A new study from the Spain’s Ministry of Agriculture has found that the banana export sector on the Canaries island of La Palma would be making €60m in losses every year if it did not receive support from the Spanish government.
The research, which was carried out for the ministry by consultancy Capgemini, found that every kilo of bananas produced on the island cost between €0.83 and €1.09 to produce and export, but generated losses of between €0.34 and €0.61.
In total, the report said that the 140,000 tonnes of bananas produced every year on La Palma, which accounted for around 35 per cent of the 420,000 tonnes produced in the Canary Islands in 2010, resulted in a cost estimated at €150m, comprising production, packing, management and shipping expenses.
According to a report in Spanish daily El Dia, the costs when applied to the Canary Islands as a whole could total as high as E400m.
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