The Ecuadorian banana industry has been experiencing some trouble for a few years because of its export tariffs to European markets, which are higher than those of other Latin American countries.
Tropical Fruit Export S.A. has tried to compensate for these difficulties by offering additional products, like their baby bananas. The company has been cultivating and exporting this type of banana for nearly four years and has recently been certified by the Rainforest Alliance. "We are currently the only ones in the world with this certificate for this product," affirms Oswaldo Menéndez, General Manager of Tropical Fruit.
The company works with all kinds of bananas: conventional, fairtrade, organic and fairtrade organic, as well as red bananas, baby bananas and plantains. Exporting is not easy for Ecuador, since other countries, such as Colombia and Costa Rica, have signed treaties with Europe to reduce their export tariffs, thereby increasing the price gap between them every year. Therefore, according to Menéndez, they must consider new strategies, such as how to get certifications and offer additional products, including baby bananas, which help slightly increase the revenue generated by conventional bananas, although the latter still constitute the bulk of exports.
The main market for the firm's baby bananas is Germany and most go to the supermarket chain Lidl. The company also exports to France and the U.S., and hopes to enter the UK in the near future. Menéndez said that volumes have stabilised and they currently export 2-3 containers per week, although the product is not yet well known in Europe.
Russia and the U.S. are also big consumers of baby bananas, although Menéndez prefers the European market because he considers it to be more structured. "Margins can be slightly lower, but they are stable," he states.
Part of its success, according to Menéndez, lies in the relationship with customers. "Every client is different, each has its own processes, and the better we know them, the better we can work with them," he explains. That is why trips are organised every few months to check the market and see the facilities, and they will personally visit Fruit Logistica in Berlin, even though the company will not have its own stand.
More information:
Oswaldo Menéndez NealeTropical Fruit Export S. A.
Guayaquil, Ecuador
T: +593-4-2838701
+593-4-2838701|2838691omenendez@tropicalfruitexport.com
www.tropicalfruitexport.com