- The lack of availability of containers is an ongoing problem.
- Long-term banana prices – 7,000 euros for containers Prices change little in both the conventional and organic sectors, over the course of the year – apart from the spot market.
- For the German market, the main countries are still Ecuador and Costa Rica, followed by Colombia, the Dominican Republic and Peru for organic bananas.
In terms of banana production, Ecuador is a global leader as reported by Fresh Plaza.
According to Ursula Schockemöhle (right) with the Agrarmarkt Informations-Gesellschaft (AMI), the nation has so far sold nearly 20% of its crop, or roughly 1.5 million tonnes, to Russia. Ukraine received an additional 330,000 tonnes in turn. But it’s not that simple to make up for these lost markets, she claimed. “Because there are no credentials, a sale in the EU is not possible. Although there are sales of small shares to other Eastern European nations, they are in no way comparable to the Russian market”, explained Schockemöhle.
Shipping companies avoid the Black Sea and St. Petersburg
“The Russian market is supplied via the ports on the Black Sea or via St. Petersburg.
So Ecuador is stuck with the large volumes.”
The already high freight costs are also rising due to required bunker surcharges, which should be seen as another consequence of the Russian war in Ukraine.
“The lack of availability of containers is an ongoing problem.”
Ships are docked for days outside ports in the Caribbean or Central America waiting for the goods.
Long-term banana prices
Prices change little in both the conventional and organic sectors, over the course of the year – apart from the spot market.
“Negotiations always started in the fall and winter months.
But the main problem is the many delays in transport.”
For example, the price for containers on the spot market is currently at 7,000 euros.
Bottlenecks arising, as a result, cannot simply be compensated for by additional purchases, since all bananas are already labelled several times in the Latin American packing houses, depending on their destination.
“For the German market, the main countries are still Ecuador and Costa Rica, followed by Colombia, and the Dominican Republic and Peru for organic bananas.”
Growing market in the organic sector
According to Schockemöhle, bananas in particular are important to the organic industry. “For instance, apples come in first place among the top 10 fruit products in Germany, closely followed by bananas. The positions are once more flipped in the organic industry. Regardless of how extensive the specific organic selection is, organic bananas are readily available in every market. Bananas are even less expensive when measured in kilogrammes than strawberries or raspberries. As a result, there are a lot of impulsive buyers here. An estimated 16% of the organic market is made up of bananas. While prices are constant, they are also impacted by drops in demand.”
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Source: Fresh Plaza