On December 26, José Antonio Hidalgo, executive director of the Association of Banana Exporters of Ecuador (AEBE), was elected co-president of the Coordinating Committee/Advisory Council of the World Banana Forum (WBF) of the Food and Agriculture Organization of the United Nations (FAO). This is the first time an Ecuadorian has held a position of this nature within the Forum. Hidalgo has committed to ensuring that international markets, particularly in Europe, offer a fair price for bananas.
In light of the challenges faced by the banana sector in European markets regarding pricing, Hidalgo highlighted the difficulty in getting European supermarkets to acknowledge and incorporate the actual cost of sustainability into banana prices. He noted that many retailers continue to use bananas as a loss leader, which perpetuates unsustainable production conditions. To combat this, global communication strategies targeting end consumers are being developed to promote awareness of the true cost of sustainability.
Regarding progress with European supermarkets, Hidalgo mentioned that while the goal is for supermarkets to adopt the Fairtrade pricing methodology, some, like Aldi Süd and Sainsbury's, have already made changes to their sourcing practices. However, the broader adoption of fair pricing practices remains limited among other retailers.
The reluctance of European supermarkets to pay a fair price has considerable implications for the banana sector. It affects the sustainability of production and commercial activities due to the high costs of meeting retailer requirements and market regulations. Hidalgo emphasized that the calculation of a fair price must consider various factors, including production costs, living wages for workers, and compliance with certification standards and market regulations.
Currently, only Aldi Süd and Sainsbury's have aligned their purchasing practices with the Fairtrade methodology, leaving room for improvement among other retailers globally. Hidalgo, in his new role at the World Banana Forum, plans to advocate for the adoption of the Fairtrade methodology across Europe and globally, address over-certification, and challenge the aesthetic standards imposed by retailers that contribute to food waste.
Source: America Economia