Banana Trade Facing Unfruitful ChangeEuropeans eat a lot of bananas and are willing to pay generous

prices for the pleasure, but if a new ruling on import duty becomes

reality, they may find the market swamped with bunches of cheap,

poorly produced fruit.

Europeans just love their bananas

The continental banana market is specially protected by a system of quotas

dictating which regions are allowed to supply what quantities of bananas to

Europe. But now, following several rulings by the World Trade Organization,

the European Union is obliged to change this system by Jan. 1 next year --

much to the dismay of producers the world over.

The "banana war," as it has become commonly known, has been generating

heat for the past decade. There are two main factions: The Europeans, who

give preferential treatment to their former colonies (ACP states) by

guaranteeing them generous European quotas, and the South American

producers who dominate the US market.

So-called "dollar bananas" are substantially cheaper than the ACP ones, but

there is a limit to how many can currently be exported to European soil.

Those that are exported are stung with a duty charge.

Encouraging cheap production

But the World Trade Organization has ruled that that should all change.

Karl-Friedrich Falkenberg, who heads the trade directorate of the European

Commission, said the new ruling would increase the drive towards cheap

mass production.

Banana production in Colombia

"Those who produce more cheaply will have the chance to sell more," he

said. "These historic rights will dissolve and the more competitive will get a

bigger share of the world market."

From 2006, the present quota and duty system will be replaced by a duty

only system with no limit on volume. The EU plan, which foresees an import

duty of 230 euros ($293) per ton of bananas, has sparked outrage among

producers in both the former colonies and in Latin America.

Social tsunami

Gilberth Bermudez of COLSIBA, the umbrella organization of South

American banana workers trade unions said he fears that a removal of the

limit on volume will trigger a fall in prices.

"There will be a social tsunami with thousands of lost jobs and companies

forced to move elsewhere," he said. "Wages would fall and social conditions

would worsen. The poverty in central America, where more than three

million people depend on the banana trade, would get even worse. But

Africans would also get poorer because the companies are only interested in

absolutely inefficient social standards."

International non-governmental organizations share this worry. For years

they've been complaining about a race for the lowest standards in the

banana trade, and because too many bananas are being produced, prices

and social conditions are falling. Bettina Burkert of the BanaFair

organization said the new EU rules would speed up the race.

"We are calling on the EU to put a moratorium on the move, so instead of it

coming into effect next January, research could be conducted into how it

would affect South American and Caribbean producers," she said.

Various interest groups are demanding a differentiated system in which the

level of import duty would depend upon whether the bananas were produced

in a socially fair and ecologically sound way. But Karl-Friedrich Falkenberg

said he doesn't believe that such regulations would augment the fairness of

the banana trade.

"Much is down to the consumers," he said "If they go for the cheapest

bananas, they'll be buying the ones produced under the worst social

conditions."

Falkenberg added he is convinced that the new system of duty only will be

implemented, but just how costly that will be is to be decided in the coming

weeks by the World Trade Organization.

EU Banana Skin Awaits Fruit GrowersGermany's fruit traders are finding it tough to swallow a new EU

directive which could see duties on the popular banana rise

threefold by next year.

As of 2006, Europeans will have to pay more to enjoy the banana

Germany is a banana republic. Within the EU, which is the largest importer

of bananas worldwide, over 1.1 million tons end up in Germany. The country

leads in consumption of the tropical yellow fruits. In 2003, Germans ate 17.7

kilograms of bananas per household. Only the teacher's favorite, the apple,

is more popular.

Companies like Chiquita depend on

cheap bananas -- new duties may increase price significantly

The popularity of bananas isn't hard to explain. They are healthy. Their color

and taste remind us in freezing winter that there are places out there that

are sunny all year round. Bananas are endowed with a naturally practical

packaging, ensuring you don't make a mess. Plus, they have an ample supply

of serotonin, a hormone which puts us in a good mood.

But German fruit companies are afraid the euphoria surrounding the banana

could soon evaporate. With the European Commission recommending raising

duties on bananas from countries outside the EU to €230 ($298) per ton by

2006, there is fear that prices could spiral.

Calculations not correct

Representatives from the German Fruit Retail Association (DFHV) had a

bitter taste in their mouths when they heard the announcement.

According to the DFHV, the European Commission made their duty

recommendation of €230 per ton on bananas as of 2006 based on wrong

price statistics.

"The calculation of the duty is based on wrong numbers," said Ulrich

Boysen, head of the DFHV. He said that the numbers the commission used

were simply a false sample of data. The European Commission had come up

with a price of € 890 per ton. The DFHV's calculations lie at under €700 per

ton.

Bananas from Latin America, here

Colombia, are immensely popular in Germany -- mainly due to the low price

The result will be a higher customs duty on the banana. But to understand

how the commission reached its decision one has to understand the

complicated duties system of the EU.

It starts with the fact that European banana producers are subject to

competition from so-called cheap "dollar" bananas outside the EU. In order

to protect the EU farmers, a complex set of quotas was implemented.

Currently, EU fruit retailers import over 3 million tons of bananas annually.

