Weekly Product Updates

W49 Banana Update: Indonesia's Global Ambitions, Vietnam's Triumph, and Ecuador's Price Tango in Fresh Produce Market

Fresh Banana
Indonesia
Published Dec 15, 2023
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Indonesia Accelerates Banana Planting Movement for Global Market Presence and Export Growth

Indonesia's South Sulawesi Province intensified its Banana Planting Movement with Training of Trainers (TOT) programs across 15 districts. The focus on developing Cavendish bananas aims to position the region as a global producer, particularly for export markets. The government's commitment to infrastructure, exemplified by the Trans Sumatra Toll Road, enhances connectivity, reduces travel time, and fosters economic value. These initiatives underscore Indonesia's efforts to boost banana cultivation, improve distribution networks, and tap into the lucrative export potential of Cavendish bananas, reflecting a positive outlook for the Indonesian fresh banana market.

Hanoi Agriculture's Strategic Approach to Combat Panama Disease and Boost Vietnamese Banana Exports to China

Combatting Panama disease in Vietnam, Hanoi Agriculture implements a meticulous strategy for clean banana production. The director of the company outlines the city's strategic approach to revitalizing banana cultivation. In a pivotal move, the Ministry of Agriculture inked a protocol with China on Nov-22, boosting Vietnamese banana exports. China is Vietnam's second-largest banana market, importing 412 thousand metric tons (mt) from Jan-23 to Oct-23, a 2.3% year-on-year (YoY) increase. Notably, Vietnam's market share in China surged to 28.2%, marking a 7.3% increase from 2021. This growth is magnified by reduced imports from other Southeast Asian countries — the Philippines down by 8.7%, Cambodia by 26.9%, and Laos by 42.8%.

Price Tensions Persist, European Supermarkets Hesitate on Ecuador's New Minimum for 2024 Banana Cartons

Despite Ecuador setting a new minimum price for 2024 at USD 6.79 per carton (EUR 6.30), European supermarkets, the primary market, hesitate to sign contracts. The director of Acorbanec is reluctant, with negotiations leaning toward the previous price of USD 6.44 (EUR 5.98) in three rounds of negotiations, the export sector considered the European market's sensitivity to price increases. The current standoff highlights the delicate balance between export sustainability and market dynamics, emphasizing ongoing challenges in price negotiations within the fresh banana industry.

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