1. Weekly News

Brazil

Banana Prices Decline in Santa Catarina Due to Competition and Market Caution

In W43, dwarf banana prices in Northern Santa Catarina dropped to USD 0.38 per kilogram (BRL 2.17/kg), marking a 10% week-on-week (WoW) decrease. The price drop is due to limited buyer budgets at the month’s end and increased competition from markets like Vale do Ribeira in São Paulo. Coastal silver bananas also saw a 3% WoW decline, selling at USD 0.40/kg (BRL 2.31/kg). Despite lower prices, producers remain vigilant as an extratropical cyclone, expected to bring heavy winds and rain, may impact the Santa Catarina region, posing potential risks to local agriculture.

Costa Rica

Proposed Pesticide Law Threatens Costa Rica’s Banana Industry

The Alliance for Agricultural Sustainability (ASA) in Costa Rica opposed a new bill, Law No. 23,697, which seeks to limit aerial spraying in agricultural areas. ASA argues that the law lacks scientific basis and could severely impact banana production, a primary economic driver in the Limón province, which accounts for 83% of jobs in the Huetar Caribe area. The proposed regulation initially set a 3-kilometer (km) no-spray radius around public spaces, later reduced to 1 km, but ASA warns that this restriction could cover multiple farms and jeopardize productivity. Without consulting agricultural stakeholders, the law could push banana producers to adopt less efficient fumigation methods, potentially leading to economic losses and farm closures across Costa Rica.

Cuba

Hurricane Oscar Devastates Banana Plantations in Guantánamo, Cuba

Hurricane Oscar has severely affected agriculture in Cuba’s Guantánamo province, with banana plantations suffering extensive damage of approximately 50% overall. In the hardest-hit municipalities of Maisí and Baracoa, the damage has risen to 70 to 80%, where many trees have been uprooted. Additionally, 200 hectares (ha) of tomatoes were destroyed in the Valle de Caujerí area. In response, two brigades equipped with chainsaws are being sent to open roads to assist with cleanup while reinforcement teams work to salvage any remaining food supplies. Although the hurricane has weakened to a tropical storm, its slow west-southwest movement continues to bring heavy rains to the region.

Laos

First Shipment of Fresh Bananas from Laos Reaches Beijing via the China-Laos Railway

In a significant milestone for regional trade, the first shipment of fresh bananas from Laos arrived in Beijing via the China-Laos Railway, demonstrating the railway’s new cold-chain logistics capabilities. Transporting 390 tons from Vientiane to Beijing, this international cold-chain train ensures optimal freshness and cost efficiency for bananas, which are in high demand in China due to the high quality and steady supply resulting from ideal cultivation conditions in Laos. Regular cold-chain operations are set to begin by Dec-24, enhancing fruit trade and also electronics and other goods across China, Laos, and Southeast Asia. This achievement underscores the strengthened economic ties between China and Laos, celebrating the 15th anniversary of their Comprehensive Strategic Partnership within the Belt and Road Initiative.

Russia

Temporary Drop in Russian Banana Prices Due to Supply Issues in Ecuador

Banana prices in Russia have recently fallen from USD 1.66 to 1.24/kg due to decreased demand, but this drop is expected to be temporary, with prices anticipated to rise next month. The instability stems from supply issues in Ecuador, Russia's primary banana supplier, which faced drought and poor harvests, significantly impacting production. Ecuadorian producers have seen weekly wholesale price fluctuations increase from USD 0.50 to up to USD 2, complicating price predictions and supply planning. Ecuadorian producers are negotiating with the government to raise the official banana price from USD 6.65 to USD 8.50/box to stabilize the industry. Russian suppliers have already indicated that higher prices are likely forthcoming.

Senegal

Flooding in Gouloumbou Threatens Senegal's Banana Supply

In Gouloumbou, Senegal, flooding from the Gambia River devastated 26 ha of banana crops, severely impacting local farmers and jeopardizing the nation's banana supply. This region produces 83% of Senegal's bananas and experienced significant crop losses. For instance, a farmer managing a 70-ha plantation reported extensive damage, resulting in financial losses, as each ha yields about 40 tons of bananas valued at USD 412.22/ton. Furthermore, flooded roads have obstructed farm access, hindering essential fieldwork. Since September 10, 2024, the situation deteriorated, prompting urgent calls for government intervention to restore access, aid recovery efforts, and stabilize the banana industry.

South Africa

High Banana Prices Strain South Africa’s Market Due to Supply Challenges

Banana prices in South Africa surged to unprecedented levels, causing school feeding programs to stop banana purchases and putting informal traders under financial pressure, with even lower-grade bananas now exceeding USD 11.29/box (ZAR 200/box). Eswatini, a key banana supplier in Southern Africa, has been impacted by Tropical Cyclone Freddy’s record-breaking effects in 2023 and a severe frost in Jul-24, which has limited supply and increased prices. Extra-large bananas now reach USD 16.94/18 kg (ZAR 300/18 kg) in Gauteng, with the Cape region facing even higher costs due to distance from production areas. Heightened by insufficient ripening chamber capacity in markets, the shortage is expected to persist until Mar-25, prolonging high prices and affecting quality.

