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Costa Rica exported 125.5 million 18.14-kilogram (kg) boxes of bananas in 2024, reflecting a 1.3% year-on-year (YoY) decline. This is due to adverse weather conditions, including early-year drought and heavy rainfall later in the season. The banana industry is facing increasing profitability challenges as production costs, spanning pesticides, labor, and logistics, continue to rise while retail prices in destination markets remain stagnant. Although all banana farms in the country are certified to meet stringent European and American standards, these certifications have become basic entry requirements rather than price-enhancing differentiators. Costa Rica’s banana industry faces a Free on Board (FOB) reference price of approximately USD 18 per box in the European Union (EU). The export distribution is split between Europe with 47%, the United States (US) with 33%, the United Kingdom (UK) with 8%, and other markets with 12%, while the industry also contends with global logistical disruptions and geopolitical tensions. To sustain its competitiveness, the country is focusing on technological advancements and promoting the environmental and social responsibility embedded in its banana production practices.
India has launched its first export of G9 bananas (also known as Grand Naine), a high-yielding, disease-resistant variety widely cultivated in India. The 12-ton shipment was successfully dispatched from Kalampur in Odisha’s Kalahandi district to Dubai via Biju Patnaik International Airport in Bhubaneswar, marking a significant step in promoting agricultural exports from non-traditional regions of India. This milestone was made possible through the coordinated efforts of the Trilokeswar Farmer Producer Company (FPC), the Department of Horticulture, and the Palladium marketing agency. The National Bank for Agriculture and Rural Development (NABARD) and the Government of India supported the initiative. The undertaking involved developing a 150-acre banana cluster, introducing advanced cultivation methods, and equipping farmers with high-quality planting materials, organic fertilizers, technical training, and marketing assistance. Aiming to improve market access for local growers, the project marks a significant step toward positioning Kalahandi as an emerging hub in India’s banana export landscape.
The Philippines remains the leading supplier of bananas to Japan, accounting for nearly 75% of the country’s banana imports in 2024. However, this marks a decline from its 94% market share a decade ago. Competitors like Vietnam, Cambodia, and Peru have gained ground by exporting bananas tariff-free under bilateral trade agreements, putting increasing pressure on Filipino exporters. Japan’s seasonal tariffs on banana imports, 8% in summer and 18% in winter, have made Philippine bananas less competitive. To preserve its market position, the Philippines is advocating for a reduction or elimination of these tariffs under the Philippine-Japan Economic Partnership Agreement (PJEPA), which was last reviewed in 2011. An accelerated review of this agreement could help maintain the Philippines' dominance in Japan’s banana market amid evolving trade dynamics.
On April 25, Russia will audit Ecuador's banana certification system to ensure it meets Russian and international phytosanitary standards, following negotiations between Russia’s Rosselkhoznadzor and Ecuador's Agrocalidad. Ecuador is a key player in Russia’s agricultural imports, with bananas comprising the largest share at 1.3 million tons in 2024.. The audit aims to improve the quality of Ecuador’s banana exports, further solidifying the country's position as a leading supplier to the Russian market.
Uganda has introduced a new banana variety, NARITA 17 (NAROBAN6), developed through collaboration between the International Institute of Tropical Agriculture (IITA) and the National Agricultural Research Organisation (NARO). Developed by the Ministry of Agriculture, Animal Industry, and Fisheries, the NARITA 17 variety offers an impressive 243% increase in yield compared to the traditional 'Mbwazirume' variety and showcases strong resistance to diseases such as black leaf streak. This hybrid, a cross between local and wild banana types, yields an average of 25 kilograms (kg) per bunch with 189 fingers, reducing the need for frequent replanting and lowering production costs. Its adaptability to local conditions is expected to enhance food security and boost profitability for banana farmers, marking a significant milestone in Uganda's banana farming industry.
In W14, Ecuador's banana prices remained steady at USD 0.29/kg, with no week-on-week (WoW) or YoY change but a slight month-on-month (MoM) increase of 3.57%. This stability is driven by the introduction of a higher minimum support price of USD 5.22 per box, addressing rising production costs. While exports to Algeria declined due to geopolitical tensions, increased shipments to the US and Russia helped offset losses. Logistical challenges and weather-related supply constraints, including excessive rainfall and a shift to other crops, have also influenced price stability despite fluctuating demand.
In W14, banana prices in the Philippines remained steady at USD 1.29/kg, showing no change WoW. However, prices saw a 1.57% MoM increase and a 2.38% YoY rise. The WoW price stability is due to ongoing discussions between Philippine officials and Japanese importers aiming to reduce tariffs under the Japan-Philippines Economic Partnership Agreement (JPEPA), which has renewed optimism among exporters. However, Philippine bananas continue to face competition from suppliers like Cambodia, Vietnam, and Mexico, which benefit from lower or zero tariffs in Japan.
In W14, Colombian banana prices decreased by 4.26% WoW to USD 0.45/kg, marking a 2.17% MoM decrease and a 10% YoY drop. These declines are due to increased competition from major exporters like Ecuador and Costa Rica, which offer more competitive pricing, exerting downward pressure on Colombian prices. Despite these challenges, Colombia's banana industry remains committed to enhancing productivity and sustainability to maintain its competitiveness in the global market.
In W14, banana prices in Guatemala remained steady at USD 0.22/kg, unchanged since W10, with a 29.41% YoY surge. This price surge is due to reduced production in 2025 caused by severe rainfall, flooding, soil erosion, and temperature fluctuations that hindered banana growth. These weather challenges have limited supply, pushing prices higher. Logistical delays, higher transportation costs, and increased demand from North America and Europe have further driven up prices. Prices may remain elevated until supply stabilizes in the coming months.
Costa Rican banana exporters should invest in cost-efficient production practices, such as improving irrigation systems to mitigate weather-related impacts and adopting precision agriculture technologies. Additionally, focusing on highlighting the environmental and social responsibility aspects of production can help differentiate the product in a saturated market. Marketing campaigns emphasizing sustainability certifications and certifications like Fair Trade or Rainforest Alliance can enhance value perception in key markets like the EU and the US, boosting consumer loyalty and potentially justifying a premium price.
Ecuador's banana exporters should ensure full compliance with Russia's phytosanitary standards ahead of the April audit by enhancing internal quality control systems. This includes rigorous inspection and certification processes that meet Russian regulations. Exporters should invest in staff training, adopt best practices in pest and disease management, and regularly update certification with Agrocalidad to avoid disruptions in exports. For example, integrating automated pest detection technologies and ensuring traceability of bananas from farm to port can improve reliability and expedite future audits.
Sources: Tridge, Business Mirror, Corbana, Farmers Review Africa, Freshplaza, Interfax, The Indian Express
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