Latin The banana-producing nations are dissatisfied with the recent -35% price cut as part of a recent promotional campaign from German retail store Lidl. On the 13th of March onwards, the German retailer Lidl is releasing an offer that promotes the banana kilo which have been certified by Rainforest Alliance at 0.95 euro cents.

In a press release, in its press statement, the Latin American Alliance stated: “We as the signatories to this note, are aware of and appreciate the rights and liberty of all participants on the value chain set their own prices and promote promotional offers that are temporary and in accordance to their plans for business. We do, however, not intend to forget of the reality that such a kind of advertising undermines the effort and investment in longevity in the Latin American sector made by producers (small medium, large and small) and exporters in addition, they don’t honor the obligations made by European supermarkets in order to help support initiatives to invest in sustainable practices within the sector, particularly via the application of shared responsibility and consumer education in order to help them achieve an eco-friendly transition.

“The cost advertised in the advertisement is an increase of 35% from the initial price (EUR1.45/kg) which does not reflect the true selling price of the banana. Thus, the promotion conveys an inaccurate message to the consumer about the actual price of the item, which is in contradiction to the notions that “fair price” as well as “living wage” according to which retail stores, vital to guarantee the ecological sustainable economic, social and environmental durability of the sector of bananas.

“For that reason, we would like to inform you that these types of offers aren’t considered to be a model by other competition, nor by the certifiers which belong to the shared accountability of the industry.

“We are all required to collaborate to produce a good fruit that is sold at an affordable pricethat is a reflection of efforts from the entire value chain and, in particular those of the farmers as well as the workers in the Latin American banana sector.”

An important Latin American banana producer and supply to Europe as well as the rest of the world, explained the importance of the banana industry to get fair and higher rates in the form of European retail stores: “It is important because the cost of production increased over the past two years due to the costs of fertilizers as well as the raw ingredients. We must also consider with retailers to ensure the sustainability of the business, and that means more investments and an increase in costs of production for certifications that creates more social and environmental obligation.”

Lidl Germany was contacted for comments, but they did not reply until the date of publication.

More details:

Julio Merida

Latin America Task Force

Email: jmerida@apib.org.gt