During the London Produce Show we interviewed Oswaldo Menéndez Neale, director of Logistics Operations at TROPICAL FRUIT EXPORT S.A.
"Our core business is the production and export of conventional Cavendish bananas, but we're also strongly committed to plantains, of which we export about 25 containers per week, which is a very large volume for this crop," he explains.
TROPICAL FRUIT's wide range of products includes organic, fair trade and organic bananas and baby bananas, among other musaceae. The company's main destination is the German market, where it sells about 55 containers of conventional bananas per week.
"Our harvest volumes increase every year. As a company, we aim to build lasting business relationships; most of our customers have been working with us for years, increasing their purchases with every season," he affirms.
While Ecuadorian bananas are recognised worldwide for their taste and quality, Oswaldo says it has been difficult to continue growing in recent years in the European Union, since Ecuador has been suffering tariff disadvantages compared with other producing countries, "but this situation will change and become more favourable in one or two years," when they expect they'll be able to offer more competitive prices.
"It's always a struggle. Last year, the price difference between Ecuador and Colombia-Costa Rica, countries which already have an FTA with the European Union, was of $ 0.36 per box and this year it has reached $ 0.50. A huge difference, if we consider the profit per box is usually of around $ 0.30," he affirms.
Oswaldo states that, in general terms, the sector is eagerly looking forward to the trade agreement with the EU coming into force, as many companies lost business or saw their export volumes to that market reduced due to the considerable price differences.
"Countries like Colombia and Guatemala have become huge competitors in recent times. They have easier access to trade, while we're excessively controlled by the Government, which regulates the minimum price paid to the producer. On top of the higher tariffs, we have high internal and logistics costs. We are losing weight in the markets and competitiveness as a country," he points out.
Moreover, according to information provided by the AEBE, global banana exports up to May grew by 6% in volume.
Strong growth
"Three years ago we did not do organic farming, but today we already export large volumes of organic and fair trade bananas," he states.
For their part, baby bananas have also registered a strong growth in Germany.
"We currently export two containers per week to that market, which is a lot for baby bananas, since most customers usually ask for no more than just a few pallets."
In terms of destination markets, the situation in the Netherlands, Germany and France is particularly good for the company, "but we are really interested in growing in the UK. We know it is a very demanding and serious market, which is why we have attended this exhibition, and we believe that the English idiosyncrasy is compatible with our way of doing business," he concludes.
More information:
Oswaldo Menéndez Neale
TROPICAL FRUIT EXPORT S.A.
omenendez@tropicalfruitexport.com