EUROPEAN COMMISSION
DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT
Directorate C. Economics of agricultural markets (and CMO)
C.2. Olive oil, Horticultural products
Brussels,
FR/ks - (2011)
Bananas- Market Report 2010.
1.
Summary
In 2010 overall banana imports into the E.U. slightly decreased by 0.5%: MFN imports
declined by 2.4% and ACP imports grew by 6.8%, respectively, in comparison with 2010.
Wholesale prices for all the origins (MFN, EU and ACP) lower related to 2009 (-1.9% ,9.5% and -5 %, respectively): these low levels were due, according to the leading global
producers and distributors (multinationals), to the harshest winter in 30 years and depressed
economic conditions in the E.U.
Aldi's price, which is considered the benchmark price by the industry, in 2010 was -3.9 %
lower than in 2009.
However, according to preliminary figures, for the first four months of 2011 wholesale
prices have been much higher compared to the same period of 2010 by: EU +32%, MFN
+14% and ACP +5%, respectively.
This very good result is notably due to a relatively low crop and the economic recovery in
2011: therefore, 2010 is not a normal year on which basis it is possible to take a reasonable
decision.
2.
Banana market during the year 2010.
2.1.
Volumes, MFN and ACP bananas.
The economic crisis in 2009 had negative repercussions for the agricultural sector at world
level. Although the impact of the crisis varied from country to country, there was a
slowdown in the growth of demand as a result of the fall in purchasing power.
It follows from the above that commodities were affected and banana trade did not escaped
to this negative world economic trend.
Trade and output growth of bananas stagnated in 2010 at level slightly lower to 2009, when
there was a record decline.
In 2010, overall volumes of bananas imported into the E.U. were 4 491 116 tonnes(see table 1),
compared to 4 512 412 tonnes in 2009, which represents a slightly decline of 0.5%.
Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel - Belgium. Telephone: (32-2) 299 11 11.
Office: L130 7/81. Telephone: direct line (32-2) 296.55.98. Fax: (32-2) 295.37.09.
mail: [email protected]
MFN countries exports into the E.U. declined by 2.4% related to 2009 (from 3 554 405
to 3 467 583 tonnes), while imports from ACP countries were 6.8% higher, increasing
from 958 007 to 1 023 533 tonnes, (see table 1).
2.2. EU bananas production
In 2008 and 2009 E.U. banana production increased by 2.3% and 7.1%, respectively, in
comparison with the previous year.
During the year 2010, EU banana production was at even higher level: however, high
volumes of bananas and the global economic and financial crisis had a negative impact on
the EU banana sector during this period, notably on prices.
In 2010, EU banana production was 657 155 tonnes, compared to 608 048 in 2009. This
volume represents an increase of 8% and 15.8%, respectively, related to 2009 and 2008.
Bananas produced in the EU
(January-December 2007-2008-2009-2010)
700.000
659.525
600.000
500.000
396.981
Tons
400.000
300.000
241.964
199.413
200.000
100.000
42.551
5.036
13.663
1.881
0
Cyprus
Greece
Spain
Jan-Dec 2007
France
Jan-Dec 2008
Martinique
Jan-Dec 2009
Guadeloupe
Portugal
Total
Jan-Dec 2010
This is the best outcome since 2004 in volume terms for EU bananas!
3.
EU production price
In 2010 average EU weighted production price remained low compared to 2009 (0.59
€/Kg. and 0.71 €/Kg. respectively), falling by 16.9%.
This low level was notably due to the very low prices in Spain during the first four months
of 2010, thanks to a very strong banana production in Canary Islands, which flooded the
only market where these bananas are traded: the Spanish market (see chart here below).
2
Prices of banana produced in the EU and marketed outside their region of production
(January-December)
1,00
0,89
0,85
0,82
0,76
Price Euro/Kg
0,80
0,86
0,76
0,78
Greece
Spain
0,68
0,66
0,65
0,60
Martinique
0,60
0,56
0,57
0,54
Guadeloupe
0,55
0,52
0,50
0,51
0,51
0,50
Portugal
Total EU
0,40
0,20
2007
4.1.
2008
2009
2010
MFN imports
The evolution in the E.U. banana imports shows the hardening in market conditions.
