Fairtrade sets new minimum prices for bananas in 2023
- Published on 24/10/2022 - Published by FRUITROP
- Free
Fairtrade banana
Informations
- Product(s) : Banana
- Rubrique / Thématique : Direct from the markets
- Country : Africa , Latin america , Caribbean
- Keywords : Price , Sales
In response to the soaring costs experienced by the banana production and export sectors since the pandemic and reinforced by the Russian-Ukrainian conflict, the Fairtrade Standards Committee has approved new Fairtrade minimum prices. Valid for contracts with producers delivering to the packing facility or FOB, the minimum prices show an increase from 1 January 2023 of up to +11% depending on the origin, compared to the prices in force over the period 2022. Thus, certain origins such as Ecuador and Colombia will benefit from an increase of $1 per box at the FOB stage for conventional Fairtrade bananas and $0.40 per box at the EXW stage. For organic Fairtrade bananas, it is worth noting the revaluation of the Peruvian origin in +1.10 $/carton at the FOB stage and +0.50 $/carton EXW. Paradoxically, only the "Other ACP" category has fallen at the producer stage (-0.20 $/carton).
To this must be added the bonus for development ($1/carton), an additional amount paid on top of the Fairtrade minimum price, often used for collective investments in education, health and agricultural improvements that increase producers' incomes.
Note that from 2023 onwards the Aldi price for the conventional banana box will be calculated using the methodology developed by Fairtrade International to evaluate the evolution of the minimum price. Not to be confused! Aldi has not committed to paying the Fairtrade minimum price (except for the Fairtrade banana boxes sold on their shelves), but to use the cost differential calculated by Fairtrade between 2022 and 2023, which takes into account the evolution of the main inputs and services, and which explains 80% of the cost of the banana stopped at Ex Works.
After a record year in 2019, when almost 750,000 tonnes of Fairtrade bananas were marketed worldwide, sales in this segment declined slightly. This is due to the covid crisis causing disruptions in supply chains and price wars in some markets. In 2021, 739,111 tonnes of Fairtrade bananas were sold worldwide, 61% organic. The UK, Germany and France are the main consumer markets, with growth noted in Italy and Spain.
