Panama Golden Pineapple II

By Jonathan Lloyd Precision agriculture (PA) is the use of data-driven systems in farming. PA is not a single technology, but an entire range of tools including field mapping, yield monitoring, and variable rate applicators. Data can be collected using sensors in the field, on equipment, through drones and via satellite, and processed in order to improve profitability, maximize crop yields, and minimize the environmental impact of food production. The global PA market is growing swiftly, and is expected to reach US $1.37 billion by 2023, compared with US $0.67 billion in 2018 – a growth rate of 15.4% p.a. This growth is driven by a rising demand for agricultural goods that is closely linked to population growth, as well as the increased availability of PA technology. Despite the fact that Latin America is a major agricultural exporter, PA technology is yet to have a major impact on farming in the region. The majority of producers are still small scale family farmers who account for 50% of the region's food production, with only large-scale producers having access to the capital necessary to implement PA technologies. Many Latin American farmers face challenges in terms of inefficient use of inputs, the identification of crop diseases, and a lack of analytical tools for decision-making. Latin America is a vital food exporter, but production growth faces considerable challenges. Agricultural expansion into rainforest areas is unsustainable, and will come under increased scrutiny and pressure from NGOs, consumers, and governments. Many farmers will look to PA as an alternative method of increasing crop yields as the availability of arable land declines, especially in regions that concentrate heavily on soy and corn for the production of biofuels. Fortunately, homegrown PA technology is gaining ground. For example, Brazilian startup Horus Aeronaves has raised $3 million in funding to develop the first-ever agriculture-focused drone service in Latin America. Products include carbon fiber drones which use multispectral cameras to produce high-resolution field imagery, providing valuable insights such as plant counting, crop health analysis, and field maps to allow targeted input applications. It has been estimated that the application of precision agriculture could increase the productivity of the Colombian palm oil sector by up to 48%, and reduce the required labor force to about 75%. Colombian sugar cane production is centered on the Cauca valley, where the alluvial soils are varied but which appear relatively uniform. Here farmers are using Variable Rate Technology (VRT), grid sampling, and yield mapping to make more targeted input applications. These farms are also prone to soil compaction, and the use of guidance systems can help in minimizing the risks of compaction. It is not only larger producers which stand to gain from using technology: the “Small Precision Coffee Farming Project” in Colombia is helping small scale producers to reduce costs and increase productivity. Data collected allows for more effective pest control and a 20% reduction in fungicide use through more targeted control of cochineal – a major coffee pest in the country. If deployed appropriately, PA technology has the potential to allow Latin American farmers of all sizes to continue to expand production and to obtain a greater share of global export markets. As PA technology becomes more widely available, Latin American farmers will be able to improve crop yields, increase efficiency, and mitigate the effects of disease. As Latin America’s agricultural sector charges forward, precision agricultural will have a key role to play.

We’re tremendously proud to announce that last August we shipped a record amount of pineapple by air freight, according to the Panamanian Customs Office. With 34,500 kilos shipped, it’s safe to say that AIR PINEAPPLE is taking off!

This achievement has been a long time coming. Since La Dona’s inception, we have been committed to bringing our customers the freshest, ripest fruits possible. We’ve ramped up production in recent months, going from 17,327 kilos of Air Pineapple sold in June to our new record of 34,500. Coming fresh off a record-breaking month, the sky’s the limit for Air Pineapple. The numerous advantages offered by Air Pineapple have been key to its success. By using air freight to ship pineapples, we can guarantee their sweetness and delicious flavor, without having to worry about losing quality during the lengthy transatlantic shipping process. This allows us to deliver high and ultra-high maturity fruits to lucrative European markets, all while preserving the rich golden color that customers love.