Depressed economic conditions and bad weather have affected bananas imports into the
E.U. from MFN banana exporting countries, which declined for the sixth straight quarter in
a row.
During the year 2010, the E.U. banana market was affected by falling prices, lower supply
and consumer demand and generally declining volume sales of bananas.
Cumulative imports MFN countries 2004-2010
4.500.000
4.000.000
3.500.000
2004
2005
2006
2007
2008
2009
2010
2.500.000
2.000.000
1.500.000
1.000.000
500.000
3
r
em
ov
N
D
ec
em
be
r
be
er
ob
ct
O
Se
pt
em
be
r
Au
gu
st
ly
Ju
Ju
ne
ay
M
ril
Ap
M
ar
ch
ua
br
Fe
nu
ar
y
ry
0
Ja
Tonnes
3.000.000
Hence, cumulative bananas imports from MFN countries in the E.U. in 2010 were
467 587 tonnes, the lowest level since 2005 (see chart here above).
4.2.
3
ACP imports
Banana imports into the E.U. from ACP countries have been arriving in higher volumes
than the previous years, particularly during the first fourth months of 2010.
In 2010, cumulative banana imports from ACP countries were 6.8% higher than 2009
(from 958 007 to 1 023 533 tonnes), which is by far ACP best ever export outcome! (see chart
here below).
Cumulative imports ACP countries 2004-2010
1.200.000
1.000.000
Tonnes
800.000
2004
2005
2006
2007
2008
2009
2010
600.000
400.000
200.000
r
r
ec
D
ov
N
em
em
be
be
er
ob
ct
O
Se
pt
em
be
r
Au
gu
st
ly
Ju
Ju
ne
ay
M
Ap
ril
M
ar
ch
ua
br
Fe
Ja
nu
ar
y
ry
0
Source: Eurostat
5.
Prices
The economic crisis, severe weather conditions in the E.U. in the beginning of 2010 and a
weak demand have badly affected banana prices on the E.U. domestic banana market,
particularly during the first semester 2010.
5.1.
MFN yellow wholesale price
MFN yellow wholesale prices were lower in 2010 compared with previous years that had
more favourable economic conditions. The relatively weak demand for bananas drove down
the MFN wholesale prices, notably during the first six months of 2010, reaching an
extremely low level of 0.92 €/Kg. in the end of January, which is the lowest level for this
period of the year since at least 2005.
Afterwards, during the third quarter, MFN wholesale prices have increased to a more
average seasonally level. This positive trend of bananas prices continued during the fourth
4
quarter, and in the end of December prices were at their highest level for this period of the
year since 2004 (see chart here below).
1. Wholesale prices of yellow MFN- bananas in the EU27
3-week average in MEMBER STATES
EUR/kg
1,40
1,20
1,00
0,80
2004
2005
2006
2007
2008
2009
2010
2011
0,60
0,40
0,20
1
6
11
16
21
26
31
36
41
46
51 Week
Source: Member states
Therefore, Wholesale prices of yellow MFN bananas have declined in 2010, compared to
2009, by 1.9% (from 1.04 €/Kg to 1.02 €/Kg).
5.2.
Aldi's price
Aldi's price, which is set weekly and is considered by the industry as a reference price on
which basis others prices are determined, during the first ten weeks of 2010 were at the
lowest level since 2005 (see chart here below).
5
ALDI PRICES 2005-2010
1,20
1,00
2005
0,80
Euro/Kg
2006
2007
0,60
2008
2009
0,40
2010
0,20
9
7
5
1
S5
S4
S4
S4
7
5
3
9
S4
1
S4
3
S3
S3
S3
S3
5
3
1
9
7
S2
9
S3
1
S2
S2
S2
S2
S1
3
1
5
S1
7
S1
S1
S9
S1
S7
S5
S3
S1
0,00
Week
Source: CIRAD
However, in April 2010 prices started to recover reaching in the fourth quarter of the year
high levels comparable to those of 2005.
In 2010, Aldi's average price was 0.74 €/Kg compared to 0. 77 €/Kg in 2009: this is a
decrease of 3.9% but still at same level than 2008 and higher than 2006 and 2007.
