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In Jan-25, Belize's banana exports dropped by USD 500 thousand, falling from USD 6.4 million in Jan-24 to USD 5.9 million. This decline contributed to an overall mixed performance in the country’s agricultural exports, despite a 2.1% increase in total domestic exports. While citrus exports saw growth due to higher orange concentrate prices, the reduction in banana exports highlights ongoing challenges in the industry.
Ecuador exported 34.43 million boxes of bananas in Jan-25, a 2.43% increase from the same period in 2023, driven by strong demand in key markets such as Russia (+4.63%), China (+17.89%), the United States (+14.45%), Argentina (+80%), and the Netherlands (+29.26%). Despite shipping delays, exports to the European Union (EU) grew by 0.96 million boxes, with exceptional increases in Malta (+509.49%), Spain (+131.58%), and France (+123.51%). South Korea and China also saw higher shipments, supported by tariff reductions and trade agreements. However, exports to Algeria fell by 1.38 million boxes due to political tensions, contributing to a 60.6% decline in shipments to Africa. While weather conditions improved, slightly lower temperatures reduced banana yields per hectare (ha).
Nepal’s banana farmers, particularly in Chitwan, the country's main banana-producing region, are struggling as Indian bananas, both legally and illegally imported, now account for about 40% of the market. The influx of cheaper imports has undercut local producers, making it difficult to compete and discouraging expansion, posing a long-term threat to agricultural stability. Experts recommend regulating imports, establishing quality standards, providing subsidies, and improving market access to support domestic farmers. Without intervention, Nepal risks growing dependence on imports, which could lead to future price volatility and economic challenges for local producers.
Peru's banana exports fell in Jan-25 to 13.1 thousand tons worth USD 9.9 million, marking a 14% year-on-year (YoY)decline in volume and a 17% YoY drop in value. The decrease was driven by a 3% YoY reduction in average export prices, which stood at USD 0.76 per kilogram (kg), alongside strong competition from Ecuador, which remains free of Fusarium Tropical Race 4 (Foc Tr4). Since 2021, this fungal disease has affected Peruvian plantations, limiting expansion. In response, the government has formed a working group and signed an agreement to combat the disease using innovative techniques. Despite these challenges, the Netherlands, the US, Belgium, Panama, and Italy remained Peru’s top banana export destinations.
Saint Lucia’s banana industry continues to struggle with Black Sigatoka Disease, a fungal infection that causes premature leaf spotting, reduces photosynthesis, and severely impacts fruit yield and quality. The disease has disrupted harvesting since November and remains a major threat, particularly during the rainy season. Additionally, Saint Lucia has leveraged support from the World Bank’s Food Security Programme to help farmers combat the outbreak. Relief efforts include financial assistance for 405 banana growers, fertilizer distribution, labor support, and improved drainage systems. Authorities stress the importance of comprehensive farm management, drone technology for spraying, and a coordinated national strategy to sustain production and reduce dependence on food imports.
In W9, Ecuador's banana prices fell by 10.34% week-on-week (WoW) to USD 0.26/kg, with a 16.13% month-on-month (MoM) decrease and a 39.53% YoY drop. This decline is primarily due to increased export volumes, with Ecuador shipping 33.36 million boxes on Jan-25, driven by strong demand from the EU, US, and Russia. Additionally, due to climatic factors, reduced production in Central American countries like Costa Rica, Guatemala, and Honduras led transnationals to source more bananas from Ecuador to meet demands, especially in the US and EU. However, increased competition from other banana-producing countries and logistical challenges, such as global route congestion and high container demand, have exerted downward pressure on prices.
In the Philippines, banana prices remained stable at USD 1.27/kg in W9, marking a 0.79% MoM increase. This stability is due to consistent supply levels from key growing regions, which have effectively met market demand despite isolated rain showers. The absence of significant weather disruptions has prevented major fluctuations in production, maintaining steady prices. However, there is a 2.31% YoY price decline, primarily due to diminished export demand from China. This decrease in demand is linked to geopolitical tensions in the West Philippine Sea, leading to a substantial reduction in banana exports to China. Additionally, the spread of Foc Tr4 has impacted production. The disease has led to production losses and increased costs associated with containment efforts, further contributing to the YoY price decline.
Colombia's banana prices held steady at USD 0.48/kg in W9, with a 4% MoM and YoY drop. This stability is attributed to consistent export demand from key markets such as the US and Europe, where seasonal holiday consumption has spurred higher demand. However, the YoY price decline reflects ongoing logistical challenges, including inefficient infrastructure and security concerns, which have impacted export operations and led to fluctuations in supply availability. Additionally, heightened phytosanitary measures to combat Foc Tr4 have increased production costs, affecting market dynamics.
In W9, Guatemala's banana prices remained steady at USD 0.22/kg, consistent since W6. This stability is due to sustained export demand from the US and Europe, combined with higher production costs, including rising fertilizer and labor expenses, which have maintained price levels. Moreover, there is a 29.41% YoY increase due to lower local production volumes during the first 12 weeks of the year, reducing supply and supporting higher prices
Nepalese banana farmers should improve market access by forming cooperatives, enhancing direct sales to retailers, and expanding distribution networks. Investing in post-harvest handling, such as better packaging and cold storage, can help maintain quality and competitiveness against Indian imports. Partnering with wholesalers to promote Nepalese bananas in urban markets can also drive demand and stabilize prices.
Peruvian banana exporters should collaborate with growers to adopt resistant banana varieties and improve farm management practices to mitigate the impact of Fusarium TR4. Investing in disease-free planting materials, soil treatment techniques, and stricter biosecurity measures can help maintain export volumes. Strengthening partnerships with international buyers by promoting sustainable and disease-free production can also improve market positioning against competitors like Ecuador.
Belizean banana exporters should optimize logistics and production planning to stabilize exports. Enhancing cold chain management, improving harvest scheduling, and securing long-term contracts with buyers can help mitigate fluctuations. Expanding market diversification efforts, such as targeting new regions or strengthening partnerships in high-demand markets, can also improve export performance.
Sources: Tridge, Acorbanec, Americaeconomia, BBN, Fruitnet, Nepal Monitor, The Voice
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