Latin American banana producing countries are dissatisfied with the recent price cut of 35% as part of a recent promotional campaign from German retail store Lidl. In the week ending March 13 is when the German retail store Lidl is releasing an advertisement that offers a kilo of bananas, which is certified as certified by the Rainforest Alliance at 0.95 euro cents.
In a statement to the press, in its press statement, the Latin American Alliance stated: “We are the signatories to this note, are aware of that it is the right and the freedom of every players within the value chain to set their own prices and promote promotional offers that are temporary and in accordance with their respective business plans. But, we don’t intend to forget any of this form of advertising undermines the effort and commitments to the long-term sustainable development in the Latin American sector made by producers (small medium, large and small) and exporters and they also don’t honor the obligations made by European retailers to assist in the actions to make sustainable investments within the sector, particularly by implementing the Shared Responsibility model and consumer education in order to help them achieve the transition to a sustainable environment.
“The cost advertised in the advertisement is the reduction of 35% when from the initial price (EUR1.45/kg) however, it is not in line with the actual selling price of the banana. Thus, the promotion conveys consumers a false message about the actual worth of the product which is in contradiction to the notions that “fair price” as well as “living wage” according to which retail stores, crucial to ensure the ecological as well as social sustainable development of the industry.
“For that reason, we wish to make sure that these kinds of offers aren’t used as a benchmark for the other competition, nor by certifiers who belong to the shared accountability of the industry.
“We must all cooperate to ensure that we can get a banana at a reasonable cost, that reflects the collective efforts of all of the value chain and, in particular that of the growers as well as the workers in the Latin American banana sector.”
An important Latin American banana producer and exporter to Europe as well as the rest of the world weighed in on the importance of the banana industry to get fair and more competitive rates in the form of European merchants: “It is important because the price of producing bananas increased over the past two years as a result of the costs of fertilizer and the raw material. We must also consider with retailers about to ensure the sustainability of the business, and that means more investments and an increase in price for production in the form of certifications which creates more environmental and social accountability.”
Lidl Germany was contacted for clarification but was not in touch at the time of this article’s publication.