During these challenging times, the banana industry has undergone intense cost pressure, as reported by Fresh Plaza. The current commodity pricing surge has made this effort unbearable any longer. Packing material prices have risen nearly 20 percent and plastic bags have gone up 15 percent. "Labor costs have also increased nearly double-digits as we have supported our workforce throughout the pandemic. As experts indicate, there is no end in sight."
The world’s shipping container shortage has not only caused a supply chain nightmare but also put additional pressure on logistics costs that have skyrocketed over 15 percent from pre-pandemic rates.
Additionally, higher costs have come from ensuring a safe, COVID-free environment at the shippers' operations to give employees the adequate conditions necessary to continue working, despite much of the world being locked down at home to stay safe. It has also been reported that several major climate disasters in the past few months as two hurricanes, Dolores and Nora, have impacted production areas on the Pacific shore and generated considerable loss of fruit and additional unexpected costs.
“Now is the time for a price adjustment for organic bananas to promote sustainable, organic agriculture,” said officials of Organics Unlimited, Coliman Bananas and Tropical Organic Growers in a joint statement.