1. Weekly News

Dominican Republic

Dominican Republic Aided Banana Farmers After Tornado Damage

After a devastating tornado destroyed thousands of acres of banana plantations, the Dominican Republic's Minister of Agriculture assisted the affected producers. This intervention was part of a broader directive from the President, who instructed the agricultural industry to offer comprehensive support to the impacted farmers. The Dominican Association of Banana Producers (ADOPLATANO) publicly expressed their gratitude for the government's quick and effective response, highlighting the importance of these interventions in mitigating the disaster's impact and ensuring the stability of the banana industry in the country.

Ecuador

Ecuadorian Banana Exports Declined by 1.46% YoY From Jan-24 to May-24 Amid Rising Prices

Ecuador's banana exports dropped by 1.46% year-over-year (YoY) from Jan-24 to May-24 due to higher fruit prices following a minimum support price increase to USD 6.85 per 22XU box. Due to production issues in Ecuador, the European Union (EU) reduced its purchases by 16.43% YoY, opting to source more bananas from Colombia and Central America. Despite these challenges, Ecuador exported 160.45 million boxes of bananas from Jan-24 to May-24.

Russia, a significant buyer of Ecuadorian bananas, reduced its banana imports by 17.72% YoY in the same period, mainly due to the high cost of the banana. Meanwhile, the Panama Canal experienced transit issues in early 2024, leading to increased shipping costs and delays, particularly impacting shipments to Russia. Moreover, Houthi attacks on cargo ships in the Red Sea in Jan-24 further disrupted shipping routes and raised logistical costs. Additionally, Ecuador faced challenges when Russian authorities suspended banana certifications for five exporting companies, citing international and Russian phytosanitary standards violations.

Egypt

Extreme Heat Damaged Banana Crops in Egypt's Southern Regions

Farmers in southern Upper Egypt face significant losses in their banana and mango crops due to extreme heat, with temperatures exceeding 50 degrees during the Eid al-Adha period. This heat has caused premature banana tree falls and mango fruit spoilage. The Ministry of Agriculture anticipates record mango production of 1.2 million tons, with exports expected to reach 100 thousand tons.

Peru

Banana Exports from Peru Dropped by 43% YoY in 2024

After months of stable weekly banana shipments exceeding 3 thousand tons, Peru exported only 1.8 thousand tons in W24. This represents a 59% week-over-week (WoW) decrease and a 43% YoY decline. So far, Peru has exported 81 thousand tons of bananas in 2024, a 15% YoY decline. This drop is mainly due to Peruvian bananas failing to reach primary markets, including Panama, the second-largest buyer with over a 20% share in 2024. Italy, South Korea, and the United States (US) also reported significantly lower purchases than in previous weeks. The top three markets were the Netherlands, with a 68% market share; South Korea, with an 8.1% market share; and Italy, with a 7.7% market share. In the Netherlands, weekly banana purchases fell behind other countries, reaching 1.2 thousand mt, a 0.5% drop compared to W23. South Korea purchased 148 tons, reflecting a 77% drop, while Italy's purchases totaled 140 tons, a 41% reduction.

Philippines

Philippines Approves Genetically Modified Bananas to Reduce Browning

The Philippines has granted Certificates of Non-Coverage to Tropic Biosciences for their non-browning bananas, TRB011001 and TRB011002, developed using the CRISPR-Cas9 gene editing system. These bananas could significantly reduce food waste and Carbon dioxide (CO2) emissions, with an impact equivalent to removing 2 million cars from the roads annually. In 2023, another non-browning banana from Tropic Biosciences was granted the same certification. Additionally, Sanatech Seed's Sicilian Rouge tomato, which has high levels of gamma-aminobutyric acid, received approval in 2024. This decision paves the way for genetically modified crops to be imported and cultivated in the country.

2. Weekly Pricing

Weekly Banana Pricing Important Exporters (USD/kg)

Yearly Change in Banana Pricing Important Exporters (W26 2023 to W26 2024)

Ecuador

In Ecuador, banana prices significantly surged by 31.25% WoW to USD 0.21 per kilogram (kg) in W26, up from USD 0.16/kg in W25. This notable increase is driven by renewed export demand or improved market conditions following previous fluctuations. However, there is an 8.7% MoM and YoY decrease, indicating short-term and YoY pricing adjustments amidst ongoing market challenges and seasonal variations in banana production and export dynamics.

Philippines

Philippine banana prices in W26 have rebounded to USD 1.22/kg, returning to the previous price seen in W24. Moreover, there is a significant increase in month-on-month (MoM) and YoY prices, rising by 6.05% and 32.55%, respectively. This uptick reflects robust market demand and improved supply conditions following previous fluctuations. The MoM and YoY increases indicate sustained strong consumer interest and ongoing supply challenges stemming from environmental impacts on banana plantations, including recent weather disturbances affecting production in the Philippines.

Colombia

In W26, banana prices in Colombia increased slightly by 1.85% WoW to USD 0.55/kg. However, there was a MoM decrease of 6.78%. Despite this, prices saw a 13.59% YoY increase. The slight WoW increase is due to short-term market adjustments or seasonal fluctuations in supply and demand dynamics within Colombia. Conversely, the MoM decrease reflects temporary factors like improved local supply or competitive pricing strategies to maintain market share. The YoY increase indicates ongoing challenges, such as the impact of Fusarium TR4 on banana yields and broader seasonal variations affecting supply chain stability in the region. Ongoing efforts to combat Fusarium TR4 in Colombia and neighboring countries underscore the complexities influencing banana prices and market dynamics in South America.

Guatemala

The prices of bananas in Guatemala held steady at USD 0.17/kg in W26, consistent with W23. However, there was a 3.86% MoM increase. This stability amid a modest monthly increase reflects the market's response to ongoing low-season conditions, which traditionally limit supply. The MoM rise indicates sustained demand dynamics and reduced availability, continuing trends observed in previous periods.

3. Actionable Recommendations

Enhancing Peru's Banana Export Strategy Amidst Declining Shipments

Peru should diversify export destinations and enhance promotional efforts to stabilize banana exports amidst recent declines. Strengthening logistics and supply chain efficiency is crucial to ensure timely deliveries and maintain product quality. Collaborating with research institutions can improve banana varieties and sustainability practices, ensuring long-term market competitiveness and profitability.

Mitigating Crop Losses and Enhancing Resilience in Southern Upper Egypt

The Ministry of Agriculture in Egypt should prioritize immediate support measures for farmers in southern Upper Egypt affected by extreme heat. This includes providing shade structures and implementing irrigation strategies to mitigate crop damage. Additionally, promoting indigenous mango varieties that are resilient to local conditions can help stabilize prices and ensure sustainable production amidst climate challenges. Collaborating with agricultural experts to develop heat-tolerant farming practices and offering financial aid for recovery efforts will be crucial in safeguarding the region's banana and mango industries against future climate extremes.

Recovery Strategy for Banana Producers in the Dominican Republic

In response to the recent tornado devastation affecting banana producers in the Dominican Republic, the Ministry of Agriculture should swiftly implement a comprehensive recovery plan. This plan should include immediate financial assistance to affected farmers for replanting and infrastructure restoration. Collaborating closely with ADOPLATANO, the government should prioritize delivering essential resources such as seedlings, equipment, and technical expertise to expedite rehabilitation efforts. Establishing long-term resilience measures, such as weather-resistant farming techniques and insurance schemes, will safeguard the sector against future natural disasters.

Sources: Tridge, Freshplaza, Agrodigital, Almalnews, Tropic, Agraria, MXfruit, PortalFruticola