Despite its sustained growth, banana production in the Dominican Republic faces significant challenges in the international market, particularly in Europe. This has allowed other producing countries such as Ecuador, Peru, Colombia, and Costa Rica to gain ground. According to a report from the Ministry of Economy, Dominican banana exports have experienced a notable decrease. UNCOMTRADE data shows that sales in the UK decreased from $120 million in 2016 to $67 million last year, and the market share fell from 22% to 9%. Exports to France, which averaged $59 million a year between 2012 and 2019, have not exceeded $21 million after the pandemic, with a market share that has plummeted from 11% to 0%. Sweden also reflects this negative trend, with its share falling from 32% in 2016 to less than 9%.
The loss of competitiveness is attributed to quality issues in exports to Europe. In 2023, Dominican producers faced difficulties in the supply chain, especially the lack of an efficient cold chain, negatively impacting the freshness and quality of bananas. Improving this chain could increase exports by more than $52 million a year. In addition, the sector's stability and productivity have been affected by weather events, such as Hurricane Fiona in 2022, extreme variations in rainfall, and droughts. Moreover, competition in the European market is intensifying thanks to reduced tariff barriers that benefit other producers.
The ministry's report underlines the urgency of adopting measures to improve the competitiveness of Dominican bananas, focusing on quality and infrastructure. It is crucial to strengthen the cold chain to ensure product quality at all stages of the logistics chain, thus improving the product's shelf life and the international markets' perception of Dominican bananas.
Source: eldia.com.do