Original content
Banana plantations in New South Wales' Tweed Valley have been severely affected by strong winds from the remnants of Tropical Cyclone Alfred, which hit in early 2025. On the Cudgen plateau, about 50% of banana trees were destroyed, resulting in a projected 90% production loss for the year. Poor fruit quality has hindered attempts to salvage underdeveloped bananas, making them unsuitable for major markets like Sydney and Melbourne. In total, approximately 116 hectares (ha) of banana plantations were impacted, with around 1.6 million kilograms (kg) of bananas damaged or lost. While the cyclone's impact on national banana prices is expected to be minimal due to New South Wales' smaller market share compared to Queensland, local growers are facing significant financial losses. They are considering cyclone-proofing strategies such as growing lower trees and harvesting before cyclone events to prevent future damage.
Australia has officially resumed its national surveillance program to combat the spread of Panama disease tropical race 4 (TR4), a serious biosecurity threat to the country’s banana industry. Led by the Australian Banana Growers' Council (ABGC) in partnership with Biosecurity Queensland, the program focuses on early detection to enable swift and effective responses that limit the disease’s spread across plantations. It relies on active collaboration among growers, farm workers, and stakeholders, who are encouraged to meet their General Biosecurity Obligation by conducting inspections, reporting suspected cases, and enhancing on-farm biosecurity measures. With continued government and industry support, this initiative remains essential for protecting banana production and the livelihoods of farming communities nationwide.
Ecuador remains a key player in the global banana market, exporting approximately 359 million boxes in 2024, generating an estimated USD 3.5 to 3.6 billion in revenue. Despite facing weather-related challenges and global trade uncertainties, the country recorded a 1.42% increase in banana production by the end of 2024 and entered the 2025 peak export season (January to May) with strong momentum. However, early 2025 saw a slight 0.72% decline in export volume, primarily due to Algerian restrictions that reduced shipments by 2.39 million boxes. Offsetting this, exports to the United States (US) and Russia surged by 28.30% and 18.49%, respectively, while the European Union (EU) registered a more modest 1.41% growth. Ecuador continues to lead in banana exports to the EU, followed by Russia and the Middle East. It has recently strengthened its trade network through agreements with China and Canada, alongside ongoing negotiations with South Korea and Japan. At the same time, the country is monitoring potential tariff changes in the US closely. Programs like the Banana Observatory, which collects and analyzes real-time data on banana production, pricing, and market trends, and increased investment in security and phytosanitary measures highlight Ecuador's strategic focus on protecting its export infrastructure. These efforts also aim to expand its global market presence.
According to the Banana Association of North America (BANA), the cost of imported bananas could rise by as much as USD 250 million annually due to the 10% reciprocal tariff imposed by the Trump Administration on April 5, 2025. Although the US imported over USD 2.5 billion worth of fresh bananas in 2024 to satisfy strong consumer demand, the new tariff impacts key suppliers, including Colombia, Costa Rica, Ecuador, Guatemala, and Honduras. While intended to address trade imbalances and promote domestic production, the measure faces criticism since bananas cannot be commercially grown in the US due to unsuitable climate conditions. With trade data showing a USD 4.7 billion surplus with these exporting nations, industry stakeholders argue the tariff will ultimately burden American consumers with higher prices without delivering tangible domestic economic benefits.
Banana production in Đồng Nai, Vietnam, has been surging since 2024, driven by consistently high selling prices that allow farmers to earn annual profits of USD 11,618 to 15,491/ha (VND 300 to 400 million/ha). This strong profitability has encouraged a shift from less lucrative annual crops to tissue culture banana cultivation. Bananas have become the province’s most productive fruit crop, surpassing rambutan, mango, and pomelo. Most of Dong Nai’s bananas are exported to China, with smaller quantities reaching South Korea and Japan. If favorable price trends continue, the region is projected to supply over 400 thousand tons of bananas to local and international markets in 2025. This will solidify its role as a key player in Vietnam’s fruit export industry.
Ecuador's banana prices fell significantly by 20.69% week-on-week (WoW) to USD 0.23/kg in W15, reflecting a 23.33% month-on-month (MoM) decrease and a 14.81% year-on-year (YoY) drop. The price decline is due to oversupply pressures during the peak production season, coinciding with softer demand in some key markets. The drop also reflects exporters' efforts to remain competitive in markets like the EU, where price sensitivity remains high amidst economic uncertainty and shifting procurement strategies.
In W15, banana prices in the Philippines have remained stable at USD 1.29/kg since W13, with a slight increase in MoM price of 0.78% and a 2.38% YoY increase due to sustained export demand from key markets such as China and Japan. This is supported by improved shipping conditions and steady supply from major growing regions like Mindanao. The continued stability reflects exporters' cautious approach amid ongoing tariff negotiations under the Japan-Philippines Economic Partnership Agreement (JPEPA), which has sustained market optimism. Meanwhile, favorable weather conditions have helped maintain quality and consistency in supply. However, long-term price growth remains capped by persistent competition from emerging exporters like Cambodia and Vietnam, who continue to gain market share in Japan due to preferential tariff structures.
Banana prices in Colombia dropped by 2.22% WoW to USD 0.44/kg in W15, marking a 4.35% MoM drop and a 13.73% YoY decrease. The price decline is due to ongoing downward pricing pressure from oversupply in key global markets, particularly as Ecuador and Costa Rica ramp up exports with lower shipping costs and competitive pricing strategies. Additionally, logistical efficiencies and strengthened trade relationships with these neighboring countries divert some traditional Colombian buyers. While Colombian exporters actively work to improve sustainability and quality standards, current pricing remains under strain due to intensified regional competition and shifting buyer preferences in Europe and North America.
In Guatemala, banana prices have remained steady at USD 0.22/kg since W10, with no WoW and MoM change due to ongoing supply challenges that have kept market prices high and stable. This price stability is attributed to limited supply availability balancing with current demand, maintaining upward pressure on prices. Producers are still facing the aftereffects of heavy rainfall and flooding earlier in the year, which disrupted harvest cycles and reduced overall yields. However, banana prices increased by 29.41% YoY due to lower local production, continued logistical challenges, and strong import demand from primary markets in North America and Europe, where buyers seek to secure supply amidst tightening global availability.
Banana growers in New South Wales should prioritize implementing wind-resilient farming practices to reduce future cyclone-related losses. This includes planting windbreaks, such as rows of fast-growing trees around plantation perimeters, using shorter or dwarf banana varieties less prone to wind damage, and adopting staggered planting to avoid uniform canopy exposure. Reinforcing plant support structures, like propping systems or using trellises, can also reduce tree collapse during storms. By upgrading these practices, growers can safeguard yields, maintain supply consistency, and reduce the economic impact of future weather events.
Banana producers in Dong Nai should focus on improving post-harvest handling to meet the stricter quality standards of high-value export markets like South Korea and Japan. This includes investing in proper washing, grading, and packaging facilities and adopting cold chain logistics to preserve fruit quality during transit. Producers can also implement traceability systems and standardize harvest maturity levels to reduce rejections. By elevating post-harvest practices, growers can secure better prices, diversify beyond China, and build a more resilient export base.
Sources: Tridge, ABC News, ABGC, AEBE, BANA, Freshplaza, Vietnam VN
Read more relevant content
Recommended suppliers for you
What to read next
