Fresh Focus Banana 2021

Publication Sponsor

THE ANNUAL PUBLICATION FROM FRUITNET MEDIA INTERNATIONAL

In search of the perfect banana Our first ever Fresh Focus Banana special looks at a range of big challenges for the global banana business, as well as some exciting new opportunies

FAIR TRADE SUSTAINABILITY MARKETING INNOVATION EMERGING SUPPLY NEW MARKETS COMMENT & ANALYSIS

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Publication Sponsor

Bananas are vital, but undervalued As our special publication shows, many of the world’s leading banana suppliers and marketers appreciate the need to create a new understanding of the product’s value.

B

ananas are vital to many people in so many parts

News

of the world. And it doesn’t take an economist

Equifruit helps Longo’s switch to Fairtrade 2

to figure out that their phenomenal success as a

New research has Chiquita out in front

4

INIA joins global effort on TR4 resistance

5

Port launches super sustainable banana

8

variety Cavendish is, genetically speaking, a mirror image of itself,

Floating a new idea

9

so it struggles to fight off some very troublesome diseases. Its

product – with or without the branding – is also part of their inherent weakness. The widely sold

supply chains are efficient, but many are in need of investment.

Features

Buyers and consumers want so much more with every year, but

The path to a better future

10

only a few seem willing to pay more for those additional things.

AgroFair marks 25 years of Fairtrade

15

It’s certainly not a trade for the fainthearted.

Molina looks ahead to calmer waters

16-17

Speak to anyone in the banana business and they know what

Del Monte makes the right moves

18

the problems are. Every few months, a mainstream news outlet

Colombian sector shows its resilience

20

will pick up on the sound of alarm bells, and ring around a few

Martignani offers Black Sigatoka solution 21

people to get a story about the fruit’s potential demise. In some

CSR yields results for Costa Rica

22

respects, the prediction is a valid one, but they never forecast a

India builds its export business

24

precise date for that impending disaster. That’s because it might actually come sooner than expected, but equally the chances are

Analysis

it will be later than they expect.

A changing climate in many ways

26-27

The narrative running through this, our first Fresh Focus

Sustainable bananas take cooperation

28

Banana special, is about uncovering hidden value in a product

Prices must include real costs

29

category that, despite its success, doesn’t seem able to lose its

Bananamania! 30-31

reputation for being on slightly shaky ground. Is the perfect

The Last Bite

banana out there? Quite possibly. But the work being done now to

32

make them more environmentally sustainable, more ethically

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traded, more resistance to disease, has to continue.

Chiquita BC

INI Farms

Corbana 23

Martignani 32

Del Monte

19

Port International 6-7

Dole 3

Reybanpac 33

Goodfarmer IFC

SmartHarvest 13

©2021 Fruitnet Media International Ltd Full contact details at Fruitnet.com

25

And In the meantime, money’s too tight not to mention. _

Mike Knowles, Editor Follow me on Twitter: @mikefruitnet

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NEWS Publication Sponsor

Equifruit helps Longo’s switch to Fairtrade Canadian group becomes first retailer in North America to sell exclusively Fairtrade bananas in all its stores.

by Mike Knowles @mikefruitnet

C

anadian group Longo’s has set a new standard

ABOVE—Equifruit sources its fruit from Ecuador and Peru

for sustainable produce supply chains by

BELOW—The supplier uses outlandish claims on its packaging

becoming the first grocery retailer anywhere

to evoke a positive emotional response among shoppers

in North America to commit to selling exclusively Fairtrade-certified bananas.

Photo: Equifruit

Following a successful trial, the company has now switched its entire banana offer – in all 36 of its stores as well as via its delivery service Grocery Gateway – to

retailer in North America to make a full switch to

Fairtrade conventional and organic.

Fairtrade, and to price their bananas in accordance

Announcing the decision, Longo’s said it

with Fairtrade’s standards on both the cost of

wanted to guarantee fair and sustainable

sustainable production and social premium

incomes for farmers and communities, as

contributions.“

well as to offer technical support and

She added: “We at Equifruit are very excited to

reduce the environmental impact of

partner with Longo’s, and to be able to report soon on

its banana sourcing.

the impact of this move for our grower partners in

“We aim to be the most trusted and relied-upon food partner, and that includes se ing sustainability precedents,” said Mike Longo, chief merchandising officer at Longo’s. “We’re proud to be the first North American retailer to initiate what is

becoming a global

purchasing standard for bananas.”

The move coincides with Canada’s annual Fairtrade Month, and also represents a major milestone for the retailer’s supply partner, Quebec-based Equifruit.

36

stores, plus Longo’s web platform Grocery Gateway, will sell only Fairtradecertified bananas

REINVESTMENT IN PEOPLE By meeting Fairtrade’s social sustainability standards, Equifruit and Longo’s said they would reinvest US$1 per standard 40lb case sold back to the communities where the bananas were produced. These funds are used for projects like clean water facilities, schools and health clinics, they said.

“Fairtrade standards provide essential income stability to banana farmers working in an otherwise highly volatile market and empower them to invest in their communities,” Coleman explained. “Fairtrade purchasing is the most pragmatic approach to ensuring these communities continue to develop and provide the world with its favourite staple fruit.”

Mimmo Franzone, director of produce and floral at

Speaking exclusively to Fruitnet, Equifruit’s president

Longo’s, said fresh produce had always been the

Jennie Coleman described the news as a “major

backbone of the group’s business, and responsible

milestone” for Fairtrade bananas.

sourcing was at the core of its family values. “We are

“While many European retailers have had long-

02

Ecuador.”

proud to be taking these important steps with Equifruit

standing 100 per cent Fairtrade commitments on

to ensure we can continue to fuel happier and healthier

their full banana offerings, Longo’s is the fi rst

lives around the globe for years to come.” _

fresh focus banana 2021

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The Dole Way

www.dole.com

NEWS Publication Sponsor

New research has Chiquita out in front

BELOW LEFT—Chiquita’s bananas scored highest on appearance

and taste, in both blind and branded tests BELOW RIGHT—Marc Speidel is the company’s director for

Northern Europe

A recent survey of consumers conducted in Germany

product in blind and branded tests when it came to

found that the company’s bananas scored highest in a

purchasing intent. Consumers who took part in the

number of key areas.

research apparently also trusted Chiquita bananas more than its leading competitors, considering it to be a high-quality producer.

by Mike Knowles

“We’ve always worked incredibly hard to ensure

@mikefruitnet

that Chiquita bananas are the best, both for taste and quality, and we’re delighted to report that new research has backed the pride and passion we invest into our lovely yellow fruit,” says Marc Speidel, Chiquita director for Northern Europe.

“And now we are delighted to have confirmation that Chiquita bananas are the best. We know each of our beautiful bananas is bursting with delicious goodness and quality thanks to the bond of trust we’ve built with our consumers over 150 years of Chiquita tradition and history, and our dedication to developing and delivering the best fruit possible for banana lovers everywhere.”

In a competitively-priced and high-volume commodity category like bananas, where the majority of the fruit is one single variety, establishing brand differentiation on key aspects like taste and appearance represents a must for Chiquita.

“Our research proves that not all bananas are equal,

F

company’s products versus others

the best you can buy,” says Speidel. “Alongside our

has conducted brand

sold under six competing labels.

intensive sustainability efforts, our ongoing focus is on

research studies in several

Using both branded and unbranded

ensuring that as a brand we provide leadership, inspire

markets worldwide. Its aim, to

products, the researchers asked

trust, ensure reliability, and create great value, taste

know what consumers want from

almost 360 people – split more or

and quality.” _

bananas, and what inspires them to

less evenly according to gender and

develop and maintain loyalty to a

across an age range of 18-64 – what

particular brand.

they thought of each product’s

Year on year, superior taste

a ributes in turn.

and quality stand out as the

MMR found that consumers do

main factors that drive that

prefer the taste and appearance of

commitment, and because

Chiquita bananas when compared

Chiquita can claim consistent

with other rival bananas. What’s

exceptional performance for both

more, it seems more of them are

of those a ributes, the company

willing to buy bananas that carry

recently set out to strengthen that

the brand than any other. As a

reputation through additional

result, says the company, its famous

research, this time in Germany.

label has an important role to play

The new investigation was carried out in August 2020.

04

and we continually strive to ensure ours will always be

or the last decade, Chiquita

in boosting sales.

