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On April 26, 2024, Ecuador's Ministry of Agriculture and Livestock (MAG) introduced a new control for the banana trade, a unique banana code. This code aims to strengthen the controls of the Unibanano system, ensuring the integrity of the fruit's registration and export procedures. The code was created through Ministerial Agreement 015 on March 81. The Unibanano system, which has been in place since 2012, registers and updates the data of producers, exporters, and traders by the banana law.

The strengthening demand for Asia-European trades has taken carriers and forwarders off guard, leading to tighter space and an increased likelihood of shipments under long-term contracts being rolled over. Towards the end of the previous week, many customers began experiencing issues with their allocations, according to a European forwarder. The problem arises when contract rates fall significantly below spot rates during busy periods, causing carriers to prioritise the cargo that pays the most.

Sopisco News is the leading source of reliable premium news, no other newsletter covers the banana market like Sopisco News the information leader in the banana shipping and cool logistics industries. Complete information is available only to our subscribers. FOR SUBSCRIPTIONS AND ADVERTISEMENT PLEASE CONTACT admin@novamedia.ws

S&P Global Ratings has updated its outlook on Dole PLC to stable from negative while affirming all its ratings, including the 'BB' issuer credit rating. The stable outlook reflects S&P's expectation that Dole will continue generating healthy Free Operating Cash Flow (FOCF) and remain committed to deleveraging, aiming to maintain leverage around 3.5x. S&P anticipates that Dole will continue reducing leverage, supported by a modest 4% year-over-year growth in EBITDA in 2023 and a significant reduction in working capital requirements as supply chain constraints ease.

Cameroon and the United Nations Food and Agriculture Organization (FAO) have signed a framework agreement worth more than 1.617 billion FCFA (or $2.7 million) to support small Cameroonian farmers. The funds will acquire and distribute nearly 5000 input kits to small farmers and breeders to bolster food security. The agreement, signed on April 22 in Yaoundé, aims to strengthen the production capacities of small farmers through support for crops and livestock for resilience.

AP Moller-Maersk's earnings before interest, taxes, depreciation, and amortisation (EBITDA) have plunged 92% year-on-year (YoY) for the first quarter (Q1) of 2024, mainly due to a prolonged Red Sea crisis. While the gross revenue was $3.2 billion for Q1 in 2023, the EBITDA decreased to $1.5 billion. Excluding depreciation and amortisation, earnings before interest and taxes (EBIT) fell to $117 million from $2.3 billion for the same YoY period.

Fresh Del Monte Produce and Vegetables and the University of Granada (UGR) of Spain, known for its cutting-edge research, have announced an expanded partnership. This collaboration will explore the use of bioactive compounds from fruit residues for medical and non-medical applications, aiming to promote health and well-being.

At the end of 2023, Europlátano began discussing introducing the Canary Islands banana into Poland. On January 10, 2024, the first truck was sent directly to Poland, and the bananas were sold that same weekend. After observing the excellent reception of the product, truck shipments were scheduled for four more weeks. Since then and periodically, almost 400,000 kilograms of certified bananas have arrived.

Members of the Sitraibana Union had planned a strike for April 30, but it was cancelled. On April 29, with the mediation of the Panamanian Ministry of Labor and Labor Development (Mitradel), negotiations for a new collective bargaining agreement between the Union of Workers of the Agricultural Banana Industry and Related Companies (Sitraibana) and Chiquita Panama concluded, effectively.

The trade agreement between Ecuador and China took effect on May 1, leading to a tariff reduction for most products. The commercial sector has high expectations for the agreement, particularly for agricultural and agro-industrial products. "We also believe that the banana market can expand," the Ecuador-China Chamber of Commerce president Dario Regalado told the Ecuadorian media. Import duties on bananas, previously 10%, will drop to 0 under the Free Trade Agreement (FTA).

According to the Secretary of Agriculture and Rural Development (Sader) of Mexico, the country's banana sales to the USA and Canada accounted for 74.3%, 15.6%, and 0.2%, respectively, from 2018 to 2022. Mexico's banana exports to Japan increased by 24.9%. The two main trading partners followed it in the North American region, where the expansion of the trade agreement came into effect on July 1, 2020. Canada has 4.5%, and the United States has 3.3%.

Colombia has halted electricity exports to Ecuador as both countries grapple with depleted hydroelectric reservoirs. A drought in Colombia, fueled by the El Niño weather phenomenon, has compelled the Government to reduce the export of electricity to its neighbour, Ecuador, where an energy emergency has been declared. Speaking in Guayaquil on April 16, Ecuadorian President Daniel Noboa acknowledged the critical state of the country's energy sector. "Today we took a strong decision – once again we had to – which is to declare an emergency in the country's energy sector," Noboa stated.

The selling prices of bananas in St Petersburg improved compared to the previous week, driven by robust demand. The prices, which vary based on brand, volume, quality, and type of packaging, ranged from USD 20.70 to 21.80 per box CIF. In week 16, nearly 1.217 million boxes were discharged, and approximately 1.590 million boxes are expected for week 17. The prevailing exchange rate was 1 USD = 94.09 RUB. In the Mediterranean, Ecuadorean bananas were priced around USD 17.0-18.0 per box CIF, varying prices based on brand, volume, and region. Bananas from Central America or Colombia were sold at around USD 15.0-16.0 per box CIF. Prices remained high during the Holy Month of Ramadan and the subsequent Eid el Fitr holiday in Algeria where recently released import licenses for the quarter starting in April led to high expectations among shippers in the exporting countries and increased inquiries in the Chartering Market. Traders, however, faced scrutiny from the Minister of Commerce, who accused them of high selling prices and threatened them with sanctions. High temperatures in the Maghreb country jeopardized banana consumption as consumers preferred juicy fruit. The persistently high FOB prices at origin might discourage Algerian traders from committing to import bananas shortly. In the Mersin Free Zone, the prices for re-exported bananas of Ecuadorean origin were around USD 16.0-17.0, up to around USD 19.0 per box for extra quality and heavy boxes. For Central American bananas, the prices were around USD 14.0-16.0 per box.

The Association of Banana Producers Organizations of the Canary Islands (ASPROCAN) has requested that 100 per cent of the transportation costs of the Canary Islands Banana for 2023 be covered, as recognized by law, "and even more so when it represents an essential support for the continuity of the sector that is the engine of the Canary economy." In a statement, the banana producers expressed "their deep discontent".