5.3.
EU yellow wholesale price
In 2008 and 2009, EU Wholesale prices increased on year basis, by 5.8% and 4.4%,
respectively, reaching levels very close to those of 2005, when they set a record historical
high price.
However, in 2010 EU wholesale price remained low compared to 2009 (0.86 €/Kg. and
0.95 €/Kg. respectively), which is a decrease of 9.5%.
This low level, not totally unusual (still higher than 2006 and equal to 2007, for instance)
was notably due to the very low prices in Spain in January and February 2010, whilst in
France and Portugal were at more normal level.
The very low prices in Spain were mainly due to a very strong banana production in Canary
Islands, which flooded the only market where these bananas are traded: the Spanish market.
During the winter period, due to a strong crop and economic crisis, EU wholesale price hit
a low of 0.77 €/Kg., which is the lowest level for this period of the year except 2007, when
it was 0.74 €/Kg. (see chart here below).
6
3. Wholesale prices of yellow EU- bananas in the EU27
3-week average in MEMBER STATES
EUR/kg
1,40
1,20
1,00
0,80
2004
2005
2006
2007
2008
2009
2010
2011
0,60
0,40
0,20
1
6
11
16
21
26
31
36
41
46
51 Week
Source: member State
5.4.
ACP yellow wholesale price
In 2010, ACP wholesale price remained very low compared to the same period of previous
years and was mostly due to the very low prices in United Kingdom and Spain in January
and February 2010.
During the winter period, due to a strong crop and economic crisis, ACP wholesale price hit
a low of 0.79 €/Kg., which is the lowest level for this period of the year since 2005.
2. Wholesale prices of yellow ACP- bananas in the EU27
3-week average in MEMBER STATES
EUR/kg
1,40
1,20
1,00
0,80
0,60
2004
2005
2006
2007
2008
2009
2010
2011
0,40
0,20
1
6
11
16
21
26
31
7
36
41
46
51 Week
Afterwards, from March onwards, ACP yellow wholesale price increased to a point closer
to the average for the period, stabilizing in the second quarter of the year, in a range
between 0.94 €/Kg. to 1.24 €/Kg, which is normal for this time of the year.
Hence, in 2010 ACP wholesale price remained low compared to 2009 (0.93 €/Kg. and
0.98 €/Kg. respectively) decreasing by 5%.
6.
Main news on bananas during 2010.
6.1
Banana industry in the Canary Islands
According to the press, on 17 May 2010 Spanish Minister of Environment and Rural, Mrs.
Espinosa , declared in Brussels that they are "the banana producers themselves" who are the
ones "distorting the price of the fruit", which causes origin cost to achieve a huge gap with
the selling price, something that "hurts very much" owners of smaller banana plantations,
"producers are the ones controlling the commercialisation process 100%".
"Let's check the origin prices", she insisted, "then, let's verify the selling prices ate the
markets. There is no intermediary here; they are themselves generating the most damage
to the banana industry at this moment. She added" prices perceived at the beginning of the
year by producers were between 7 and 10 per cent of what was recorded at the wholesale
markets, compared to the 50 per cent under normal situation, in any season of the year".
6.2
Canary Islands bananas removed from the market
During the first quarter 2010 bananas prices were at very low level in Spain. According to
Asprocan (Asociación Organizaciones Productores de Plátano de Canarias), 12 400 tonnes
of bananas were removed from the market in order to avoid market saturation and further
fall of prices: producers were compensated at 15 cents per Kg.
Furthermore, according to the press, in the end of February a storm ravaged the Canary
Islands and banana and tomato crops were badly damaged.
Moreover, Spanish press has reported that Mr. Francisco Rodríguez, President of Asprocan
(Asociación Organizaciones Productores Plátanos de Canarias), has declared that in
September 2010 they have removed 1 600 tonnes of bananas from the market, due to
market saturation (further to the 15 000 tonnes they removed in the first semester 2010).
6.3
Rising freight threaten the Canary banana sector
Mrs. Merino, Minister of Agriculture in the Canary Islands Government, in the end of
September declared that the announcement of rising shipping rates between the Canary
Islands and Spanish peninsula of 45% may be a serious threaten to Canary banana sector.
