At a time of trade negotiations to set the prices of bananas in European supermarkets in 2024, Latin American producers denounce the double talk of some distributors who refuse to pay more despite their declared support for sustainable production. An illustration of the challenges that the entire sector must respond to and which concern bananas from Ecuador, Martinique and Ivory Coast.
In several European countries, on Friday 22 November, there will be a discussion about the banana prices that will come into force in 2025 in supermarkets. A particularly difficult annual stalemate, because it is the fruit that is the loss leader in large-scale retail trade, the one that attracts consumers. Touching your label is almost taboo.
On the other hand, we ask more and more of the banana so that it reduces its carbon footprint and uses fewer synthetic inputs. Environmental and social expectations have multiplied in the last fifteen years. “ Requirements that today are no longer truly optional”notes an expert in the sector, but which are increasingly less compatible with the prices offered to the manufacturer. This is exactly what the Latin American countries that represent around 60% of the market are reporting this week: Colombia, Costa Rica, Ecuador, Guatemala, Peru and the Dominican Republic.
A shared responsibility
In a common textThe producers of the so-called dollar banana point the finger at retailers who impose obligations on suppliers without wanting to assume their share of responsibility. The big conversation about sustainability is really just “ empty statements”, they write. Above all, the German distributor Edeka is in the spotlight, having clearly expressed its intention to negotiate prices downwards.
According to industry experts, the debate is no longer whether action should be collective, but has become a necessity. In a press release this Thursday 21 November, the Interprofessional Association of Bananas (AIB) – which represents, in France, all the links in the sector, from the producer to the distributor through the wholesaler and the ripener – confirms the need for a shared responsibility: to the expectations in In terms of sustainability, increasingly significant agricultural and logistical risks are added, notes the AIB, risks that entail additional costs.
A picture that becomes rigid
For example, weather conditions affect banana production in Africa and Latin America, but also the water level in the Panama Canal used to ship bananas from Ecuador, Europe’s main supplier. Tensions over the Suez Canal are weighing on global container availability, while the war in Ukraine has driven up prices of factors of production, not all of which have returned to pre-war prices.
These constraints are starting to “hurt”. » of the sector and are increasingly less bearable for the producers of the 20 million bananas exported worldwide every year – a global production of 80 million.
What are the challenges faced by banana producers in balancing sustainable practices and pricing pressures?
To support sustainable practices while simultaneously resisting price increases for the bananas it purchases.
Interview between Time.news Editor and Dr. Elena Vázquez, Banana Industry Expert
Time.news Editor: Welcome, Dr. Vázquez! Thank you for joining us today to discuss the pressing issues surrounding banana trade negotiations in Europe. The producers from Latin America have raised some grave concerns. What’s your take on the situation?
Dr. Elena Vázquez: Thank you for having me! It’s indeed a critical moment for the banana industry. As the producers have pointed out, there is a troubling contradiction between what retailers claim to support—sustainable production practices—and the prices they are willing to pay for bananas.
Time.news Editor: Absolutely. The article mentioned that banana pricing discussions are ongoing for 2025, but there seems to be an almost taboo nature about changing the price of bananas in supermarkets. Can you expound on that?
Dr. Elena Vázquez: Of course! Bananas are often used as loss leaders in supermarkets. This means they are sold at a low price to attract customers, making it a challenging product for retailers to increase prices on without risking customer backlash. Yet, with increasing demands for sustainable practices, it’s becoming increasingly complicated to reconcile these competing interests. The pressure to reduce carbon footprints while keeping prices low is creating a perfect storm.
Time.news Editor: That brings us to the claim made by producers that discussions of sustainability have become “empty statements.” How do you interpret this sentiment?
Dr. Elena Vázquez: It’s a reflection of the reality on the ground. Producers feel caught in a bind where they are asked to improve social and environmental standards without receiving adequate compensation for these efforts. This situation is particularly infuriating for countries like Colombia, Ecuador, and Costa Rica, which represent a significant portion of the banana market. They are being held to higher standards, yet their margins are being squeezed tighter.
Time.news Editor: The article highlights that the German distributor Edeka is under particular scrutiny for this issue. What role do retailers, particularly large ones, play in this ecosystem?
Dr. Elena Vázquez: Retailers are undeniably powerful players in the supply chain. They can exert pressure on prices and set the tone for what sustainability looks like in practise. When retailers publicly advocate for sustainability yet resist paying more for responsibly sourced products, it sends a mixed message to both consumers and producers. It’s essential for these large distributors to recognize their shared responsibility in the supply chain and understand that paying fair prices is crucial for sustainability.
Time.news Editor: So, what do you think the path forward looks like for producers and retailers in this context?
Dr. Elena Vázquez: It’s going to require open dialog and collaboration. Retailers need to engage meaningfully with producers and share the burden of sustainable practices. This might mean reevaluating pricing models to reflect the true cost of sustainable farming. Both parties need to recognize that sustainability is a shared journey—while consumers demand higher environmental standards, they also need to be willing to pay for it.
Time.news Editor: Thank you, Dr. Vázquez, for your valuable insights. It’s clear that the conversation about banana pricing and sustainability is complex. We appreciate your perspective on such a timely issue.
Dr. Elena Vázquez: Thank you for highlighting this important issue. It’s crucial that we keep these conversations going if we hope to drive meaningful change in the industry.
