LIME.
With the cracked earth and rotting shrubs the national production of banana possibly crosses the crisis worst in recent history, and three months after the impact of the devastating hurricanes Eta and Iota, it needs strong support to resurface.
As of November 2020 – just in the month of natural disasters – the manufacturing sector generated $ 483.4 million in exports, representing 17.3% year-over-year growth as the international price improved by 23.6% . the decrease of 5.1% in exported volume, the central bank (BCH).
Historically speaking U.S It was the main buyer of Honduran fruit, with more than 98% of external sales.
Due to the floods caused by the two hurricanes, producers estimate that 82% of the farms have been lost, that is about 2,522 hectares.
According to oil palm and banana businessman Héctor Castro, the producers are immediately urging the authorities government, either Invest-H, or the Executive Commission for the Control of Floods in the Sula Valley, restoration of the infrastructure of borders and roads surrounding agri-food production farms.
“Until that basic flood control system is fixed, it will not be possible to resume the banana plantation,” said Castro.
Because of the damage caused by floodsproducers need resources to restore farms.
For example, they should be removed at least three feet from the ground, as the current condition prevents compaction, which is detrimental to the growth, productivity and quality of the plant.
The cost of removing the soil is between $ 18,500 and 18,600 per hectare, which equates to $ 40 million (one billion lempiras) in all affected acres.
The industry needs timely financial help as they are against the clock as it takes nine months from planting the plant to harvest date.
This means that as a result of the disasters, some 400,000 jobs have also been suspended in the sector, between the areas of planting, harvesting and packaging the fruit, Castro said.
“They now realize the tremendous social tragedy currently experiencing in agriculture in the Sula Valley,” said the producer.
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3 Keys to the sector: Fruit is the main foreign currency producer for the national agricultural sector. 1- Contribution of the region. The Latin American banana industry exported approximately 237 million boxes of bananas to North America in 2020. Honduras, Guatemala, Costa Rica, Ecuador, Colombia, Nicaragua and Peru are central production areas for the industry, as are Mexico and the Dominican Republic. 2- Contribution to GDP. Due to the generation of jobs and foreign exchange for export, bananas are the main product of Honduras’s agricultural sector. Most of the fruit produced in Yoro, Colón and Cortés is destined for foreign sales to the United States. 3- Aid to Honduras. In international media, Dole and Chiquita executives reiterated the vision of every multinational company to continue to trust despite setbacks in Honduras and Guatemala. Both companies have been active in Central America for more than 100 years. |
Effort
The authorities of the Secretariat of Agriculture and Animal Husbandry (SAG) estimated millionaire losses due to the lack of exports for many months.
Considering this, the owner of the SAG, Mauricio Guevara Pinto, pledged “to give all the necessary impetus to the banana sector in view of the economic recovery plan proposed by the government of Honduras.”
“We don’t have a definitive number, but the downturn in the banana sector will be a major blow to the economy,” he said.
Transnationals
The portal Fruitnet Media International he interviewed days ago Carlos Lopez Flores, president of Chiquita since 2018, who has just 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 of fruit production will affect the international market in the coming months.
“Many families have been displaced and now face difficult living conditions, creating a serious humanitarian crisis made even more challenging by the pandemicSaid López Flores.
“All of our farming activities and communities were badly affected, even more than initially estimated, resulting in limited banana production in the near future. It will take a significant investment of funds and time to rebuild the affected areas, ”warned the executive.
According to López Flores, production losses affect the banana supply chain for all producers in the region, leading to shortages and higher prices in the US market.
Maynor Velasquez, general manager of Aprobana. |
In case of ChiquitaThis meant looking for different alternatives to meet the program’s commitments, diverting the fruit from other markets to fill the gap created by Honduras and Guatemala.
As a result, the American company had to quickly adapt to new shipping rotations, logistics operations and inland transportation requirements. “We had to introduce a surcharge to cover the cost of maintaining our major contracts in the US market, and this would amount to a relatively small increase in the sales price of the banana“, He explained.
“We had to redistribute our supply chain to countries of alternative origin, such as Ecuador, the world’s largest banana exporter, where the prices of the fruit have risen disproportionately.
Medardo Galindo, chairman of the FPX. |
Meanwhile, in late January, the Produce Business UK portal interviewed Renato Acuña Delcore, president of Dole Fresh Fruit International, who said the industry estimates a 20% loss of fruit supply to the United States due to the recorded damage. in Honduras and Guatemala.
For this year, the world industry expects a loss of more than 40 million cartons between the two Central American countries, requiring a significant investment to return to normal levels.
“The company has been active in Honduras for 120 years and intends to rebuild and remain one of the leading employers and exporters in the country, ”said Acuña Delcore.