Posts Tagged ‘ Banana Economics ’

Tweeting Banana Arrivals in San Diego

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Banana Boat

From Danforth’s flickr stream.

Writer/comedian Danforth France saw this Dole freighter unloading in San Diego while he was attending last week’s Comic-Con, and he sent me the linked tweet.

The ship is the Dole Honduras – one of two that constitute the banana giant’s Pacific fleet. The vessel makes over 20 annual north-south trips along a route that stretches from San Diego to Puerto Quetzal, Guatemala; Caldera, Costa Rica; Guayaquil, Ecuador; and Paita, Peru, according to  Dole Ocean Cargo.

Danforth’s image was taken July 26, and the vessel’s current schedule indicates that it is handling shorter haul work right now. The Port of San Diego’s Marine Information System indicates that it has already made a full round trip since then, and is due back today. It will depart for Costa Rica on Tuesday, August 4,

The most interesting thing about the vessel is its color. Tradition has it that banana boats be painted white. Chiquita’s ships, starting even before the early 1900s,were known as the “Great White Fleet.” Though the Honduras is a bit of a shabby beige, it fits the traditional scheme, which is more than just  custom. Bananas are highly perishable and grown far away. They have to be shipped under refrigeration if they’re to arrive at your supermarket  ready-to-ripen, rather than icky brown. But despite these formidable built-in costs, bananas remain incredibly cheap. That seemingly impossible paradox can only be overcome  if  every cost-cutting measure is taken –  so heat-reflecting paint jobs have been part the fruit’s business model almost since day one.

Thanks, Danforth!

Seen any interesting banana stuff lately? Tweet me….

A Guide to Those "Baby" Bananas – and What They Prove

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on_bananacostume_baby.jpg

Huggable, lovable – but not the kind of baby banana that I’m talking about.

Though the vast majority of bananas we buy – statistically, all – are of the endangered Cavendish variety, there’s a good chance you’ve seen something else, these days and if you’re a banana-type (or have become one), you might have wondered: what are those little bananas?

Both Chiquita and Dole offer versions of the half-sized fruit, with Chiquita selling them under the “Minis” brand, and Dole offering them as “Baby” bananas.

In the “big” banana world, there’s absolutely no difference between what Chiquita, Dole (or any other commercial banana importer) sells: everything is Cavendish. Action surrounds small-time fruit. For the first time in over a century, the two biggest banana companies are slugging it out for a market niche with different varieties.

The Chiquita “Mini” is a breed called Pisang Mas, originally from Malaysia, but now – like all bananas imported to the U.S. – grown in Latin America.

Dole actually sells three different varieties under the Baby band nameOrito, Lady Finger, and Manzano.

The fruit are tough to find, since they’re in various stages of test-marketing, as well as subject to seasonal variation. They also cost about three times as much as their ordinary counterparts. But they’re worth seeking out, and not just because they prove – possibly for the first time to the average American consumer – that there’s something beyond the generic banana. Though the four types share some characteristics (beyond size), they’re also quite different from each other.

I’ve put together a guide to the four varieties, but one caveat: no great banana arrives easily. Dole doesn’t distinguish between the three types it offers – they’re all labelled the same – so side-by-side taste tests are going to be tough. But persevere. The results will be worth it (and ignore the for-kids marketing that the banana giants have attached to the product. Sure, they are great after school, as Chiquita’s says. But this isn’t baby food.)

Oh, and one more thing, and you MUST do this, or else your adventure in little bananas will surely fail: LITTLE BANANAS TASTE HORRIBLE UNTIL THEY’RE RIPE – AND RIPE, FOR LITTLE BANANAS, IS NOT YELLOW! You need to let the fruit turn brown or else it will not be sweet or soft enough. This will go against every banana extinct you have been trained to adhere to. Trust me.


CHIQUITA’S PISANG MAS (BRAND NAME: MINI)

NEW MINIS CLUSTERsm



  • Super sweet – but only when very ripe. This is a fruit that is awesome when “peaking,” but the peak can be hard to catch. When not peaking, not so good.
  • Thin-skinned, so it bruises easily.
  • IDENTIFYING: Easy. The only one Chiquita sells.

