NOVA MEDIA PUBLISHING INC.

Asprocan Detects a "Paralysis" of Fruit Sales Through Traditional Channels

27.3.2020

The Canary Islands Banana Producers Organization, Asprocan warned on March 20 that the loss of traditional channels in the Peninsula is causing a paralysis in the sale of fruit and vegetables, in one day 50% of the Canary Islands banana was sold and next day sales totally stopped.

Asprocan affirms in a statement that the current situation of the fruit market in Spain is of great confusion due to the health crisis in the country and currently the uncertainty and inactivity is seriously affecting more traditional sale channels.

The Decree published by the central government on March 14 by virtue of which the state of alarm was declared in Spain has caused the closure of markets, as well as the sharp decrease in sales in retail channels such as specialized fruit shops, he added.

The concentration of sales has thus been located in distribution chains that, under normal conditions, had represented 50% of the total volume of fruit sales, and which therefore do not have the capacity to compensate for the geographical coverage and penetration of the traditional channels, affirmed Asprocan.

He added that this fact is seriously affecting all the agricultural subsectors that have already requested exceptional measures from the competent authorities to avoid the indebtedness of their sectors, and the case of the Canary banana is not an exception.

Under normal market conditions, retail channels sell 45% of the production of Plátano de Canarias, a sector where local bananas also reach much higher quotas than third-country bananas.

As a consequence, the increase in sales that may circumstantially occur in the large distribution channels is not able to compensate for the loss caused by the paralysis of the specialist channel for the Plátano de Canarias.

Market uncertainty is leading to volatility in the fruit wholesale markets that is rarely seen and an example of this is given this week in Mercamadrid, where last Tuesday 50% of the banana was sold in one day, and then totally stopped the next day until March 20 at least.

The president of Asprocan, Domingo Martín, affirms that, despite the exceptional moment, it is necessary to be aware that imports from third countries are continually increasing in a context of closing sales channels and when national production has the capacity to serve a large part of demand.

"The concentration of sales in a few channels has only favored the loss-making sale of non-EU productions and thus the primary sector will soon join the most traumatic crisis measures. Paradoxically, just when food production has demonstrated to be an strategic sector”, insisted Martín.

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