The German supermarket chain ALDI will increase the price of bananas by €0.9 per kilo (€1.63 per box) or US$1.84 by 2022, as announced by Reefer Trends. This decision comes after months of Latin American banana producers and exporters denouncing the enormous injustice in the market, where costs continue to rise but the purchase price remains constant.
ALDI is the biggest buyer of bananas in Europe and its purchase price is used as a reference price for the rest of the buyers. No one will be willing to pay more than what ALDI pays. However, considering the average increase in freight cost is $1.90 and carton cost is $1/box, banana producers are already experiencing a deficit of $1.06/box. All this without taking into account the increased costs at the production level, such as fertilizers, which have risen by 45 percent, the costs of Fusarium RT4 prevention or anti-COVID-19 measures.
ALDI recognizes the need to pay a fair price for bananas in accordance with the request of Latin American banana producers and exporters. Even so, the price increase does not cover the higher costs incurred.
"For producers to maintain sustainability and quality standards demanded by the European Union and the United Kingdom, it is necessary to pay a fair price and develop a scheme of shared responsibility, from producers to buyers, including retailers," says Richard Salazar, president of the Association of Banana Marketing and Export of Ecuador (ACORBANEC) and member of the Banana Cluster of Ecuador.
"We express great concern about the aspirations of the European supermarkets in the negotiations, which do not take into account the reality of the international markets and what 2022 holds in store.
On 27 October at our 18th International Banana Convention, we will declare, together with the banana countries of the region, an agreement for shared responsibility--the mechanism to ensure the commitment of all actors to the sustainability of the global banana industry.
We hope supermarkets of the European Union will act consistently with regard to the problems around sustainability and the future of the Latin American banana sector, understanding that the sacrifices cannot come only from the countries of origin. Only together will we achieve that around the world so you can continue to find bananas in supermarkets," says Juan José Pons, inter-industry coordinator of the Ecuadorian Banana Cluster.
Although ALDI's actions are a good sign for the banana sector, there is still a long way to go. That is why the Ecuadorian Banana Cluster and the task force of seven Latin American countries demand more measures related to shared responsibility that guarantee the profitability of our sector, which is committed to sustainability and high quality.
For more information:
Juan José Pons
Ecuadorian Banana Cluster
[email protected]
https://www.clusterbananerodelecuador.org/