Chiquita bananas scored

UK-based agency MMR was

highest on appearance (before and

asked to find out how consumers

a er peeling) and on taste. They

in Germany responded to the

also scored higher than any other

fresh focus banana 2021

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NEWS Publication Sponsor

INIA joins global efforts to develop TR4-resistant banana Peru’s National Institute of Agrarian Innovation is evaluating the adaptability of various new organic varieties at its test facility in Tumbes.

by Maura Maxwell @maurafruitnet

T

he detection of Fusarium

varieties, while also helping to drive

but will also help INIA develop techniques to help

wilt TR4 on a farm in

research into improved growing

growers to be er manage their farms and improve the

northern Piura last month

and management techniques to

quality of their export offer.

has injected fresh urgency into

enable Peru to boost its presence on

the race for a solution to this

international markets.

devastating disease.

Since its discovery in South

“In 2019 we started the initiative

It is one of several programmes in which INIA is working in collaboration with international institutions across a wide range of issues, from the development

to introduce germplasm from

of early detection systems for TR4 using molecular

east Asia some 50 years ago, the

international research centres from

technology, to be er diagnostic tools, and improved

TR4 strain of the devastating

all over the world. We did a lot of

monitoring systems.

Fusarium wilt, or Panama disease,

research beforehand to determine

has been spreading across the globe

the most promising genotypes in

way forward is to minimise its impact and contain its

at an increasing pace. As there

terms of building TR4 resistance,

spread while the industry works towards the

is currently no known effective

and on the basis of this we got

development of new, resistant varieties,” Guerrero says.

treatment to control the disease,

in touch with IMGTC to request

“In order for this to succeed, collaboration and

preventative controls are the only

the necessary samples,” Guerrero

knowledge sharing is key.” _

line of defence while the search for a

explains.

disease-resistant commercial variety continues.

“The material will shortly be transferred to the germplasm

Peru’s National Institute of

bank in Tumbes, where we already

Agrarian Innovation (INIA) is one

have a small collection of samples,

of the agencies involved in these

and later this year we will plant

efforts. The institute is running trials

experimental fields to evaluate the

on various samples of germplasm

adaptability of the various different

to develop TR4 resistance in organic

cultivars.”

bananas, which make up the bulk of the country’s exports.

In all, 20 varieties developed

TOP—Dr Juan Carlos Guerrero is leading the project at the

National Institute of Agrarian Innovation BELOW—INIA will be able to gauge which varieties have

adapted best to local conditions within around two years

He estimates that within two to two and half years INIA will have a good idea of which varieties

by Belgium’s International Musa

have adapted the best to the local

Germplasm Transit Centre (IMGTC)

conditions in Piura and Tumbes,

were selected on the basis of their

home to most of Peru’s 15,000ha of

high resistance to TR4.

organic banana cultivation.

Dr Juan Carlos Guerrero,

“Panama disease will never be eradicated, so the best

Guerrero notes that the studies

who oversees the project, says

to be carried out will not only

the germplasm will aid efforts

facilitate the development of new

to develop high-quality new

varieties with high genetic quality,

fresh focus banana 2021

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05

18/05/2021 10:55

NEWS Publication Sponsor

Port launches super sustainable banana The company’s pioneering new offering combines Fairtrade, organic and carbon neutral certification.

with a social and environmental impact thanks to the Fairtrade system.”

At the core of social justice in the

by Maura Maxwell

banana sector is the need for banana

@maurafruitnet

producers to have access to a living income. This means that farmers

S

should have sufficient revenues to “In order to reduce climate change, we have to stop

cover all essential costs (food and

conscious consumers in

talking and act. We have a very long way to go but this is

water, clothing, housing, etc.) plus

Belgium can now buy

the beginning and with our super banana everyone can

a little extra to create a buffer for

make a contribution.”

unforeseen expenses.

ocial and environmentally

bananas that combine Fairtrade, organic and carbon neutral

Xavier Piesvaux, CEO of Delhaize, says becoming

“In many ways, this is the main

certification following the launch of

carbon neutral formed one of the retailer’s three main

condition for both social and

a new super-sustainable banana.

goals under its Lions Footprint programme.

environmental sustainability as

The fruit, supplied by Hamburg-

“By taking actions in order to reduce our carbon

studies have shown that agriculture

based Port International, is available

footprint, we can create an immediate positive impact,”

becomes more environmentally

at Delhaize stores. “Fairtrade and

he explains. “Launching carbon-neutral products gives

friendly if the producers have access

organic certifications are essential

our ambitions extra visibility. By buying these products,

to a decent income,” Port says.

parts of our DNA. We have been

customers can contribute themselves to a healthier

trading with both organic and

planet, step by step.”

Fairtrade bananas for over 20 years

Nicholas Lambert, director of Fairtrade Belgium, adds:

“Consumers of the super banana can therefore be assured: buying this banana will be good for banana

now, being pioneers in Europe.

“Whilst CO2 neutrality is definitely an important step in

producers, the environment and

With Be Climate, we want to take

the right direction, it is the combination with Fairtrade

the climate. A trade-off between

sustainability to the next level and

and organic that makes us go bananas.

different aspects of sustainability is

protect the Earth that we all live on,”

“This banana combines a healthy climate and

says Port International’s Karlsson

environment with social justice for producers. Fairtrade

Port.

producers show that it is possible to produce bananas

no longer needed.”

While it welcomed this new step towards sustainability in the banana sector, Fairtrade Belgium said more effort is needed to make sure that all bananas sold in Belgium abide by ambitious sustainability criteria.

“According to our own research, 62 per cent of the Belgian population believes that the Covid crisis should push governments to encourage a transition towards sustainable food systems,” the association says.

“Respecting the rights of farmers and workers in the agri-food system and in particular the right to a decent income should therefore be at the core of this transition. It is time for all Belgian actors involved in the banana value chain to commit together to sustainability and to set ambitious goals.” _ LEFT—The bananas are available at

Delhaize stores in Belgium

08

fresh focus banana 2021

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NEWS Publication Sponsor

We want to float a new idea As suppliers come under increasing pressure to reduce the environmental impact of banana shipping, we believe our proposal for a new breed of reefer ship offers the category a far more sustainable solution.

OLE SCHACK PETERSEN Reefer Intel Owner & Chief Executive

BIRGER LINDBERG SKOV Reefer Intel Owner & Chairman ABOVE—A mockup of the proposed Reefer RoRo vessel, showing containers on deck

A

new type of reefer vessel could cut time

The vessels use ammoniac or

Central America to Northern Europe

spent loading and unloading bananas

methanol-fuelled main engines,

run. Against conventional reefers,

in ports, and reduce the industry’s

and e-biofuels to power cooling and

the saving is US$1.8 per box. All at 8

environmental impact. We believe

container equipment. All these fuels

per cent ROIC.

one such solution is the Reefer RoRo

are renewable, and some could even

This saving is absolutely essential

vessel, our company Reefer Intel’s patented design. It’s

be generated from plant residues

to ensure the sustainability of the

a standard ro-ro, but the space below deck is insulated

derived from banana and pineapple

future banana trades. Today, they

and sealed to create ten individual, gas-tight temperature

production. They can also take a

are even further hampered by

zones, all with controlled atmosphere. Cargo is loaded

large volume of back-haul freight

higher freight rates, so the difference

into these areas using specially designed Maffi-Cassettes.

from the Northern Hemisphere – like

a Reefer RoRo can make is even

cars, trucks and other rolling cargo.

greater. The UN FAO says “fast

With space for reefer containers to be placed on the deck above, using the ship’s own equipment, the vessel

population growth in producing

is capable of carrying about 13,000 tonnes of bananas (or

NUMBERS STACK UP

pineapples) per voyage, with a maximum port discharge

The likely investment in one vessel is

import demand” has led to a rapid

time of 18 hours. By comparison, competing vessels

US$60m, with an estimated lifetime

increase in banana production and

require longer: a minimum of 48 hours for container

of 28 years. So the total outlay for a

exports. Producers in Central and

vessels, and 72 hours for conventional reefer vessels.

fleet of 24-30 vessels is US$1.44bn-

South America, West Africa, and the

There are other advantages. The Reefer RoRo is able

US$1.80bn. At present, bananas and

Philippines depend on the trade,

to berth at the quayside and close to adjacent facilities.

pineapples are about 30 per cent of

so an environmentally sustainable

This saves long journeys inland by truck or barge, for

all seaborne refrigerated volumes,

transport solution is vital to meet

example from Rotterdam’s Maasvlakte II container

or about 120 of our vessels. We see

demand for ‘green’ products.

terminal to cold-storage and ripening facilities in

the potential global market share at

The Reefer RoRo has a higher

Antwerp. At the supply end, large, multinational- and

20-25 per cent, and the vessels would

capacity utilisation, spends less time

family-controlled production centres are increasing in

be built over a period of 5-6 years.

in ports, and gets closer to key links

size, and they all need a zero-carbon propulsion solution.

