In contrast to previous years when the production of organic bananas was stable throughout the winter months however, this year’s production has been changing. “It’s mostly due to the circumstances in the weather. Production has slowed slightly this year. However, due to the hot weather, the yield is expected to increase,” says Mayra Velazquez de Leon, the President and CEO at Organics Unlimited, who notes that in the winter of last year the supply was a bit tighter but not as much as previous years. “This year, we didn’t experience any shortage.”

At present, the majority of the supply of organic bananas originates from South America. This includes Ecuador, Peru, and Mexico in addition to Colombia.

However, the demand is more robust right now. This is mainly because we have to replace contract fruit that wasn’t delivered within the timeframe. “There was not much in demand than other times. Organic banana consumption should increase year-on-year since we’re seeing an increase in the number of people that is healthier,” says Velazquez de Leon.

Pricing challenges

What is the price of organic bananas? “The market does not understand how prices change within the areas of growth where demand and supply have a significant impact in addition to the rising cost of fertilizers and packaging that impact the price. In addition the exchange rate is very detrimental to producers. In general, the market has contracted prices, which means it shouldn’t impact them,” she says, noting that the pressure of multinationals is pushing down the cost for farmers in order to keep prices at a low level.

As for the future, although the supply is expected to begin picking up after about a month, the challenges remain in the form of the exchange rate used for products imported from Mexico.

For further information:

Mayra Velazquez de Leon

Organics Unlimited

Tel: (+1) 619-710-0658

mayra@organicsunlimited.com

www.organicsunlimited.com