In the United States, banana imports during 2010 and 2011 was significantly more than in 2009. While in 2009 a total of 198,41 million boxes was imported, in 2010 the number grew up to 225.68 million boxes and in 2011 this number kept on growing, reaching 227.27 million boxes.
During the first six months of this year, Guatemala keeps the lead on banana exports to the US, followed again by Ecuador, Costa Rica, Honduras, Colombia and Mexico. As a novelty, the introduction of new suppliers from Panama and Peru, that together with Nicaragua export a smaller amount of banana to the American market.
Juan Alarcon, CEO by the Colombian exporter Turbana Corporation affirms that, today, one of the most important challenges for producers is the raise in production costs (labor hands, fertilizers, plastic, fuel, among others). As a consequence this brings less profits to producers. Moreover, Alarcon affirms that Productivity is the biggest challenge for producers: "With the pressure on costs, producers that are not efficient will be absorbed by the efficient ones. Productivity will be a priority to have a profitable business".
According to Alarcon, the banana industry is facing several changes and challenges that will mark the future of the industry. According to the CEO, "logistics is definitely the biggest change in the business and the biggest change for producers. It will open a lot of doors and generate many problems in the supply chain. Companies that are efficient in logistics and costs will be more successful."
On the other hand, direct buying to producers by supermarkets is setting merchants apart, who, according to Alarcon, must rethink their business model due to the fact that this market is not growing, but there's a raise in logistic costs and supplies, an intense competitions and clients less loyal to brands.
According to Juan Alarcon, supermarkets are also facing challenges like big price competition, raise in distribution costs, less loyal clients and the growth of small formats and stores "low cost", so the best way to react is to innovate.
Moreover, the way it is today, Alarcon affirms that importers are becoming more careful when buying, so it becomes less flexible when demand is low and production is high.
Accounting on all the challenges today in the banana value chain in the United States, producers, merchants, logistic operators and supermarkets must adjust their businesses. To make considerable changes in order to keep competing in the market is the most correct way to face the challenges presented today in the banana industry. To search for new ways to consume banana and to create a conscience in the consumer about "eating healthy" are two opportunities to make the industry stronger, not only in the United States, but in every market.
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Juan Alarcon