Representatives of Chiquita Brands International, one of the two largest banana producer and marketers in the world, paid a visit to Ethiopia recently to evaluate the potential of the country. According to source from one of non-governmental organizations that supports the improvement of banana cultivation, the delegation visited and discussed with growers around Arbaminch, which is 505km south of Addis Ababa, and one of the major sources of the fruit in the country. According to the source, the Chiquita representatives also held a meeting with the farmers and officials of Ethiopian Horticulture Agency, which is under the mandate of Ministry of Agriculture and Rural Development, about the current situation of the cultivation and the country's export potential.
A source said that Chiquita has an interest to export banana for the Middle East market from Ethiopia if the production quality becomes export standard. Currently, US-based Chiquita delivers products from Latin America and West Africa for Middle Eastern countries, however, the shipment cost would lower if the company exported from Ethiopia.
"While in the current situation, the country banana production needs more improvement than it has now," a source told Capital. According to the information, the meeting that held at Hilton Hotel was mostly focused on quality production as the standard of the company. Currently, Ethiopian bananas are exported to Djibouti with the majority for the local market. The country has huge potential for banana production, and currently produces more than 200,000 tons a year.
Ethiopia has good potential to produce vegetables and fruit due to its suitable climate. Currently, the country exports fruit and vegetables to the Middle East and European markets. The Djibouti market is a major destination for fruit and vegetable exports from Ethiopia. For instance, from the total export of fruit and vegetables about 20 per cent is transported by plane, while the balance is taken by trucks to Djibouti. More than 90 percent of internationally-traded bananas are produced on massive mono-crop plantations in Latin America, West Africa and the Philippines. These plantations are mostly controlled by just five companies. The two largest producer and marketers of bananas are both US-based companies: Dole Food Co. (formerly Standard Fruit) and Chiquita Brands International (formerly known as the United Fruit Company, then United Brands). Each accounts for just over a quarter of all bananas traded internationally. Then comes Fresh Del Monte Produce, controlled by the Chilean-based IAT Group (capital held in the United Arab Emirates), that controls some 15 percent of the banana trade.
Bananas are grown in more than 100 countries, but the first ten producers secure 75 percent of the gross production volume. The world's largest banana producers are India (16.8 million tons), Brazil (6.7 million tons), China (6.4 million tons), and Ecuador. Apart from the mentioned countries, Philippines, Indonesia, Costa Rica, Mexico, and Thailand belong to the 10 leading producers. Ecuador remains the largest banana supplier to the world market, as it exports 80 percent of the produced commodities. Costa Rica, Philippines, Colombia and Guatemala follow Ecuador in the list of the largest banana suppliers. India is the largest banana producer, but occupies only 41st place among exporters.
[Capital]