W52 Banana Update: Latin American Industry Resists European Supermarkets' Price Reduction Plan, Ecuadorian Banana Industry Worried About Panama Canal Delays, and Vietnam Leads Exports to China

Latin American Banana Industry Opposes European Supermarkets' Plan to Slash Prices

Latin American banana industry representatives express concern over European supermarkets' proposal to reduce banana prices by USD 1.42 per 18.14 kilogram (kg) box (EUR 1.30/box), lowering it from USD 17.85 to USD 16.42 (EUR 16.3 to EUR 15). Attributed to the stronger euro and lower freight rates, the decision is criticized as flawed. Corbana, Costa Rica's banana association, opposes lowering procurement prices, emphasizing the sector's importance for employment and regional sustainability. Facing uncertainties in 2024 due to El Niño and Panama Canal restrictions, the banana industry underscores its critical role in providing livelihoods in regions with limited employment options.

Ecuadorian Banana Industry Expresses Concerns Over Delays Caused by The Panama Canal

The world's largest banana exporter, Ecuador, faces concerns over Panama Canal delays. Despite challenges, banana exports increased by 6.36% year-on-year (YoY) from Jan-23 to Oct-23. The Ecuadorian Association of Banana Exporters (AEBE) emphasizes continuous efforts to ensure product and worker safety. While recent exports show growth, they remain below pre-pandemic levels of over 380 million 18.14 kg boxes. AEBE's initiatives focus on overall safety amid Ecuador's security concerns, highlighting the importance of maintaining the country's reputation in the global banana market.

Đồng Nai, Vietnam, Leads Banana Exports to China

In 2023, Đồng Nai, Vietnam, emerged as a significant player in the banana market, exporting nearly 121 thousand metric tons (mt) valued at USD 60 million (VND1.45 trillion). Leading the country in banana cultivation, Đồng Nai's 14 thousand hectares (ha) contribute to the impressive export growth. Following the 2022 protocol with China, the province officially enters the Chinese market with fresh banana products. With 31 granted growing area codes and ongoing efforts to replicate export-standard banana areas, Đồng Nai positions itself as a key contributor to Vietnam's growing banana exports to China, shaping the market landscape.