Early this year Bananar moved to a brand new warehouse.
Last year, the importer celebrated its sixty year anniversary. What once started as an importer of bananas (which explains the name of the company) grew into one of the three major fruit and vegetable importers in Iceland. "We have grown considerably," states Kjartan Mar Fridsteinsson, director of the organization. In recent years, Bananar has recorded an annual growth in volume of eight to ten percent. Meanwhile, the market share has gone from twenty percent to nearly sixty percent. The turnover is around 62 million Euro.
Kjartan and Bardur show a box of Chinese apples. They were one of the first international clients of Good Farmer.
European rules
"Tourism is growing, so consumption also increases," affirm the Icelanders to explain the growth of the company. "Healthy eating is a trend; for example, blueberry sales have increased rapidly." Prices are not very relevant for the Icelandic consumer. Bardur says that, in week 23, the price for lemons was very high. "But if the consumer needs a lemon, they will buy it. The price doesn’t matter."
Icelandic raspberries.
In 2015, Iceland stopped negotiating its access to the European Union. No compromises could be reached, for example, in the area of fishing. A few decades ago, Iceland did sign the EEC agreement, however, so the country is part of
the European Economic Area. That means that many European rules apply to them, without the country having a say on the details of those laws. One of the areas in which this has become the most clear is in the import from the United States. "In recent years, we have been importing fewer apples and sweet potatoes from the United States because the EU’s residue legislation would not allow those imports," says Bardur. "Furthermore, we have to pay import duties on goods from the US, but not on those from Europe."Ship and aircraft
A large part of the country’s imports are shipped from Rotterdam. Every week, an Eimskip ship arrives at the harbour of Reykjavik with vegetables and fruits on board. Besides this, there are also air shipments from Belgium, but that is expensive and the products are not always carried as scheduled. The day we visited Bananar, on 7 June, a pallet of fresh herbs had been left behind at the airport in Liege. In the short term, this does not result in immediate problems for the availability. Fact is that the selling period when the next batch arrives is shorter, which can cause problems in extreme cases. In the winter months, delays may be caused by changing weather. Storms may delay the ship and strong winds can make it impossible to arrange a plane. The vast majority of imports are made by ship, with only 10 percent of the products arriving by air.
The loading docks. Notice the sealing machine in the middle (also picture above), which saves "a lot of shoes," according to Kjartan.
While mixed pallets are also loaded in Barendrecht for the Icelandic importer, full containers are preferred. "With direct imports, we have fewer costs and the quality is better, because the containers are not opened," explains Bardur. "Our large network worldwide is our great strength." During a visit to the warehouse, it appears that many boxes are damaged or have collapsed during transportation. "It seems like the boxes today are not as strong. Packers use less cardboard, and because of this, the boxes are also less firm," complains Bardur.
Left: Bardur shows some Icelandic oyster mushrooms
Right: an employee collecting products
Local product and brands are popular
The list of products that are not imported or arrive in small volumes includes tomatoes, cucumbers, potatoes, carrots and mushrooms. "We have not imported any cucumbers already for four or five years," says Kjartan. "The domestic production is sufficient." The demand for tomatoes lags behind the supply. "Consumers mainly prefer Icelandic products. Domestic tomatoes sell a lot better than imports. That is also because they have a better taste." It's the taste that explains the support for local products, argue the importers. "In September, we have the tastiest carrot. Every year about 25,000 to 30,000 tonnes are harvested."
The loading docks, notice the double doors on the left, in front and behind the van, are built to keep the wind and cold out.
Besides the preference for local products, consumers are also keen on brands and look for their favourite varieties. "Pink Lady is a 'must have'," says Kjartan. All in all, Icelandic consumers have a preference for sweet, large apples. The same goes for pears. A wholesaler offering large volumes of Conference pears can achieve nice sales; other pear varieties are rarely demanded. "In December, we have the Robin brand of clementines from Spain. In the weeks before Christmas, the demand for these clementines is high, and it has to be a Robins."
Ripening more products
The logistics to the customers in and around Reykjavik are organised by Bananar itself. Carriers leave from the company’s new building, with an area of almost 6,000 m2, and drive across the capital. For the districts lying inland from the coast, they work with a logistics partner. In the winter months, Icelandic roads remain accessible. "It can sometimes happen that roads are closed by snow storms, but that lasts only for two or three days," says Bardur somewhat laconically. "That may cause some delays."
These ripening rooms are used for banana ripening, but in the future Bananar wants to ripen avocadoes as well.
The new building has more space for the packaging and processing of products. "We started with a packing centre to add value to the products. At the cutting plant, we process a lot for the foodservice sector." The foodservice is an increasingly important customer for the Icelandic importer. They also want to focus more on ripening in the future, not only for bananas, which is a big product for the firm, but also for avocados and mangoes. And although the temperature, according to the Icelanders, is pleasant all year round, the new building is equipped with a double door. The smaller vans can stand in while they are loaded. Very handy to keep the cold and wind out.
More information:
Bananar
Bardur Nielsson
+354 525 0100
bardur@bananar.is
www.bananar.is
Kjartan Már Fridsteinsson
+354 525 0100
kjartan@bananar.is
www.bananar.is