According to her, this could represent a case of abuse of dominant position and Spanish
Antitrust has to investigate on this.
8
6.4
Guadeloupe producers suspended banana marketing, February 2010
Guadeloupe stops and come back. The eruption of the Soufriere volcano on Montserrat
Island situated 80 Km. North of Guadeloupe, on 11 February 2010, has had heavy
consequences for the banana production in Guadeloupe, due to the volcanic ashes which
covered the soils and fruit of particles.
Following this natural phenomenon, Guadeloupe banana producers decided to suspend the
marketing of bananas for three months, with a loss of the crop estimated at about 20 000
tonnes.
6.5
French growers suspended to supply Intermarchè
The banana growers' union for Guadeloupe and Martinique (UGPBAN) in the beginning of
September decided to stop supplying bananas to the French multiple retailer Intermarchè
(which takes around 10% of bananas produced on French territory), as a result of the
retailer's policy of discounting banana prices.
UGPBAN's decision came in response to Intermarchè last discount promotion, selling
bananas at the exceptionally low price of € 0.69 Kg., which is half the normal retail price.
UGPBAN representatives have argued that the corporate strategy of Intermarchè is
inconsistent with producers' efforts to promote sustainable pricing for bananas that reflects
the underlying reality of the cost structure faced. This action has been taken despite an
acknowledgement from UGPBAN that the prices paid to producers have not so far been
affected by the discounting practices pursued by Intermachè.
7.
Conclusions.
7.1
EU Banana market
The global economic and financial crisis that emerged in 2008 has had a dramatic impact
on global international agricultural products trade, bananas included.
In 2009, for the first time since at least 2005, overall banana supply in the EU decreased by
5.5%, falling from 5 416 449 in 2008 to 5 120 460 tonnes in 2009 (see table 4 in annex).
Throughout the years 2006 to 2008, since the liberalization of the European Union banana
market, E.U. imports were trending upwards, setting a new record year after year. In 2009,
for the first time, imports into the E.U. were lower than the previous years (see table 1 in annex).
In 2009, the adverse impact of the financial crisis on the world economy in terms of output
and employment affected severely the global demand: according to the WTO, world trade
global agricultural trade contracted in 2009, in volume terms, by around 3%.
In 2010, overall volumes of bananas imported into the E.U. were 4 491 116 tonnes,
compared to 4 512 412 tonnes in 2009, which represents a slightly decline of 0.5%.
In 2010, the EU banana production was 657 155 tonnes, compared to 608 048 in 2009: this
volume represents an increase of 8% related to 2009 and of 15.8% as regards to 2008.
In 2010, wholesale prices for all the origins (MFN, EU and ACP) have been much lower
related to 2009 (-1.9%, -9.5% and -5%, respectively): this low levels were due,
9
according to the leading global producers and distributors (multinationals), to the
harshest winter in 30 years and depressed economic conditions in the E.U.
.
LIST OF TABLES AND CHARTS
TABLES
Table 1
Evolution of bananas imports into the E.U., Eurostat data
Table 2
Banana supply in the E.U. 2004-2010, Eurostat data
Table 3
Average wholesale prices, first four months of the year.
CHARTS
CHART 1
Wholesale prices of yellow EU bananas, source Member States
CHART 2
Wholesale prices of yellow EU bananas, source Member States
10
CHART 3
Wholesale prices of yellow EU bananas, source Member States
11
Table 1 - Evolution of bananas imports into the E.U.
Mexico
Guatemala
Honduras
Nicaragua
Costa Rica
Panama
Colombia
Venezuela
Ecuador
Peru
Brazil
Bolivia
Sri Lanka
Thailand
TOTAL
Cameroon
Ivory Coast
Dominican Rep.