Being able to call directly at fruit storage and ripening

It’s a much-needed change. The

countries as well as expanding global

in the chain. So it can run slower at

market for bananas and pineapples

sea, uses less fuel itself, and requires

facilities makes it easier to transport the fruit more

carried by sea is about 25m tonnes a

less additional onward

cleanly, something which is vital to the economic stability

year, with CAGR of 3-4 per cent over

transportation. We see it as an

of the countries concerned. It also reduces the end-to-

the last two decades. Compared with

unmatched, greener, and more

end CO2 footprint by 35-40 per cent compared with the

containers, the vessel’s potential rate

economically sound solution for the

container vessel mode.

would be US$1 per box lower on a

future of fruit transport. _

fresh focus banana 2021

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18/05/2021 11:20

KEYNOTE FEATURE

Publication Sponsor

The path to a better future Even before the pandemic, the global banana ecosystem was facing a whole bunch of big challenges. Now more than ever, says Chiquita president Carlos López Flores, those challenges need to be faced head on.

by Mike Knowles @mikefruitnet

10

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KEYNOTE FEATURE Publication Sponsor

LEFT—Chquita has

worked to improve biodiversity at its Nogal banana plantation, situated in the Sarapiquí region of Costa Rica

W

hat does the future hold for

and returns paid to

the banana business? Leaving

growers.

aside the immediate challenges

For Chiquita,

posed by Covid-19, many of

the banana

the industry’s unanswered

industry’s best-

questions relate to sustainability, corporate

known brand,

responsibility, and profitability. In many respects,

it seems there

those priorities appear more important than ever.

is no shying

Two factors will shape that future. The 2019

30

target emissions cut (per cent) by 2030

away from either

As for defending the market value of bananas, the multinational insists its aim is to secure a premium in the market so it can give back to the

discovery of a devastating soil-borne fungus called

challenge. Before

Tropical race 4 (TR4) on a couple of plantations in

TR4 arrived in Latin

Colombia and Peru – the first such cases in Latin

America, the company had already

the group’s strategic vision is to

America – have underlined how difficult and costly it

identified it as a threat; and in

be the banana of choice in every

might become to maintain monocultural production

July 2018, it convened a meeting

one of its markets, providing

of a single cloned variety, Cavendish.

of leading scientists from around

customers with the highest

people and places that supply the fruit. In fact,

the world to push forward the

quality of fruit and service, as

between discount retailer Aldi Süd and Ecuador’s

development of better resistance

well as the best tasting product,

banana export industry has shone a spotlight on

to Panama disease, which TR4

all the way from its farms to the

thorny issues to do with price, perceived value,

causes.

retailers’ shelves.

And in the market itself, a much-publicised spat

»

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KEYNOTE FEATURE Publication Sponsor

LEFT—By securing

a premium for its branded offer, Chiquita says it can support the communities that supply its fruit

What happens next, the

bananas for

greater concern about health

their food or

protecting two vital ingredients:

and wellbeing has prompted

their livelihoods,

people and planet. At every turn,

consumers to buy more nutrient-

the project is

the global supply chains that bind

rich products that boost immunity,

focused squarely

together consumers and suppliers

bananas included. But for López,

on securing the

will require constant improvement

this increased awareness around

fruit’s future.

and innovation if they are to remain

personal nutrition is intertwined

sustainable, ethical, and profitable.

with a growing appreciation of how

sustainability

healthy the world itself might or

mean for the

might not be.

company? “Our mantra remains simple,” López

FIGHTING FOR THE FUTURE

“The debates about a balanced

So, what does

“Our mantra remains simple. What is good for the banana industry should be good for Chiquita, and vice-versa”

explains. “What is good for the banana industry should

That obligation is certainly at

diet, the effects of climate change,

be good for Chiquita, and what is good for Chiquita

the heart of Carlos López Flores’

and about what constitutes long-

should be good for the industry.”

thinking. As president of Chiquita

term, sustainable agriculture to

Brands International, he has plenty

feed our increasing population will

pursued an approach called 'principled embeddedness'

to consider when it comes to

unavoidably start to have more

when it comes to corporate responsibility. This involves

environmental sustainability and

prominence,” he predicts.

sharing knowledge and new technology to create long–

corporate social responsibility, not to

12

In the midst of the pandemic,

company says, depends on

Over the past decade,

Since the early 1990s, he continues, the group has

term value and growth for local communities.

mention ensuring that consumers

Chiquita has emphasised its own

around the world continue to

sustainability efforts through an

Development Goals, which are designed to end poverty

“It’s very much in line with the UN Sustainable

place the right value on what his

initiative called Behind the Blue

and solve the world’s environmental and human

company’s famous blue sticker has

Sticker. Based on commitments

health challenges,” he comments. “Chiquita contributes

to offer. “We care for our planet and

to growers, communities, and the

to inclusive growth in particular – provided

our place in it,” he tells Fresh Focus

wider population of 400m people

governments, retailers and civil society organisations

Banana.

in 135 countries that depend on

support our local initiatives.”

»

fresh focus banana 2021

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18/05/2021 11:12

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FF Banana full page ad_final.indd 1

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KEYNOTE FEATURE Publication Sponsor

LEADING BY EXAMPLE

electricity sources, transitioning

Protecting the environment is also

to more fuel-efficient means of

a major priority for Chiquita. In

transportation, reducing the

early 2020, it commissioned a new

impact of fertilisers in the fields,

study that enabled it to further

and so on.”

reduce its carbon emissions in

But as recent hurricanes in

ABOVE —Chiquita’s plan to cut carbon dioxide emissions BELOW—Group president Carlos López Flores

undertake reforestation and protect biodiversity through community projects, such as the Nogal

line with the Paris Agreement on

Honduras and Guatemala showed

Wildlife corridor in Costa Rica and the San San Pond

climate change. This paved the way

all too clearly, tropical regions

Sak wetland in Panama.”

for an application to the Science

where bananas are grown cannot

Based Targets initiative in which it

escape the already accelerating

entire global banana industry towards a more

targeted a 30 per cent reduction of

effects of climate change. “We have

sustainable future. “Together, we want to create shared

its own emissions by 2030.

assisted to an increasingly erratic

value for the Chiquita brand, our customers, suppliers,

Ultimately, says López, Chiquita wants to lead the

“Our 30 by 30 initiative is just

pattern in rainfalls, hurricanes and

associates and the communities,” he concludes. “We

one part of our overall approach

floods that are less predictable and

want to do this in the spirit of doing well and giving

to tackling climate change,” López

more destructive,” López admits.

back, with respect for the environment and everyone

notes, pointing out that the

And of course, the climate

company will achieve maximum

challenge places an additional

carbon efficiency by rejuvenating

onus on the group to help affected

and re-engineering its farms. “We

communities. Chiquita’s president

hope our carbon reduction strategy

maintains that is a responsibility

will inspire others in the industry

the company will not abandon.

to make public, science-based

“Being a good neighbour means

reduction targets.”

we will always be there to provide

How will it achieve that target

14

consumption by moving to greener

involved in our business.“ _

humanitarian relief when natural

over the next decade? “We have

disasters occur,” he insists. “We also

a full roadmap ahead until 2030,

invest in the social infrastructure

with clear and straightforward

of communities to improve their

objectives such as reducing energy

resilience to climate change, and

fresh focus banana 2021

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18/05/2021 11:11

FEATURES Publication Sponsor

AgroFair marks 25 years of Fairtrade Fairtrade fruit specialist AgroFair has witnessed big changes over the past 25 years, but the company’s Frank Vermeersch and Luud Clercx recognise that the job is far from done.

by Tom Joyce @tomfruitnet

T

his year marks 25 years of Fairtrade bananas. Would you tell us a little bit about

the journey AgroFair and Fairtrade have been on?

Frank Vermeersch: I wasn’t there when it started, but I’m sure that at that moment there was a feeling of “against all odds”. The founding fathers of our company were the same as Max Havelaar. They knew already that with coffee something was very wrong, and they realised that with bananas it was a little bit the same.

It has been quite a journey, with ups and downs, and now we are at this famous 25 years, and we realise that the job hasn’t been completed.

