"In the last six months, banana production has experienced a 40-45% drop, affecting all cooperatives and exporters. This is mainly due to poor water management in the Chira Valley area, the traditional core of Peruvian exports. There was a preference for rice farmers, so we ran out of water for more than three months. Most producers could not even irrigate their crops once during that time. This drought was the most critical issue. Another big issue is that, for the last three years, we've been losing areas to Fusarium, a disease that is gaining ground and threatens to spread even more," stated the general manager of APPBOSA (Association of Small Producers of Organic Bananas from Samán y Anexos), Aingeru García San Martín.
Despite the drop in production, organic banana prices in Peru have remained remarkably stable. "APPBOSA works under Fair Trade and SPP standards, with minimum prices of $13.95 and $13.90 per box, respectively, plus an additional one dollar social premium. The price of organic bananas without social certification stands at around $13 per box. The price of conventional bananas in Ecuador stands at $15.5 or $16, but Peruvian organic bananas have been sold at the same prices for years," he stated.
APPBOSA, based in the Chira Valley, mainly exports to Europe to customers in the Netherlands, Sweden, and France. It will soon also export to the United States, Canada, and South Korea. Commercial stability is crucial for small producers, who have had customers for more than 15 years. "Each organization here has its own producers, and we try not to compete against each other much," stated García San Martín, highlighting the sector's collaborative nature.
Faced with falling productivity and aging plantations, the association has implemented measures to stay competitive. "The introduction of cableway systems in 2008 helped us to be more efficient," he said. The cooperative has also invested in labor welfare: 260 of its 264 workers have permanent contracts and additional benefits thanks to certifications.
On the environmental front, the organization faces water challenges. An attempt to implement a technified irrigation system failed due to the lack of constant access to the resource, forcing the cooperative to close the initiative. APPBOSA promotes sustainability through ECOBAN, a company created by several cooperatives to recycle the plastic sheaths used in bagging to make reusable corners.
The impact of falling production and high logistics costs - accentuated by port tariffs in Paita - put pressure on exporters' margins. "Hopefully, this will be for the better and we'll be able to continue fulfilling our commitments, generating foreign currency for the country," García San Martín stated.
For more information:
Aingeru García San Martín
APPBOSA
Perú
Tel.: +51 956 456 188
Email: [email protected]
www.appbosa.com.pe