1. Weekly News

Global

Global Banana Prices Show Mixed Trends Amid Market Dynamics

Banana prices displayed varied movements across primary exporting nations in W46. In Belize, banana prices rose by 5.15% to USD 1.14 per kilogram (GBP 0.90/kg), driven by regional supply constraints or heightened demand in European markets. Colombia maintained stable pricing at USD 1.06/kg (EGP 0.84/kg), reflecting a balanced supply-demand dynamic supported by steady exports to North America and Europe. Meanwhile, Costa Rica saw a modest 1.15% price increase to USD 1.21/kg (GBP 0.96/kg), underscoring the resilience of its exports amid global economic challenges. These shifts highlight the complexity of the global banana trade.

Colombia

Colombia Strengthens Efforts Against TR4 Threat to Banana Industry

Colombia, a leading banana exporter, continues to face the growing threat of Tropical Race 4 (TR4), a Fusarium fungal disease detected in the country in 2019, which poses a significant risk to the globally dominant Cavendish banana variety. Although there is no cure, Colombia implemented cost-effective mitigation strategies, including disinfection stations, cement paths, and strict biosecurity protocols, with researchers estimating a USD 3 to 4 return for every dollar invested. Despite these efforts, challenges persist, such as the stigma around reporting infections, insufficient policy support, and socio-economic difficulties for smallholder farmers. Sustained collaboration among government bodies, the banana industry, and local cooperatives remains critical to protecting the nation’s banana production and the livelihoods dependent on it.

India

Thanjavur Banana Farmers Struggle Amid Price Drop and Market Challenges

Banana farmers in Thanjavur, Tamil Nadu, are facing a sharp price decline, with procurement rates for the poovan variety falling from USD 0.36/kg to USD 0.07 to 0.08/kg during recent festivals. This drop is due to recent rains, overlapping harvests in neighboring states like Andhra Pradesh and Karnataka, and reduced demand from buyers in Maharashtra, Kerala, and Karnataka. With prices unable to cover the 10 to 12 months of cultivation costs, farmers are urging the government to provide support through measures such as incorporating bananas into school meal programs and establishing cold storage facilities to stabilize the market.

Jamaica

JP Farms Achieves Rapid Recovery from Hurricane Damage

JP Farms in Jamaica swiftly recovered from the devastating impact of Hurricane Beryl, which damaged 113 hectares (ha) of banana and plantain crops, with an estimated revenue loss of USD 600 million. Through a robust recovery program involving replanting, weed control, and infrastructure repairs, the farm completed its restoration efforts in half the expected time. Bananas will return to supermarket shelves by late Jan-25, five weeks earlier than planned. To strengthen resilience against future challenges, the farm introduced improved drainage systems and shorter banana varieties, reinforcing its commitment to sustainability in Jamaica’s banana industry.

Philippines

Philippines Strengthens Banana Industry Amid Panama Disease and Global Competition

The Philippines is enhancing its banana industry to combat challenges like Panama disease and global competition. The Department of Agriculture (DA) tests disease-resistant banana varieties across Mindanao, Visayas, and Luzon, offering credit assistance of up to USD 7, 634/ha (PHP 450,000/ha) for farm rehabilitation and expansion. With 17 thousand ha affected by Panama disease, efforts include innovations in crop nutrition, pest management, and biological controls. Small-scale farmers benefit from Good Agricultural Practices (GAP) certifications and tissue-cultured quality planting materials. To increase export competitiveness in markets like Japan, South Korea, and China, the Philippines is pursuing tariff reductions under free trade agreements (FTA) to increase global market share. In 2023, banana exports rose slightly to 2.35 million metric tons (mmt).

2. Weekly Pricing

Weekly Banana Pricing Important Exporters (USD/kg)

Yearly Change in Banana Pricing Important Exporters (W46 2023 to W46 2024)

Ecuador

Ecuador's banana prices declined in W46 by 4.17% week-on-week (WoW) to USD 0.23/kg with no month-on-month (MoM) and year-on-year (YoY) change. This is due to a slight easing in demand following the completion of the Banana Business event in Machala, which had driven a temporary boost in interest. Additionally, logistical challenges, including port congestion and competition from other banana-exporting countries, have pressured pricing. Despite steady demand from key markets like the United States (US) and the Middle East, these factors contributed to the short-term price dip, maintaining stability in the broader market compared to the previous month and year.

Philippines

In W46, banana prices in the Philippines declined slightly by 0.81% WoW and 1.6% MoM to USD 1.23/kg, due to the continued recovery in supply following Typhoon Marce’s disruptions. Despite strong export demand from key markets like Japan and South Korea, the market faced some challenges as production stabilized. However, YoY prices increased by 0.82% due to the ongoing efforts to combat issues like Panama disease and enhance the competitiveness of Philippine bananas in global markets. These initiatives, including disease-resistant varieties and farm rehabilitation programs, have contributed to a more favorable export outlook, supporting higher prices than last year.

Colombia

Banana prices in Colombia remained steady at USD 0.42/kg in W46 with no WoW and MoM change. This is due to balanced supply levels following the seasonal adjustments and improved production conditions from recent rains. While export demand from primary markets like the US and Europe remained consistent, the market found equilibrium with steady yields. However, YoY prices increased by 4.55% due to the ongoing efforts to mitigate the impact of TR4 and the industry's resilience in maintaining production despite the challenges posed by the disease and socio-economic difficulties. These efforts helped sustain Colombia’s banana exports, contributing to the price increase compared to last year.

Guatemala

Guatemala's banana prices increased by 14.29% MoM and YoY in W46 to USD 0.24/kg. This reflected a 26.32% YoY increase due to sustained strong export demand. Consistent demand and improved weather conditions that further boosted fruit quality have supported the price increase. The global appeal of Guatemalan bananas and the country's ability to maintain high-quality production despite market challenges contributed to the upward price movement compared to the previous year.

3. Actionable Recommendations

Diversify Sales Channels and Improve Storage to Stabilize Banana Prices

Banana farmers and exporters in Thanjavur should focus on diversifying sales channels by exploring direct-to-consumer options such as local markets, online platforms, or export opportunities to reduce dependency on traditional buyers. Additionally, collaborating with cooperatives to establish temporary cold storage solutions can help extend shelf life and stabilize prices during oversupply or reduced demand.

Strengthen Resilience Across the Banana Industry with Advanced Drainage and Crop Varieties

Banana growers should adopt advanced drainage systems and invest in shorter, resilient banana varieties to mitigate damage from extreme weather events like hurricanes. These proactive measures will help protect crops, reduce recovery time after natural disasters, and stabilize production timelines, ensuring consistent market supply. Expanding these strategies will also improve sustainability and long-term resilience within the banana farming sector.

Optimize Pricing Strategies Based on Regional Supply Dynamics

Banana exporters should closely monitor regional supply constraints and shifts in demand, particularly in key markets like Europe and North America. Exporters can capitalize on price increases and maintain competitive positioning by adjusting pricing strategies to reflect these changes. Exporters in countries like Belize, Costa Rica, and Colombia must remain flexible in response to market trends, ensuring profitability despite global market fluctuations.

Sources: Tridge, Indian Express, EurekAlert, European Commission, Gov UK, Loop, Palmar Group, Philstar Global