Since 2018, the price of the banana box that Costa Rican producers sell to the German supermarket chain ALDI is falling, there is concern that other European chains will begin to negotiate lower prices.
Representatives of the National Banana Corporation of Costa Rica (Corbana) explained that in 2018 the 18.14 kilo banana box sold to ALDI was quoted at 13.55 Euros.
Due to the possible change in the regulations established by the European Union on the use of agrochemicals in the production of the fruit that enters their territory, exporters in the region are on the alert for the possible complications that this would generate in the commercialization.
In order to protect the health of consumers, European authorities could vary the maximum residue limits (MRL's) that food entering the region may contain.
Although several companies have been affected by the measures implemented by governments in the context of the Covid-19 crisis, Costa Rican exports of coffee, pineapple and bananas have so far not faced difficulties with logistics.
Directors of the Coffee Institute of Costa Rica (Icafé) indicated that so far there have been no problems with the availability of containers and that sales abroad are proceeding normally.
Climatic and market conditions would be the reasons behind the drop in foreign sales expected for this year by exporters of bananas and pineapples in Costa Rica.
The drought in the Caribbean region, together with the attack of a bacterium on the plantations, will cause a year-on-year drop of at least 15% in banana production in 2019, according to business leaders.
Due to the effect of climatic phenomena at the beginning of the year, in the first five months of 2018, banana sales abroad amounted to $410 million, 9% less than was reported in the same period in 2017.
According to data from the Foreign Trade Promotion Office (Procomer), a comparison between the period between January and May 2017 and the same in 2018 shows that the value of banana sales abroad fell by 9%, going from $448 million to $410 million.
In 2016 a record 120 million boxes of 18 kilos were exported, generating revenues of $986 million, and productivity rose from 2,339 boxes per hectare in 2015 to 2,800 last year.
2016 was a good year for the banana sector in Costa Rica, which registered a significant rise compared to results seen in previous years.Compared to 2015 not only did overall productivity improve, but sales grew in value and volume.
Costa Rica's share in the market for bananas imported by the European Union increased from 13.7% in 2009 to 15.2% in 2015.
The main reason behind the increase is the reduction of tariffs on bananas from Latin America, which fell from 176 euros per ton to 103 euros.
"...This progress in market share translates into an increase in volume sold by Costa Rica to EU nations. The country raised its banana exports to the European bloc from 46.23 million boxes of 18.14 kilos in 2010 to 55.55 million units in 2015, according to Corbana. "
In the first half of the year better weather conditions led to a 17% increase in export volumes compared to the same period in 2015.
In value terms, banana exports in the first half of the year rose by 24% compared to the same period in 2015, according to figures from the National Banana Corporation (Corbana) mentioned by Nacion.com.
Jorge Sauma, general manager of Corbana, explained that "...
More global competition and less demand from Europe partly explain the stagnation of exports in the last three years.
Official data shows that in the last three years Costa Rican banana exports have stagnated, remaining at between 106 and 107 million boxes, each weighing 18.14 kilos. Businessmen from the sector claim that greater global competition and declining demand in Europe explain the stagnation.
In Costa Rica there has been an increase in the incidence Diaspis boisduvalii and Pseudococcus elisae mealybug in crops on the Atlantic slope.
From a press release by the State Phytosanitary Service (SFE):
The State Phytosanitary Service of the Ministry of Agriculture has declared a national emergency for the term of one year, due to increasing populations with the Diaspis boisduvalii and Pseudococcus elisae mealybug which are causing severe damage to banana crops. It is estimated that the impact has affected about 24 thousand hectares, according to data provided by CORBANA and the National Commission of Musaceae.
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