Weekly Product Updates

W44: Banana Update

Fresh Banana
Published Nov 10, 2023

In W44 in the banana landscape, in Oct-23, fresh banana prices remained stable in Ecuador and the United States (US), with a balance of domestic supply and international demand, particularly in Ecuador. However, there is uncertainty due to pending price agreements for 2024, prompting government intervention. In contrast, European countries experienced lower banana prices in Oct-23, driven by increased imports from African nations. China's growing demand and improved logistics with Vietnam are forecasted to impact price and trade trends shortly.

The Banana Marketing and Export Association (Acorbanec) reported Ecuador's banana exports for the first nine months of 2023 reached 273.03 million cartons, reflecting a 6.41% increase compared to the same period in 2022, exports to the European Union (EU), Russia, and the US experienced growth of 19.99%, 4.86%, and 5.36% year-on-year (YoY), respectively. However, there were declines in exports to regions like the Middle East, South America, Eastern Europe, European Free Trade Association (EFTA) countries, and Canada.

So far, in 2023, Peruvian banana exports reached 149.72 thousand tons, marking a 12% decline YoY. In W43 and W44, Peruvian banana exports remained below 3 thousand tons, with 2.90 thousand tons shipped in W44, representing a 7% decrease compared to the previous year. Key destinations included the Netherlands (38%), Panama (18%), and Italy (10%). Most shipments (99.8%) left via the Port of Paita.

Paraguay is actively pursuing organic banana certification to access the Chilean market and expand its international presence. The National Plant Health and Quality Service (Senave) is leading this effort to diversify product exports and promote agricultural development. Organic certification will signify Paraguay's commitment to high production standards, ensuring the quality and integrity of exported bananas. The growing global demand for organic bananas presents an opportunity for Paraguay to enter new markets and increase revenue. As of W44, organic bananas are exported to Argentina and Uruguay, generating substantial income for banana producers. Paraguay emphasizes collaboration with certification bodies to meet necessary conditions and maintain a focus on product quality and sustainability. Access to markets like Chile is particularly valuable, given the region’s growing demand for organic products, providing opportunities for Paraguayan producers.

The estimated banana harvest for the European Union (EU) in 2023 is 53.93 thousand tons for Spain, 6.61 thousand tons for France, and 1.03 thousand tons for Greece, contributing to a total harvest of 661.48 thousand tons. Prices for bananas grown within the EU and traded outside their cultivation region are anticipated to be approximately USD 0.85 per kilogram (EUR 0.79/kg). Meanwhile, bananas from Portugal and Greece are forecasted to command prices of around USD 1.15/kg (EUR 1.07 /kg) in 2023.

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