Turkey

Turkey Aims to Exceed One Million Tons of Banana Production by 2024

In 2024, Turkey aims to surpass one million tons of banana production, building on a remarkable surge that nearly quadrupled output to approximately 930 thousand tons in 2023. The Turkish government has recently provided financial subsidies, low-interest loans, and technical assistance to encourage greenhouse farming in coastal areas like Manavgat, Alanya, and Gazipaşa. These incentives boost year-round production, improve crop resilience, and strengthen local economies. Greenhouse production has expanded significantly, covering over 20 thousand acres in Manavgat alone, making bananas economically viable throughout the year. Producers enjoy stable prices averaging around USD 1/kg, and advancements in automated irrigation reduce water consumption through efficient drip and sprinkler systems.

2. Weekly Pricing

Weekly Banana Pricing Important Exporters (USD/kg)

Yearly Change in Banana Pricing Important Exporters (W43 2023 to W43 2024)

Ecuador

In Ecuador, banana prices remained at USD 0.23/kg in W43, reflecting a 9.52% month-on-month (MoM) increase due to previous production drops caused by drought conditions. While recent rainfall has begun to alleviate the drought's impact on production output and quality, the market continues to experience tight supply levels. This scarcity has supported the price increase despite improvements in overall supply conditions. The sustained demand from key markets, particularly the United States (US) and the Middle East, has also supported this price stability. However, year-on-year (YoY) prices declined by 8% due to the lingering effects of the prolonged drought in 2024, which had already constrained production capacity last year. Despite the current improvements in supply conditions, the overall market remains sensitive to historical drought impacts. Increased competition from Central America and Africa and rising logistical costs have further compounded this decline.

Philippines

Banana prices in the Philippines increased slightly by 0.81% WoW to USD 1.25/kg in W43, reflecting a 6.84% YoY rise. This is due to ongoing supply chain disruptions caused by severe typhoons, which have limited farm access and exacerbated existing challenges such as disease outbreaks and land use restrictions. Despite these adverse conditions, strong demand from key export markets like Japan and South Korea helped sustain prices, as producers face tighter supplies that support the upward trend in YoY prices.

Colombia

In W43, Colombia's banana prices fell significantly by 12.5% WoW, reaching USD 0.42/kg. This decline was even more pronounced on a MoM basis, with a drop of 46.84% due to a sudden oversupply in the market following improved production conditions. Recent rains alleviated the effects of a prolonged drought, boosting soil moisture levels and enhancing banana plant health. This resulted in better fruit quality and increased yields, as the rains encouraged nutrient uptake in the plants, leading to more uniform growth and ripening. This increase in supply coincided with a temporary slowdown in export demand after a previous surge, contributing to downward pressure on prices.

Guatemala

Banana prices in Guatemala remained stable at USD 0.21/kg in W43, with a 10.53% MoM increase and a 40% YoY rise due to sustained strong export demand from primary markets, particularly the US and Europe. This demand continues to support price levels despite previous weather-related disruptions. Additionally, improved weather conditions have further enhanced fruit quality and export readiness, enabling producers to meet ongoing demand effectively at higher prices. The price resilience also reflects the growing appeal of Guatemalan bananas in the international market, contributing to the overall positive trend.

3. Actionable Recommendations

Implement Strategic Supply Chain Adjustments for Banana Prices

Ecuadorian banana producers should implement strategic supply chain adjustments to mitigate the impact of fluctuating prices and demand in the Russian market. This involves enhancing communication with Russian suppliers to forecast demand more accurately and adjust shipment schedules accordingly. Producers should also explore diversifying export markets to reduce reliance on Russia and stabilize revenue streams. Additionally, collaborating with local transportation and logistics providers will ensure timely delivery and minimize losses from supply disruptions. These proactive measures will help producers maintain competitive pricing and market stability in the face of ongoing challenges.

Diversify Sourcing and Develop Local Partnerships

South African banana producers should diversify their sourcing strategies by developing partnerships with local farmers and suppliers in Eswatini and other neighboring countries to secure alternative supplies. This approach will help mitigate the impact of extreme weather events on production and ensure a more stable supply chain. Additionally, collaborating with local communities to implement sustainable farming practices can enhance resilience against climate-related disruptions while fostering goodwill and strengthening regional relationships. By focusing on local partnerships, producers can better manage risks and maintain consistent supply despite external challenges.

Implement Emergency Recovery Plans for Affected Farmers

Local agricultural cooperatives in Gouloumbou should implement emergency recovery plans to support farmers impacted by the flooding from the Gambia River. This should include immediate financial assistance to cover losses and facilitate access to essential resources such as seeds, tools, and equipment. Additionally, organizing workshops to educate farmers on flood-resistant agricultural practices can help mitigate future risks. By mobilizing community support and resources quickly, cooperatives can aid recovery efforts and stabilize the banana supply chain in the region.

Sources: Tridge, Cepea/Fruit and Vegetables, CiberCuba, DHA, NoticiasAgricolas, Sondakika, MXfruit