Banana traders, in an increasingly unbalanced currency confrontation, are looking for stability, at least within their own sector. Export difficulties forced manufacturers and traders to gather in the framework of the international commercial fair in Davao (Davao Trade Expo, Philippines). Latin American banana exporters expect the markets of Europe and Russia to be activated.

The process of growing and selling fruits for the modern world goes beyond the boundaries of exclusively agriculture. The production of edible goods needs territories and labor, related industries, and transport. The efficiency of this production depends on the position of a particular country in the export market, and also affects this position. The “humble” banana business makes about $10 billion a year and touches most countries in the world.

Partially forgotten against the backdrop of the oil and metallurgy sectors, the fruit business requires attention from international conventions. This summer, the European Union signed a special treatise on banana commerce (June 1, Geneva), the content of which has been discussed since last year. The main achievement in favor of banana exporters was the reduction (now - 148 euros per ton) of customs duties on the import of this fruit into the European Union. The innovation came into force immediately, and moreover, the difference in duties already paid, starting from December 15, 2009, will be retroactively credited to manufacturers. The European side also signed a compromise that by 2017 the customs duty on the import of bananas will be gradually reduced to 114 euros per ton.

This agreement was initiated by representatives of Latin American countries, from where almost the entire volume of banana exports goes to Europe. In particular, Nicaragua, whose economy is supported in large part by the agricultural sector, was the first to call for "easing discrimination" against banana producers. The treaty was signed by the European Union, Brazil, Costa Rica, Mexico, Panama, Venezuela, Colombia, Ecuador, Guatemala, Nicaragua and Peru.

banana summit

On Friday, November 5, the first ever Banana Summit (Banana Summit) started under the auspices of the food and commercial fair Davao Trade Expo (www.davaotradeexpo.com). The Philippines, the host country and also a producer of bananas that exports in its region, along with Taiwan and the countries of Southeast Asia, has become the focus of attention of international organisms these days. Leading banana exporting firms, representatives of the administrations of producing countries and heads of international committees on agriculture and climate have gathered here. The experts worked on a ten-year Global Banana Economic Forecast plan, exchanged marketing strategies in the name of improving the global banana commerce and healthy competition. In an era when the currencies of many producing countries are rising, the banana sector has taken the lead in a "self-defense course", trying to reduce the negative effect of the dollar's cheapness through market strategies.

banana republics

Thanks to favorable conditions in the mild equatorial climate, Ecuador harvests bananas all 52 weeks of the year from its plantations, spread over 180,000 hectares in nine provinces of the country. The banana industry is one of the most important sectors of Ecuadorian exports, after oil, with a share of 3.84% of the country's GDP and half of its agricultural product. Banana companies employ, directly or indirectly, 12% of Ecuador's population.

All exports are carried out under the direction of the Banana Exporters Association (www.aebe.ec), which has become the main partner of many foreign importing companies over the half century of the existence of this sector. Director of this organization Eduardo Ledezma says: “Sales in general, are maintained at the level of last year, although we expect more. The weather this summer was not conducive, and we underproduced 2 million packages of bananas.” For reference, a package of bananas contains 18.4 kg, which gives an approximate figure of 36,800 tons. In addition, purchases from the United States and Russia decreased slightly, by 3% and 2%, respectively. The United States - due to the continuation of the financial crisis, and Russia began to partially buy bananas in Costa Rica.

Nevertheless, shipments to the European Union retained their volumes. Eduardo Ledezma assures that sales will not fall again until the end of this year, and the mark of 270 million packages sold last year will be crossed.

Another country specializing in the production of bananas is Peru. The largest banana companies in this country export mainly to the EU market, 70-100 containers weekly. Banana production is concentrated on the warm northern coast of Peru, in the valleys of Vaye de Chira, where the harvest is year-round. The production system is based on the involvement of small farms, sometimes more than 800 in the structure of one company, which operate on the basis of conventions signed by producers' associations. It is one of the most socially beneficial ways of working and ensures long-term cooperation between the small private sector and the corporation. And, the most positive thing about this is that the profit from banana production is distributed and accounted for within the community - among the families of the owners of the plots and workers. More than half of the bananas exported from Peru are grown under fair trade conditions (Comercio Justo, a program of the international humanitarian organization Intermon Oxfam).

