Europe – The banana survey – Week 27
Catastrophe on the European markets, under maximum pressure!
Consumption has remained curbed in both Eastern and Western Europe. There is now complete lack of interest in the banana: the shelves have switched to seasonal fruits, present in large quantities and at attractive prices. In addition, the school holidays and summery temperatures are further heightening the phenomenon. On top of this, incoming banana volumes have remained heavy. The dollar origins (Colombia, Costa Rica and Ecuador), though in the midst of their seasonal falls, have continued to register average levels. Meanwhile, the combined Africa/French West Indies supply has maintained above-average levels (+21%) because of the FWI production peak and new African plantations. Hence the supply has remained too great for idling demand, and stocks have continued to build up throughout Europe. The pressure in Eastern Europe has been particularly high, where clearances from Western Europe have been made and where merchandise of advanced maturity has been available at very low prices. In this context prices have continued to fall, especially on the spot market, where prices have tumbled. In Russia, the situation has continued to deteriorate because of the supply pressure.