The African banana between Latin American competition and salary demands

2024-11-14 23:07:00

More than 85% of bananas produced in Africa are exported to Europe, but they face competition from Latin American bananas, which dominate the market. Rising costs and pressure from supermarkets are aggravating the situation, making it difficult for African producers to be profitable. Recently, in Abidjan, stakeholders in the sector met to find solutions in favor of workers.

From our correspondent in Abidjan,

The Ivory Coastthe Cameroon and the Ghanathe three pillars of African banana production, are struggling to strengthen their presence on the European market. For a long time, they have found themselves facing overwhelming competition from Latin American giants, who largely dominate this sector. “ We are facing giants who produce 15 million tonnes, while we, the three countries together, manage to produce 600,000 tonnes, underlines Jean-François Billot, secretary general of Afruibana, an organization which brings together producers and exporters from the continent. They are more than 25 times bigger than us and yet, between 2015 and 2023, we managed to increase our market share from 4.4 to 5.1 in the European Union “, he congratulates himself.

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Real value down 20%

However, margins remain low. African bananas, meeting strict quality standards, are purchased at low prices, especially compared to other fruits. “ We produce a clean banana and yet it is the cheapest fruit on the shelves, deplores Jean-Marie Kakou-Gervais, president of Obam-CI (Organization of banana exporting producers in Ivory Coast). An apple produced in Normandy and sold in Paris costs two to three times more than our banana, which travels thousands of kilometers under restrictive technical transport conditions. »

Towards a decent salary in Ivory Coast

Despite these difficulties, Ivory Coast, the leading African producer with 382,000 tonnes of bananas per year, is committed to improving the living conditions of the 45,000 workers in the sector. Last September, an agreement was signed to harmonize salary practices and establish a decent wage by 2026. “ With inflation, the current salary no longer allows us to live adequately, Judge Koffi Blaise, president of the Federation of Workers in the Industry. We demand a salary that guarantees us a decent life. It is time for producers and workers to come to the negotiating table. »

In eight years, the real value of a kilo of banana has fallen by 20%. For certain producers and exporters, the establishment of a decent wage remains conditional on an increase in the purchase price on the European market.

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How is Afruibana working to ⁣improve the market position of African bananas within the European Union?

**Interview with Jean-François Billot, Secretary General of Afruibana**

**Editor:** Thank you for joining‍ us, Jean-François. ‌Let’s dive right into the current⁤ challenges facing African banana producers,⁤ particularly in Ivory Coast, Cameroon, and Ghana. ⁤Could you ⁣elaborate on the competition you’re‌ facing from Latin American producers?

**Jean-François Billot:** Thank you for having me. The situation is ⁣quite stark. We are up against Latin American producers who dominate ⁣the market with staggering production levels—about 15 million tonnes compared to our combined total of 600,000 tonnes from the⁣ three countries. This monumental disparity creates significant challenges for our ability to compete and be profitable in Europe.

**Editor:** That is indeed⁤ a critical issue. You ​mentioned that despite this competition, there ‍has been a slight ​increase in your⁤ market share within the ‍European Union from 4.4% ⁤to 5.1% between 2015 and 2023. What do you attribute this growth to?

**Jean-François Billot:** It’s a small victory, but one we ⁣are proud of. Our growth can largely be attributed to our dedication to quality and sustainable practices. European consumers⁤ are ​increasingly interested in the ethics behind their food sources, and our ​producers are committed ‌to⁢ meeting those standards. We are also working⁣ to build stronger relationships with importers and to​ improve supply chain efficiencies.

**Editor:** Rising costs and pressures from supermarkets have been highlighted as considerable aggravating factors. How are these trends affecting producers on the ground?

**Jean-François Billot:** Rising costs—due to factors like logistics, labor, and input‌ prices—are squeezing⁣ our margins. Supermarkets often exert pressure to lower prices, and unfortunately, this comes at the expense‌ of our farmers. Many ⁣struggle to maintain profitability, which can lead to declining ⁣production and ultimately impact ⁣the livelihoods of ‌those reliant on banana cultivation.

**Editor:** You recently ‍held a meeting in Abidjan with various ‌stakeholders to address these challenges. What solutions were discussed?

**Jean-François Billot:** We had productive discussions around several key areas, including enhancing cooperation ⁢among producers, investing in​ better ⁤technology and practices, and advocating ‍for fairer trade⁤ policies. We also emphasized the⁣ importance of collective‍ branding‍ to improve ⁣recognition and‌ value of‌ African bananas in⁢ European markets. By working together, we can create more robust strategies to compete effectively.

**Editor:** It sounds like a collaborative ⁢approach may be the best way forward.⁢ What do you see as the next steps for African banana producers ‌in ‌this competitive landscape?

**Jean-François Billot:** The next steps include strengthening our networks and partnerships, ‍continuing to engage with⁤ European stakeholders, and advocating for policies that support fair competition.⁣ We need ‌to⁤ ensure our products are recognized not ​only for ‍their quality but also⁢ for the sustainable practices behind them. With collective effort, I believe we‍ can improve our position in the European market.

**Editor:** Thank you, Jean-François, for sharing your insights on this pressing issue. We wish you and⁢ your team at ⁣Afruibana ‍the ​best ⁣of luck ⁢in your efforts to support African banana producers.

**Jean-François Billot:** Thank you for having me, and thank you for shining a ‍light on ‌these important issues.

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