DOLE’S BABY (TYPE II – ORITO):

Orito

Orito Banana, from Ecuador’s Goldenforce.

  • Possibly the sweetest of the four varieties – making it (when ripe – see above) one of the best bananas for smoothies.
  • Grown almost exclusively in Ecuador, where labor laws are weak, making this a very high-margin, high-political cost fruit.
  • Identification: Chubby. If the country of origin is Ecuador, almost definitely Orito.

DOLE BABY (TYPE II – LADY FINGER):

ladyfinger

Ladyfinger, meet Cavendish. Photo: Australian Tropical Fruits Portal


  • Similar peaking/ripening characteristics as Pisang Mas.
  • Doesn’t easily turn brown when cut, making it perfect for fruit salads.
  • Susceptible to Panama Disease Race One, the malady that killed the first worldwide commercial banana crop – and which still exists today.
  • Closer to a mini-Cavendish in appearance. Slender(ish.) Super popular in Australia, so if you’ve got an Aussie in tow ask him or her for identification help.

DOLE BABY (TYPE III – MANZANO/APPLE):

MANAZANO

The chubby Manzano, or “apple” banana. Photo: Thrifty Foods

  • Falls into the “apple” banana category – giving it a unique, tangy-sweet taste. Much less bland than our Cavendish, but some banana marketers have traditionally believed that consumers would reject such a different-flavored fruit.
  • Definitely the most “gourmet” banana of the bunch.
  • Small ripeness/sweetness issue. Can be eaten a little bit less brown if you like the tart flavor, but you must wait beyond brown – until the skin is black – for the highest sugar content (which will give you a fabulous, multi-dimensional bite.)
  • Difficult to grow in wet, lowland conditions
  • Easier to find than others – sold under many brand names (or none at all) in Latin markets, where it is often a Mexican import.
  • Identification tips: Significantly fatter, chunkier than Cavendish and probably the other little bananas, as well.

Once you’ve tried a couple, it’s worth thinking a bit about what this all means in a world where the single fruit that we generally eat is threatened with practical extinction. The arrival of these alternate bananas in our markets shows that variety is possible, and that the commercial banana companies are willing to experiment with it (even with the for-kids-only marketing tilt.)

Despite this, the banana companies are likely very hesitant to move the fruit into any testing beyond these niches. The reason is that – according to conventional industry wisdom – there’s simply too much “wrong” with the pint-sized fruit. The main arguments against mainstreaming mini-bananas include:

  • Ripening. All of these fruit must be quite dark to taste good. The banana companies are (rightly?) afraid that the typical consumer is so well conditioned toward seeing a golden banana as perfect that wider acceptance would simply never occur.
  • Production. The varieties in question can’t be grown as broadly, geographically speaking, as Cavendish. There probably isn’t enough land in Latin America to make any one of these varieties anything near to a market share winner.
  • Shipping: These are thin-skinned fruit. Today’s banana supply chain is so industrialized that the little fruit don’t fit into it, requiring costly “custom” handling all along the way. For an industry built on turning an exotic tropical fruit into a commodity as cheap and ubiquitous as a fast-food burger, the idea of reinventing itself to handle more complex products may feel both financially and culturally risky.
  • Marketing. People buy bananas by the bunch. Would the price/weight equation shift with a smaller banana as our main choice, or even as a more prominent alternate? The banana has been America’s favorite fruit – by far – since the 1920s. Changing the very size, shape, and price of that fruit into something completely new would be a terrifying prospect for the banana companies, which introduced the fruit to us, struggled to make it our favorite, and have fought – often spilling blood – to keep it exactly the same ever since.

Despite all this, change has to come.

All of these arguments are based on a single premise: that the banana we eat today will last forever. It won’t. It might not even last a decade.