There are a lot of other things that

Has the Covid-19 crisis highlighted

In the long run, you need a variety that is resistant

need to be tackled now.

the importance of a robust

against this disease. So there are now efforts going on,

sustainable supply chain?

breeding to create this resistant variety. But it will take

Luud Clercx: A lot has happened

10-12 years, I think.

in that time. We started with a few

LC: Covid was an important

containers, now we’re doing more

lesson, although it didn’t affect the

biodiversity in the soil, and there’s a lot of competition

than 100 containers a week. And

banana sector very much – we still

among the microorganisms. There’s a food web in the

also other importers have started

delivered to Europe. It’s important

soil itself, so other microorganisms attack this fungus.

with Fairtrade. The concept of

to take biosecurity measures, for

This hypothesis is being tested.

what Fairtrade is has also changed.

people’s health and also now for

Nowadays, what’s also important

this new disease which appeared

is biodiversity, sustainable soil

in Peru and Colombia, TR4. This

management, promoting healthy

is a very serious question for the

FV: Nowadays, everybody’s asking for organic

soils, recycling plastic waste,

banana sector because there’s

Fairtrade, which is a good thing. But there’s still a lot

reducing pesticides, carbon

nothing you can do about it except

of conventional Fairtrade. There is a danger that those

footprint, water footprint.

take biosecurity measures at the

who can only grow conventional Fairtrade will be

farm gate and also at the national

pushed back into poverty.

We now have a project to recycle banana plastic in Peru and the Dominican Republic. We have

level.

Because this is a soil-borne

What you see with organic bananas is greater

Finally, where next for Fairtrade?

There’s also the price issue, which is a race to the bottom. It’s ridiculous, asking for €0.69-€0.99 for 1kg of

another project in the Dominican

disease, there’s a hypothesis

bananas. You cannot explain this anymore. It’s simply

Republic helping our producers get

that the more biodiversity in

not possible. In fact, it has to stop. _

group certification for the alliance

the soil, the better, as part of the

for water stewardship in the future.

first defence lines against TR4.

ABOVE—Greater biodiversity could help fight TR4

fresh focus banana 2021

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FEATURES Publication Sponsor

Molina Group looks ahead to calmer waters Last year was one of the most challenging in the company’s 30-year history. But Hugo Molina Botrán believes the outlook is brighter for 2021.

by Maura Maxwell @maurafruitnet

C

entral America is no

affected by wind or storms. The

Ecuadorean bananas, Molina notes

stranger to hurricanes, but

impact on our operation was, above

that growers have not felt the

when Eta and Iota struck

all, logistical, as most of Guatemala’s

financial benefit as much as during

in a space of less than two weeks

bananas are exported through the

other times of shortage because

at the end of last year, they left in

ports on the north coast.”

markets such as China and the

from Eta and Iota

Middle East are importing lower

OPPOSITE

their wake a trail of devastation in

Damage to roads and bridges

Guatemala and Honduras unseen

meant access to ports was severely

in more than 50 years.

restricted in the weeks immediately

“At the same time, the

group’s farms escaped the worst of the damage

TOP—Pandemic

control measures have pushed up

after the storms. Even now,

reinstatement of movement

was not down to the intensity of

rebuilding is still causing delays and

restrictions in major markets like

the winds, but rather flooding

increasing transit times to the ports.

Europe, are limiting purchasing

BOTTOM—Molina

and consumption opportunities in

is confident that

several countries,” he says.

global demand for

The severity of the damage

which left swathes of banana

However, Molina points out

plantations under water for

that these setbacks are negligible

several days, destroying the root

compared with the delays caused by

According to Molina, banana

system of the plants.

the shipping companies and a lack of

production in northern Guatemala

available containers. “The pandemic

never fully recovered from

Molina Group, the world’s biggest

has created significant congestion

Hurricane Mitch in 1998. Instead,

independent banana producer,

in the unloading of ships in ports

it moved to the southern coast of

most of its farms emerged

such as Los Angeles and Long

the country. Although this change

unscathed. “The damage was,

Beach – and the recent grounding

resulted in a substantial increase

for the most part, to plantations

of a containership in the Suez Canal

in the cost of transporting the fruit

owned by the three large banana

further compounded the disruption,”

from farm to port, this has been

multinationals and a number of

he says.

largely offset by improvements in

Fortunately for Guatemala’s

small producers, mainly in the Sula

While the resulting loss in

Valley in Honduras,” explains Hugo

production in Guatemala and

Molina Botrán.

Honduras caused an almost

banana output will return to pre-

immediate hike in spot prices for

Eta and Iota production levels

“Our farms were not directly

16

volumes.

ABOVE—The

production costs OPPOSITE

bananas will keep on growing

productivity in newer farms.

He is confident that Guatemala’s

fresh focus banana 2021

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FEATURES Publication Sponsor

thanks to new production areas in the south of the country. “The worst affected independent growers are unlikely to replant their damaged farms. As for the multinationals, they will have to analyse the cost of rehabilitating their farms,” he says. “Either way, I don’t think that the recovery in these farms will be immediate. At the very least we’re not looking at another harvest until the first half of 2022.

“It is very likely that marginal areas will not be replanted,

“It is reaching a point where

although the multinationals will

producers, especially small

try to maintain at least some

producers, will not be able

production in these areas.”

to compete. This will affect

Hurricane damage notwithstanding, Molina Group is, like all banana companies, being

communities where employment opportunities are already limited.”

Combined with the challenges

squeezed by rising production costs

of dealing with climate change,

and market disruption.

there has never been a more

“In our 30 years of operation,

difficult time to predict the

I can’t think of another period

future and consider new capital

when the banana industry has

investments. For now, Molina

faced such latent pressures on

says the company’s strategy will

all fronts,” Molina says. “Not

be limited to seeking economies

only are we dealing with the cost

of scale, better cost control, and

increases caused by the pandemic

agricultural and environmental

and control measures to prevent

improvements.

fusarium wilt TR4, but in addition

In spite of the ongoing

In the longer term, he thinks per

we have rising input costs, and

disruption, Molina is optimistic

capita consumption will rise

higher shipping rates.

that the market outlook will

post-Covid as people seek out fresh

improve this year as suppliers come

and nutritious food, ensuring that

out that the cost of obtaining and

to terms with operating within a

bananas remain one of the world’s

maintaining certifications and

Covid landscape.

most widely consumed fruits. “The

At the same time, he points

the impact of many importing

“Last year, record production

economic development of many

countries limiting or restricting

volumes in many countries

countries, with the growth of the

the use of chemicals for pest and

coincided with a fall in demand

middle class seeking improvements

disease control, are compounding

due to the closure and restrictions

in nutrition, will increase demand

the pressures faced by growers.

imposed in many markets,” he says.

for bananas,” he says. _

“So far we have managed to

“At the same time, there was an

partially offset the higher costs

overlap in the production curves

with increases in productivity and

of a number of countries and this

labour efficiencies. But our biggest

caused an imbalance between

challenge comes as retail prices

supply and demand. We hope that

keep going down year after year,”

in 2021 this problem will not be

he explains.

repeated.”

fresh focus banana 2021

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FEATURES Publication Sponsor

Making the right moves

PICTURED—Mohammed Abbas, Fresh Del Monte

Mohammed Abbas, Fresh Del Monte’s senior vice-president for Asia Pacific, Middle East and North Africa, discusses

comes from its teams spread across many countries.

the marketer’s response to the challenges of the past year,

Those great efforts spread our produce and fulfilled

and to shifting trends in the banana trade.

market demand with consistent quality.

Fresh Del Monte has been making some major changes

by Liam O’Callaghan

in its banana business. What are these changes and what do you hope to achieve by making them?

@liamfruitnet

MA: Fresh Del Monte has spent years developing its banana sourcing strategy to cover numerous origins.

With TR4 affecting plantations in the Philippines, we made bold moves to tap into new sources to support the Asian markets, which have been traditionally supplied by the Philippines along with Vietnam and Laos.

Over the past two years we managed to develop a consistent supply of bananas from our operations across CECAB (Colombia, Ecuador, Central America and Brazil). Now, Fresh Del Monte Guatemalan bananas have a strong presence in the Japanese markets. We are also developing trade for Costa Rican bananas into Korea. In Hong Kong, we are gradually introducing bananas from Panama.

There has been a slight shi in Asia’s banana trade over the past 12 months, with South-East Asian suppliers filling the gap le by declining exports from the Philippines. Will this trend continue and how is Fresh Del Monte positioned to respond?

MA: We do think this trend will continue and we strongly believe that Vietnam and Laos in particular will continue to grow in production.

We are closely monitoring the expansion plans of medium and large size farmers in these countries and are also pu ing plans in place to expand our production operations beyond the Philippines, but these are still in the early stages.

I

n what has been a year like

sector, and school closures had an

Asia accounted for 10 per cent of sales for Fresh Del

no other, how has Fresh Del

impact on the banana business.

