lecture 12 case study - bananas -...
TRANSCRIPT
Lecture 12-
Case Study - Bananas
UGSCCS – Autumn 2013
Section 1 Banana Supply Chain
Section 2 India Case Study
CASE STUDY - BANANAS
LECTURE STRUCTURE
Grown in over 150 countriesMajor staple food commodity
Over 105 million tonnes produced per yearDesert bananasCooking bananas (plantains)Fiber bananas (hemp)
BANANA SUPPLY CHAIN
BANANAS - TERMINOLOGY
Major staple commodity16.8 million tons exported (2006)Valued at $5.8 billion (2006)
98% of world production is grown in developing countries and exported to developed countries
10 countries accounted for >75% of total banana production (2007)India, China, the Philippines, Brazil and Ecuador produced > 60% Asia has overtaken the Americas in terms of volume of production
BANANA SUPPLY CHAIN
BANANA PRODUCTION
Banana Production by Country 2003 - 2007
Source: UNCTAD
Latin America and the Caribbean supplied about 70% of world exports in 2006Ecuador, Costa Rica, Philippines and Colombia accounted for 64% of world exportsEcuador alone provided more than 30% of global banana exports
High levels of economic dependence on bananas (total value of exports)Ecuador 9.3%Costa Rica 7.7% Saint Vincent and the Grenadines: 22.3%Saint Lucia: 19.7%Dominica: 18.1%
BANANA SUPPLY CHAIN
BANANA EXPORTS
Banana Exports by Country 2002 - 2006
Source: UNCTAD
BANANA SUPPLY CHAIN
BANANA EXPORTS (2011)
Source: http://faostat.fao.org/site/342/default.aspx
BANANA SUPPLY CHAIN
BANANA EXPORTS (2011)
Rank AreaQuantity (tonnes)
Value(1000 $)
Unit value ($/tonne)
1 Ecuador 5778170 2246351 389
2 Philippines 2046743 471152 230
3 Costa Rica 1913808 719445 376
4 Colombia 1828281 775275 424
5 Guatemala 1425584 435484 305
6 Belgium 1272098 1294403 1018
7 United States of America 516119 437017 847
8 Honduras 489029 397778 813
9 Germany 366895 388278 1058
10 Dominican Republic 330111 269645 817
11 Côte d'Ivoire 320101 133911 418
12 Panama 263522 86339 328
13 France 252872 187094 740
14 Cameroon 237275 88672 374
15 Mexico 179838 75803 422
16 Netherlands 173183 170718 986
17 Brazil 110054 39248 357
18 Bolivia 108095 21598 200
19 Yemen 91032 16084 177
20 Thailand 74560 42375 568
Source: http://faostat.fao.org/site/342/default.aspx
Banana imports are relatively concentratedEuropean Union, the United States of America and Japan, account for >70% of world total imports in 2006
Export-Import trades are highly focused
BANANA SUPPLY CHAIN
BANANA IMPORTS
Banana Imports by Country 2002 - 2006
Source: UNCTAD
BANANA SUPPLY CHAIN
BANANA IMPORTS (2011)
Source: http://faostat.fao.org/site/342/default.aspx
BANANA SUPPLY CHAIN
BANANA IMPORTS (2011)
Source: http://faostat.fao.org/site/342/default.aspx
Rank AreaQuantity (tonnes)
Value(1000 $)
Unit value ($/tonne)
1 United States of America 4122683 2161339 524
2 Belgium 1340044 1570223 1172
3 Russian Federation 1306794 948092 726
4 Germany 1288293 979249 760
5 Japan 1064125 902868 848
6 United Kingdom 1019227 796800 782
7 China, mainland 818675 401728 491
8 Italy 661937 544168 822
9 Iran (Islamic Republic of) 615879 409672 665
10 France 567207 443164 781
11 Canada 506431 388056 766
12 Argentina 394881 143694 364
13 Chile 380692 54856 144
14 Republic of Korea 352671 220969 627
15 Saudi Arabia 306173 174584 570
16 Netherlands 296899 200344 675
17 Ukraine 247825 152617 616
18 Algeria 245285 188835 770
19 Turkey 234632 110435 471
20 Poland 222846 172580 774
BANANA SUPPLY CHAIN
BANANA IMPORTS – REGION SPECIFIC
EU Imports 1990 - 2007 US Imports 1990 - 2007
Japanese Imports 1990 - 2007
BANANA SUPPLY CHAIN
UK BANANA IMPORTERS
BANANA SUPPLY CHAIN
KEY PLAYERS
Growth in organic and fair trade markets (1998 – 2003) tonnes
BANANA SUPPLY CHAIN
FAIR TRADE & ORGANIC MARKET
Source: http://www.unctad.info/en/Infocomm/Agricultural_Products/Banana/Market/Growth-of-Organic-and-Fair-Trade-Banana-Markets/#
BANANA SUPPLY CHAIN
BANANA COLD CHAIN
BANANA SUPPLY CHAIN
MARKET STRUCTURE
BANANA SUPPLY CHAIN
BANANA PRODUCTION
Caribbean Countries Latin American Countries
Growing areas hilly or mountainous. Limited land availability
Large flat plains. Wide land availability
Poor soil conditions and low yields (not more than 10 tonnes/acre)
Rich soil and high yields (18-24 tonnes/acre)
Majority are independent, small farmers Largely a plantation agriculture, often owned by transnationals and vertically integrated operations
Higher wages than in Latin America Wage rates low, social conditions of workers poor
Unit cost of inputs much higher due to smaller volumes and varying soil types
Lower unit cost of inputs due to high volume. Lower FOB price due to lower market wages, low social benefits and economies of scale
Shipping costs generally higher: smaller volumes, more port calls
Lower shipping costs due to high volumes
Labour intensiveClearing jungle growthSupporting weight of growing fruitIrrigation
Polyethylene bags protect againstWindInsects and birdsMaintain optimum temperatures, creating a micro-climate.