Belize
Surinam
St.Lucia
St-Vincent
Dominica
Jamaica
Ghana
Rwanda
Uganda
Burundi
TOTAL
2005
2006
2007
2008
2009
2010
5.314
3.010
23.091
1.112
30.713
21.768
634.511
281.639
882.395
17.092
1.239.220
11.490
63.337
7
4
3.840.661
1.660
14.275
23.954
7
893.395
294.588
1.278.133
0
1.328.033
38.451
58.154
0
7
6
3.930.663
21.874
3.672
8.523
0
752.890
183.455
1.205.988
0
1.278.041
43.926
56.002
6
0
3.161.104
834.063
312.978
951.376
14.575
1.199.367
22.703
95.595
17
5
2
3.484.273
220
18.703
30.390
3
970.669
353.991
1.153.912
9.900
1.183.466
33.531
85.865
25
9
3.554.405
12.592
3.315
15.230
0
771.856
182.903
1.164.114
0
1.203.476
50.682
63.403
0
3
9
3.467.583
2005
2006
2007
2008
2009
2010
252.912
183.752
144.683
74.189
35.258
28.243
15.893
12.814
11.654
4.207
57
23
0
763.618
252.702
221.791
176.757
73.207
45.146
36.726
17.239
13.298
31.863
22.404
59
29
0
891.133
222.292
190.068
206.164
61.175
54.342
30.456
13.792
7.291
18.371
33.404
59
46
11
837.353
279.530
216.583
170.396
82.146
65.812
38.512
8.975
10.281
40
45.951
31
55
33
918.312
249.614
229.195
227.984
79.799
57.615
33.238
7.511
36.451
0
36.486
20
57
37
958.007
243.019
244.313
303.519
78.817
70.437
23.154
4.053
3.728
0
52.358
21
67
47
1.023.533
242.635
198.537
175.868
69.523
44.915
31.808
15.641
11.134
20.629
20.005
58
33
4
830.701
250.479
211.949
201.515
74.373
59.256
34.068
10.093
18.008
6.137
38.614
37
53
27
904.557
4.491.116
4.326.047
4.679.800
Total MFN+ACP 3.924.722 4.375.406 4.678.013 4.848.975 4.512.412
Source: Comext2 k0521907,txt Extracted: 1/03/2011, provisional data.
DataSet: EU27 SINCE 1999 CN (SIMULATED)
Av.2005/2007 Av.2007/2009 Var.2010/2009
2.215
17.475
25.083
1
813.081
316.203
995.894
13.856
1.207.351
22.575
81.599
6
6
2
3.495.346
7.918
12.217
20.956
3
872.318
277.345
1.212.678
3.300
1.263.180
38.636
66.674
0
13
6
3.775.243
Var.10/av.07-09
Var.10/av.05-07
-42,4%
-9,7%
78,7%
59,0%
-72,9%
-27,3%
468,5%
-81,0%
-39,3%
2,5%
-0,3%
-3,5%
-11,5%
-34,1%
-4,0%
-5,1%
-42,2%
16,9%
-5,8%
15,4%
13,2%
-4,7%
31,2%
-4,9%
-0,3%
124,5%
-22,3%
-88,0%
0,0%
-2,4%
-77,2%
41,4%
-8,1%
-49,4%
3,4
-0,8%
Var.10/av.07-09
Var.10/av.05-07
-2,6%
6,6%
33,1%
-1,2%
22,3%
-30,3%
-46,0%
-89,8%
-3,0%
15,3%
50,6%
6,0%
18,9%
-32,0%
-59,8%
-79,3%
0,2%
23,1%
72,6%
13,4%
56,8%
-27,2%
-74,1%
-66,5%
43,5%
5,0%
17,5%
27,0%
6,8%
35,6%
-42,7%
27,2%
74,1%
13,2%
161,7%
-64,0%
105,1%
1181,8%
23,2%
-0,5%
-4,0%
3,8%
Av.2005/2007 Av.2007/2009 Var.2010/2009
12
BANANA SUPPLY IN THE EU
NC 08030019
ORIGIN
EUR-27.
Tonnes
2004
758.206
2005
648.375
2006
641.559
2007
554.734
2008
567.560
2009
608.048
2010
657.155
2.868
418.407
305.270
246.199
59.071
10.500
21.161
2.932
344.977
280.474
226.243
54.231
5.827
14165
2.948
348.184
268.585
220.775
47.810
6.525
15.317
2.943
361.355
167.298
129.293
38.005
5.950
17.188
2.657
371.262
171.574
124.923
46.651
4.226
17.841
2.589
352.032
235.811
180.195
55.616
3.155
14.461
1.881
396.981
241.964
199.413
42.551
2.666
13.663
ACP Countries
782.556
763.662
891.192
837.425
918.226
958.007
1.023.533
Cameroon
Ivory-Coast
Domin. Rep.
