1818 h street Washington, dc 20433 usa november, 2002 Table of Contents Page Introduction

Consumer preferences

3.16 The continuous rise in disposable household incomes that has characterized EU member states’ economies over the past two decades has led to sustained growth in the year-round consumption of both traditional and exotic fruits and vegetables, flowers and convenience foods. The growth of supermarket retailing providing easily accessible, affordable, one-stop shopping, backed by effective marketing power, has made new products available and attractive to an expanding pool of consumers, who have developed a taste for an ever-widening range of foods by eating out more and travelling more widely.

4.1 Côte d’Ivoire (RCI). Côte d’Ivoire’s banana industry traces its origins back to the European farmers of the pre-war colonial period, when the fruit was exported in bunches. The transition to boxed fruit was made in the 1950’s and 60’s. Given a growing EEC market to which ACP producers enjoyed privileged access, African and European growers on all farm sizes, and involving thousands of production units, proliferated in the coastal areas near the port of Abidjan. As market requirements became more stringent and prices fell under pressure from non-ACP producers, the exporters’ association, now named OCAB, came to exercise its control over a somewhat chaotic supply system, acting as an effective channel for transmitting market signals down the chain. Due to OCAB’s professionalism and the autonomy of action it had acquired through successful negotiation with an otherwise heavy-handed government, producers were grouped by licensed exporters. This facilitated the enforcement of quality standards that found very persuasive expression in the “compte de ventes”, or commission-based, sales system that applies principally in the French market and that RCI still specializes in.

4.2 Although broadly favorable for bananas, production conditions in RCI were by no means ideal. Rainfed but demanding production systems (e.g., polders and “bas fonds”) were common, windstorms were frequent prior to the two rainy seasons, and irrigation was thought unnecessary. The industry’s major competitive advantage was its location on trade routes only some 10 days’ sailing time from Marseilles and Dieppe. Proximity to the port of Abidjan along the country’s expanding network of paved roads was another advantage. In order to maintain market share, it became essential for producers to intensify and expand production: small-scale, rainfed production ceased to be viable. By the 1990s the sector was dominated by large and medium irrigated plantations ranging from 100 to 1,000 hectares, primarily owned by European farmers supplying direct to French importers, and by vertically integrated corporations such as Compagnie Fruitière and Chiquita and, more recently, ripeners from the south of France, such as Cannavèse.

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  poor infrastructure and support services;
  
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  low skills levels along the entire chain;
  
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  lack of financing for SME development;; and
  
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  limited vertical integration.
  

4.10 There is an obvious need to improve the infrastructural and business environment and to develop contacts abroad so that foreign direct investment is attracted and domestic investment encouraged. Dialogue between all stakeholders along the chain –through more effective trade associations, for example – is also essential. The following priority actions have been identified:

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  preparation and implementation of a major infrastructure investment plan;
  
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  improvement of the legal and regulatory framework to protect the rights of investors and customers;
  
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  establishment of joint public/private market research and technology development for key products; and
  
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  development of instruments to attract foreign finance and mobilize domestic finance.