Export of Bananas to the EU - VREL makes headway

THE Volta River Estates Ltd (VREL), exporters of exotic bananas has made significant inroads into the European Market.

The company at a recent quota allocation in Brussels, Belgium, received a license allocation of 1,108,383 metric tonnes of bananas import licence through its European buyer, Agrofair.

This new five year protocol will remain in force from now till the year 2006.

This allocation means that VREL will be able to export 1,108 boxes of bananas a week to the European market without any duty, quota or license cost into the European Union.

The company has resolved to assert itself on the European market after its modest beginning of 8,000 metric tonnes.

With this new dispensation, VREL is likely to double its production level from 300 hectares to 600 hectares which will include 60 hectares of organic farms.

The expansion of the farm will translate into the production of 20,000 tonnes of bananas per annum.

Equally, the work force of the company will also be doubled from the present 620 to 1,200.

Commenting on the allocation, Mr H. J. M. Wientjes, Director at VREL said for the moment, the present quota should not be a thing to worry about as this has opened the floodgates to expand the non-traditional commodities in the country.

He said for the non-traditional commodities to hit the European market, Ghana will have to expand the fresh fruits industry, especially bananas and pineapples.

He said the country will have to produce between 50,000 and 60,000 metric tonnes of non-traditional commodities to be able to charter a vessel to Europe at least once a week.

"By this, the country can become very competitive and be able to export quality fresh fruits" Mr Wientjes explained.

He said another area that needs serious attention is the various infrastructure at the ports.

He said there are no precooling facilities at the Tema Harbour that will extend the shelf life of fresh fruits and said there is the urgent need to develop such facilities at the ports.

Mr Wientjes was however, grateful to all corporate bodies and institutions, especially Agricultural Development Bank and the workers of VREL for their continuous support in maintaining and developing the banana industry.

With the present events, Ghana is likely to become a full member of the ACP banana suppliers and could export the produce at a very attractive quota.

The present quotas are not scarce and this will enhance Ghana's price competitively with some 30 per cent free on truck, when it is allowed to import it's bananas to the European countries territory under the quota.