1. Weekly News

Brazil

Banana Prices Decline in Northern Minas Gerais Amid Reduced Supply

In W41, dwarf silver banana prices in Northern Minas Gerais, Brazil, dropped by 8% week-on-week (WoW), reaching USD 0.52 per kilogram (BRL 2.96/kg) for top-quality fruit. Despite the decline, this price remains 4% year-on-year (YoY) higher. The decrease is due to reduced supply due to high temperatures and the spread of Panama disease in irrigated areas. Additionally, demand for bananas from Minas Gerais remains strong, driven by production issues faced by competitors in regions like Ribeira Valley, São Paulo. As the harvest nears its end, supply is expected to decrease further.

Cameroon

Cameroon Banana Exports Surged 19.5% YoY in Sep-24

According to the Banana Association of Cameroon (ASSOBACAM), Cameroon recorded a 19.5% YoY increase in banana exports in Sep-24, exporting 24.2 thousand tons. This represents a 4.5% month-on-month (MoM) rise, driven by the collective efforts of the country's four banana producers. French conglomerate Compagnie Fruitière de Marseille led the exports through its subsidiaries, Plantations du Haut Penja (PHP) and Compagnie des bananes de Mondoni (CDBM), accounting for 81.6% of total shipments. PHP exported 18.1 thousand tons, up 14.5% YoY, while CDBM's exports surged by 194% YoY. The state-owned (Cameroon Development Corporation) (CDC) and Boh Plantations also contributed, exporting 3.1 thousand tons and 1.3 thousand tons, respectively. Bananas remain a vital export for Cameroon, with significant revenue generated from Group of Seven (G7) nations. As outlined in its National Development Strategy, the country aims to increase annual banana production to 500 thousand tons by 2030.

Colombia

Colombia's Banana Exports Rose by 15.8% YoY in Early 2024

Between Jan-24 and Jul-24, Colombia exported over 63.7 million boxes of bananas, a significant increase of 10 million boxes compared to the same period in 2023. This growth, representing a 15.8% YoY rise in export value, brought in USD 591.5 million, up from USD 510.6 million the previous year. Bananas remain a strong economic driver for regions like Urabá and Magdalena, where the industry supports 50 thousand workers. As Colombia prepares for the Fruit Attraction 2024 event in Madrid on October 8 to 10, 2024, the country aims to strengthen international trade ties and emphasize the importance of fair pricing for its high-quality, socially and environmentally sustainable bananas.

Ecuador

Ecuador's Banana Exports Drop Amid Global Supply Disruptions

According to data from Ecuador’s Association of Banana Marketing and Export (ACORBANEC), Ecuador's banana exports from Jan-24 to Aug-24 reached 244.10 million boxes, a 1.55% YoY decline. The European Union (EU) remains the largest market, absorbing 30.02% of Ecuador's bananas, followed by Russia, the Middle East, and the United States (US). Despite declines in some regions, exports surged in markets like Africa, the US, and South Korea, with the latter seeing a 236.25% YoY rise due to tariff reductions. Ecuador's production has faced challenges, including high radiation levels that stressed banana plants, reducing productivity by 15%. This disruption prompted increased exports to the US and other markets as global supply tightens. The trend of reduced production is expected to continue in the coming months due to ongoing climatic issues.

Kenya

Kenya Conducts First Africa-wide Simulation to Combat Fusarium TR4 Threat to Bananas

Kenya recently led a simulation to prepare for a potential outbreak of Fusarium Tropical Race 4 (Foc TR4), a dangerous fungus threatening global banana production. Organized by the Kenya Plant Health Inspection Service in partnership with the Food and Agriculture Organization's (FAO) International Plant Protection Convention (IPPC), the exercise included setting up quarantine zones, implementing biosecurity measures, and practicing containment strategies on a plantation near Nairobi. Bananas, a vital food source and an economic driver worth USD 10 billion annually, are under growing threat from Foc TR4, which has already impacted crops in three African countries. The first of its kind in Africa, the simulation follows similar drills in Latin America, aiming to strengthen biosecurity and protect the banana industry in Kenya and other African nations.

Nigeria

Nigeria's Banana Exports Lag Behind Global Market as Challenges Persist

Nigeria's banana and plantain export performance remains underwhelming, with exports to the United Kingdom (UK) totaling only USD 45 thousand in 2023. This contrasts sharply with the global banana market, valued at USD 140.84 billion. The Director General of the African Centre for Supply emphasized the need for Nigeria to enhance its exports, especially compared to countries like Cameroon, which saw a 15% increase in banana exports in Aug-24, reaching 16.1 thousand tons. Challenges such as poor quality and inefficient cold chains hinder Nigeria's competitiveness. Infrastructure and institutional capacity improvements are crucial for Nigeria to increase its presence in the international banana market. The global conference also highlighted primary challenges such as climate change and the spread of Fusarium wilt TR4.

Nepal

Floods Devastate Banana Farming in Sunsari, Nepal

In Sunsari, Nepal, banana farmers faced significant losses due to monsoon-induced flooding. A local farmer in Inaruwa, who invested USD 5.9 thousand (NPR 800 thousand) in banana cultivation, expected a return of USD 8.9 thousand (NPR 1.2 million) for the upcoming Chhath festival. However, floods severely damaged his crops, particularly the Madarasi (Chini Champa) variety sourced from India. The Agriculture Research Centre reported that banana cultivation across 50 hectares (ha) has been affected, with losses estimated at USD 37.1 thousand (NPR 5 million). This disaster impacted several rural municipalities, prompting farmers to seek compensation. Sunsari district's banana farming spans 510 ha.

