Oversupply and imports trigger €10M loss for Canary banana growers

A sharp drop in farmgate prices has triggered an emergency in the Canary Islands banana sector, with some producers receiving less than €0.50 per kilo. The crisis stems from a combination of oversupply, declining demand, and falling prices on the mainland.

The Canary Islands Banana Producers’ Association (ASPROCAN) confirmed the market is oversaturated. June saw a surge of fruit entering sales points, coinciding with the end of the school year and a seasonal dip in household consumption.

Industry sources report financial losses of €8–10 million in just two weeks. Much of the harvested fruit fails to meet export quality standards, forcing producers to either withdraw it from the market or sell at clearance prices.

Competition from low-cost imported bananas in mainland Spain has intensified the problem. Large supermarket chains are increasingly opting for bananas from countries like Colombia and Costa Rica, sold at much lower prices than local produce.

Canary growers accuse distributors of unfair commercial practices and dumping, arguing that major retailers are turning their backs on local production. Agricultural cooperatives note that consumers often don’t distinguish between bananas and Canary bananas, choosing the cheapest option instead.

Faster ripening due to summer heat shortens shelf life, requiring quicker distribution or acceptance of higher spoilage losses. Thousands of families across islands like La Palma, Tenerife, and La Gomera depend on banana farming, so the impact extends beyond growers to the entire supply chain.

The Canary Islands' agriculture department has acknowledged the severity of the crisis and is evaluating urgent measures. Proposed actions include increased funding for market withdrawals and stronger promotional campaigns on the mainland.

Farmers' associations are also calling for structural reforms. Proposals include creating a single umbrella brand for all Canary banana production and enforcing stricter import controls to protect local growers.

source: diariodeavisos.elespanol.com

photo: tiendasecologicastenerife.es