Customers are responding favorably to these sweeter, more colorful pineapples. According to Miguel Gonzalez, quoted in an article from freshplaza.com, “In the past, having green pineapples was considered an advantage. They lasted longer. Now, especially Dutch consumers, want more color to their pineapples. This color is good not only for the fruit’s ripeness and Brix level. It is also a boon for its appearance.” La Dona Fruit is happy to provide pineapples with rich flavor and color, which customers are quickly falling in love with. Consumer perception of pineapple is also beginning to change. “Pineapples are not really an exotic fruit anymore. They are a basic product in fruit shelves,” said Mr. Gonzalez. As pineapple becomes more commonplace, producers are going to have to get creative, and Air Pineapple is the perfect way to do this. Our ultrahigh-maturity and high-color fruits are quickly becoming consumer favorites. Air Pineapple has also allowed us to receive much higher prices for our product. Cases of pineapple shipped by air freight sold for $11.54 per case last month, which is almost double the price of cases shipped by sea, which was $6.21. Air Pineapple has added huge value to our final sales.

As demand for high-maturity and high-color fruits continues to rise, we are committed to providing more Air Pineapple than ever before. Our shipments of Air Pineapple rose 136% from July to August, which constituted 80% of our total shipments. By choosing to focus on Air Pineapple, we can increase the value of our product and carve out a niche in the competitive markets in places like Germany and the Netherlands. We have no doubt that Air Pineapple will continue to see huge success, and we intend to focus more of our efforts on providing customers with fresh, colorful, high-maturity fruits. The record is now ours to break, and we have every intention of doing just that, time and time again.

The pineapple is perhaps one of the most iconic and distinctive of all fruits. With its regal-looking crown and inimitable patterned skin, pineapple cannot be missed when walking down the supermarket aisles. Used in everything from cocktails to pizzas (albeit controversially), this delicious tropical fruit provides unique health benefits through the production of a natural chemical called bromelain, which reduces inflammation in the human body. In the last ten years, growth in global production of pineapple by volume has increased nearly four-fold to a global wholesale market close to USD 15 billion, with the fruit now outselling avocado as the most sought-after fruit in high-end markets such as the United Kingdom.

Figure 1. Pineapple volume production indices versus other fruits

Table 1. Key pineapple market figures (consumption, 2018)
	Pineapple Fruit (USD bn)[1]	Canned Pineapple (USD)
European Union	1.2	0.4
North America	1.7	0.4
Rest of the Americas	3.8	0.8
Asia	5.5	1.0
Africa	2.5	0.3
Global	14.7	2.9
Growth (1960 – 2008)	CAGR 1.5%	-
Growth (2008 – 2018)	CAGR 7.3%	-

Growth at the production stage Though Costa Rica in the Caribbean is famed for its production of pineapple fruit, canned pineapple and other subtropical fruits, in recent years, planted area of pineapple plantations have remained flat in this region. Rather, growth in pineapple production is in Central America, Africa and South America. Globally, increases in planted area have far exceeded watermelon and coconut. A great deal of this new production is for canned fruits and juices therefore often accompanied by factories.

Figure 2. Indices of planted area, 2014-17

  Costa Rica: The heart of pineapple production and supply – but for how long? The small but highly agriculturally productive country of Costa Rica accounts for over a third (35%) of all pineapple production worldwide, and the crop provides the government with its second  most profitable revenue earner after coffee. Since the mid-1980s, planted area of pineapple has increased more than ten-fold from 3,400 ha to over 40,000 ha today supporting thousands of smallholder livelihoods. However Costa Rica cannot “hold the fort” so to speak when it comes to supporting demand for pineapple worldwide. There have been shortfalls in Europe in recent years when Costa Rica has been unable to supply, and the country’s environmental situation has suffered as a consequence of large scale expansion of pineapple plantations into areas sensitive to pollution and waste. Prices Occasional supply issues amidst growing demand has led to significant spikes in the wholesale prices of pineapples in recent months, particularly in consumer markets such as the USA and Russia. In Asia, wholesale prices are steadier, however they have largely increased relative to other fruits.

Figure 3. Wholesale pineapple prices

Summary Pineapple is a relatively easy fruit to grow, with many growing locations dotted along the equator and in sub-tropical regions. New growing locations and expertise from existing agricultural economies such as Costa Rica will help to bolster supply, meet demand and keep prices stable. New production also needs to be integrated with investment into processing facilities amidst increasing demand for tinned pineapple products and juices. Markets also exist for pineapple skin as leather. [1] Calculated from volumes and checked against available market reports.