Public Management

Faced with rising global costs, let's continue to build together a fair and sustainable banana value chain (Afruibana)

Faced with rising global costs, let's continue to build together a fair and sustainable banana value chain (Afruibana)
Saturday, 18 September 2021 09:05

As we enter the period of contractualization of our commitments for the following year with retailers, we, African producers, wish to draw the attention of stakeholders to the cost increases experienced by the global banana sector and our continent in particular.

First of all, our maritime transport costs, affected by the current sectoral situation, are expected to increase in 2022 by more than 60%. Likewise, under the effects of the increase in the cost of production factors and the slowdown in supply chains, we anticipate an increase in our purchasing costs of around 20 to 25% depending on the product (cardboard boxes, fertilizers, phytosanitary products etc). Moreover, for those of our producers who have not yet reached it, the implementation of the “living wage” of the Global Living Wage Coalition will require additional efforts, despite a methodology not even taking into account the multiple health, education and housing services already offered to our teams. Finally, given the outlook for the global economy and its effects on parities, we expect our operating costs to increase further by 3 to 5%.

However, it should be noted that these cost increases have so far not translated into increases in the price of bananas. On the contrary, the year 2021 will remain as a very difficult year for the market, with the prices of boxes of 18.5 kg even temporarily falling below € 10 according to the CIRAD Observatory. These bottom-low levels themselves come at the end of a long and deep deterioration in the purchase prices that producers have had to cope with on their own year after year.

In this context, we are counting on the commitment of our European retail partners to make the banana value chains ever fairer and resolutely sustainable. Indeed, only fair selling prices can allow a fair distribution of the value between the actors of our chain. These fair prices are also key to initiating the essential investments of the ecological and energy transition of our sector during this decade.

Everyone in our chain, from producer to end-buyer and consumer, must "do their part" and contribute to the positive development of our sector. It is in this state of mind that we wish to prepare for the coming year with our partners in the retailing sector and, with them, ensure that, in 2022 and beyond, the chain that connects our 30,000 employees to million European consumers is always fairer and resolutely sustainable.

  • Hon. Joseph Owona Kono, President of AFRUIBANA and Executive Secretary of ASSOBACAM (Cameroon)
  • M. le Ministre Jean-Marie Kakou-Gervais, Vice-president of AFRUIBANA and President of OBAMCI (Côte d’Ivoire)
  • Mr. Elloh Vosso, President of OCAB (Côte d’Ivoire)
  • Mr. Anthony Blay, Vice-president d’AFRUIBANA and President of BPA (Ghana)

raza

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Togo raises $53M via bonds and bills, surpassing 30B XOF target Auction saw 160.86% bid coverage; OATs issued at 6.25% for three years Total...
Africa’s instant payment systems processed 64 billion transactions worth $1.98 trillion in 2024, according to AfricaNenda. The continent counted...
EIB and ZICB to mobilize €30M for Zambian agribusiness SMEs 30% of funds reserved for women-led enterprises; €4M risk-sharing...
IFC lends 170 million rand to Lula to boost digital, unsecured SME lending 80% of funds will support micro and small enterprises Deal strengthens a...
Most Read
01

Social media users accuse the UAE of backing Sudan’s RSF militia. Activists and celebrities c...

UAE faces backlash over alleged role in Sudan’s gold and arms trade
02

DRC met Alibaba, Isoftstone to discuss adapting China’s e-commerce model Joint working group ...

DRC in Talks with Alibaba, Isoftstone to Develop a Chinese-Style E-Commerce Model
03

West African officials met in Lomé to improve municipal finances for crisis response Talks focuse...

West African Officials Draft Crisis-Proof Budget Strategy in Lomé
04

Launch led by Maroc Telecom, Orange, and Inwi Rollout targets 25% coverage by end-2025 under Digi...

Morocco Launches 5G Nationwide Ahead of 2025 Africa Cup of Nations
05

The Bank expects a 41% rise in 2025 and a further 6% increase in 2026. Gold topped $4,00...

World Bank sees precious metal prices staying high until 2027
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.