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
Advertisers
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.” _
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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,
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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
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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. _
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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.”
»
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Flexible ripening capacity without the financial banana skins. The Mobile Ripening Unit from SmartHarvest is a game-changing solution that delivers all the advantages of traditional ripening rooms without the long-term financial commitments.
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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
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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
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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.”
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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
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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
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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. _
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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
30/04/2021 15:38
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? _
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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
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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.
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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. _
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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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