THE LIME.
With cracked earth and rotten bushes, the national production of banana possibly crosses the crisis most serious in its recent history, and three months after the impact of the devastating hurricanes Eta and Iota need strong support to resurface.
In November 2020 – just the month of natural disasters – the producing sector generated $ 483.4 million in exports, which meant a year-on-year growth of 17.3%, as a result of the improvement of 23.6% in the international price, despite the 5.1% decline in exported volume, reported the Central Bank (BCH).
historically, United States has been the main recipient of Honduran fruit, with over 98% of external sales.
Due to the floods caused by the two hurricanes, producers estimate that 82% of the farms were lost, that is, about 2,522 hectares.
According to palm and banana businessman Hector Castro, growers immediately urge that the authorities of the Government, Either Invest-H, or the Executive Committee for the Control of Floods in the Sula Valley, Amend the infrastructure of boards and roads surrounding the farms of agri-food production.
“Until this basic system of flood control is repaired, banana planting will not be resumed,” Castro said.
Due to the damage caused by the floods, Producers need resources to recover the farms.
For example, they require removing at least one meter of soil, as the current state prevents compaction, which is detrimental to the growth, productivity and quality of the plant.
The costs of removing the soil are around 18,500 to 18,600 dollars per hectare, which together amounts to 40 million dollars (billion lempiras) in all affected hectares.
The sector requires timely financial assistance, as they are against the clock, considering that from the time the plant is sown until the date of harvest it takes nine months.
This means that due to the disasters there are also about 400,000 jobs suspended in the sector, between the areas of planting, harvesting and packaging of the fruit, Castro said.
“They are now realizing the huge social tragedy that is being experienced right now in the agro in the Sula Valley,” the producer said.
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3 Keys to the sector: Fruit means the main producer of foreign exchange for the national agricultural sector. 1- Contribution of the region. The banana industry in Latin America exported about 237 million boxes of bananas to North America in 2020. Honduras, Guatemala, Costa Rica, Ecuador, Colombia, Nicaragua, Peru are central production areas for the industry, in the ‘like Mexico and the Dominican Republic. 2- Contribution to GDP. Due to its generation of jobs and foreign exchange for exports, bananas are the main product of the agricultural sector in Honduras. Most of the fruit produced in Yoro, Colom and Cortés is intended for foreign sale in the United States. 3- Support in Honduras. In international media, Dole and Chiquita executives reiterated the vision of each multinational to continue to trust Honduras and Guatemala, despite adversity. Both companies enjoy more than 100 years of operations in Central America. |
commitment
The authorities of the Secretariat of Agriculture and Livestock (SAG) estimated millionaire losses due to lack of export for many months.
In view of this, the head of the SAG, Maurici Guevara Pinto, Promised to give “all the impetus required to the banana sector in view of the economic recovery plan proposed by the Government of Honduras.”
“We do not have a definitive number, but the decline in the banana sector will have a severe blow to the economy,” he said.
transnationals
the portal Fruitnet Media International interview days ago at Carlos López Flors, President since 2018 of Chiquita, who recently returned from a trip to Central America to witness the devastation caused by Eta y Iota in the banana sector.
The executive warned that in addition to the humanitarian crisis, the resulting loss in fruit production will impact the international market in the coming months.
“Many families have been displaced and are now facing difficult living conditions, creating a serious humanitarian crisis that has become more challenging due to the pandemic“, Said López Flores.
“All of our agricultural operations and communities were deeply affected, even more than originally estimated, resulting in limited banana production in the foreseeable future. It will require a significant investment of funds and time to rebuild. the affected areas, ”the executive warned.
According to López Flores, production losses have affected the banana supply chain for all producers in the region, which has led to shortages and higher prices in the US market.
Maynor Velasquez, General Manager of Aprobana. |
In the case of ChiquitaThis has meant looking for several alternatives to meet the program’s commitments, which has caused the fruit to deviate from other markets to fill the gap left by Honduras and Guatemala.
As a result, the US company has had to adapt quickly to new shipping rotations, logistics operations and inland transportation requirements. “We have had to implement a surcharge to cover the cost of meeting our major contracts in the US market, and this would amount to a relatively small increase in the retail price of the banana“, Explained.
“We had to redistribute our supply chain to alternative sourcing countries like Ecuador, which is the world’s largest exporter of bananas, where fruit prices have risen disproportionately.
Medardo Galindo, President of the FPX. |
Meanwhile, the portal Produce Business UK interviewed in late January Renato Acuña Delcore, President of Dole Fresh Fruit International, who said the industry estimates a 20% loss in supply volume of fruit destined for the US due to of the damage recorded in Honduras and Guatemala.
By this year, the global industry anticipates a loss of more than 40 million boxes between the two Central American countries, so a strong investment will be required to return to normal levels.
“The company has been operating in Honduras for 120 years and has every intention of rebuilding and continuing to be one of the country’s leading employers and exporters, ”Acuña Delcore said.