1. Weekly News

Global

World Bank Partners with Global Alliance to Combat Foc TR4 Threatening Banana Production

The World Bank has partnered with the Global Alliance against Fusarium Tropical race 4 (Foc TR4), an international coalition dedicated to combating the devastating banana disease that jeopardizes food security and the livelihoods of small-scale farmers worldwide. Foc TR4, a harmful strain of fungus affecting banana production, has spread to countries such as Colombia, Peru, and Venezuela. During a recent meeting in Panama, the World Bank committed to supporting initiatives in Ecuador focused on developing resistant banana varieties, enhancing biosecurity measures, and conducting plant health studies. This collaboration seeks to protect global banana supplies while helping small farmers adopt sustainable practices.

Ecuador

Drought and Disease Hamper Ecuador's Banana Industry

The banana industry in Ecuador faces significant challenges due to severe droughts and the spread of Moko disease, particularly in the El Oro region. These issues are compounded by government-imposed power cuts affecting half of the country, though port operations remain unaffected thanks to generators. The reduced production these problems caused has led to higher banana prices despite relatively stable global demand. Ecuador's main export markets include Algeria, the Middle East, Europe, and Russia, where demand continues to grow despite ongoing challenges.

Europe

European Banana Producers Advocate for Increased Aid Amid Rising Costs and Challenges

Banana producers from the Canary Islands, Martinique, Guadeloupe, and Madeira developed a new action plan to address their concerns to the European Parliament and Commission. Representing over 30 thousand workers, these small-scale producers face rising production costs, the impacts of climate change, and competition from non-European Union (EU) countries. Their primary objective is to secure increased funding through the Program of Special Options for Island Remoteness and Insular Nature in French (POSEI) aid program, which supports banana production in the outermost EU regions, including Spain, France, and Portugal. Moreover, there will be a meeting with EU officials in Brussels on Oct-24 to raise awareness and advocate for crucial support mechanisms to sustain the banana industry.

Jamaica

Jamaica's Banana Supply Expected to Rebound by 2025 Following Hurricane Impact

Jamaica's banana and plantain supply is expected to normalize by Feb-25, following the destruction caused by Hurricane Beryl, which affected 64% of crops in production. The agricultural industry contributes over USD 13 billion annually to the country's economy and has initiated recovery efforts totaling more than USD 1.8 billion. The Banana Board has provided USD 40 million to 2.3 thousand farmers, while an additional USD 38 million has been allocated to small-scale farmers. According to the Agriculture Ministry, full recovery will take seven months.

Malawi

Malawi's Banana Industry Rebounds Amid Challenges

Malawi's banana industry is recovering from the devastation caused by the banana bunchy top virus (BBTV), which wiped out local varieties and impacted the livelihoods of nearly 200 thousand farmers. In collaboration with the Malawian government, the Food and Agriculture Organization of the United Nations (FAO) has introduced BBTV-free banana varieties through initiatives such as the Special Agricultural Product program and Kulima programs. Despite facing competition from lower-quality imports from Tanzania and Mozambique, local production is showing promise. The Chinese government's initiative to establish banana orchards in schools also supports the recovery by boosting production and offering educational benefits.

Philippines

Philippines Launches Initiative to Increase Banana Production in Central Visayas

Bananas rank among the top five agricultural exports of the Philippines. The Department of Agriculture (DA) has launched a new initiative to enhance banana production in Central Visayas, recognizing the fruit's significance as a vital agricultural commodity supporting farmers' livelihoods and regional economic growth. The DA is promoting a "Banana Package of Technology," which includes "Banana Cultural Management and Practices" designed to boost yields. This strategy emphasizes the use of stem cuttings for propagation, offering a variety of banana types that are more productive and adaptable to different soil conditions, moving away from the traditional "saha" or shoot method. The "saha" method involves propagating banana plants by planting suckers, or shoots, from the base of existing plants. While widely used, this approach can lead to lower yields and reduced adaptability. In contrast, the new initiative seeks to enhance overall productivity. The Philippines is notably a significant exporter of Cavendish bananas, primarily cultivated in Mindanao.