The duty stands at 75 euros/ton.

Beginning in 2006 however, the EU wants to simplify the importation. The

quota system will be dropped in favor of a straight-forward customs duty.

This was the result of an agreement Ecuador, one of the world's biggest

banana exporters, made with the US and the EU. This new duty will be

markedly higher and German retailers are worried that the bendy tropical

wonder will lose its appeal.

The future of the banana

The Canary Islands are one of the

main regions to grow the tropical fruit in Europe

European banana producers do not have it easy against their cheaper

competitors from Latin America. Their wares are currently protected but the

banana is still a good bargain. If the customs duties are tripled like the

European Commission suggests they should be, it will be the consumer who

will have to dig deeper into his pocket -- and possibly decide to buy fewer

bananas.

The fruit retailers may just be suffering from a case of sour grapes. On the

other hand, consumers may just decide to purchase more grapes -- or

oranges, or pineapples in the future. This should equally satisfy the fruit

retailers.DW.DE

Foodies Track Trends at Anuga Trade FairWith the world's largest food trade fair underway in Cologne,

organizers say the industry is fighting for growth. But healthy and

frozen foods continue to capture public attention.

Frozen seafood, destined for a hotel kitchen, on view at Anuga

The Anuga trade fair is open to the trade only, but a wide variety of visitors

from around the world make the biennial pilgrimmage to Cologne to catch

up on the latest trends and developments in food, be it organic, frozen, or

gourmet.

After a few years of falling exhibitor numbers, the fair is back on a growth

track, said Cologne Trade Fair chief Wolfgang Kranz. With 63,000 exhibitors,

there are 4.7 percent more companies showing their wares this year than

two years ago. Also, the field has clearly become more international, with

108 countries represented this year, up from 90 two years ago, Kranz said.

Morocco is one of 108 countreis

represented

A clear trend in Germany is the growth in demand for frozen foods.

Projections put overall consumption of frozen food for 2005 up 2.8 percent

from the year earlier, the German Frozen Foods Institute said. On average, a

typical German ate one kilogram more of frozen food in 2005 than in 2004,

the institute said.

Statistics give slight hope

The head of the German Food Wholesalers' association said he is hopeful

about the future of the sector, although the economic situation for large food

consumers, like hotels and restaurants, is not especially good.

A giant shopping cart floats down the

Rhine prior to the Anuga opening.

"In general, you can say that the industry is seeing more light than shadow

at the moment. It is slowly getting better -- but it is really hard to see a

strong growth trend in the hotel and gastronomy sectors," Ehler said. "The

opportunities for growth in the moment are particularly visible in hotels that

specialize in conferences and wellness, and in city hotels."

But if times are not very easy for the German food industry, optimists still

abound. A growth trend can be definitely seen in the health foods sector,

said Jürgen Abraham of the Federation of German Food and Drink Industries

(BVE.)

Some food sellers are marketing with an eye to the

soccer World Cup in 2006

Price is key

But the industry needs to get used to the idea that price continues to be the

decisive shopping factor for most consumers.

"On the German market, the industry has long been fighting resistance by

consumers, and is looking for ways to get over this focus on prices. The half-

year results for 2005 seem quietly optimistic," Abraham said. Overall sales

reached 65 billion euros, up 2.4 percent from a year earlier. "But sales

within Germany were much lower than that, due to high unemployment and

slow consumption."DW.DE

"Bio Food" Goes Big in GermanyOrganic food has long been popular among Germans, but while

such products have been sold in small stores so far, supermarket-

style venues focusing exclusively on so-called "bio food" are

becoming more prevalent.

Looks just like the regular grocery store

Germany is a country of discount supermarkets: Chains such as Aldi, Lidl or

Plus attract customers who want as much as possible for as little as possible.

But more and more discerning customers are turning away from such

thinking and instead are looking for organic quality.

Stores with names such as "Basic," "Eat organic" and "Supernatural" are

sprouting up across Germany to fill the niche. While at first sight they look

like regular supermarkets, they're actually quite different: The design's a

little more tasteful, shop assistants seem friendlier and the tomatoes appear

a touch juicier than in other places.

German Agricultural and Consumer

Protection Minister Renate Künast poses in front of organic food products at a organic

food trade fair

Such "bio supermarkets" now exist in most German cities and represent the

next generation of organic food stores, according to Christoph Spahn, a

consultant for health food stores. Compared to old-fashioned organic food

stores, bio supermarkets have much larger self-service sections, he said,

adding that people who work there still know what they're talking about.

"I can still ask them about something and they'll be able to give me expert

advice," he said.

Dried-up carrots vs. hedonism

A small organic food store in

Germany

For years, many Germans associated dried-up carrots and canvas shopping

bags with organic food stores. Most people avoided such shops because they

were considered more expensive than the regular supermarkets. They

derided organic food lovers, who bought their tofu and musli in health food

stores.

That's changed, according to Spahn.

"There's much fewer classic organic food buyers than before," he said,

adding that stores have also shifted from an orientation towards families to a

more hedonistic audience.