The truth is that, as a living organism, all bananas have strengths, and all bananas have weaknesses. The biggest weakness the world’s banana crop has today, though, has nothing to do with the fruit itself: it has to do with the human folly of relying on a single variety to feed millions.

The half-sized varieties from Chiquita and Dole are not, I’m told, doing all that well at the market. Some of Dole’s farms in Ecuador that were devoted to the Orito fruit are reported to have closed. But the proof of concept – getting the fruit from there to here, figuring out how to market and sell it - has been accomplished, and despite my frequent criticism of the banana companies, there’s credit deserved for that.

The experiment, however, needs to be seen as more than just marketing. The biological common sense – and necessity – of breaking the Cavendish monoculture needs to be acknowledged, as well. It is in combining salesmanship with this common sense that will lead the industry away from the dead end it is now rapidly heading toward. The “Mini” and “Baby” fruit provide a blueprint – even, focused as it is on children, it appears to have been written in crayon.

No Cups or Glasses Necessary…

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This is a demonstrator project created by Japanese designer Naoto Fukasawa. I love the idea, because it really does capture what a banana skin is. The colors, shape, and texture are perfect.

Here’s Fukasawa’s design for a strawberry juice box:

Here’s a second version, with a similar design. This one is actually on the market in Japan, I’m told, which is why it is less clean: the package needed information on it.

Less clean, but still lovely compared to some of our stateside juice packaging horrors:

Tropicana’s “Pine-Sol” line of bottle styles…

pom-wonderful-1950.jpg.jpeg

…everything about this is undignified.

You get the idea.

Thanks for the tip, Dimitri (again!)

Banana Price Watch: 7-Eleven, Los Angeles

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That’s my beloved local Sev. To zoom in, you’ve got to go there. So go.

Interesting strategy at my favorite local convenience store, on the corner of Sunset Blvd. and Rosemont In the Silverlake neighborhood of Los Angeles (just steps from Dodger Stadium.)

Instead of the typical branded, presented-in-a-box fruit Chiquita is selling in many U.S. convenience stores, the fruit here is bought at local supermarkets and sold in an ordinary basket. At the current price – 69 cents per banana – the store manager told me customers purchased a respectable fifty or so a day. Still, he thought he could do better, and was about to add a twofer, with a pair of bananas going for a buck. 

The DIY approach nets the local shop a considerable profit over Chiquita's all-in-one strategy, which involves a national distribution network of refrigerated product, each fruit with a sticker on it, to of about 13,000 convenience stores. Chiquita's suggested retail price for its product is 75 to 99 cents. The benefit, it says, is that that the controlled supplyand special packaging allows the fruit to arrive at the stores perfectly ripe – eliminating the need for store managers to spend time waiting for the green bananas typically found on supermarket shelves to ripen. The downside is profit margins: Chiquita charges C-stores about forty cents per fruit. My 7-Eleven manager can buy bananas at the Trader Joe's down the street for half that. 

Analysis: though it is certainly more profitable for convenience stores to adopt the DIY approach, most local mini-marts probably won't do so – meaning that the Chiquita method will likely be more successful. Whatever else the company does wrong or right, this is a visionary and important (though as-yet unproven) strategy, because it demonstrates the banana's changing – and critical – role in the American diet: as the best, most affordable stand-in for the mountains of junk food that have created a massive juvenile health crisis.
Mobile Blogging from here.
(And about that link in that first paragraph – I'm from Brooklyn.) 

Latest Banana Growing Nation: Iceland

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Greenhouse bananas in Iceland; photo reproduced under Wikimedia Commons license. Original here.

Bananas normally need to grow under tropical conditions: even in the U.S., a commercial crop isn’t viable, because California and Florida aren’t quite hot enough for large-scale production. One might think that Iceland – where the mean daily temperature over a year is about seven degrees Celsius (44 Fahrenheit) – would hardly qualify. But the North Atlantic island nation has a banana trump-card: huge stores of geothermal energy beneath its volcanic landscape. That means greenhouses, and – in an effort to become the world’s first full-carbon neutral nation – the Icelandic government has decided that it is going to try to stop importing bananas from Latin America, and grow its entire supply indoors.

