Banana operators are struggling to afford import licences as the price-war on the fruit among UK multiples cripples returns. Tit-for-tat price reductions have led to 45 per cent price deflation in two years on bananas and the upshot is that some operators can simply no longer afford to purchase the licences so seriously threatening the fruit's availability.
Wholesale trade continues steadily at 1500-1600p for a 40lb bushel unchanged over several weeks as ripeners maintain supplies to a sector that at least offers some return.
Operators are warning that unless retail prices start to climb so that profitability returns, there will be "desperate shortages" and suppliers will "struggle to meet their commitments”.
Meanwhile, Marshall Hall, chairman of the Banana Export Company of Jamaica announced this week that the first shipment of Jamaican bananas to the UK will leave on May 6 following a seven-month break as the country recovered from hurricane Ivan. It is expected to arrive in the third week of May.
Some 250 tonnes will make up the first consignment. "We will be resuming with fairly moderate quantities which will be approximately a third of what we normally ship and that will gradually increase over May to early June, when we expect to get up to three quarters," said Dr Hall.
Outgoings have increased in the time that Jamaica has been out of the market for example, shipping costs have risen by some $0.75-1 a box compared to pre-Ivan days.
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