In W29 in the banana landscape, the Food and Agriculture Organization (FAO) has released its annual Banana Market Review. The report highlights a significant decline in global banana exports in 2022, amounting to approximately 19.1 million metric tonnes (mmt), down by 1.2 mmt compared to 2021. This decline contrasts with the fast paced-growth of the previous years. The challenges to the global banana trade primarily stem from supply-side issues, while demand in importing countries remains relatively robust despite the difficult global operating conditions.
During W29, dwarf banana prices in the North of Minas Gerais, Brazil, displayed varying trends. The nanica variety experienced a price increase due to higher demand and limited supply, at USD /kg (BRL 2.60/kg), an 18% increase from W28. In contrast, the dwarf silver variety saw a price reduction to USD (BRL 3.31/kg), a decrease of 5% due to transportation issues, cargo cancellations, and decreased demand. For the upcoming week, price stability is anticipated due to reduced consumption towards the end of July, affecting purchasing power, while banana supply remains constrained. Peruvian banana shipments experienced a significant decline, totaling 2.94 short tons (tons), a 39% decrease compared to the same week in 2022. However, the overall campaign showed positive growth, reaching nearly 119.95 tons, representing a 1% increase from the previous year. Exports were distributed among 11 destinations, with Panama receiving the highest share at 30%, the Netherlands at 26%, and South Korea at 11%.
Furthermore, over the past two months, the number of Tropical Race 4 (TR4) outbreaks has risen from 137 to 200 in various organic banana-growing regions in Piura, Peru. The runoff water from the soil of these plantations has resulted in serious health issues, with particular concern surrounding the spread of the fungus TR4, which is currently untreatable and causes wilting and death of banana plants. The fungus was detected in Quercótillo, Marcavelica, and Salitral, and its transmission to other symptomatic plants has been accelerated by recent rainfall and soil drainage. Additionally, other significant phytosanitary problems have emerged in the banana industry, such as the presence of the bacteria Erwinia Amylovora, causing soft rot and spots, and Ceramides.
At wholesale markets in Birmingham and London, United Kingdom (UK), the average weekly prices of bananas remained steady compared to W28. Bananas from Belize were priced at USD 0.88/kg (GDP 0.68/kg), while bananas from Colombia and Costa Rica were both priced at USD 1.21/kg (GDP 0.94/kg). Ecuadorian bananas were priced slightly higher at USD 1.30/kg (GDP 1.01/kg).
The Trade Minister of India aims to eliminate import duties on bananas and pineapples exported from Indonesia to other countries. These commodities, particularly from Lampung Province, have a dominant presence in the global trade market. Negotiations on the Indonesia-European Union Comprehensive Partnership Agreement (IEU CEPA) are working to facilitate this process. Lastly, the Ministry of Agriculture and Rural Development of Vietnam has decided to suspend the use of planting area codes and packing facilities for banana export shipments that do not meet China's requirements. Repeated violations will lead to suspension. Non-compliance could result in the export of products that do not meet the necessary standards, potentially leading to stricter control measures by China and other importing countries, including suspension of imports of all agricultural products from Vietnam.