Zimbabwe

Climate Change Devastates Banana Farming in Zimbabwe

Banana farming in Zimbabwe faces severe challenges due to climate change, as erratic weather patterns and El Niño-induced droughts drastically reduce crop yields. Farmers, such as a 65-year-old grower in Zimbabwe who once supplied fresh bananas and provided jobs for local youth, now struggle to survive amid harsh conditions. To adapt, farmers are exploring drought-resistant crops, implementing irrigation systems, and adopting climate-resilient farming practices, but the financial burden remains substantial. The government’s National Climate Change Response Strategy aims to promote sustainable practices to help farmers like him combat these challenges and build resilience for the future.

2. Weekly Pricing

Weekly Banana Pricing Important Exporters (USD/kg)

Yearly Change in Banana Pricing Important Exporters (W39 2023 to W39 2024)

Ecuador

Banana prices in Ecuador decreased by 4.55% week-on-week (WoW) to USD 0.21 per kilogram (kg) in W39, with a 12.5% year-on-year (YoY) decline. These declines are due to weakened demand in key markets, such as Europe and the Middle East, where economic pressures and trade disruptions slowed purchasing activity. Despite ongoing production challenges from drought, Moko disease, and power cuts, the supply has not been significantly impacted, leading to a price drop instead of the expected rise.

Philippines

In the Philippines, banana prices slightly decreased by 0.79% WoW and MoM to USD 1.25/kg in W39. This slight decrease is due to improved supply conditions, as favorable weather in recent weeks helped boost production, particularly in Central Visayas. However, there is a 13.64% YoY increase due to ongoing supply constraints earlier in the year, driven by weather disruptions, which continue to keep prices elevated compared to last year despite recent improvements.

Colombia

Colombia's banana prices declined by 10% WoW to USD 0.72/kg in W39. This is due to improved harvesting conditions following a temporary break in the persistent rains, allowing supply levels to recover slightly. However, MoM and YoY prices increased by 26.32% and 60%, respectively due to prolonged weather disruptions earlier in the season, which significantly impacted production, keeping prices elevated compared to previous months and last year.

Guatemala

In W39, Guatemalan banana prices remained steady at USD 0.20/kg since W36, with no MoM change and a continued 25% YoY increase. This stability reflects ongoing strong demand despite adverse weather conditions, with heavy rainfall and thunderstorms in the region impacting production. Nevertheless, Guatemala remains a reliable supply source, helping to maintain price levels even as other key exporting areas face more significant production challenges.

3. Actionable Recommendations

Implement Efficient Recovery Strategies for Banana Farmers

Jamaica’s Banana Board should prioritize distributing the recovery funds and resources to affected farmers to expedite Jamaica's banana and plantain supply normalization by 2025. This includes providing targeted training and support to enhance crop resilience against future natural disasters. By streamlining recovery efforts and ensuring timely access to resources, the Banana Board can facilitate faster recovery and strengthen the agricultural sector's economic contribution.

Strengthen Disease Management Practices

Ecuadorian banana producers should implement enhanced disease management practices to combat the spread of Moko disease, particularly in the El Oro region. Farmers must collaborate with agricultural experts to develop and adopt resistant banana varieties, improve sanitation, and utilize integrated pest management strategies. Despite current challenges, this proactive approach will help stabilize production levels and maintain competitiveness in export markets.

Collaborate for Shared Resources and Knowledge

Banana producers in Zimbabwe should form cooperatives to pool financial resources by contributing collectively to fund essential tools like irrigation systems and drought-resistant seeds. Sharing equipment, such as tractors and water pumps, can reduce individual costs, while regular meetings and workshops within the cooperative can help exchange knowledge on effective climate-resilient farming practices. This collaborative approach will help farmers adapt more efficiently to the challenges posed by climate change.

Sources: Tridge, Caribbean News Service, Club of Mozambique, Freshplaza, Loop News, News Day, Philippine News Agency, Plátano de Canarias