1. Weekly News

China

Decline in China's Banana Imports Despite Growth from Vietnam and Laos

In Sep-24, China imported 105 thousand tons of bananas, a 13.82% year-on-year (YoY) decrease, valued at USD 62.8 million. From Jan-24 to Sep-24, imports totaled 1.2 million tons, down 8.5% YoY, with a value of USD 650 million, marking a 22.44% YoY decline. The primary suppliers included Vietnam, the Philippines, Cambodia, Ecuador, and Laos. Notably, only Vietnam and Laos saw growth in exports, with Laos leading at a 129.88% YoY increase. Laos' favorable climate, improved banana quality, and the efficient Beijing-Laos Railway have boosted exports, enhancing market share in Beijing through competitive pricing and reliable cold-chain logistics.

Bangladesh

Rising Banana Cultivation in Gaibandha District, Bangladesh

In Gaibandha, Bangladesh, banana farming is becoming popular due to its low input costs and high profitability, which are supported by favorable soil and climate conditions. The area dedicated to banana cultivation increased to 1 thousand hectares (ha) in 2024, up from 760 ha in 2023, with expansion noted across several Upazilas, including Gaibandha Sadar, Sadullapur, and Palashbari. Farmers are increasingly drawn to this crop due to its lucrative returns. The Department of Agricultural Extension (DAE) projects continued growth in banana cultivation, driven by strong demand and economic benefits for local farmers.

Bolivia

Hurricane-Force Winds Devastate Banana Plantations in Bolivia

In Chimoré, Cochabamba, Bolivia, hurricane-force winds and heavy rain destroyed more than 100 ha of export banana crops. Local reports indicate the severe weather also damaged other crops, including pineapples and papayas. The recent storm marks the first significant weather disruption in the area in over a decade. Compounding the crisis, ongoing blockades due to political unrest and protests have already hindered banana exports, preventing the shipment of 120 truckloads daily to Argentina, Chile, and Uruguay. Each truckload is valued at approximately USD 15 thousand, worsening the financial impact on producers facing weather-related crop losses and disruptions in export logistics.

Nepal

Increased Banana Imports to Nepal for the Chhath Festival

For the Chhath festival in Janakpurdham, Nepal, bananas worth approximately USD 403.2 thousand have been imported from India, marking an increase from last year's imports of USD 322.5 thousand. Due to insufficient local supply, bananas are sourced from regions such as Assam, West Bengal, and Champaran. The rising demand for bananas led to a 20% YoY price increase, with costs now ranging between USD 4.03 and USD 8.06 per spike. Despite the potential for local production, Indian imports continue to dominate due to their lower costs.

Philippines

Typhoon Marce Causes Damage to Banana Plantations in the Philippines

Heavy rains and strong winds from Typhoon Marce severely impacted banana plantations in Antipas, Cotabato, Philippines, damaging over 8 ha. The Municipal Disaster Risk Reduction and Management Office (MDRRMO) reported that 8.2 ha in Barangay Canaan and 0.16 ha in Barangay Magsaysay were affected, compromising between 800 to 1 thousand banana trees and impacting around 15 farmers. The Municipal Agriculture Office estimated the financial loss to be over USD 85,132 (PHP 5 million). The damage assessment indicates scattered impacts due to swift-moving winds during the storm.

Spain

Record Cocaine Seizure in Spain Found Hidden Among Bananas

In Spain's largest-ever drug seizure, authorities confiscated 13 tons of cocaine concealed in banana crates from a container ship that arrived in the port of Algeciras on October 14, 2024. The vessel had departed from Guayaquil, Ecuador, a known hotspot for drug trafficking. Ecuadorian law enforcement provided intelligence that prompted the operation, during which agents discovered the narcotics hidden in specially designed boxes identical to those used for transporting bananas. One suspect linked to the importing company was arrested in Toledo, while two others remain at large. Spain's strategic location makes it a key entry point for narcotics entering Europe, highlighting the ongoing challenge of drug smuggling in commercial shipments.

