This is the time of year when worldwide demand for bananas typically increases and production tends to be diminished. The reduction in supply is usually due to the dry season in the tropics, as well as cold fronts in Central America.
Juan Alarcon, CEO of Turbana, a leading US supplier of bananas tells AndNowUKnow that this year, supply volumes arriving into the US are reduced, but demand has not been as good because of the weather.A minimum of another four weeks of lowered production volumes are expected, according to Alarcon. However, he stressed that weather patterns in the world are unpredictable and so it might take even longer.
Most of the banana growers in Central and South America are contracted, but in Equador, although there are contracts, there are also spot markets. These spot markets are very important indicators for how production is doing in the rest of the world, because companies tend to go to Equador to fill in the gaps from production shortfalls occurring elsewhere.
Prices in Equador have increased by over 50% for the last 4-5 weeks to $14-15 FOB per box.
Due to messy winter weather in the Northeastern part of the US, trucking has also been affected. These trucking shortfalls have caused logistical issues which have affected the entire supply chain.
"It's been a logistical nightmare," said Alarcon in regards to the current winter weather issues.
Established in 1970, Turbana Corporation is a leading importer of tropical produce in North America, including bananas, plantains, pineapples, and ethnic tropicals. The company was also the first to bring Fair Trade Certified bananas to North America.