So far, the effort is mostly symbolic, despite some (false) reports that the country is now exporting the fruit. In 2005, the last year for which statistics are available, Iceland imported 4.7 million tones of bananas (U.N. Food and Agriculture Organization; link will download PDF file.) With only 1,000 square meters currently devoted to at-home production, boatload after boatload would still be needed to satisfy the nation’s exceptionally hunger for the fruit. Iceland is the Western hemisphere’s number one per capita banana consuming nation: the average Icelander eats 30 pounds of the fruit per year (in the developed world, only New Zealanders like bananas better, with each Kiwi eating 44 pounds per annum. The U.S. falls into fourth place, at 27 pounds, just edged out by Slovenia, which has a one pound – or four banana – advantage.)

Still, the effort is a noble one – though I find it a little odd that Iceland’s internal production appears to be limited to Cavendish, the standard supermarket fruit (that’s what the variety pictured above appears to be, as well as the ones in the image linked here, though I could be wrong, and welcome corrections.) With so many other amazing and more delicious kinds of banana – and with hothouse production eliminating the usual problems with those varieties (presence of disease; distance shipping; fragility; variable weather conditions) – it would seem that Iceland’s small crop could also be a gourmet crop. Isn’t that what the world’s hungriest banana consumers (almost) deserve?

Chiquita’s Pricey Belgian Airport Fruit – The Banana’s Future as a Snack Food?

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barcodebox

That’s two bucks a pop. And they’re selling.

An interesting Chiquita experiment at Belgium’s Brussels National airport – appropriate, since the transportation hub is just a fifteen-minute, one-stop train ride from the global banana bank at the Catholic University of Leuven, where over 1,400 varieties of the fruit are preserved for scientific experimentation and against future ecosystem loss (if only the banana companies would contribute a bit to the funding of the bank!)

At the top is the “Chiquita Banana on the Go” product. This is a somewhat different take on the single-sale banana than the not-quite-successful convenience store version (below.) Note the bar code and the per-fruit branding – the fruit we see at our U.S. 7Eleven stores is sometimes sold in banana-logo cartons, but aren’t individually labeled. Also interesting: the Belgian airport bananas sat right next to bowls of apples and oranges, which weren’t branded. After more than a century, the banana is pretty much the only fruit that takes to this kind of labeling.

IMG_0037

Note the bar codes: perfect for the banana as a “packaged good,” rather than a plain-old item of produce. Packaged goods, of course, cost more.

Analysis: does the branding make a difference in this retail venue? The fascinating thing here is that Chiquita is using its brand-name for the opposite purpose in the airport than it does in supermarkets. Sold at grocery stores, the banana is a commodity – cheaper than apples and oranges. The logo serves as a gentle incentive toward consumer choice: “pick me,” it says, “over other bananas,” even though they’re all the same. But in the airport, Chiquita is positioning its fruit as a luxury good – something with more value than the plainly-presented competition. Does it work? The worker at the café told me that the bananas still sold at twice the rate of the apples and oranges, despite – in this case – also costing twice as much (and that’s a lot: €1.50 is about two bucks these days – enough to buy four pounds, or up to 12 bananas, in some parts of the U.S.!)

Final point: This reflects the changing role of the fruit in our culture. Less and less is it competing with other produce – and more and more with snacks like candy and chips. That’s a good thing in terms of public health – and probably for the banana companies, too, which, if the transformation continues, will ultimately be able to charge a lot more for fruit sold by the piece, rather than by the pound. Still, at this point, it seems the Euros are more willing to swallow the banana as a snack-food substitute than we in the U.S…

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THE BANANA BLOG is about the world's most endangered - and dangerous - fruit. THE BIG PARADE is about stairways, route and transit geekery, and pedestrian pursuits in Los Angeles. You can also read all the topics at once, which might also include productivity, geekery, DIY whatever, mountain biking, stuff that I think is funny that nobody else likely will, and other boring, useless crap.

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