Latin America's banana sector criticizes European retailers' proposal to cut prices

Published Dec 27, 2023

Tridge summary

The Latin American banana industry is concerned about European supermarkets' plans to cut banana prices by €1.30 per box, with the price range dropping to 15-16.3 euros per box. They argue that the decision is not justified by the stronger euro versus the dollar or lower freight rates, and that it will have a significant impact on the industry's sustainability and the livelihoods of thousands of families. The Latin American Banana Task Force, representing major banana-producing countries, is urging supermarkets to reconsider their decision and pay a fair price that takes into account rising production costs and sustainable agriculture requirements.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Representatives of the Latin American banana industry are alarmed by European supermarkets' plans to cut banana prices by €1.30 per box. The price will range from 16.3 to 15 euros per box, EastFruit reports with reference to Fruitnet. Last week, Reefer Trends reported that retailers were basing their decision on the stronger euro versus the dollar this year and lower freight rates. But the trade publication said that this argument was flawed and that “at a rate of 1.08 euros/1 US dollar, the euro is only marginally stronger than last year, and despite the general information of a number of publications, the freight rate for transatlantic flights in 2024 is not significant below". Corbana, Costa Rica's banana association, said the strategy of lowering procurement prices should not be resumed. “Hundreds of thousands of families in Costa Rica and Latin America depend on the cultivation and export of bananas; The sustainability of the sector is paramount in regions where employment ...

Source: Eastfruit