Banana road to Russia

In addition to the Ecuadorian brands of banana Dole, Bonita and others familiar on the Russian table, a novelty is expected soon, a product of the military-oil alliance with Venezuela. During his last visit to Moscow, President Hugo Chavez, in addition to the main line of mutual interests, signed preliminary agreements on the supply of fresh flowers and bananas to Russia. Motivating his mission with the interests of his people (despite the fact that all the companies participating in these programs belong to the state), Chavez announced on Venezuelan television: “Venezuela is already sending coffee to Belarus, and possibly soon also to Ukraine. In the case of Russia, our intention to export bananas and flowers is a factor in the overall strategic vision to establish joint ventures to produce bananas here, and transport them to Russia, like coffee, and now the idea of ​​​​sturgeon, which is taken out of caviar, has arisen; and chocolate, the best in the world! Mr. Chavez's rhetoric is, as usual, chaotic and patriotic - literally translated. In other words, in parallel with mutual state orders for armaments and oil production, Russia and Venezuela intend to open less aggressive channels of cooperation. Another thing is how the Venezuelan president plans to transport cut flowers over 10,000 km. But bananas, fortunately, can reach the Russian consumer safe and sound, like the Ecuadorian ones.

Another relatively new Russian supplier of bananas, Costa Rica, is extremely interested in the high level of consumption and market size in the Russian Federation. So far, only one company is engaged in the import of Costa Rican fruit, while coffee, melon and ornamental plants producers are looking for ways to cooperate with Russian entrepreneurs. This business at first does not involve large investments, its main task is to calculate the optimal route for delivery and import duties. The cost of goods when buying from the manufacturer fluctuates around 4-8 dollars per package, a bunch of bananas 18-20 kg, on average no more than 45 cents per kg. Income, knowing the prices in the market, is easy to calculate.

An existing Russian banana importer, Bonanza S.A. (JFC Group), until recently doing business on a grand scale, in 2008 imported 75 containers per week, which brought Costa Rica $ 28.7 million. In the first half of 2010, imports fell to 20 containers weekly. Representatives of the company claim that this is not due to the financial difficulties of the company, nor with a drop in demand. The reason, in their opinion, is the high cost of bananas compared to Ecuadorian ones. In Costa Rica, they do not quite agree with such a hint of a price reduction, since the Russian market, according to a study by their Chamber of Commerce, has a much larger supply of cash from consumers than in advanced developing countries. And the difference in cost with Ecuadorian exports is not decisive. In addition, Central American manufacturers are still wary of doing business with Russian entrepreneurs, as there have already been cases of non-payment, debts and, in Russian, “scammers”. They also talk about the need to find a faster way to transport the product by sea. From tropical plantations to city stalls, the one-way banana journey is long and full of obstacles.

Source: www.dailyj.ru

FruitNews Help

Bananas

Banana is one of the most significant agricultural crops. In terms of production, it is comparable to rice, wheat, corn and potatoes. For the population of many countries, the banana is the most important food, replacing bread and meat. According to the World Food and Agriculture Organization (FAO), in 2007 global banana production was 1/3 world potato production. Over the past 100 years, the banana has firmly entered the diet of the inhabitants of even those countries where it does not grow. If we talk about the main countries of suppliers, then Latin America is the leader in the world export of bananas, annually its countries supply about 500 million boxes. India can be singled out among the main producers, it accounts for 21% world production, China, Brazil, the Philippines account for 9% production volume, Ecuador - 8% , Indonesia - 7% . At the same time, large producers are not always major suppliers of bananas to the international market. For example, India and Brazil consume all bananas grown domestically. BUT 64% world imports of bananas come from Ecuador, Costa Rica, the Philippines and Colombia, countries with not the highest production of this product (with Ecuador alone providing about 30% ).

