Hugh MartinBASED ON reports coming out of the banana industry it would appear that Jamaican bananas are making a comeback on the United Kingdom market. Dr. Marshall Hall, managing director of Jamaica Producers, the largest local producer of bananas, and chairman of the Banana Export Company (BECO), speaking at BECO's annual general meeting a week ago, revealed that the Jamaican banana had regained pride of place on the European market. That wasn't all. Dr. Hall went on to say that because of the improved quality rating our export fruit is now achieving BECO's marketing agent had secured the contract as the major supplier of bananas to the well known supermarket chain, Marks and Spencer.
This is news that the leaders in the sugar industry should take note of and be encouraged by because they find themselves today in the position that the banana industry was nine or so years ago under threat of being wiped out by the competition. Then, it was the United States Government in association with four Latin American banana-producing countries that had gone to the WTO with a successful challenge of the European Union's Banana regime which gave preferential treatment to ACP producers. In the case of the sugar industry today the challenge to the special arrangements is led by Australia, Brazil and Thailand and they have been equally successful. The fight is on to delay the implementation of the price cuts as well as to reduce them but most commentators believe that it is curtains for the local industry in much the same way they did with the banana industry in 1995.
STRATEGIES
Perhaps the sugar leaders should take a close look at the strategies used by the banana industry to keep itself afloat. When the WTO made its ruling against the EU's banana regime everything turned gray for the local industry. First of all the price began to plummet from over $600 per tonne in 1996 to $370 in 2004. Small farmers began to drop out of the export trade and soon export tonnage had fallen from over 86,000 tonnes to under 40,000 tonnes. Just about then the dreaded Black Sigatoka disease was discovered in virtually all the banana growing areas. It was write-off time for the banana industry.
Credit should be given where credit is due. Dr. Marshall Hall, chief spokesman for the industry during that difficult period in the mid-nineties, was steadfast in his belief that the industry could become competitive. This required a total restructuring involving the growing of bananas only on land ideally suited for it, and the use of improved technology which would result in greater efficiency and therefore increased yields. Many of the small producers who felt they could not meet the increasing quality requirements opted out of the export trade.
Those that remained made the decision to improve their efficiency and are today reaping the benefits of their faith, dedication and hard work. The European Union must be commended also for the support it gave to the industry to help it adjust to the new conditions and to make itself competitive. Under its EU Banana Support programme it has provided a total of 40 million Euros, or J$2.8 billion, to help growers upgrade their skills and to go into product diversification.
INCREASE IN LOCAL CONSUMPTION
It supported the industry also in managing the Black Sigatoka disease. Emerging from all this has been a phenomenal increase in local consumption of bananas as more sophisticated ripening facilities have been established and the chips trade expanded. According to Vincent Thompson, project manager, production for the local market increased by more than 50 per cent since January over that of 2003. In addition many of the farmers who dropped out of the export trade in the nineties are returning as they have been able to meet the high quality requirements.
But while things are looking quite positive for the industry it should not believe it is out of the woods as the second part of the European Union's adjustment to its banana regime is expected to come on stream in 2006. This will be a 'tariff only' regime and bananas from all sources will be paid the same price.
However, the agreement allows for a waiver of the tariff to the ACP producers until 2008. This window of opportunity allows the local industry to further improve its competitiveness and at the same time develop new products that will ensure its survival. The industry, under the leadership of Vincent Evans, Banana Board chairman and managing director of BECO, and Dr. Hall, has made a nice come-back and deserves commendation.
Hugh Martin is a communication specialist and farm broadcaster. Email: humar@cwjamaica.com.
