W12 Banana Update: Ecuador's Banana Exports Decline in Jan-24, EU Banana Production Forecast for 2024, Peruvian Banana Exports Surge Amidst Global Market Shifts

Published 2024년 3월 27일

In W12 in the banana landscape, Ecuador's banana exports declined by 12.9% YoY in Jan-24 due to climate change, increased prices, and economic issues in Russia. Moreover, ACORBANEC reported a 15% decline in banana production in Ecuador. Peruvian banana exports increased 11.2% YoY in Feb-24, primarily from the Netherlands, Panama, Italy, Belgium, and the US. APHIS and CBP revised import regulations for fresh bananas and plantains. Lastly, EU banana production is expected to reach 227 thousand mt in 2024.

ACORBANEC Reports 15% Production Decline in Ecuadorian Bananas Due to Climate Change and Price Increase

Ecuadorian banana exports declined by 12.9% year-over-year (YoY) in Jan-24, with the export value of USD 331 million, a decrease from over USD 380 million in Jan-23. Factors contributing to this decline include climate change, an increase in banana prices, and the economic situation in Russia. The Banana Marketing and Export Association (ACORBANEC) reported a 15% decline in production due to climate change, an increase in official banana prices, and a 15% reduction in Ecuador's banana imports in Russia. The Suez Canal incident also contributed to the decline, with only 75% of European Union (EU) buyers renewing contracts with Ecuador, losing market share to competitors.

Ecuador and China to Implement Free Trade Agreement on May 1, 2024

Ecuador's Minister of Production and Foreign Trade has announced that the free trade agreement with China will be effective on May 1, 2024. Signed on May 11, 2023, the agreement was approved by the President in Feb-24. China is Ecuador's second most important export market, with exports reaching USD 5.6 billion in 2023. Under the agreement, tariffs on 90% of tax items will be mutually canceled, with 60% eliminated immediately upon implementation. 99% of Ecuador's exports to China will eventually enjoy zero tariffs, with tariffs on products like bananas, white shrimp, fish, flowers, cocoa, and coffee gradually reduced from 5% to 20% to zero.

Peruvian Banana Exports Rise 11.2% YoY in Feb-24

In Feb-24, Peruvian banana exports reached 15.5 thousand, an 11.2% YoY increase. The demand was primarily from the Netherlands, Panama, Italy, Belgium, and the United States (US). Moreover, the Cavendish variety dominated with 28.7% of exported bananas, followed by the Green with 41.9%. Fresh bananas accounted for 96.8% of the total, while processed bananas constituted 3.2%.

APHIS and CBP Revise Protocol for Bananas and Plantains Imports Effective on W12

The Animal & Plant Health Inspection Service (APHIS) Office of Plant Protection and Quarantine (PPQ) and the United States Department of Homeland Security's Customs and Border Protection (CBP) have revised import regulations for fresh bananas and plantains. The new protocol effective from W12 will expand the risk-based sampling program at ports of entry (RBS POE) to reduce inspections of goods that comply with current pests and disease regulations. The protocol extension applies to maritime shipments from Belize, Colombia, Costa Rica, the Dominican Republic, Ecuador, Guatemala, Honduras, Nicaragua, Panama, and Peru.

The First Batch of India’s Banana Exports Arrived in Russia in Mar-24

The first batch of the 22-ton shipment of Indian bananas to Russia arrived safely, comprising over 1.5 thousand boxes. The bananas were loaded in a refrigerated container at a warehouse in Maharashtra and then transported to Mumbai's Nava Sheva port. From there, the container was loaded onto the Fesco ship, which set sail for Novorossiysk on February 18, 2024. After completing all required customs and quarantine procedures, the container will be transported by road to the customer's warehouse. Another batch of bananas from India to Russia was shipped on March 12.

EU Banana Production Forecast for 2024

In 2024, EU banana production is expected to reach 227 thousand metric tons (mt) from Jan-24 to Apr-24 and 219 thousand mt from May-24 to Aug-24. In 2023, the EU's banana supply totaled 5.7 million metric tons (mmt). Moreover, the average wholesale price of European bananas in W11 stood at USD 146.05 per 100 kilogram (EUR 135/100 kg) in Spain. Banana prices from Latin America stood at an average wholesale price of USD 130.90/100 kg (EUR 121/100 kg) in Austria, USD 103.85/100 kg (EUR 96/100 kg) in Belgium, USD 133.06/100 kg (EUR 123/100 kg) in Italy, and USD (EUR 113/100 kg) in France.