Aldi’s new commitment to increase banana prices from next year is not enough to prevent growers suffering a loss on supply, producers have claimed
Aldi recently announced it would pay seven pence more per kilogramme of bananas from 2022, taking the total price to £1.39. But suppliers claim that freight costs of £1.43 per box and packaging costs of 75p per box mean their business is still unviable.
Aldi is the largest buyer of bananas in the European market and therefore sets a price benchmark for other UK supermarkets, according to The Latin American Banana Task Force.
“We express our great concern about the aspirations of the European supermarkets in the negotiations which do not take into account the reality of the international markets, ” said Jose Antonio Hidalgo, executive director of the Association of Banana Exporters of Ecuador.
Aldi declined to comment on the specifics of the negotiation process, but insisted it was committed to the implementation of a living wage. It added there was no correlation between retail prices and the price paid to suppliers.
“We recognise that the payment of wages that enable a decent standard of living is an important step towards creating a sustainable banana supply chain,” said an Aldi spokesman.
“Industry collaboration is also vital, which is why we are members of the World Banana Forum’s ‘Cost of Sustainable Production’ Working Group and other initiatives working to support growers.”
However, producers argued that the increased commitment to sustainable methods and processes incurred costs that were not being picked up by the retailers who asked for them in the first place.
“In order for producers to maintain the sustainability and quality standards demanded by the European Union and the United Kingdom, it is necessary to pay a fair price and develop a scheme of shared responsibility, from producers to buyers, including retailers,” said Richard Salazar, president of the Association of Banana Marketing and Export of Ecuador.
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