Monte in 2019. Do you see this percentage growing? If so,

Monte’s banana business fared,

particularly in Asia?

where is this growth coming from?

worked around the situation by

MA: We are targeting further growth by diversifying

Mohammed Abbas: It has been a

channelling our fruit to various

our product range within the fresh produce category

challenging year for all markets,

destinations across Asia, the

and the value-added segment in existing markets.

not only Asia. The lockdowns,

Middle East, and even the East

social distancing, decline of the

Mediterranean.

hotel, restaurant and catering

18

Despite this, we remained agile in our approach and

The strength of Fresh Del Monte

The major growth will be in penetrating new markets through collaborations in China, India, and other markets across Asia-Pacific. _

fresh focus banana 2021

p.50(S18).indd 18

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p.7 DelMonte A4 repdf.pdf

1

2020/1/23

��11:00

in fanatics. , which means we’re also supply cha tics fana h fres e we’r it— help ’t can We d safety fanatics. fanatics. Sustainability fanatics. Foo And innovation fanatics. And quality iness along with ours.

And fanatics about growing your bus

DEL MONTE FRESH PRODUCE JAPAN CO., LTD. TEL.(81-3) 5723-6111 DEL MONTE FRESH PRODUCE (KOREA) LTD. TEL.(82-2) 6242-4200

DEL MONTE FOODS (U.A.E) FZE..

TEL.(971-4) 333-3801

VISIT US AT FRESHDELMONTE.COM

FEATURES Publication Sponsor

Colombian sector shows its resilience The country managed to maintain

to producers in 2021 by €0.06 per kg, provoking a wave of protest

Yields keep on rising

from Colombia and other Latin American suppliers. The EU is by far

In 2020, there were 51,454ha of

Colombia’s biggest export market,

banana production in Colombia, an

taking 69 per cent of its shipment

increase of 227ha on the previous year.

volume – or 69m boxes – last year.

Average per-hectare yields rose by

But Emerson Aguirre, president

173 boxes to 2,134 boxes. Augura says

production and exports in 2020 despite

of Augura, says Aldi is overlooking

the improvement was mainly due to to

fighting the pandemic and TR4, says

the cost increases related to the

better climatic conditions in the first

pandemic and the fight against

half of the year, as well as the work

Fusarium wilt TR4. “Growing

done by the Banana Research Centre,

bananas in a sustainable way

Cenibanano, in providing helpful

requires a high level of investment,

tools such as the Climate Network, a

which is borne exclusively by the

climate monitoring and forecasting

producer while the rest of the

project allowing growers to plan their

actors in the value chain evade any

production accordingly.

Emerson Aguirre of Augura.

by Maura Maxwell @maurafruitnet

responsibility,” he explains.

Despite the complications that Covid has brought, the banana

of the sector by paying a fair price

industry put in a solid performance

for our product.”

in 2020, with exports rising by 6.5

in the north of the country in

in volume to US$916.2m and 109m

August 2019, Colombia has managed

boxes respectively. Nevertheless,

to successfully contain the spread

Aguirre says the present direction of

of TR4. Aguirre says this is down

travel is unsustainable.

to the coordinated efforts from the

“Today we continue to

Agricultural Institute, regional

transportation costs due to the

and local authorities, unions

protocols implemented during the

and international producers and

pandemic and the cost of dealing

markets.

“As an industry we are

president Emerson Aguirre

C

“Thanks to the rigorous biosecurity protocols that have been

commi ed to sustainability, we

implemented the fungus has not

pay a decent wage and guarantee

spread to other farms,” he says.

fair working conditions; we strive

“Through Cenibanano, we have

to comply with the highest quality

been working with the Colombian

standards and this is reflected in

Agricultural Research Corporation,

the international certifications that

Agrosavia, on the development of

we have earned. For this reason, we

new varieties of banana plant

olombian banana

invite the international market to

material with TR4 resistance, but

association Augura has

participate with the sustainability

this work is long term.” _

warned that the double

RIGHT—Colombia

whammy of Covid and Fusarium

has managed to

wilt TR4 could derail the industry’s

contain TR4 since

efforts to make banana production

its discovery in

more sustainable unless retailers

two farms in 2019

Ministry of Agriculture, Colombian

face higher production and

with Panama disease,” he says.

ABOVE—Augura

Since its discovery on two farms

per cent in value and 9.34 per cent

are prepared to pay a more realistic price for the fruit.

At the end of last year, German retailer Aldi, which sets benchmark for the retail market price in the European Union, announced that it was cu ing the price paid

20

fresh focus banana 2021

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FEATURES Publication Sponsor

Martignani offers trio of treatments for Black Sigatoka Small, medium and large plantations can choose from one of three sprayer options tailored to their needs.

ABOVE—Martignani’s electrostatic

by Maura Maxwell

sprayers are used widely across Latin

@maurafruitnet

M

America, Africa and Asia

artignani has developed

be truck mounted or pulled by

productivity agro-ecological production system

a suite of electrostatic

tractors and is for plantations of

created by the multinational, helping it to cut

spraying solutions to

200ha or more. It is equipped with

production costs, reduce its environmental impact and

treat the deadly banana fungus

a powerful double-air intake fan. It

increase yield.

Black Sigatoka that meet the needs

is powered by a 140 HP John Deere

of different-sized plantations.

engine, which allows it to cover up to

rainy season and to the irregular topography of the area,

20ha per hour with ranges up to 50

we have managed to carry out the treatments once a

metres.

week with Martignani from the beginning of the season,”

The first, the K800 Electrostatic Backpack Sprayer, is recommended for small plantations of 1-2ha and

Martignani has been a leading

“Despite the limitations for mechanisation due to the

says Alex Morales, Fyffes’ farm development manager in

is equipped with an electrostatic

supplier of electrostatic low

charge device to optimise the

volume sprayers for many years. Its

treatment, ensuring homogeneity,

solutions guarantee the efficient,

of farms is excellent. No banana plantation in this

precision and no dri .

modern and quick delivery of

area can do that with its own means, as it depends

treatments and are used widely on

on aerial fumigation. We have reduced costs and our

M612 Major, meanwhile, can be

banana plantations across Latin

environmental footprint while enhancing productivity.”

carried or pulled by tractors and is

America, Africa and Asia.

The Power Take-off Whirlwind

suitable for medium to large-sized

The company says its

Ecuador.

“This ensures that the phytosanitary management

Morales adds that although Finca San Jorge is a 100 per cent organic banana plantation, the indicators

plantations. “Thanks to its raised

electrostatic charge treatments

suggest productivity levels will be similar to those on a

cannon, this sprayer can work

guarantee the highest accuracy and

conventional plantation.

approximately up to 10ha per hour,

homogeneity in covering banana

with ranges up to 30 metres,” the

plants and absence of dri .

company says.

“This is especially relevant as in an organic production system the availability of supply complying with organic

On Fyffes’ farms in Ecuador,

regulations is limited. That’s why the frequent and

Finally, the engine-driven

Whirlwind M612 Major sprayers

efficient monitoring of Black Sigatoka is the key to

Whirlwind M819 Master Plus can

are a key component of the high

sustainable banana production,” he says. _

fresh focus banana 2021

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FEATURES Publication Sponsor

CSR commitments yield results for Costa Rica

volume in 2020, making it the second biggest market behind the European Union which absorbed 43 per cent of shipments.

Steady productivity increases have enabled Costa Rica’s banana industry to retain its competitive edge while maintaining high social and environmental standards.

Costa Rica’s banana acreage has remained fairly stable over the past decade and currently stands at just below 43,500ha. During that time, improved efficiency on farms

by Maura Maxwell

has delivered steady increases in productivity.