Saint Lucia

Saint Lucia Ships First Premium Bananas to Canada to Boost Exports

Saint Lucia launched its first shipment of premium bananas to Canada through the National Fair-Trade Organization (NFTO), supporting Caricom's 25 by 25 initiative to reduce import reliance and promote Caribbean exports. Known for its rich biodiversity, Saint Lucia produces high-quality bananas using sustainable cultivation techniques such as integrated pest management, organic farming practices, and mulching to retain soil moisture and improve soil fertility. These methods are part of the island's commitment to environmental sustainability and have become a feature at national events like Taste Saint Lucia. In Oct-24, 60 local businesses, including banana producers, showcased their products, drawing international attention. Exporting these premium bananas and other crops like dasheen aims to strengthen Saint Lucia's economic independence and support its local farmers.

2. Weekly Pricing

Weekly Banana Pricing Important Exporters (USD/kg)

Yearly Change in Banana Pricing Important Exporters (W45 2023 to W45 2024)

Ecuador

Banana prices in Ecuador increased by 4.35% week-on-week (WoW), month-on-month (MoM), and YoY in W45 due to stronger demand ahead of the Banana Business event in Machala, which boosted interest in Ecuadorian bananas. Stabilized production following recent rainfall and steady demand from key export markets like the United States (US) and the Middle East supported the price increase despite ongoing competition and logistical challenges.

Philippines

In the Philippines, banana prices dropped by 1.59% WoW to USD 0.24 per kilogram (kg) in W45, with no MoM and YoY change due to a slight recovery in supply following earlier weather disruptions from Typhoon Marce. While the storm’s impact on plantations in Antipas and nearby areas continues to affect production, the market has seen stabilization as farmers begin to resume operations. Despite the challenges, strong demand from export markets like Japan and South Korea helped maintain price levels, limiting further price fluctuations.

Colombia

In W45, banana prices in Colombia fell by 8.70% WoW to USD 0.42/kg, a decline of 12.5% MoM and 4.55% YoY due to an oversupply in the market following improved production conditions and recent rains that boosted yields. While export demand remained steady, especially from key markets like the US and Europe, the increased supply overwhelmed the demand, leading to a price drop. The decrease reflects seasonal adjustments and ongoing market pressures from enhanced production levels.

Guatemala

Guatemala's banana prices remained stable at USD 0.21/kg in W45, with a 31.25% YoY increase due to sustained strong export demand, particularly from key markets such as the US and Europe. Despite no significant change in the current week, the continued appeal of Guatemalan bananas in the global market, along with improved weather conditions that enhanced fruit quality, helped maintain price stability. This consistent demand has been a primary factor in supporting the YoY price increase.

3. Actionable Recommendations

Rapid Recovery Strategies and Support for Affected Banana Farmers

Banana farmers in the Philippines should prioritize damage assessment and recovery strategies by replanting damaged banana trees and restoring farm infrastructure. Farmers should explore available support options, including financial assistance and technical guidance on minimizing losses and accelerating regrowth. The local agricultural teams should also assess crop insurance claims to mitigate economic losses from Typhoon Marce’s impact. Ensuring timely recovery efforts will help reduce the long-term effects on yields and improve the resilience of banana plantations to future storms.

Increase Local Banana Production to Meet the Growing Demand

Banana producers in Nepal should focus on scaling up local production to meet the growing demand for bananas during primary events like the Chhath festival. Producers can reduce dependency on imports by investing in better farming practices and expanding cultivation in regions with the potential for higher yields. Additionally, improving storage and transportation infrastructure will help address seasonal shortages and maintain consistent supply. Local farmers and cooperatives should explore ways to make local bananas more cost-competitive to reduce reliance on Indian imports and strengthen the domestic market.

Strengthen Laos' Competitive Position in the Chinese Banana Market

Banana exporters from Laos should continue to leverage the country's favorable climate, improved banana quality, and efficient logistics, notably the Beijing-Laos Railway, to maintain and expand their market share in China. By further enhancing cold-chain logistics and competitive pricing, exporters can take advantage of the growing demand in China, especially in key markets like Beijing. Exporters should also explore additional partnerships and market diversification to ensure long-term growth while enhancing the visibility of Laos bananas in the Chinese market.

Sources: Tridge, CBS News, Financial Express, GMA Network, Guojiguoshu, Khabarhub, La-razon, PML Daily, WIC News