Bananas are among the most popular and edible fruits in the world. They were first grown in tropical India and Southeast Asia over 4,000 years ago. Arab merchants brought them to North Africa and the Middle East. Portuguese sailors saw bananas while sailing down the Atlantic coast of Africa. Bananas were brought from Africa to the Canary Islands, from where the Spaniards brought them to the New World.

What do banana plantations look like?

Although bananas grow like trees, they are actually plants made up of stems covered with overlapping leaves. The stem or stem can be about 30 centimeters thick. Banana trees grow up to 6 meters tall and have long, broad leaves up to 20 centimeters. Banana fruits grow in clusters of 10-20 pieces. Bananas grow in well-drained soil in countries with a tropical climate and adequate rainfall. Most often, bananas grow on plantations and are cared for by hundreds of workers who cultivate and harvest the fruits for the world market. These farms sell their products to large companies such as Chiquita and Dole.

The first fruits of bananas grow about a year after planting. Bananas do not like low temperatures, below zero and strong winds. Diseases such as "Panama" and various infections in the soil can destroy the banana crop.

Harvest

Bananas are harvested green. In this state, the banana pulp is white in color and is completely unsuitable for food. Green fruits are brought to the nearest port, where they are placed in cooling containers.

When the bananas arrive at their destination, they are unloaded onto trucks or rail cars and transported to sellers who store them in special cells. It takes five days for bananas to ripen and turn yellow. The pulp of a ripe banana becomes sweet.

Banana diet food

In many tropical regions of Africa, South America and Asia, bananas serve as the main food for the population. They contain a sufficient amount of useful nutrients that people really need. In addition to being 75% water, a banana contains sugars, proteins, and vitamins, and is fairly easily absorbed by the body.

Bananas are considered a healthy food all over the world. They contain potassium, which can lower blood pressure, prevent heart disease, and reduce the risk of stroke. In the West, bananas are eaten as a snack between meals. In other countries they are used to make wine or beer.

banana types

There are up to a thousand different types of bananas. The typical commercial bananas that are most widely distributed are unripe Cavendish varieties. Banana variety "Plantain" (Plantains), used for cooking.

The value of banana culture

Bananas are the fourth most valuable food crop in the world after wheat, rice and corn. They are essential to the economies of tropical countries. About 140 million tons of bananas are harvested annually, but only a small percentage of the actual production is exported. The largest banana-producing countries actually need them themselves.

India is the world's largest banana producer, followed by Uganda, China, the Philippines, Ecuador and Brazil.

Banana trade

The banana trade brings the industry up to $5 billion today. Companies such as Chiquita and Dole control much of the banana export industry. In Central America and the Caribbean, workers suffer from poor working conditions and low wages.

For decades, EU countries have chosen to buy bananas from Africa and the Caribbean, subjecting them to duties. In 2009, the banana war came to an end.

Union of Banana Exporting Countries

The Union of Banana Exporting Countries (UPEB) was established in 1973. Inspired by the example of OPEC, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Nicaragua and Panama have teamed up in an attempt to form a community of major banana producers to coordinate exports to the North American and European markets. The Philippines was the only key banana supplier to the US market that was not part of the union. In the 1980s Venezuela joined UPEB. UPEB is headquartered in Panama City (Panama). The official languages ​​are German and English.

It should be noted that at that time bananas were supplied to Europe mainly from the former French and British colonies of the Caribbean, which had privileged access to the European market, and the largest monopolists in the US market were: United Brands Company, Standard Fruit and Del Monte Corporation. ". UPEB members proposed a special export tax of $1 per forty-pound box of exported bananas. The monopolies opposed and threatened to abandon their activities. Also at that time there was a glut of the world market with bananas, and Ecuador, the leading producer, refused to support such a high tax. The amount of the export tax was agreed upon at the level of 0.25 USD.

In connection with the restrictive policy of the EU, which prevents the free export of bananas from the UPEB countries, a real “banana war” has unfolded between the European Union and the Union of Banana Exporting Countries.