@maurafruitnet

“Thanks to continuous

A

investments in scientific

from strong demand during the

average per-hectare yield of 3,020

Covid crisis. Thanks it its low cost,

boxes, equivalent to 54.8 tonnes per

high nutritional value and safe,

year,” Sauma explains. “Given that

individual “packaging”, it is in many

our wages are higher than in other

ways the ideal pandemic food.

regional producing countries, we

s a staple of grocery

research and efforts to improve

baskets the world over,

sustainability over the past 30 years

the banana has benefited

we are today able to achieve an

For Costa Rica, this translated

simply wouldn’t be able to compete

into record exports of US$1.139bn

with other suppliers if it weren’t for

last year, an increase of 8.6 per

our productivity.”

cent on 2019. Jorge Sauma, boss of national banana corporation

without eroding its current

Corbana, says the results are all

high social and environmental

the more remarkable given the

standards poses an ongoing

contraction in both the country’s

challenge for Costa Rica, but the

and the global economy last year.

biggest challenge facing the sector

Nevertheless, he points out that

going forward is to prevent the

the sector faces serious challenges

entry of Fusarium wilt TR4, which

going forward. In the short term,

has now been detected in three

low temperatures and excess

Latin American countries.

rainfall have reduced the country’s

Since July 2020, Costa Rica

exportable volume in the first few

has been under a national

months of 2021, with shipments

phytosanitary emergency, enabling

down 5 per cent in the first quarter

it to take preventative measures to

compared with the year-earlier

protect the banana industry and

period. (Sauma expects production

safeguard the 140,000 direct and

to return to normal levels in the

indirect jobs that it generates.

second quarter, although he

Sauma acknowledges, however,

acknowledges that “nothing is a

that controlling TR4 is a global

certainty when it comes to the

endeavour that requires

climate”.)

cooperation between different

He notes that the loss of

22

Maintaining its competitiveness

countries. “As a member of the FAO

production in Honduras and

World Banana Forum and the

Guatemala due to hurricanes Eta

Global Alliance against TR4, which

and Iota last year has resulted

is coordinated by the Inter-

in Costa Rica diverting greater

American Institute for Agricultural

volumes to the US market so far

Cooperation, Corbana is playing an

ABOVE—Jorge Sauma says Costa Rica is playing a key role in

this year. The US took 35 per cent

important role in the fight against

the global fight against Panama disease TR4

of Costa Rica’s total shipment

TR4,” he says. _

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FEATURES Publication Sponsor

India builds its banana export business

NAVIGATING COVID-19 Although these long-term trends are assisting the growth of India’s banana exports Khandelwal says the industry has not been able to escape the effects of the Covid-19 pandemic. Logistics disruption saw exports

Traditionally a small player on the international market,

drop in the April-June quarter of 2020, before volumes

one of the world’s largest banana producers has quickly

recovered to match those of 2019, but 2021 is a new

developed its export presence.

story. “Overall the uncertainties have been high during 2021, which has impacted all players in the supply chain,” says Khandelwal.

by Liam O’Callaghan

CAPITALISING ON GROWTH

@liamfruitnet

Looking forward, Khandelwal says the export

I

opportunities for the country’s industry are

n the space of a few years

Philippines and Ecuador are

humongous but significant investment is still required

bananas have become one of

facing challenges with disease and

to capitalise on them.

India’s most prominent export

weather, so customers are looking

categories.

INI Farms is one of the

to diversify.

“Simultaneously demand

“Organising farmers and standardising production systems in a small landholding country are central to developing large industry,” explains Khandelwal.

companies helping to drive this

from China has led to significant

“INI has proven that this can be done through Public

export growth, working with 3,000

shi with Philippines production

Private Partnership models, which have enabled large

banana growers and shipping

increasingly moving to China as

scale farmer mobilisation, training and value chain

30,000 tonnes to the Middle East in

first preference, leaving a vacuum

development.”

the 2020 calendar year.

in a low production period in the

“As the production system developed along with postharvest

Middle East,” explains Khandelwal.

“India fits in well with these

Khandelwal also identifies the importance of building brands – like its Kimaye brand – focusing on marketing and building a differentiated value

infrastructure, the markets also

changing macro situations as

proposition. INI has responded to growing demand for

responded. In 2019-20, India

two major advantages of Indian

non-Cavendish varieties of banana – like Yellaki,

exported 196,000 tonnes and

bananas are lower production costs

Nendran and Red banana. It is working on market

exports have increased at a

and a logistical proximity to Middle

development to provide an outlet as the production of

compound annual growth rate

Eastern markets.”

these varieties develops. _

(CAGR) of more than 70 per cent over the last 5 years,” says chief executive Purnima Khandelwal.

“Organisations like INI have made a huge difference with extensive farmer training, adapting world-class production system to the Indian reality of small-hold farmers, building postharvest infrastructure and building markets.”

A MARKET OPENING Khandelwal says structural shi s in the global banana trade are also favouring India as traditional growing locations such as the

RIGHT—INI Farms works with around

3,000 banana growers in India PHOTO—INI Farms

24

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Qatar, UAE, Oman, Kuwait, Iran, Malaysia, Iraq & Turkey, Baharain, Saudi Arabia, Egypt, Libya, Singapore & CIS Countries

doc.indd 1

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ANALYSIS Publication Sponsor

A changing climate in more ways than one As Latin America continues to grow its market share, the EU has presented the world’s major banana suppliers with a considerable environmental challenge.

Banana and plantain exports (tonnes) LATIN AMERICA

2019

2020

% SHARE

% +/- VS 2019

Ecuador

6,881,117 7,333,894

31.3

Costa Rica

2,384,821

11.2

10.2

Guatemala

2,698,959 2,500,000

10.7

-7.4

Colombia

2,009,965 2,175,030

9.3

8.2

2,628,146

6.6

Mexico

580,000 550,000

2.3

-5.2

Honduras

594,049 540,839

2.3

-9.0

Panama

341,927 365,866

1.6

7.0

Peru

219,557 212,454

0.9

-3.2

Nicaragua

192,861 180,000

0.8

-6.7

Bolivia

109,392 115,972

0.5

6.0

Belize

92,361 101,983

0.4

10.4

Brazil

79,397 84,304

0.4

6.2

Suriname

23,500 0 0.0

Subtotal

16,207,906 16,788,488

=

71.6

3.6

CARIBBEAN Dominican Republic

390,000

Saint Lucia

10,619

12,000

0.1

13.0

St Vincent

2,512

2,500

0.0

-0.5

Dominica

1.7

-3.4

880 900 0.0 417,893 405,400

2.3

1.7

ASIA Philippines

4,351,975 3,725,774

15.9

F

resh bananas, including plantains, rank as a leading crop in world agricultural production and trade. Estimates from the UN Food and Agriculture Organisation indicate that average

global banana production rose from 69m tonnes in 2000-2002 to 116m tonnes in 2017-2019. In the same period, cross-border trade increased from 15m tonnes to 23.5m tonnes.

But in 2020, there was no apparent increase in

403,882

Subtotal

LUC HELLEBUYCK International Agri-Business Consultant, Sohe

-3.0

that growth, with exports stalling due to adverse weather in Central America and the Philippines.

At the end of October, tropical storms Eta and Iota flooded banana land in Guatemala and Honduras, reducing the nations’ crops by 15 per cent and 60 per

-14.4

cent respectively. In the Philippines, several typhoons were active, leading to a 14 per cent fall in exports.

Myanmar

410,488 400,000

1.7

-2.6

Cambodia

112,313 278,018

1.2

147.5

Vietnam

255,683 240,000

1.0

-6.1

the country’s state-owned banana company to a

Laos

250,000 220,000

0.9

-12.0

India

174,668 220,000

0.9

26.0

standstill, reducing annual exports by one-third.

Pakistan

116,386 120,000

0.5

3.1

Malaysia

23,995 28,059

0.1

China

24,897 25,000

0.1

0.4

Indonesia

22,744 25,000

0.1

9.9

Thailand

23,886 15,628

0.1

-34.6

Subtotal

5,767,035 5,297,479

22.6

16.9

AFRICA 450,000

449,618

Cameroon

300,401 187,884

0.8

-37.5

Mozambique

125,110 136,530

0.6

9.1

Ghana

99,261 100,000

0.4

0.7

Egypt

24,585 25,000

0.1

1.7

Eswatini

19,558 20,000

0.1

2.3

South Africa

19,407

0.1

These losses were compensated, however, by good years for the leading banana-producing countries in Latin America.

For the tenth year in a row, Ecuador registered record exports above 7m tonnes, up 6.6 per cent year on year. Good weather in Costa Rica helped the major multinationals present in the country to

Cote d’Ivoire

16,724

1.9

-8.1

In Cameroon, meanwhile. social unrest brought

0.1

-13.8

increase their exports by 10 per cent, while Colombia also benefited from conducive conditions and its exports were up 8 per cent. Together, these three countries account for more than half of the world’s banana trade, shipping 31 per cent, 10 per cent and 9 per cent respectively.

Angola

8,656 11,000

0.0

27.1

Once the other banana exporters in Latin

Ethiopia

7,000 7,000

0.0

0.0

7,264 7,000

0.0

-3.6

America are added, last year’s export volume

4.1

-9.4

Zimbabwe Subtotal Total

1,060,860 961,138 23,453,694 23,452,505

100.0

0.0

increased to 16.8m tonnes. To transport all of this additional volume, the industry needed more than 12,000 refrigerated 40ft containers per week, which

Source: UN ITC, FAO WBF, Luc Hellebuyck

meant several specialised reefer vessels were added to trade routes.

