The Price of Bananas in France Keeps Rising Due to Low Global Supply

The price of bananas in France is increasing on a daily basis. Usually during the European summer, bananas are sold around USD 8.50/box, but this year the prices doubled. The situation has however deteriorated with prices increasing significantly going into W37. Bananas were trading at USD 19.49/box FCA France at the start of W37. It appears that Ecuador is leading the price increase charge due to high demand from the US.

In general, Guatemala supplies around 40% of the US demand for bananas. However, this year Guatemala had quality issues related to adverse weather conditions. Consequently, the US turned to Ecuador as an alternative source of bananas. The price of bananas from Ecuador increased, and keeps increasing on a daily basis. Other origins followed with price increases. This situation makes it difficult to source bananas on a fixed price contract basis as producers prefer the comparatively higher spot prices.