The European Union is one of the most significant importers of bananas in the world. The EU imports about the same amount of bananas as the US, which is more than three times the amount of bananas imported by Japan, the third-largest banana consumer. At the same time, only in the EU there are tariff and quantitative restrictions on the import of bananas. European countries (England and France were especially distinguished by this) when importing bananas gave preference to supplying firms from countries that had previously been their colonies. This helped to achieve political goals - with the help of banana purchases, those regimes that were loyal to the former metropolises were supported. But the losses were borne by multinational trading companies, most of which were based in the United States.

As a result, US companies lost about $190 million, the US imposed sanctions that cost Europeans $500 million (German coffee producers and French manufacturers of briefcases and handbags were particularly affected).

In 1975, the European Economic Community signed an international treaty with 48 former colonies (mainly French and British colonies). In accordance with the agreement, these countries were granted duty-free banana trade in the EEC. This agreement concerned mainly African countries and the Caribbean countries: the Ivory Coast, Cameroon, Jamaica, the Dominican Republic, Suriname, Somalia, etc. At the same time, bananas produced in the UPEB member countries, as already noted, were subject to import duties and were subject to quotas . Other requirements were also introduced, for example, the import of bananas from these countries was licensed.

The European authorities motivated their decision by the need to support African countries, for which the export of exotic fruits is the only source of income. The trade restrictions of the European Union have become a heavy blow to the American banana business also because it is going through hard times due to the overproduction of this type of agricultural product. To date, Ecuador alone is able to meet 40% of Europe's need for bananas.

The conflict was resolved only in April 2001, when the EU came to an agreement with the US and Ecuador. The main agreement reached can be considered the EU's obligation to introduce from January 1, 2006 only a tariff regime for bananas from the UPEB countries without quotas and import licensing, as well as a significant reduction in the "preferential" quota (i.e., the quota for former colonies).

The UPEB countries, especially Ecuador and Costa Rica, which are the 2nd and 3rd largest banana exporting countries (after the Philippines), condemned the preferential policy implemented in relation to the former colonies in Africa. EU import duties have been found unfair and the WTO has ordered the EU to bring them into line with global trade agreements. Representatives of the banana sector in Ecuador have asked the EU to provide support in the fight against a campaign that violates the principles of free trade, and to remove the system of import tariffs. They also stated that they regard the measures imposed on the import of bananas from countries in Africa, the Pacific and the Caribbean as illegal and illegal.

Officially, the "banana wars" ended only after a meeting of representatives of 35 countries participating in the dispute in the framework of the WTO summit in Geneva in July 2008. It is proposed to set the tariff for the import of bananas to the EU by 2016 at the level of 114 euros per ton instead of the current 176. Already in 2010 prices should be lowered to 148 euros for a forty-pound box.

A new "banana" agreement between UPEB and the EU was signed in 2009. According to international experts, the tariff program proposed by the European Union regarding tariff rates for banana supplies is insufficient and unsatisfactory for exporters of Latin American countries, but an official response from UPEB has not yet been received .

To date, the member countries of the Union of Banana Exporters account for 50% of world exports of this product. The decisions they make regarding the supply of bananas to the world market, in particular on conducting research on the possibility of expanding banana consumption or creating a common marketing company, can be classified as multilateral. Main markets: USA, European Union, Russia, New Zealand, Far East, Japan and Chile. UPEB countries also export semi-finished products such as banana puree, banana flour, dehydrated bananas and banana chips. Cro4.6. International organizations of metal producers and exporters

In addition, UPEB countries offer organic bananas available throughout the year.

Today, Ecuador exports about 20% of its bananas to Russia. Russian "fruit kings" are consistently turning their companies into vertically integrated structures. Since there are practically no “free” banana plantations left in Africa and Latin America, Russian businessmen began to buy land in Ecuador.

The share of production in the cost structure of a banana does not exceed 30% on average. The rest falls on transportation (35%), customs duties (20%), costs of maintaining a permanent office in Ecuador and packaging (15%). The presence of its own raw material base makes it possible to insure against speculation in the Ecuadorian banana market. Thus, cooperation between Russian business and UPEB is extremely promising.

