WINFA head sees hard times ahead for banana farmers

Vincentian banana farmers are likely to start to feel the ripple effects of a new deal banana reached between the European Union and Latin American countries as early as January 2010.{{more}}

This is the prediction of Renwick Rose, Coordinator of the Windward Island Farmers Association (WINFA).

Rose told SEARCHLIGHT the new deal reached on December 1, 2009, ends the 15-year trade war between the European Union and Latin American over banana tariffs.

In the new deal, the EU will gradually cut its import tariff on bananas from Latin America from 176 Euros per tonne to 114 Euros.

Rose outlined the first set of changes in the banana regime started in the early 1990s and mandated that Latin American bananas pay a tariff of 275 euros per tonne. Over the years, the Latins successfully challenged the tariffs and gradually saw this figure reduced to 176 Euros per tonne.

“It is something we had complained and continue to complain about because we think that the evidence to date shows that they (Latin American bananas) have enough access to the market,” said Rose, adding “They already have more than 80 per cent of the European Market”.

From January, the tariffs that exist are going to be reduced from Euros 176 per tonne to Euros 148 per tonne.

“And then it is going to be progressively reduced to about Euros 114 in 2016 to about 2017,” said Rose.

“This is going to result in further changes, negative changes in the banana regime from as early as next month, next couple weeks, January,” said Rose.

“We expect almost immediately those farmers who are less competitive, the more marginal farmers are going to find it more difficult to continue to produce for the market,” said Rose, noting “It really could result in a number of farmers being forced out of the industry. How many we can’t say at the moment”.

Fair Trade bananas have, however, been identified as one of the saving graces in the industry.

“So far we have had Fair Trade bananas, and even though there is an economic crisis, the evidence is that Fair Trade sales have held steady because there is a clear commitment,” said Rose.

He, however, added that if the gap between Fair Trade bananas and bananas produced in the Latin American countries gets wider, it is going to tax people’s social consciences.

“We really could expect some difficult times coming, upon very difficult times already,” said Rose.

At the height of the banana boom, also known as ‘the era of green gold’ i.e. 1990, St.Vincent and the Grenadines exported close to EC$100 million worth of bananas a year. The Windward Islands on a whole exported just over EC$300 million in bananas.

In 2008, St.Vincent and the Grenadines could have only mustered just over EC$20 million in export revenue from bananas.

Rose said WINFRESH, formally WIBDECO, intends to tackle the banana issue by selling the new brand to its clients as well identifying new products.

“We ourselves have started the process internally. We are having a very serious internal meeting of the Fair Trade Organizations and WINFA early in January to map out the way forward,” he said.

High on the agenda will be issues relating to food security, local regional marketing, and the linkages with tourism in terms of agro-tourism. (HN)