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
• IMF extends Niger’s Extended Credit Facility (ECF) program by one year through December 2026.• IMF approves a $41 million disbursement tied to...
EBRD grants $100 million loan to Banque Misr to expand credit access for SMEs and women-led businesses. Loan supports Egypt’s green finance...
UTB’s restructuring delayed to end-2026 due to incomplete audits; reorganization plan expected by March. Despite a CFA 15.2B injection, the bank...
DRC launches campaign to diversify investors in government securities 98% of bonds now held by banks; aim is to reduce risk and broaden...
Most Read
01

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
02

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
03

• The U.S. imposed a 20% tariff on cashew exports from Vietnam and a 40% tax on suspected transshipm...

U.S. Tariffs on Vietnam Cashews May Disrupt Trade, Hit African Growers (Interview)
04

Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 mil...

Cauri Money Targets Cameroonian Diaspora with Digital Wallet Launch
05

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
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
Média kit : Download

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.