Spain: Canarian bananas aim to maintain their market share

To maintain its traditional market share is the goal set by the Canarian banana sector given the latest 'offensive' from non-EU banana producers, who have benefited from a yearly reduction in their customs tariffs since 2010. "It is becoming increasingly difficult to market this fruit," warned Canarian producers. The compensatory aid to the sector guarantees, so far, the viability of the 9,000 hectares of crops and 400,000 tonnes of produce for export. One million kilos are shipped daily to the Peninsula.

There is a long history of competition against producers from America, Africa, the Caribbean and the Pacific, who have pressured for decades to obtain what was granted in Geneva: a reduction of customs tariffs which is having a negative impact on the price of bananas and the revenue of EU producers.

The situation was only worsened by further reductions established in bilateral agreements signed in 2010 between the EU and Peru, Colombia and Central America (Ecuador, the world's largest exporter, is still negotiating), by which they will reduce their customs tariffs to 75 Euro per tonne by 2020.

"The reality is that we cannot compete in equal terms, because our salaries are very different; we lack water and they have plenty, and logistics costs are also higher here," explains the president of the Association of Banana Producers from the Canary Islands (ASPROCAN), Santiago Rodríguez.

A fruit growing in popularity
Banana consumption levels increase every year, mainly due to their energy value, and large producers like Brazil or India are gaining relevance globally.

In the midst of this international battle, new factors have managed to reduce the competitiveness of a number of producers: a pest called Black Sigatoka, which has mainly affected the tropical areas and has not arrived in the Canary Islands.

"Competitors are growing stronger and more numerous, but it is also true that we have a great quality product supported by a strongly consolidated brand," says Rodríguez.

"Our production is limited and we cannot take the risk of leaving the peninsular market undersupplied. Our efforts focus on guaranteeing the 380,000 to 400,000 tonnes we currently export, almost 100% of which are shipped to other parts of Spain; around 1 million kilos per day."

To improve the competitiveness of European bananas, Canarian producers have requested an increase in the financial allocation to the sector within the framework of the EU Posei programmes.

For now, and until 2020, the Canary Islands are guaranteed to receive 141 million Euro per year from the 280 allocated to the European banana sector. "Without this, the sector would not survive," concludes Cólogan.

Source: Laopinion.es