26

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ANALYSIS Publication Sponsor

Banana and plantain suppliers and markets (2020, tonnes)

US

Ecuador

% +/-

EU27+UK

675,219 +0.3

Costa Rica

844,238

284,984 +17.7

Philippines Mexico

+6.1

21,094 +67

1,266,138

+9.0

5,889

KOREA

% +/-

21,657 -34 20,007

+70

68

RUSSIA

% +/-

1,459,850

+6

=

20,175 +693

+62

17,309

+11 -35

3,152

-4

804,348

-4

260,795

-9

22

=

79,526 +46

5,669

-10

946

=

926

-0.3

132 -83.7

-6.9

16,337 -44.4

27,173 +2,361

15,130

1,534,093 +4.2

395,919 3,307

% +/

196,364 -3.9

Honduras 479,305 -5.1 Dom Republic

JAPAN

136,190 +14

Guatemala 1,876,212 -3.0 Colombia

% +/-

1,672,049 +10

10,478 -48.8

+185.3

354,957 -2.8

Cote d’Ivoire

327,886 -3.5

Panama 28,118 +132.6 289,962 +1.4 Peru

75,545 -8.5

101,404 -8.8

Cameroon

5,527

-2

10,933 -18

180,902 -4.1

Belize

91,721 +6.4

Nicaragua 7,024 +189.9

75,167 +0.7

Ghana

77,452 -9.3

Brazil

64 +36.6

14,634 -19.9

St Lucia

11,824 -9.2

Vietnam

69 -68,5

Angola

7,873 +18

+72 =

1,914 +11

7,173 +46.8

Indonesia

2,317 -16

Thailand

2,131 +5

275 -29.8

710 -12

Uganda

2,309 -16.8

Dominica

912 =

Cambodia Rwanda

686 +1,360

118 -25,0

Suriname Total

4,671,204 -0.1

6,232,010 +3.8

1,060,860

+2

354,885

=

1,515,418

=

Source: UN ITC, Eurostat

MARKET CONCENTRATION

paying them less and less for their

Fork’ strategy calls for more food

Almost 14m tonnes, or 60 per cent of total exports, go to

bananas. With production costs

production and a dramatic cut in

the EU27, UK and just four others – US, Japan, Korea and

increasing, this impoverishes and

synthetic pesticide use. To achieve

Russia. Guatemala remained the main supplier to the US,

hinders the development of rural

this, the EU has placed most of its

with 1.9m tonnes, followed by Costa Rica, Ecuador and

populations, and neither the retailers

chips on expanding organic farming,

Honduras. Mexico saw harsh weather cut its volume by 7

nor the certification companies have

from 7.5 per cent to 25 per cent, while

per cent compared with 2019. The main supplier country

assumed their share of responsibility.

reducing pesticide use by half. For

to Japan and Korea is the Philippines, whose volumes fell

Bananas are the most consumed

many pesticides, new regulation sets

fruit in Europe, where consumers

the MRL at 0.01mg/kg. To comply,

prefer their food to be healthy,

farmers will need to have access to a

UK are big destinations for several countries. But in 2019,

environmentally friendly and good

new category of green pesticides.

African and Caribbean suppliers again lost market share

for producers, but do not always

of 15 per cent, or one million tonnes. Three countries –

pay what many deem a fair price.

will have to use more energy-

Ecuador, Costa Rica and Colombia – grew their share to

Climate change is also a major

efficient reefer container vessels, so

70 per cent of all imports, while organic banana sources

factor. Global warming brings erratic

they reduce CO2 emissions and cut

Peru and Dominican Republic sent less. With the EU and

rainfall, hurricanes and flooding,

the carbon footprint by 10 per cent

UK importing 3.8 per cent less, wholesale market prices

which negatively impact farms,

by the end of 2025.

were around 6 per cent lower.

workers, families and communities.

slightly, affecting sales to China’s mainland.

With local supply under 600,000 tonnes, the EU27 and

In March, the EU launched

Shipping companies, meanwhile,

Banana companies that sell to the EU therefore have to take action to

LATIN DOMINATION

its European Green Deal. Its goal

support rural development, jobs, and

Three-quarters of the bananas consumed in Europe

is to make the bloc’s economy

the environment. More and more,

come from Latin America. To sell in the EU, some retailers

sustainable, by turning climate

bananas will have to be fairly traded

make producers join ‘voluntary’ private certification

and environmental challenges

and organic, and carbon neutral. The

schemes – they are in fact mandatory – while apparently

into opportunities. Its ‘Farm to

question is, at what price? _

fresh focus banana 2021

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ANALYSIS Publication Sponsor

COOPERATION NOT CONFRONTATION Koen Van Dyck, from the European Commission’s Directorate-General for Health and Food Safety, said that Farm To Fork was essential if the EU was to meet the UN’s Sustainable Development Goals, and he stressed that the strategy was “not about confrontation, it’s about cooperation”.

“The solution is not in one LEFT—Carolina

Dawson of French

silver bullet, but in different aspects overall that allow the

research centre

reduction of dangerous pesticides

Cirad

and the safeguarding of the health of consumers,” he said.

Sustainable bananas take cooperation

He highlighted the need for communication, not just with producers, but also the authorities.

“It’s about health,” he concluded.

“Trade will follow.”

Carolina Dawson of French

The global banana sector will need to work together in

research centre Cirad said that

order to become more sustainable, according to experts on

in order to address the issue of

a webinar to mark Banana Day.

decreasing prices, it was crucial to analyse how value was distributed throughout the supply chain. She

by Tom Joyce

stressed the need for transparency

@tomfruitnet

in order to discover the real costs and value of efforts that would

O

but he added that there was an

April, expert speakers

urgent need to innovate in order

is exactly the way to improve

discussed the issue of

to move away from the blanket

the situation,” she noted. “It is

sustainability in the banana

use of fertilisers and diversify

necessary to boost dialogue, reach

sector during a webinar entitled

the crop.

compromises and come out of

“Opening up this sort of debate

“When Farm To Fork Goes

the traditional price war system,

Bananas”.

which isn’t adequate for the

Professor Gert Kema of Wageningen University opened by acknowledging that banana producers had little option other than to use fertilisers given the susceptibility of the Cavendish variety to disease.

“TR4 is a threat,” he said, “but

28

lead to sustainable bananas.

n Banana Day on 21

It is necessary to boost dialogue, reach compromises and come out of the traditional price war system Spanish MEP Juan Ignacio Zoido said that pesticide and

industry overall.”

Maija Laurila, of the EC’s Directorate-General for Justice and Consumers, said it was necessary to remind the sector that what was good for the environment was often good for business as well.

it is still just in Colombia and

fertiliser reduction was a key

“We have a lot of evidence on

Peru. Black Sigatoka, however, is

part of the EU’s Farm To Fork

how good corporate governance

everywhere. We grow one very

strategy to boost quality and

and sustainability actions are

susceptible variety, and that by

sustainability. But he stressed

profitable for businesses,” she said.

its definition is not sustainable.”

that the “proper administrations”

“We need to show that it is also

Kema said it was important

needed to assist growers with the

good for them and that every

to remember that “we only grow

costs of researching and breeding

company can adopt the transition

bananas because of fertilisers”,

new varieties.

to more a sustainable business.” _

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ANALYSIS Publication Sponsor

Prices must include real costs The argument between producers and distributors concerning banana prices is not about to go away.

ALISTAIR SMITH Banana Link International coordinator

G

rowers are insisting, rightly, that if the market wants living wages, decent contracts and working conditions, as well as positive environmental impacts at the production end, then this has

to be reflected in prices that cover the costs, with a margin for investment in what buyers and consumers actually want.

“Shared responsibility” is the watchword; and bananas can no longer be treated as a loss leader whose buying price can be infinitely squeezed.

The TR4 threat hanging over the whole industry is just one symptom of a production system that has reached its limits. New varieties and diversified agroecological methods are not a utopian luxury, but

– but also to what can be done to put the industry on a

need to be explored as a way out of multiple crises that

different track.

affect all those whose livelihoods depend on the trade.

Growers are now presenting a united front, and

It is finally emerging from the scientific community that the only solutions to managing the TR4 disease

this is encouraging. The exporting countries and their

probably lie in soil management, feeding soils

producers could take measures to control supply, but

biologically rather than chemically. But

buyers urgently need to play their part and understand

the investment that is required to

that all the economic, social and environmental issues

make the transition on a large scale

affecting the industry are interlinked. Trying to resolve

can only be made if the industry

one set of issues without seeing the whole picture will

makes a united effort.

not lead to sustainable bananas for all. Keeping buying

Many banana scientists are

prices down is ultimately the surest way of causing the

ready to support a transition. Many

collapse of the whole industry.

banana companies see the writing

Consumers in many countries have led the way in

1 in 8

bananas sold in north america last year were organic

on the wall for the conventional

giving the banana sector the biggest Fairtrade market

Cavendish monoculture, even if they are

share in Europe with around 10 per cent, and a rapidly

not comfortable saying so publicly. Many workers

growing organic share. Nearly one in eight bananas

are ready to contribute to these efforts on a daily basis

sold in North America last year were organic, for

if producers accept that they cannot go it alone without

example. This should be a signal to the big buyers that

the participation of their workforce.

they can go further, as we are no longer talking about market ‘niches’ for organic and Fairtrade.