Vulnerable to pests and diseases pesticides and fungicides
BANANA SUPPLY CHAIN
PROTECTING GROWING BANANAS
BANANA SUPPLY CHAIN
PREPARING FOR EXPORT
Polypack
Thin polyethylenePermeable to oxygen, carbon dioxide and ethylene
Reduces moisture lossCan maintain banana green-life for up to about 28 daysIf voyage delayed
High risk of premature ripening aboard ship
Banavac
Thicker polyethyleneLess permeabilityCreates a slightly modified atmosphere
Can keep bananas green 40 - 50 daysDisadvantageBag must be punctured prior to ripening
Allow ingress of ethylene
BANANA SUPPLY CHAIN
PREPARING FOR EXPORT
Cartons are perforatedTo ensure a proper flow of cooling air around the bananas
Openings in the outer and inner closing flaps of the lid and base partEnsure that a vertical stream of air may pass through the bananas unhindered
BANANA SUPPLY CHAIN
PREPARING FOR EXPORT
One third by using refrigerated containers20-foot container can hold about 48,000 bananas
Two thirds specialised reefer shipsChilled to delay ripening processRegular weekly / bi-weekly services depending on volumes
BANANA SUPPLY CHAIN
TRANSPORT OF BANANAS
BANANA SUPPLY CHAIN
BANANA SUPPLY CHAIN - BARGES
BANANA SUPPLY CHAIN
BANANA SUPPLY CHAIN – REEFER SHIP
BANANA SUPPLY CHAIN
POOR REFRIGERATION
BANANA SUPPLY CHAIN
BANANA SUPPLY CHAIN - CONTAINERS
BANANA SUPPLY CHAIN
IMPORT CHECKS – QUALITY CONTROL
BANANA SUPPLY CHAIN
DAMAGE – EARLY RIPENING
1. Cartons at a pulp temp 14oC loaded into ripening room
2. Room heated for 12-16 hours until pulp temp of 15-17oC
3. Ethylene added to room 24 hours4. Room is ventilated5. Atmosphere -17oC reducing to 15oC over
3 or 4 days6. Room finally ventilated and the ripe fruit
removed
BANANA SUPPLY CHAIN
RIPENING BANANAS
BANANA SUPPLY CHAIN
RIPENING ROOM
BANANA SUPPLY CHAIN
KNOWING THE TRADE.....
BreatheWayExtend shelf life by regulating oxygen and carbon dioxide levels
PerftechExtends shelf life by 3-4 daysBanana respiration creates a modified atmosphere which slows down maturation
Packaging has micro-perforationsCan be packaged in bags at origin
Ripened as normal at destination
BANANA SUPPLY CHAIN
RETAIL PACKAGING TECHNOLOGY
BANANA SUPPLY CHAIN
WHAT ABOUT KOREA?
Rank CommodityQuantity (tonnes)
Value (1000 $)
Unit value ($/tonne)
4 Pork 487,017 1,294,225 2,657
6 Meat-CattleBoneless(Beef&Veal) 188,351 943,097 5,007
12 Cattle meat 119,262 426,702 3,578
15 Cheese of Whole Cow Milk 71,543 294,552 4,117
20 Bananas 352,671 220,969 627
Source: http://faostat.fao.org/site/342/default.aspx
Section 1 Banana Supply Chain
Section 2 India Case Study
CASE STUDY – BANANAS
LECTURE STRUCTURE
India is the world’s biggest producer of bananas
Exports <1%Potential to export 25 million tonnes
INDIA CASE STUDY
INDIAN EXPORT OF BANANAS
40% of India’s fruits and vegetables go to waste during domestic transport
Poor infrastructureLack of effective cold chain
INDIA CASE STUDY
INDIAN EXPORT OF BANANAS
Allow bananas to be transported reliably and affordably for up to 45-50 daysAdvanced technology
Regulates temperature, humidity levelsMaintains ideal atmospheric conditions inside the container
Delay the ripening process and extending the bananas’ shelf-lifeEliminates need for Banavac bags
Saves customers time and money
INDIA CASE STUDY
SPECIALISED REEFER CONTAINERS
Refrigerated containers allow smallholder Indian farmers to
Distribute smaller volumesAccess export markets and higher pricesReduced waste in transit
From 30-40% to less than 2%
INDIA CASE STUDY
INDIAN EXPORT OF BANANAS