W10: Weekly Banana Update

Ecuador

Fusarium Race 4 Increases Banana Production Costs (Mar 9)

The Costa Rican Banana Corporation (Corbana) announced, in conjunction with the Association of Banana Exporters of Ecuador (AEBE), the date of the ninth International Banana Congress in the United States, taking part on March 23-26. The general manager of Corbana and the president of the AEBE Board of Directors gave the date in a virtual meeting in which they also discussed various topics. Among the points that worry the representatives of these groups is the advance of the Fusarium Race 4 fungus, present in several countries such as Colombia (since 2019), Peru (2021), and Venezuela (2023), which causes alerts and new expenses among Ecuadorian producers.

Price Drop of Ecuadorian Bananas During W10 (Mar 10)

Ecuadorian spot prices suffered a price decrease in W10, pricing at USD 9.95/13.5kg and USD 12.35/18.14kg in W9, to USD 9.35./13.5kg box to USD 11.35/18.14kg box, all FOB, the price drop was influenced by the reduced demand from Russia, Europe, and the United States. Quality inventory remains stable.

Measures Against Fusarium Raise Costs of the Banana Box in Ecuador (Mar 11)

In Ecuador, the prevention of Fusarium Race 4 costs banana farms between USD 0.08 and 0.13/box exported, up to 20% of the support price of a banana box for 2023, depending on the implemented biosecurity measures. 

United Arab Emirates

Low Supply and High Prices of Bananas in UAE Market Provides Opportunity for Indian Exporters (Mar 8)

In the UAE market, the price of Cavendish bananas increased in W10 due high demand coupled with low supply. Resultantly, major trading companies diverted large volumes of bananas to Saudi Arabia, Kuwait and Qatar to fill the supply shortage of bananas in these countries. However, importers expect the price to remain high but stable with a likelihood that the price will increase further during the Holy Month of Ramadan as there is speculation that the supply will remain low for another 30-40 days. This provides an opportunity to reintroduce Indian Cavendish bananas in the UAE market which can benefit the traders to fill the supply gap during this period. The transit time from India to UAE is just 10 days which is an added advantage for the importers.