Resource White Paper Banana
Type Policy Paper
Last update: 25/01/2018
Type: Policy Paper
Language English
Year of publication: 2011
Citation: Preparation of Sub-Sector White Papers FAO Project TCP/SUR/3301. Dit beleidswitboek is onderdeel van de serie beleidswitboeken van het ministerie van Landbouw, Veeteelt en Visserij. De reeks bestaat uit: Tuinbouw Rijst Bananen Visserij & aquacultuur Agribusiness Agrarische gezondheid en voedselveiligheid Landbouwontwikkeling Binnenland Veeteelt.
Target countries: Suriname
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Summary The current strategy of the banana sector formulated in June 1999 in relation and compliance with the EU banana programme SFA (Special framework of assistance), then revised and approved by the Council of Ministers in August 2002 and updated in May 2007, has the overall objectives to (1) increase foreign exchange earnings, (2) sustained rural employment and (3) income by means of increasing productivity to support to restructure the banana sector with the aim of privatisation of the government-owned banana company Surland N.V./SBBS, restructuring which have almost been achieved. Due to several external circumstances the privatization of the company has not been successful yet.
The revised strategic plan has been reviewed and updated in August 2010 (National adaptation strategy) in relation with the BAM (Banana accompanying measures) set up by EU in the context of the 2009 WTO (World Trade Organisation) Geneva agreement fixing the evolution of the MFN tariff.
ACP banana exporting countries traditionally enjoyed preferential access to the EU market. The EPA (economic partnership agreement) signed in December 2007 between EU and Cariforum has set up a WTO compatible framework allowing Suriname exporting a free and unlimited volume of banana to the EU market and consolidated the preferential access of Cariforum countries. However the EU banana regime has been challenged by other members of the WTO (World Trade Organization) who did not agree with the EU banana import regime, stating that this regime discriminates against the MFN countries. After the long disputes, an agreement was made in December 2009 (Geneva Agreement) which settles all the disputes and cuts the tariff which the EU applies to the Latin American countries (MFN) from currently Euro 176 per tonne to eventually Euro 114 per tonne over a period of seven to nine years. At bilateral levels (Free Trade Agreement between EU and central and South American countries) there will be an additional reduction to 75 euro/ton in 2020, reduction starting in 2012. As a result, the ACP preference margin will be reduced, meaning that the average European sale price for the bananas will get lower. For Suriname the reduction of MFN tariff will deteriorate the competitiveness gap with Ecuador by 2,2 USD/box from 2010 to 2020. In order to support the ACP banana exporting countries to adapt to this new EU import regime, the EU has designed and set up the Banana Accompanying Measures (BAM).

A National Adaption Strategy (NAS), continuation of the revised strategic plan, has been elaborated by SBBS and by the Government, which outlines the strategy for Suriname during the period 2011-2015 to adapt to the consequences of the changed tariffs. This strategy has been communicated and will be used by the European Commission to set up the multi-annual strategy for Suriname through the BAM. The strategy 2011-2015, after a phase of restructuring and re-building of the banana sector from 2003 to 2010, will focus on a phase of consolidation. This phase of consolidation will focus:
• On improving the performance of the banana sector by reducing the cost price, increasing the productivity and production quality, improving the social and environmental standards and therefore improving the market position and sale price of SBBS. An investment program of 17,6 millions Euros is forecasted over the period 2011-2015
• On privatizing the state-owned banana company Surland
• On crucial actions to improve the business environment regarding especially the exports logistics (port of Nickerie and banana wharf of Paramaribo) and the potential shortage of manpower. Stable and favourable custom and taxes framework is also an issue for Agriculture and banana development in Suriname.
• On considering marketing opportunities and
extension/diversification options
List Keywords
1.1 Socio- economic Sector (OECD) 311 Agriculture  
2.4 Food Crops Banana/Plantain (Musa)