Bananas: Katope wants to finance former Surland SBBS
Coosemupar resumes banana picking, Ecuador to seek fast WTO solution, strike looms

Tholen - The foundation SBBS, which was instated to preserve the former Surinam banana company Surland, comes $ 4,7 mln. short this year. While the European banana prices are under pressure, the Katope-Agrisol combination has offered to help SBBS out of its financial trouble, under the condition that it can enlist its own management at SBBS and will have the possibility to compete for the takeover when the company will be privatised.

SBBS has had to satisfy itself with low prices - as minimum levels of € 4,50 are quoted - and it expects Katope to be able to offer allocation of the bananas against better prices. The poor financial situation of SBBS also means that in case of privatization, the sales price will be favourable for the buyer. However, a total of 7 multinationals have shown interest in a take-over.

Coosemupar resumes banana picking

The Coosemupar workforce has resumed its activities, after a strike which is said to have cost almost one million dollars, while other sources report $ 250K. An agreement was reached with the government to find a solution to the financial crisis in which Coosemupar finds itself.

There has been a meeting between the minister of Labour, Reynaldo River, the general secretary of the union Sitrachilco, Salustiano De Gracia and Ramón Rodríguez, the vice director of the Autonomous Panamanian Cooperative Institute, Ipacoop. The government will intermediate between Chiquita and Coosemupar, to negotiate a price increase of $ 1,40 per box, thus trying to avert the liquidation of Coosemupar.

According to Rivera there was no serious alternative for Chiquita. However, Alvaro Muñoz, laywer of Sitrachilco entirely disagreed with this, as the bank San Pablo INI has given a guarantee on Ale Fruit from Italy. Also, Muñoz is on the alert as Chiquita may have support in the government and could be after a take-over of Coosemupar.

Coosemupar employees have asked the government for a new Coosemupar director within two weeks and a whole new board within a month, although other sources have reported a deadline of 60 days.

Ecuador to seek fast WTO solution, strike looms

After the antecedent of the WTO verdict of 1999, when it was decided that the EU would have to change its import system of quota and licences in a competitive import tariff without preferences, Ecuador could expect a quick decision now, when it presents its juridical demands against the EU to the WTO on a short term.

This solution could arrive within seven months, as the present system was created unilaterally and is not in concordance with the 2002 agreement, which indicated an exclusively tariff-based system. Ecuador hopes to eliminate the preferential conditions the ACP countries Ivory Coast, Cameroon, Jamaica, Belize and the Dominican Republic enjoy, or otherwise reach a lower tariff like € 75 per MT.

However, speed is of great importance, as the former government chose the option of a fast solution in May this year, instead of a three year trial, but it has not taken the necessary juridical steps. Therefore a legal advisor, who can represent Ecuador in a case under article 21.5 of the WTO arbitration commission, will have to be chosen soon. According to Eduardo Ledesma, of the Association of Banana Exporters Aebe, the present government will need at least three weeks to study the issue and while time passes away, so does the market share of Ecuadorian exporters who are the hardest hit in this situation - not the ministers.

The former undersecretary of agriculture Xavier Sanmartin and Jorge Toapanta, the general secretary of the banana growers organisation from El Oro, both fear that this procedure opens the door for a re-introduction of the license system. At the same time they are not failing to protest against the grower price of $ 1,40 per box. It will be a tense situation, as today it will be decided whether or not growers from Los Ríos, Guayas and Cañar are going to hold a strike against the low prices.

Intermediates increase banana prices with 389%

The Spanish Agricultural organisation Coag complains that the intermediate trade is driving up the price of Canary bananas with 389%, as the grower price amounts € 0,45, while the price at the end destination amounts € 1,75. However, the source did not state which units of measurement Coag applied here.

Publication date: 10 July 2006
Author: André van der Wiel
Copyright: www.freshplaza.com