Canary Islands banana farmers receive €70 million from EU

Banana farmers in the Canary Islands received good news this week as the regional government confirmed the transfer of €70 million in direct EU aid. This amount represents 50% of the total €141.1 million allocated annually through the EU’s Posei program, which supports agriculture in outermost regions like the Canary Islands. The remaining half will be disbursed by June 30, 2025.

The Posei program, established in 2007, compensates local farmers for income losses and ensures the competitiveness of banana production in the region. The Canary Islands account for over 40% of all banana production in the EU’s outermost regions, surpassing other territories in Spain, France, and Portugal.

Farmers were particularly eager for this payment after two years of low prices. Average revenues from banana sales on the Spanish mainland, their primary market, have hovered between €0.40 and €0.45 per kilogram, excluding production costs and EU subsidies.

In 2023, banana production in the Canary Islands reached a record 467 million kilograms. For 2024, projections suggest production may hit 450 million kilograms, exceeding the EU-subsidized threshold of 420 million kilograms. When this limit is surpassed, subsidies per kilogram are prorated, reducing individual payments.

Recent storms in the region, particularly on La Palma, Tenerife, La Gomera, and El Hierro, may reduce 2024’s final production by an estimated 20 million kilograms, pending assessments by Agroseguro, the agricultural insurance consortium. All banana crops in the Canary Islands are insured against severe weather, with farmers contributing €0.006 per kilogram of marketed fruit.

The Posei program allocates €268.4 million annually to support agriculture in the Canary Islands, with €141.1 million specifically designated for banana cultivation.

source: eldiario.es

photo: tiendasecologicastenerife.es