A leading global farmers’ association has pointed out how war over banana price among UK’s leading supermarkets is hurting the farmers very badly who are dealing with rising input costs amid static prices, stated a recent report.
A joint statement from Latin American producers and exporter associations has accused UK’s supermarkets of indulging in price war as they want to offer the “cheapest bananas on the market” and are completely ignoring the impact of higher raw material and freight costs, The Guardian stated in a report today (30).
The statement, issued by Clúster Bananero del Ecuador – the region’s biggest grower – singles out Aldi, said the report, adding that as one of the world’s biggest banana contracts, the price struck by the German retailer is a key barometer.
The industry group said that while input costs has spiked recently, by contrast the price paid for the fruit had not risen for more than two decades. At the moment Aldi is selling a five-pack of bananas for 69p, and the same deal is available at the market leader Tesco.
“These negotiations are taking place in a global context of spiraling inflationary prices that affect production costs but are not reflected in the purchase price,” the statement said. “All the supplies needed to ensure that bananas reach the shelves of European and North American consumers have become more expensive.
“However, the supermarkets, led by the German supermarket Aldi, are unwilling to compensate for this increase in costs, something that seriously harms banana producers and exporters who are forced to bear the full cost increase.”
Banana producers are currently said to be struggling with much higher costs after the price of inputs such as fertiliser, cardboard and plastic increased by between 30 per cent to 45 per cent along with 60 per cent higher freight costs.
“We are working hard towards ensuring everyone in our supply chain is paid a fair price, as well as supporting suppliers that engage and invest in sustainable supply chains,” the report quoted Aldi spokesperson.