The banana logistics sector has improved

The banana market has emerged from a terrible year. Despite continuous trading, the market has become more prudent. Last year's prices were disappointing, partly because of the pandemic but mainly because supply exceeded the demand.

(Photo provided by Zardetto Trading)

"In Italy there has been a reduction in the number of operators, particularly those who are less experienced. The long-standing operators, on the other hand, have preferred not to make large investments and to remain more cautious," said Emanuele Zardetto of Zardetto Trading, a family business in the province of Treviso specialized in the import-export of bananas from South America.

"As a small trading company, we don't focus much on the Italian market. We are more oriented towards foreign markets. We have started to work with Arab countries, which are markets with a growing potential in the coming years. The logistics have improved, although we are affected by the rising costs of shipping containers between the end of 2020 and the beginning of 2021. Transit times from Ecuador to Dubai have shortened to 33-35 days. Logistics from Mexico are a bit lacking, but have a good line to Northern Europe with a transit time of 21-22 days.

(Photos provided by Zardetto Trading)

Bananas are scarce and expensive at the moment. "There is strong speculation in Ecuador, with spot prices reaching $12-12.50 FOB last week. These quotations are hard to sustain in Northern Europe," continued Zardetto.

"Overall, the banana market is good, with prices rising in Europe. I think the situation will remain that way for a couple of months. Mexico is recovering, although temperatures are still low, but they will soon have more stock available. Costa Rica has experienced problems with rainfall and quality bananas are scarce at the moment," said Zardetto. 

By comparing different shipping companies, Zardetto pointed out that there is an additional extra fee of about $500 per container, due to the many operations. "It should last at least until April, then hopefully, it will be removed."

(Photo provided by Zardetto Trading)

Each region has its own bananas
"The Arab markets always request the top of the range, so premium bananas are the minimum standard. Turkey buys both premium and second grade fruit. Italy is almost exclusively supplied with Premium bananas. It is difficult to sell a second choice. Northern European markets, which buy different qualities, are more diversified. In North Africa, in particular Tunisia and Libya, with which we will start working from next week, shipments are mainly of second quality, whereas previously only Ecuadorian Premium bananas were purchased. In Eastern Europe we sell mainly second grade bananas," concluded Zardetto.