Latin American Banana Exporters Reject Price Reduction

2024-11-29

Banana industry associations from Colombia, Costa Rica, Ecuador, Guatemala, Peru, and the Dominican Republic have firmly rejected Edeka, Germany's largest supermarket chain, 's request to lower the prices of Latin American bananas during trade negotiations. In a joint statement, sector representatives warned that this demand threatens the economic, social, and environmental sustainability of the banana industry in the region. Germany is facing an unfavourable financial situation, with crises in the automotive industry, particularly at Volkswagen, which recently closed three significant factories. Additionally, the euro has lost purchasing power, with its exchange rate against the US dollar reaching around 1.04.

On the other hand, banana-producing countries are also facing challenges. In Colombia and Costa Rica, currencies have strengthened significantly against the dollar, losing even more competitiveness against the euro.

According to analysts, an even more significant problem could arise for exporters sending bananas to Russia, where the Ruble has lost about 35% of its value against the US dollar this year and could devalue further.