antonio-gonzalez-vieitezAntonio Gonzalez Viéitez. Economist.

Over the last decade, the structural situation of the banana sector, roughly, is the next.

1). A volume of more or less stable production over the past decade. It is true that with some pico and 2010 and the current 2016.

2). Export to the Peninsula, single market which currently supplies, It is also very consistent. The same local consumption in the Islands.

3). by cons, imports of bananas have only grown continuously and rapidly. About a 40% in the last decade.

4). All this means that, in the mainland market, Canary banana quota has dropped so uproarious, Today standing around a 60%, while the remaining 40% already occupies the banana (These figures are approximate difference between sources).

5). Like is logic, prices are reflecting this situation. And, throughout the first half of this year, the average price is around island cosechero 0,30 €/kilo. Price that covers costs anywhere near.

6). This situation is "resolved" Canary Island banana leaders (agrupados a Asprocan, to which we have been criticized for many years for its lack of effectiveness, professionalism, transparency and democracy), by deactivation of a part of the production, the famous PICA, this year more present than ever. Of the 35 first few weeks are "stung" in 22. Unheard, the 60% of weeks!

7). Lets look at some relevant data. The average starting price of the wholesale market in the first half of this year, It was 0.93 € / kilo for extra category of Canary bananas, while the banana stood at 0.86 € / kilo. The difference in this part of the business is low. The Canarian banana is only 8,13% more expensive than the banana (Juan Nuez, published in Banana Leaves, 2016)

8). If we now look at the decisive stage, the retail price, in the last quarter (information obtained in centers Mercadona, the most important and leading company in the sector), the Canary banana was 1.89 € / kilo and banana € 0.99 / kilo. Here, and the difference is triggered and the banana is the 90,9% (!!) more expensive than the banana. It's more, if we consider that the above comparison was made on extra category of Canary bananas, this difference still be greater stratospheric.

What does this all mean? That the marketing of Canary bananas, understand the sector as a whole, It is a major disaster.

Why?

It is an old structure "disease" "The lack of unity in action was always the cause of the best initiatives of institutions and experts and intelligent, failed for lack of majority support ... it was [the] cause that prevented applying remedies and quicken ruin ". (statements 1937 Don José Sanso, founder of the current Agricultural Cooperative of Northern Gran Canaria. Taken from the biography by Sergio Aguiar Castilian, Editorial Mercury, 2015).

And we continue in the same. It follows a competing fiercely among exporters canaries. This strategy may make sense during the stage in the Canary banana had no jurisdiction in the mainland market, it was his "captive market". But that disappeared over twenty years ago. And, against all logic, we continue competing among us.

Indeed, to) Organizations Banana Producers (UP) They do not work as they are obliged to do so and most of Cooperatives and SAT sells each on their own, while Asprocan in an irresponsible manner hides and, where appropriate, denies; b) Like this, in the mainland market canaries there are many vendors competing over 40 brands, with different classifications of fruit without any approval, presenting to 5 and 6 different categories that disappear when retail and multitude of packaging and presentations; c) for this reason, Canary banana prices set the peninsular intermediaries, free advantage of the fighting canaries exporters and pulling prices down.

And here the disaster appears in all its splendor because how is it possible that, in the phase of retail and paying low prices to harvesters canaries, sitúen Canarian banana prices twice that of bananas?

Clearly this is an untenable situation and the miracle is that still continues to produce. I.e., you can still continue to sell Canary bananas twice the price of banana and, In addition, not always with the right quality. This temporary situation (it is impossible to hold long) It argues that the Canary banana Peninsula enjoys enormous prestige and, still, there are many consumers who demand, seduced by that intangible heritage "Canarian banana, with pintitas, is different", huge commercial hook, supported by a huge advertising spending that helps maintain its attractiveness. As significant data, banana and drink at least 40 % market and has never spent a dollar on advertising.

The resulting paradox is that those who are benefiting from huge commercial prestige and advertising Canary bananas are the intermediaries, which they are gaining more selling Canarian banana (they buy very cheap) that selling banana and, of course, banana producers.

And the million dollar question Is there a solution?

