The organic banana market

  • Published on 21/02/2018 - Published by LOEILLET Denis
  • FruiTrop n°254 , Page From 75 to 75
  • Free

Volumes on the up, prices falling

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It is very hard to get a firm grip on the size of the organic or organic + Fairtrade labelled banana market, as for any specific market. Unlike the US Customs, those in various EU Member States do not distinguish between the conventional banana and organic certified banana. In the USA, which can be regarded as a yardstick, the segment is growing at a crazy rate. In the space of four years, organic has gone from 4 to 9 % of imports. Over the first eight months of 2017, the growth rate was 18 %! The 420 000-tonnes mark will definitely be beaten in 2017. Ecuador is the main origin on the market, with the trio of Colombia, Mexico and Peru trailing at a distance.

In Europe, unfortunately the best we can do is make estimates. Four origins make up practically the entire organic supply: the Dominican Republic, Peru, Ecuador and Colombia. The size of the market appears to be around 550 000 to 600 000 tonnes, i.e. just under 10 % of total consumption. The Dominican Republic has seized the lion’s share, in excess of 55 %. According to experts and mirroring what is happening in the United States, the market is growing by more than 10 % per year.

In terms of value, again it is hard to form a definitive opinion, such is the scarcity and incompleteness of the data. In France, the RNM data show a continuously narrowing gap at the retail stage. In less than a decade, the price gap with the conventional segment (and/or organic + Fairtrade) has gone down by one third, from 79 eurocents/kg in 2010 to 50 eurocents in 2017 (provisional). It is not uncommon nowadays to find equivalent retail prices in periods of high volume pressure, especially from the Dominican Republic.

This provides a better understanding of why French producers have made a big deal about organic labelling for fruits from third countries. These fruits enjoy the confidence and visibility of organic produce without always complying with the very strict rules for this label, which is what French producers are condemning (discussion around the concept of compliance with and equivalence to the specifications). Indeed French producers, who are subject to increasingly restrictive regulations in terms of pesticides use and treatment methods, are finding difficulty in earning commercial value from their high-sustainability produce.

banana - france - retail price difference between organic and conventional
banana - france - retail price difference between organic and conventional

 

organic banana - germany - retail price in discount stores
organic banana - germany - retail price in discount stores

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