Although more famous for its pineapples, Costa Rica devotes around 44,000 hectares to the cultivation of bananas; less than 1% of the country's territory. 48% of the business is in the hands of small producers and the rest in those of companies such as Chiquita, Dole and Del Monte.
Costa Rica's most common bananas are the Gran Enano Valery and the famous Cavendish, "which is considered the world's best banana," says Jorge Arturo Sauma Aguilar, manager of CORBANA.
The banana market is becoming increasingly saturated
"Banana production has expanded without control in recent years and this is leading to an increasingly more saturated market. Considering the market's global status, all producing countries should hold off a little if they wish to continue making a profit. First it was Ecuador, now also the Philippines, Guatemala or Cameroon, whose produce stands at considerably lower prices," he explains.
"The wages of a Costa Rican labourer are not the same as those of an African or Filipino and we cannot compete with that. That is why we need to do as much as possible to let consumers know about the value added by ethical social and environmental policies. We are currently working with the EU for the designation of a Protected Geographical Indication to Costa Rica's bananas."
The European Union and the United States are the two largest markets for Costa Rica's bananas, and Sauma Aguilar believes that, despite the oversupply, there is still room for growth.
"I think we can still grow in the North American market, and our supply volumes to some EU countries could also increase. We are also really interested in entering markets in the Middle East, like Dubai or Saudi Arabia, where healthy eating habits are being strongly promoted by their governments."
Race 4 Fusarium: the greatest threat to Costa Rican bananas
Competition with other countries is not the only obstacle for Costa Rica's banana sector. "The greatest threat to our produce is the Race 4 Fusarium virus, which has yet to affect us, but if it did, it would cause incalculable losses.
Competition with other countries is not the only obstacle for Costa Rica's banana sector. "The greatest threat to our produce is the Race 4 Fusarium virus, which has yet to affect us, but if it did, it would cause incalculable losses.
At the latest congress organised by Corbana we recognised it as a real threat, and we determined that a joint effort from all Latin American nations, as well as the exporting countries, is required to prevent such threats."
Fairtrade and organic in Costa Rica
Even though not many Costa Rican companies are Fairtrade certified, Sauma Aguilar believes that Corbana is fundamentally a Fairtrade producer, as "great efforts are carried out for the protection of the environment, with assistance from the Environmental Banana Commission (CAB), and for improvements to be made to the labourers' social structure. There is still a lot of work to do, but most of our producers are certified by Global Gap, ISO 14001 or Rainforest Alliance."
Regarding the organic market, "it is harder to grow organic bananas in Costa Rica than in other places like Piura, in Peru. Temperatures are very high here and we need some phytosanitary control mechanisms."
All three forms of trade likely to prevail
In what concerns banana trade, Sauma Aguilar believes that, despite the latest trend among large supermarket chains, like Walmart and Tesco, of working directly with producers, the other two forms of trade are also likely to prevail.
In what concerns banana trade, Sauma Aguilar believes that, despite the latest trend among large supermarket chains, like Walmart and Tesco, of working directly with producers, the other two forms of trade are also likely to prevail.
"I think that there will still be producers working through large distributors, as well as others exporting the fruit themselves. All trading forms are acceptable as long as growers are able to make a profit."
About CORBANA
The National Banana Corporation (CORBANA) is a non-state, public entity, founded with the goal of promoting research in Costa Rica's banana industry and improving the situation for producers. "The Costa Rican government hands over all research and technological transfer issues to CORBANA. We also offer assessment to the government in matters of trade and treaty development, such as the latest one signed with the European Union," concludes Sauma Aguilar.
The National Banana Corporation (CORBANA) is a non-state, public entity, founded with the goal of promoting research in Costa Rica's banana industry and improving the situation for producers. "The Costa Rican government hands over all research and technological transfer issues to CORBANA. We also offer assessment to the government in matters of trade and treaty development, such as the latest one signed with the European Union," concludes Sauma Aguilar.
For more information:
Jorge Arturo Sauma Aguilar
CORBANA
T:00506 2202 4711
jsauma@corbana.co.cr
www.corbana.co.cr
Jorge Arturo Sauma Aguilar
CORBANA
T:00506 2202 4711
jsauma@corbana.co.cr
www.corbana.co.cr