs in the identical league however with extra advantageous guidelines and acts as a distribution model, sinking costs.

Las excessive temperatures of 2023, which have been 1.5 levels larger than these recorded in 2022, boosted manufacturing. The banana must accumulate warmth to mature and as a result of tropicalization of the Canarian local weather it’s accumulating it at an more and more quicker price, which accelerates manufacturing, to the purpose that final yr it elevated by 35% in comparison with the earlier yr. And this in a context of escalating prices and collapsing costs which have led the sector “to a critical situation in terms of economic viability”, warn from the Association of Banana Producer Organizations of the Canary Islands (Asprocan).

The complete worth of the market amounted to 1,347 million euros final yr, of which 900 million corresponded to bananas from the Canary Islands and the remaining 447 million to imported bananas. The product was bought from Canarian producers at a mean value of 0.83 euros per kilo, whereas the ultimate client paid round 2.11 euros per kilo. In distinction, and though the wholesale value of banana was comparable (0.81 euros), 1.41 euros have been handed on to the patron. With every thing, The banana/plantain quota ratio remained at 60%/40% in Spain because of the promotional actions carried out by Canarian producers, who managed to extend the quantity of consumption of their class by 12% and keep away from a definitive disaster.

“Fortunately, the banana from the Canary Islands has a high preference on the part of consumers for its quality and therefore its price to the public responds to an application of much higher margins in distribution than those applied to imports from third countries. that compete with us, that, in fact, on most occasions They are sold without margin or even at a loss at the point of sale,” says Sergio Cceres, supervisor of Asprocan, who insists that “selling 58% of the volume, the Canary Islands banana contributes more than 70% of the value of the plantain-banana category in distribution, which indicates the disproportion of margins applied to one product and another”.

The Canarian producers denounce that “The imported banana acts as a distribution brand, collapsing the wholesale pricethe lowest in the European Union, while benefiting from a distribution margin policy that prevents greater rotation of bananas to the consumer. “The important downside is that importers aren’t required to adjust to the the identical environmental necessities and labor requirements which might be imposed on neighborhood producers and which might be behind the rise in most of the prices linked to the administration and exploitation of banana plantations. “We play in the same league but with different rules”says Esther Domnguez, technical director of Asprocan.

“We apply much higher costs for having labor, environmental and safety standards that are not required for imports. If there is no equality in the market because there are other priorities globally, this imbalance must be compensated because in the situation current production costs are unaffordable. We cannot accept a slow death“, says Cceres. The resolution could be the introduction of the so-called 'mirror clauses' in commerce agreements, nevertheless, probably the most international locations, amongst that are Spain, France, Italy or Portugal, do not need the required certified majority. within the EU to maneuver them ahead.

Cceres clarifies, nevertheless, that though most of the wants of the sector rely on choices that have an effect on the one European market, “At the national level, complementary actions must be undertaken.” “There is no panacea, but, for example, the consumption of fruits and vegetables in Spain has been reduced by more than 20% in the last 10 years. When the market that we farmers serve is at these falling levels, the supply is reduced. “it's in an each man for himself as a result of the pie is getting smaller and smaller,” he concludes. In his opinion, “insurance policies and campaigns that restore demand for fruit in our nation will even assist restore profitability.”