For years, Banana Link has sought to alert key

The question is no longer whether to act or what to do, but rather how and when. The World Banana Forum provides the space to work this out. The price of not

players and consumers not only to what is wrong – and

heeding all the signals would be much higher than

all the negative impacts of the current banana system

investing in genuinely sustainable bananas. _

ABOVE—The

threat of TR4 hangs over the whole industry

fresh focus banana 2021

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18/05/2021 16:58

ANALYSIS Publication Sponsor

Bananamania!

Scientist, artist, collector, communicator… how one banana expert is channelling his own passion for the fruit to promote the science behind its future survival.

by Mike Knowles @mikefruitnet

F

things I love – movies and toys,

as a breeder and researcher for

etc. So I decided to start the

KeyGene, based at Wageningen in

Bananaman wall of fame as a

The Netherlands, and is probably

tribute to the fruit that changed

best known for his recent work to

the world – as Dan Koeppel would

develop banana plants’ resistance

say – and share it on social media.

to Tropical race 4 – a soil-borne

Now people from around the world

fungus that causes the highly

send me banana items – especially

problematic Panama disease.

drawings and cards. The collection

ernando García-Bastidas is

I like to collect stuff related to

one of the world’s leading banana scientists. He works

coins and banknotes, keyrings,

But plant science is not the

grows every week.

only strand in Fernando’s DNA. He is also an accomplished artist

How do you explain this love of

and frequent collector of banana-

bananas? Is it because of your

related memorabilia. For this,

work, your enjoyment of the fruit

Fruitnet’s first ever Fresh Focus

itself, or something else?

Banana special, he has created the publication’s brilliant front cover

FGB: I like bananas, but I enjoy

illustration, and also agreed to

eating plantains more. For me it

let us view the full extent of his

is a combination of the fact that

marvellous collection.

I like collecting and the passion I have for my work. I love what

Fernando, tell us about your

I do, and in some way I think

collection! How long has it taken

I’m doing something good. My

you to amass all of these items?

banana ‘madness’ helps raise awareness of the critical situation

Fernando García-Bastidas: I have

faced by banana producers, and

FGB: It is going very well. We have

items from 2014, but it started

contributes to solving a problem

sequenced many cultivars to find

in 2018. When I started work at

that can affect millions of people

the resistant ones and at the same

Wageningen University, people

worldwide. Bananas have given me

time those that are closely related

called me Bananaman, Mr Banana,

so much, so why not create a space

to Cavendish. Using a sort of family

or Dr Banana. Suddenly I started

for appreciation and at the same

tree of Cavendish bananas, we

to get banana-related presents

time have a friendly and funny

could develop a new Cavendish-

on special occasions, like T-shirts,

environment in which to work and

like cultivar but this time with

socks, cards, and badges. When I

interact with people.

ancestors that might contain TR4

moved to KeyGene, to my surprise

30

PICTURED—

García’s collection in all its glory at his office in Wageningen Photos: Fernando García-Bastidas / Luuk Wilbers

resistance. We are also looking to

they decorated my office with

How is the battle against disease

use genetic resources found in the

banana posters. It was a nice

going? Are you close to finding a

wild to incorporate more tastes,

beginning and also a trigger.

defence against Panama disease?

aromas, and colours.

fresh focus banana 2021

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ANALYSIS Publication Sponsor

Bananas feature prominently in

the same time I was also doing funny cartoons that

places like Ecuador, Greece, the UK,

your art and social media posts

placed bananas in famous films or hid them within

even Japan. I think one of the most

too. Can you tell us why you started

puzzles – where the game was to find the banana. That

important items in my collection is

drawing these pictures and what

is how my Bananatoons started. So far, I have only

my Colombian hat, the sombrero

kind of reaction do they get?

had very good comments. A few times my art has been

vueltiao, which is very traditional

stolen or misused, but with no big consequences. The

in my home country’s banana

rest is all just fun.

industry. I was given it as a present

FGB: At some point, I decided to accept the Bananaman nickname. Little by little, this

in 2014, during a conference about Finally, which is your favourite banana-related item?

also affected my art, I started

bananas in Colombia. It is great because it has become part of me

from a scientific perspective

FGB: All of my collection pieces bring me a good

and my style, and sometimes when

drawing the history of the banana

feeling, especially as some people make stuff for me by

I give interviews the journalist’s

(#TheHistoryOfTheBanana) but at

hand, so that’s unique. It is amazing to get things from

first request is to wear my hat. _

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THE LAST BITE Publication Sponsor

Perfection’s top tips for banana success Purchase of Pacific Coast Produce Marketing looks set to expand the Australian company’s banana offering with The Red Tip Ecoganic banana.

by Chris Komorek @ckfruitnet

A

ustralian company Perfection Fresh has entered the banana

“We decided to enter the banana category because we have the

ABOVE—PCPM’s red-tipped organic bananas are a key part of

the deal

category with the purchase of

opportunity to grow the category

Sydney-based banana business

as a whole by offering unique

Pacific Coast Produce Marketing.

product offerings to different

Sciacca, aims to arrest the decline of reef and soil

consumers,” said Perfection chief

health caused by conventional growing practices in Far

executive Michael Simone a.

North Queensland. Rather than relying on chemicals,

The acquisition provides the group with an opportunity to sell Pacific Coast’s trademarked Ecoganic bananas, which are sold

32

with a distinctive red wax tip.

Ecoganic, a farming system designed by Frank and Dianne

Photo: Perfection Fresh

the method grows bananas slowly, carefully and sustainably. _

fresh focus banana 2021

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18/05/2021 11:42

ADVERTORIAL

Reybanpac seeks to open new markets and affirms its commitment to sustainability

F

offering our clients their own brands.”

Reybanpac has 7,000ha of own production located in the most fertile region of Ecuador.

The country’s excellent climate conditions allow the fruit to be

“Soon we will be glad to announce our bananas are carbon neutral”

produced throughout the year, as well as a more homogeneous ripening process, which translates into better quality and a long

minimise environmental impact.

green life.

Among our focal points is the

“Our farms have national

reduction in water consumption,

and international certification

optimising the use of fertilisers,

or over 40 years, Reybanpac, producer

programmes, which guarantee the

circular economy and carbon

of Favorita brand bananas, has been

quality of our fruit as well as our

neutrality,” he explains.

consistently expanding its markets. Its story

social, labour and environmental

“The latter is an achievement

began in 1977 with its founder’s ambition to pioneer

responsibility. We have optimal

that we are close to reaching. We

Ecuadorean banana exports into new untapped

control in the management of

are currently finalising an audit

markets such as Russia and China.

our supply chain and we focus on

process in which an assessment

efficiency and traceability to ensure

of the entire production process is

exporter in Ecuador, shipping around 28m boxes

transparency and compliance

done, from cultivation to the port

per year to 15 countries on five continents. Its main

with delivery programmes.” says

of loading. Soon we will be glad to

markets are the European Union, Russia, the Middle

Molineros.

announce our bananas are carbon

Currently, Reybanpac is the second largest

East and Asia.

In the words of Mónica Molineros, international

In recent years the company has made significant investments

neutral.”

In 2021, Reybanpac seeks to

business manager, an important part of the

as part of its development plan.

strengthen its commercial

company’s success lies in its diversification strategy.

Hugo Carrillo, Reybanpac’s

relationships, position itself in the

“We have consistently worked on opening

general manager affirms that: “our

most demanding markets and

new markets. We have a great capacity in terms

objective is to implement processes

expand its business to new

of volume and infrastructure to meet the

to improve sustainability, efficiency

destination countries. _

various specifications of our clients according

and productivity”.

to the preference of the consumers,” she says.

“We work with precision

“A differentiating advantage is our flexibility in

agriculture to guarantee optimal

TOP—Reybanpac’s market diversification

handling special packaging and the alternative of

resource management and

strategy has paid off

fresh focus banana 2021

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17/05/2021 16:25

best taste, best * qu y t ali *According to a recent research, Chiquita is more liked overall and always superior on appearance, aroma and taste vs the competition. (MMR Taste Research, Germany August 2020).

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