For more details see http://www.foodretail.ru, www.fruitnews.ru

Bananas grow in countries where the tropical climate prevails, i.e. near the equator, because they love heat. These include the states of Africa, Latin America, the Caribbean and the Pacific, etc. Many countries in these regions grow bananas as their main domestic staple, and only about a fifth of them are commercial banana exporters.

Most of the bananas sold in Europe, the USA and Russia (about 80%) are exported to Latin American countries, the rest of the grown and sold bananas are in West Africa. The main feature of countries where bananas grow is their backwardness in economic and social development.

Despite this state of affairs, countries that export bananas do not take the lead in terms of cultivation. In the first places in the production and, accordingly, the consumption of bananas are India, China and the Philippines. It is understandable, the huge population of these countries is mainly engaged in agriculture - the only source of food for the poorest classes.

The main players in the world banana market are Ecuador, Costa Rica, Colombia and Guatemala and other countries called countries of the banana dollar. These states are the main partners of the world's banana corporations, and as a result, they are traditionally influenced by the US dollar.

Plantations where bananas grow.

Usually farms in Latin where bananas are grown are large monoculture plantations. They require large investments in the construction of roads, irrigation canals, and communications. Modern banana plantations use a large amount of fertilizers, which makes it possible to obtain up to 80 tons of bananas from 1 hectare.

Ecuador, Colombia and Peru are the only countries in Latin America where, along with large farmers, there are several thousand small banana farms. They play an important role in the export of bananas and act as a buffer: large exporters buy up the produce of small plantations when the demand for bananas is high.

Working conditions on banana plantations are very poor in terms of wages and social conditions, the use of a large amount of chemicals is detrimental to the health of workers and the environment.

Caribbean bananas tend to be grown in small family farms using more sustainable production methods than the vast plantations of Latin America. The banana trade is critical to the economy of the Caribbean region, providing an influx of currency to meet social and economic challenges.

However, over the past 10 years, about 20,000 banana family farms have gone out of business, unable to compete with cheaper Latin American bananas or suffering significant losses due to regular hurricanes.

which country is the world leader in banana cultivation and got the best answer

Answer from Irina Gromova[guru]
The leading countries in the production of bananas are India (25% of the total world volume), China, the Philippines, Ecuador and Brazil (the last countries each account for 10-11% of the total world volume).

Answer from HOLY_CRAP[expert]
Africa?

Answer from ®eaLbnb)th ko†E[guru]
Africa

Answer from Artemon Giggs[guru]
India and China, as well as the Philippines, lead the world

Answer from D E N V E R[guru]
INDIA is the leader in the list of banana producing countries.
In general, bananas are grown in almost all countries with a humid tropical climate, mainly in developing ones.
Bananas are native to the Malay Archipelago. According to scientists, the ancient inhabitants grew them and ate them in addition to the fish diet. Traveling around the islands of the Pacific, they stocked up on fruits known to them and thus contributed to the spread of bananas. According to another version, bananas were known in South America even before the arrival of Europeans. This version is based on the fact that the remains of banana leaves were found in Peruvian Indian tombs.
After 650, bananas came from India to Palestine and the east coast of Africa. They were brought here by Arab merchants who actively traded in slaves and ivory. By the time the active exploration of Africa by Europeans began, bananas were already well known there. Bananas came to the Canary Islands from Guinea after 1402 thanks to the Portuguese who started growing them. Fruits got to the island of Haiti already 24 years after the discovery of America - only in 1516. Active cultural cultivation of bananas in South America had already spread by the middle of the 16th century.
The cuisine of Latin American countries boasts the greatest variety of banana dishes. Here they are boiled, baked, stewed, fried in olive oil with spices, served with cheese and even "honey" is made from them - a thick syrup obtained by long-boiling bananas. In a number of African countries, bananas, fried or stewed with other vegetables, are often served as a side dish for shrimp, tuna or other fish dishes.