The drop in the available volumes of bananas, due to the strong impact of the hurricanes that hit Central America had on the sector's production, has forced the world's largest multinationals -Dole, Del Monte Fresh, and Chiquita- to increase the purchase price of the box of bananas. Today, the value of the spot box in Ecuador stands at 7.30 on average, but these three companies that sell their bananas all over the world have offered to pay about 2 dollars more for each box.
“All of our operations in Honduras and Guatemala have been damaged by strong winds and floods. Many of our farms have been flooded for a long period of time; we've lost much fruit, and there's been damage to packing plants, dikes, roads, and other structures. As a result, we'll require significant investment to replant all of our farms and rebuild critical infrastructure,” said Chiquita in a statement.
“In addition, the banana-producing areas of Sorne and the surrounding infrastructure have been damaged beyond repair. All of this has significantly reduced our banana production capacity for the foreseeable future and forcing us to change and adapt our current supply chain to continue meeting our commitments to supply our customers."
As a result of this force majeure, “as of Monday, December 21, 2020, we will increase the price of a box by $1.85 until further notice. We'll continue to monitor the situation and provide regular updates," they stated.
Del Monte and Dole (which have a production associated with banana growers in Ecuador) expressed themselves in similar terms.
“The measures we are taking to continue supplying the North American market have significantly increased the cost per box. To continue meeting the needs of our customers, we must recognize this is a case of force majeure and we'll implement a surcharge of $ 1.76 per box to all conventional banana contract prices, which will be effective with the shipments of Sunday, December 20, 2020,” stated Dole (Ubesa in Ecuador).
According to Del Monte's statement, as of December 14, 2020, they will increase the price of bananas by $ 2 per box, and continue monitoring the circumstances...