I dare say that there is no single solution, but also that it is very clear and that it is evident. And that it has to unfold in two complementary planes. One, that of marketing and Two, the production. Both are threaded around the change in strategy that involves the leap from competing with each other to considering competing against the world of bananas., through the Joint Management of the Canary Islands Supply, how will i try to prove.

But whoever says that there is a solution and that it is very clear, It doesn't even come close to saying that it's easy.. An old banana power structure stands in the way, historically very powerful and that is based on the maintenance of an inefficient and very clumsy structure such as Taifa Kingdoms, whose ultimate goal is its maintenance. In no other way can the suicidal behavior of Asprocan be understood.

One. Commercialization. TO) The first thing to require of SPOs is that they comply with reasonable community requirements, that they stop behaving like mere customs agencies and jointly market all the fruit they are in charge of. B) There are some issues that, for the enormous benefit they would bring by solving them jointly, they have to be managed like this, for example, the supply of packaging cardboard and transport to the Peninsula. C) The same happens with other types of issues of enormous relevance., such as the negotiation of Collective Agreements, unique in the Canary Islands, for the workers of the farms and for those of the packaging. What would prevent undesirable competition in such sensitive and delicate matters. D) Agree and control compliance with homogeneous qualities in the fruit. E) The categories that are maintained may not be different from those that, at the end, are presented to consumers with a differentiated retail price. I presume that two categories would be enough. Because the more that are allowed, there will be more jabbering. F) Establish a weekly price range within which all the prices of all the OPPs would have to be set. G) In truly exceptional cases there would be "pica", mandatory, destined for as long as necessary to Food Banks and the rest to feed livestock and adequate recycling facilities. H) Maintain competition with bananas through product differentiation and organic production. I) reach agreements, at the global level of the sector, with peninsular ripeners to share the business and establish a balanced treatment of the profits of both. J) In relation to companies in the retail sector, address the role of large chains starting with Mercadona, and show them that the enormous profits they obtain today from the sale of Canarian bananas, they are linked to the ruin of the island growers, and that it is a strategy without a path. And that sharing the business means drastically changing the current banana price/banana price ratio. K) The reconquest of other European markets will have to be based on well-controlled organic production.
Anyone who has had the interest and the holy patience to get here, will say for sure that this is all very well, but that is unrealizable.

As well, before this opinion, It must be indicated that according to the information provided by Mr. Narvay Quintero, Banana managers in the French ORs have unified all their production in a single company, with a single sale, with a single box and with a single price. necessity compels. And the results they are obtaining in the French banana market, they are very positive.

Of the. Production. You have to guarantee quality, organic production and avoid production peaks to maintain a certain regularity throughout the year. Why, today and as everyone knows, replanting and new plantings are done in August. that's why they are sung, alternatively, overproduction and shortage problems. That is why true production planning is essential.. For this and for all the actions that, voluntarily, made by harvesters and that serve to carry out production planning, including the very rare “spades”, a Compensation Fund will be created. What, as well, it could be used to convene an international contest that would reward the best practical proposal for the industrial use of the huge quantities of fruit not suitable for commercialization.

One last strategic question. Many of us view with great concern the vigorous process of concentration of production in fewer and fewer growers. And it is that the fundamental reason for maintaining the generous European aid is that many thousands of island growers benefit from them. Supporting them in cultivation and designing joint strategies to attract new farmers becomes a particularly important task.. A way already provided for in other areas of the CAP to avoid these processes, is that the aid stimulates small growers more, At the same time that a ceiling is placed on the aid that any individual producer can benefit from.

To end. The old structural deficiencies of the Canarian banana sector have been well known for a century. But they keep ramping at ease. And these deficiencies have managed to maintain until now, which demonstrates his tremendous strength and resistance capacity. But we all know that, over a more or less long time, change processes are maturing. New contradictions are appearing that are weakening the old retaining walls and the old levers of power. In my opinion, This has been happening in the Canarian banana sector with enormous forcefulness and speed.. The hitherto impregnable forces are growing old and isolated. The banana problem is ripe. you have to act. Before we rot for our neglect and lack of courage.