Belize
Jamaïca
St Lucia
St Vincent
Dominica
Ghana
Suriname
Rwanda
Burundi
Uganda
261.232
210.760
101.337
80.292
28.660
42.872
23.962
12.167
1.788
19.447
39
0
17
252.912
183.752
144.683
74.189
11.654
28.243
15.893
12.814
4.207
35.258
57
0
23
252.702
221.791
176.757
73.207
31.863
36.726
17.239
13.298
22.404
45.146
59
0
29
222.292
190.068
206.164
61.175
18.371
30.456
13.792
7.291
33.404
54.342
59
11
46
279.530
216.583
170.396
82.146
40
38.512
8.975
10.281
45.951
65.812
31
33
55
249.614
229.195
227.984
79.799
0
33.238
7.511
36.451
36.486
57.615
20
37
57
243.019
244.313
303.519
78.817
0
23.154
4.053
3.728
52.358
70.437
21
47
67
DOLLAR ZONE
Ecuador
Costa Rica
Colombia
Panama
Brazil
Venezuela
Honduras
Peru
Guatemala
Mexico
Nicaragua
Sri Lanka
Thailand
3.229.539
1.120.762
856.407
766.501
370.834
51.984
22.381
21.193
9.590
2.153
7.730
0
4
0
3.161.105
1.239.220
634.511
882.395
281.639
63.337
17.092
23.091
11.490
3.010
5.314
0
6
0
3.484.257
1.199.367
834.063
951.376
312.978
95.595
14.575
21.768
22.703
30.713
1.112
0
5
2
3.840.661
1.183.466
970.669
1.153.912
353.991
85.865
9.900
30.390
33.531
18.703
220
3
7
4
3.930.663
1.328.033
893.395
1.278.133
294.588
58.154
0
23.954
38.451
14.275
1.660
7
7
6
3.554.405
1.278.041
752.890
1.205.988
183.455
56.002
0
8.523
43.926
3.672
21.874
0
25
9
3.467.583
1.203.476
771.856
1.164.114
182.903
63.403
0
15.230
50.682
3.315
12.592
0
3
9
ACP + DOLLAR
4.012.095
3.924.767
4.375.449
4.678.086
4.848.889
4.512.412
4.491.116
ACP + DOLLAR + EU
4.770.301
4.573.142
5.017.008
5.232.820
5.416.449
5.120.460
5.148.271
EU
Greece
Spain
France
Martinique
Guadeloupe
Chypre*
Portugal
Source: MS Communications (EU) / For EU production in 2009.
Source: Eurostat EU-27: provisional data extracted on 24/02/2010 / Comext (ACP & DOLLAR Z.)
13
Average wholesale prices, first four months of the year.
Price
Price
Variation
Price
Variation
2009
2010
EU
1,04
0,83
( -20%)
1,1
(+32%)
ACP
1,1
0,96
(-13%)
1,01
(+5%)
MFN
1,13
1,01
(-11%)
1,15
(+14%)
2011
14
3. Wholesale prices of yellow EC- bananas in the EU27
3-week average in MEMBER STATES
EUR/kg
1,40
1,20
1,00
0,80
2004
2005
2006
2007
2008
2009
2010
2011
0,60
0,40
0,20
1
6
11
16
21
26
15
31
36
41
46
51 Week
1. Wholesale prices of yellow MFN- bananas in the EU27
3-week average in MEMBER STATES
EUR/kg
1,40
1,20
1,00
0,80
2004
2005
2006
2007
2008
2009
2010
2011
0,60
0,40
0,20
1
6
11
16
21
26
16
31
36
41
46
51 Week
2. Wholesale prices of yellow ACP- bananas in the EU27
3-week average in MEMBER STATES
EUR/kg
1,40
1,20
1,00
0,80
0,60
2004
2005
2006
2007
2008
2009
2010
2011
0,40
0,20
1
6
11
16
21
26
17
31
36
41
46
51 Week