Unlike other years in which the supply of organic bananas has been steady during the winter, it seems like this year, the production has been shifting. "It's mainly due to weather conditions. Production is slowing down a little late this year, but with the heat, the yield should be getting better," says Mayra Velazquez de León, President and CEO of Organics Unlimited, who notes that last winter, supply was tighter, though not as bad as other years. "This year we did not feel any kind of shortage."
Right now, most of the organic banana supply is coming from South America–mainly Ecuador, Peru, and Mexico as well as Colombia.
Meanwhile, demand is slightly stronger right now, largely due to needing to fill in for contracted fruit that wasn't filled on time. "There hasn't been much more demand, unlike other years. Consumption on organic bananas should be increasing year after year as we see a population with healthier habits," says Velazquez de León.
Challenges in pricing
As for pricing on organic bananas? "The market doesn't see how the prices move in the growing areas where supply and demand play a big role, as well as an increased cost on packaging and fertilizers that affect the prices. On top of that, the exchange rate is really hurting the growers. The market usually has a contracted price so it doesn't affect them," she says, adding that pressure from multinationals continues to push down the price with the growers to maintain very low prices.
Looking ahead, while supply should start picking up again in about a month, challenges continue with the exchange rate for product from Mexico.
For more information:
Mayra Velazquez de León
Organics Unlimited
Tel: (+1) 619-710-0658
mayra@organicsunlimited.com
www.organicsunlimited.com