Can the Windwards make the Grade?
Export Association introduces new banana grading system to win back the UK market.

by Keisha Phillips, St Vincent- Eastern Caribbean

Windward Island banana producers will soon adopt a marketing and quality control program to regain lost market share in the United Kingdom. The Windwards are the only supplier to the UK which has seen its market share fall consistently over the past decade. To change this trend, producers will focus on a program to exceed the market standards for the UK by improving the quality of bananas being exported.

"Over the past two years, the Banana Growers' Association (BGA) and the Winward Islands' Banana Development Company (WIBDECO) have been stressing the need for improved banana quality, but an increasing number of banana farmers have not responded positively," says an official of the Association, "their production standards continue to fall below the required market standard."

A major part of the program is the procedure for selecting bananas for export. Last month, farmers were informed that the local banana growers' association will soon be implementing tougher measures to ensure that only top quality produce is exported. Over the past ten years, the size of the British market has doubled, but since 1993, that market has also been opened to bananas from other countries, thus increasing competition. In 1993, Windward Islands' bananas represented 36.6 percent of the UK imports, but by 1995, this had fallen to 28 percent.

By contrast, the share in dollar value of banana imports from Latin America has risen from 22.1 percent to 28 percent. To regain market share, some of the decisions taken by a meeting of the BGA's Board of Directors in late May will be implemented almost immediately, says Simeon Greene, General Manager of the St Vincent Banana Growers' Association (SVBGA). Among the new measures, to be adopted by the end of June, is the decision to not purchase fruit which fall below the quality specifications of at least 75 percent.

Bananas are rated according to appearance, firmness, packaging and degree of maturity (ripeness). The higher the percentage or "score" the higher the quality of the fruit. The Association will also implement and activate the Fruit Quality Act, which allows them to suspend farmers who fail to comply to the new policy decisions of the Board. A new pricing system was also agreed upon. The Association will grade the quality of the bananas it purchases and quote a price for each grade.

But while some of the measures may be unpopular, WIBDECO's Chairman, Arnhim Eustace, says these new procedures are the only way for the industry to take back its market share in the United Kingdom. "We are trying to get this industry to not just survive, but to prosper in an environment that is increasingly difficult and competitive."
To better understand the implications of the Windward Islands' falling market, Eustace explains that the supermarkets dominate the banana trade in the UK by purchasing about 75 percent of all bananas imported.

He said currently, ripening bananas are sold to the supermarkets at 12.5 pounds sterling per box- if they are top quality. If not, they are sold far more cheaply. Only 60 percent of the Windward Islands' bananas are sold at the top quality level, the rest is sold at the lower price of 7 pounds sterling per box.

"The Windwards therefore need to sell more of their fruit at top quality level, and this requires an improvement in their overall quality." To further highlight the point, he said that for the first twenty weeks of this year, the quality score for Windward Island bananas were at the bottom of the scale. Dominica's export remains relatively small since the hurricane last year, but its fruit quality scores are averaging in the mid- eighties. However, due to the small quantity, the overall score for the Windward Islands remains low.

"In week 20, Dominica's score was 85 percent. As a result of this performance, Dominica was getting up to 8 pence per pound more for its fruit than the other islands. "For the week ending May 25, the Windward Islands' fruit price of 640 pounds sterling per tonne continued because of the overall low quality of its fruit. This price was less than Jamaica's by 20 pounds sterling, Belize's by 60 pounds sterling, and Cameroon's and the Ivory Coast's by 100 pounds sterling.

In addition, WIBDECO pays farmers top notch prices for all bananas supplied to the UK, even those which are eventually only fetch the lower price. The Board has also recommended that plantation managers focus on disease control, quality control and proper packaging and processing techniques.

"It must be recognised by all involved in the banana industry that the market is consumer- driven. It is not sufficient to simply produce bananas - we must produce what the market or consumer wants. The produce must be of the highest quality and it must arrive without scars, crown rot or latex staining. The market, not the farmer decides what will be sold." However, whatever steps are taken to deal with the issue of improving the quality of the bananas, the BGA hopes that none of its members are asked to leave the industry.

"Farmers have to change their attitude towards exports and quality of produce in order for the industry to move forward," says BGA Chairman, Lesline Bess. "Over the years, there has been a lot of sympathy for the farmers. I am not saying that they should not get support, but we must draw the line somewhere, since quality is the key to the industry's future. The SVBGA on the other hand has another problem - governance!

"Policy decisions in the industry are not always clear. They are sometimes adjusted to suit 'the poor farmers'," says Simeon Greene, General Manager of the SVBGA. "We have to be clear about the decisions we make. We have had problems where the Board and Management of the Association did not have the courage to implement the decisions. This could be due to the lack of a clear- cut definition of the role of the Board and Management.

"The message is clear. We know what has to be done to improve the industry, but when it comes to implementation to ensure compliance the Association holds back. This must change," he says.

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