Aldi, the German supermarket chain, has ignited a banana price war by slashing the cost of this beloved fruit. The price reduction is a whopping 31%, dropping from €1.45 per kilo to just €0.99 per kilo. This move is part of what’s being called the “banana war”, which pits Canarian banana producers against major distribution chains.

While Aldi’s bananas originate from countries like Colombia, Ecuador, and Costa Rica, Canarian producers have been grappling with their own challenges. In 2023, Canarian bananas achieved a record high, with 440,000 tons sold and a market value of €900 million. However, the industry faces hurdles such as rising production costs (exceeding 30%), falling prices due to overproduction, and the impact of higher temperatures.

The Canarian Association of Banana Producers (Asprocan) highlights the issue of low prices at the source, which have remained stagnant since 2016 and 2017, despite reduced commercial production. Meanwhile, production costs have surged by more than 30% over the past two years. Canarian producers are calling for support and protection from the Spanish government and the European Union. Aldi’s price reduction is a clear example of the fierce competition in the food distribution sector, where chains vie for customers’ attention with low prices and aggressive deals. However, this strategy can have adverse effects on local producers, jeopardizing their profitability and survival.