Peru

Peru's Piura Banana Farmers Sustain Production with Water Pump Support Despite Drought

Despite the ongoing drought in Peru's Piura region, banana farmers in the Carrasco sector of La Matanza continue production efforts due to an electric water pump installed by the Regional Directorate of Agriculture (DRAP). The pump ensures a reliable water supply, allowing farmers to maintain their crops and sustain banana production. Local farmers expressed their gratitude, highlighting the importance of technical and logistical support to safeguard crop quality for local consumption and export, even amid challenging weather conditions.

Philippines

Philippines Seeks to Revive Banana Exports with South Korea FTA

The Philippines aims to revive its banana export industry through a free trade agreement (FTA) with South Korea. The country's market share for bananas in South Korea dropped to 65% in 2023, down from 98% in 2013, due to stiff competition from Vietnam and Latin American countries. The decline is attributed to Vietnam's tariff-free banana exports to South Korea, while the Philippines faces a 30% duty. Signed on Sep-23, the FTA would allow Philippine bananas to enter South Korea duty-free within five years. Still pending ratification, the FTA is expected to enhance market access and boost the Philippines' banana export industry.

2. Weekly Pricing

Weekly Banana Pricing Important Exporters (USD/kg)

Yearly Change in Banana Pricing Important Exporters (W41 2023 to W41 2024)

Ecuador

In Ecuador, banana prices increased by 4.76% WoW and MoM to USD 0.22/kg in W41. This is due to a slight improvement in supply conditions as rainy weather alleviates some of the drought's effects, leading to better production output and quality. Additionally, stronger demand from key markets such as the US and the Middle East has increased prices. However, YoY prices declined by 12%, primarily due to the long-term impact of the drought, which significantly reduced production capacity throughout 2024. Competition from more favorable supply conditions in Central America and Africa and rising logistical costs further compounded the downward trend in YoY prices.

Philippines

Banana prices in the Philippines increased by 2.34% WoW to USD 1.31/kg in W41, reflecting a 5.68% MoM rise and a 17.45% YoY increase. The price rise is driven by continued strong demand from key export markets such as Japan and South Korea. Furthermore, ongoing rainy weather exacerbated supply chain disruptions, limiting farm access and further challenging production capacity. The spread of diseases like fusarium wilt remains a significant issue, along with land use restrictions that capped the area under cultivation. These factors collectively tightened supply, pushing prices higher as producers struggled to meet rising demand.

Colombia

In Colombia, banana prices declined by 36.71% WoW and 37.50% MoM, reaching USD 0.50/kg in W41. This drop is due to improved production conditions following recent rains in drought-hit regions like Urabá and Magdalena, which boosted yields. A temporary slowdown in export demand after an earlier surge also contributed to the significant price decrease in W41. However, YoY prices increased by 21.95% due to stronger international demand, particularly from the US and European markets, where Colombian bananas remain a preferred option due to their quality. Additionally, tighter supplies in competing regions and an overall higher demand for tropical fruits globally have supported the price increase over the past year.

Guatemala

Guatemala's banana prices increased by 10.53% WoW to USD 0.21/kg in W41, with a 5% MoM increase and a 40% YoY rise due to improved weather conditions that enhanced fruit quality and export readiness. Additionally, continued strong export demand, particularly from primary US and European markets, further supported the price increase despite earlier weather-related disruptions.

3. Actionable Recommendations

Implement Flood-Resistant Practices for Banana Cultivation in Nepal

Banana farmers in Nepal should focus on implementing flood-resistant agricultural practices to minimize future losses from monsoon-induced flooding. Farmers can invest in improved drainage systems, elevated planting beds, and protective infrastructure like levees to prevent field waterlogging. Additionally, cultivating more flood-tolerant banana varieties and reinforcing local irrigation management can help protect crops during extreme weather events. By adopting these preventive measures, farmers can better safeguard their crops, ensuring more consistent yields even during adverse conditions.

Strengthen Biosecurity Measures to Safeguard Kenya's Banana Industry

Banana producers in Kenya should prioritize strengthening on-farm biosecurity measures to protect against the potential spread of Foc TR4. Producers must implement strict sanitation protocols, including disinfecting tools, equipment, and footwear while establishing quarantine zones around plantations to limit movement. Early detection through regular monitoring and quick containment strategies will also be essential in preventing the spread of this dangerous fungus and safeguarding both local and national banana production.

Adjust Supply Strategies to Address Reduced Availability in Minas Gerais

Banana producers in northern Minas Gerais should optimize their supply strategies as the harvest season nears its end and supply decreases. Producers can focus on improving crop management to mitigate the effects of Panama disease and high temperatures, ensuring consistent quality for remaining harvests. Additionally, producers should explore adjusting their sales timing and distribution channels to meet strong market demand, capitalizing on competitors' production challenges in other regions like São Paulo.

Sources: Tridge, Agraria, Agronegocios, AgroPeru, Business in Cameroon, Elcolombiano, Freshplaza, NoticiasAgricolas, PNA, The Nation, The Rising Nepal