Just like their customers, health food stores have also changed appearance.

The stores are larger now and more of them -- more than 200 now exist

nation-wide. They lure customers by saying that they sell products for less

than other organic stores and seem to be successful with this strategy.

Growing trend

According to Spahn, about one fifth of revenues in the organic food sector

now comes from "bio supermarkets," and the consultant said he believes this

trend will continue. Spahn expects revenues from organic supermarkets to

double in the coming years.

Some regular German supermarkets

have also started selling organic foods, such as bananas.

Others said health food supermarkets are also more in line with lifestyle

trends. Andrew Murphy, the chief executive of Supernatural, a chain that

runs five organic supermarkets in Germany's Rhineland region, said the

demand remains greater than what's on offer.

"People are sick and tired of eating products that taste like baby food," he

said.

"During the last couple of years, people have been told that 'stinginess is

cool,'" Murphy added, referring to the popular advertising slogan of an

German electronics supermarket. "For us it's good tasting products that are

cool."DW.DE

Green Week Reaps Rich Harvest As it Turns 80What began 80 years ago as a goods exchange, has today turned

into the "Green Week" - the world's most important food and

agriculture fair in Berlin. This time 1,600 exhibitors from 53

nations are adding to the boom.

Fresh and green as far as the eye can see

Fears over the unfolding bird flu virus in Turkey have also spilled over to the

annual Green Week fair in Berlin, which began last Friday, Jan. 13.

At the entrance to the massive fair halls, a huge sign warns about avian flu

and other epidemics caused by animals.

That doesn't mean that animals aren't part of the 80th international Green

Week. This time about 3,000 bees, 4,000 fish and a further 3,000 domestic

and livestock animals are part of the attraction. But, this year they've all had

to undergo stringent controls, said Christian Göke, head of the fair halls.

Not real cows, but a giant cow poster

at the Green Week.

"Everything that's alive had to be examined by a specialist veterinarian five

days before the fair began," Göke said. "That is, I believe, the highest

possible standard that you can implement."

Göke added that there were no indications during the examinations of

anything suspicious.

Boom time

Despite the unease over a possible outbreak of bird flu in Europe, the Green

Week is booming this year like never before. In the 80th year of its

existence, the Green Week remains the world's largest food and agriculture

fair.

And this time, horticulture is a huge part of the attraction. Visitors can

wander through a carpet of daffodils and crocuses, a Mediterranean garden

with 2,000 aroma herbs or marvel at a sea of 25,000 flower types. More than

1,600 exhibitors from 53 countries have made their way to Berlin this year

to showcase their produce.

"The halls are packed to capacity this year, we had to build an additional

temporary one at the back next to the animal stalls in order to fill the

demand for further space," Göke said.

Spotlight on Russia

The fair began in 1926 as a simple commodity exchange service for farmers

and local traders and has grown by leaps and bounds over the years. More

than 30 million visitors have attended the fair since its inception.

German Agricultural Minister

Seehofer (center) with his Austrian and Russian counterparts

This time two thirds of all exhibitors are from Germany. The biggest foreign

exhibitor and at the same time partner country of the Green Week this year

is Russia. For the first time, the 22 regions of the vast country stretching

from the Baltic Sea to Siberia are exhibiting their culinary specialties.

In addition new EU members such as Estonia, Latvia, Lithuania, Poland,

Slovenia, the Czech Republic and Hungary as well as EU aspirants Bulgaria

and Romania and other eastern European countries are also visible in full

force.

Almost two thirds of exhibition space is taken up by the food industry. In

Germany, the sector with its 6,000 companies and more than half a million

employees is one of the biggest industries.

"The turnover of the food industry in Germany rose in 2005 by 3.3 percent to

134.5 billion euros ($164 billion)," said Jürgen Abraham, chairman of the

Federal Association of the German Food Industry.

Exports are a vital part of it. Last year, processed German foodstuffs sold

abroad raked in an estimated 29.7 billion euros -- amounting to a fifth of the

total turnover.

Farms are big business

The food industry's presence at the Green Week is largely in the form of

regional and international specialties, dominated by wine, beer, cigars and

digestives. Agriculture too is another important focus with special

exhibitions on organic farming and renewable resources.

Gerd Sonnleitner, head of the German Farmers' Association said that

Germany played a leading role in Europe when it came to organic farming

and energy-saving agricultural methods.

"We have 17 million hectares of agricultural land in Germany and out of that

about two million hectares are already used for renewable resources,

biomass and bio-energy," he said.

Farming may not be a sexy

profession, but it's a lucrative one

A further centerpiece of the Green Week is a model of a farm that advertises

for internships in the 14 so-called "green professions." Over 40,000 interns

are currently estimated to be undergoing training in farming professions and

a further 30,000 are training to be butchers, bakers and confectioners.

The Green Week also makes apparent the importance enjoyed by the

agriculture and food industry in Germany's economy. Some 11 percent of

those holding a job in the country are directly or indirectly involved in the

food and farming business.

The so-called "agribusiness" sector is said to have a annual turnover of a

whopping 500 billion euros.DW.DE