BANANA

BANANA
Market Review 2022
Market Review 2022
BANANA
Market Review 2022

Food and Agriculture Organization of the United Nations

Rome, 2023
Required citation:
FAO. 2023. Banana Market Review 2022. Rome.

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CONTENTS

Note on methodology .................................................................................................................................... iv

Foreword ........................................................................................................................................................v
Developments at a glance .............................................................................................................................. vi
Developments in global banana trade 2022 .................................................................................................... 1
Box 1: Indicators of developments in producer margins in the banana industry ............................................... 3
Exports .......................................................................................................................................................... 4
Imports .......................................................................................................................................................... 7
Constraints and uncertainties ........................................................................................................................11

iii
NOTE ON METHODOLOGY
This report describes full-year results on developments in global banana trade in 2022 and represents an update to
the Banana Market Preliminary Results 2022. The analysis contained herein is based on data on trade quantities that
were compiled from the following sources: country responses to the 2023 questionnaire of the FAO
Intergovernmental Sub-Group on Bananas; data from the UN Comtrade database and Trade Data Monitor Inc.;
communications with national sources and industry partners in trading countries; and secondary data and
information from desk research. The findings incorporate revised data and information as available up to the end of
May 2023. All data in this report should be considered as provisional. FAO is continuously monitoring global trade
flows of bananas and will update these results should revisions of officially reported data be released.

All datasets refer to global trade of fresh bananas, excluding plantains, as covered by HS code 080390 under the
harmonized tariff nomenclature system of the World Customs Organization. Data on the import volumes of the
European Union exclude the United Kingdom of Great Britain and Northern Ireland since February 2020.

iv
FOREWORD
The Banana Market Review is issued on an annual basis to Members and Observers of the Sub-Group on Bananas of
the Intergovernmental Group on Bananas and Tropical Fruits, which is a subsidiary body of the Committee on
Commodity Problems (CCP).

It is prepared by the Team on Responsible Global Value Chains, Markets and Trade Division, Food and Agriculture
Organization of the United Nations (FAO), Rome.

The Team on Responsible Global Value Chains provides research and analyses on global value chains for agricultural
commodities, and economic data and analyses on tropical fruits. Regular publications include market reviews,
outlook appraisals and projections for bananas and tropical fruits. The team also provides assistance to developing
countries in designing and implementing national policies regarding responsible value chains in agriculture.

The report is available at the following FAO website:

https://www.fao.org/markets-and-trade/commodities/bananas/en

v
DEVELOPMENTS AT A GLANCE
Global export quantities of bananas continued to display a strong tendency to decline in 2022, in stark
contrast to the fast-paced growth experienced in pre-pandemic years.

Full-year data indicate that global export quantities fell by 1.2 million tonnes from their 2021 level, to
approximately 19.1 million tonnes in 2022.

Amid a difficult global operating environment, obstacles to global banana trade were mainly present
on the supply side, with demand in importing countries remaining relatively strong.
Key factors affecting trade prospects in 2022 were reported as:
• Production shortages caused by adverse weather conditions and insufficient access to and
application of fertilizer.

• Substantially higher costs for inputs as well as high global transportation costs during the first half
of the year.

• The significant appreciation of the United States dollar against the currencies of many banana-
exporting and importing countries.

• Concerns surrounding the spread of plant diseases, importantly Banana Fusarium Wilt Tropical
Race 4.

• More stringent limitations on maximum residue levels in some of the major markets.

These difficulties affected the ability of producers and exporters to supply bananas in adequate quantities
and to the quality standards expected in export markets in all key regions.

As demand remained firm in the majority of the leading import markets, notably in the European Union
and the United States of America, prices in these markets accordingly displayed a tendency to increase.

However, industry sources reported that producer prices remained stagnant at very low levels, a
situation mainly caused by intense competition in the banana value chain, quality issues experienced
in many origins in 2022 and the saturation in global markets during the early months of the war in
Ukraine.

vi
 Banana Market Review ⚫ 2022 ⚫

Meanwhile, the war in Ukraine exacerbated already

Developments in global mounting pressures on global energy and fertilizer
markets and supply chains, with shortages in
banana trade 2022 fertilizers widely reported by the banana industry
during the first half of 2022. Critically, the conflict also
According to available data and information, global resulted in the discontinuation of important trade
trade in bananas continued to be negatively affected relations amid the economic sanctions imposed on
by several factors on the supply side in 2022, which the Russian Federation and caused severe disruptions
induced rising producer costs and consequently to transport routes to Ukraine. The repercussions of
supply shortages, against relatively stable demand in these developments for global banana markets in the
key import markets. Industry sources reported that first half of 2022 were immediate and drastic. The
the high prices for fertilizers in 2021 and throughout Russian Federation ranks as the fourth largest
the first half of 2022 resulted in a reduced application importer of bananas globally, procuring some 1.4 to
by farmers, hampering the productivity and quality of 1.5 million tonnes from world markets annually.
banana cultivation in key producing areas. Adverse These quantities translate into some six to seven
weather conditions, including abnormally cold percent of global banana shipments that were facing
weather related to the La Niña phenomenon in considerable obstacles to reach their destination
Ecuador, as well as the passing of yet another severe market in March and April 2022. While this situation
tropical storm through the Caribbean, further had particularly dire consequences for Ecuador, from
impacted the quantities available for export. Higher where some 98 percent of Russian banana imports
reject rates on the grounds of produce not meeting originate, it reportedly also caused a situation of
the quality standards expected in export markets oversupply and price declines in other export markets
were of mounting concern in all exporting regions. during these months. Prior to the war, Ecuador
More stringent maximum residue levels in key supplied some 20 to 25 percent of its yearly banana
importing markets, notably the United States of exports to the Russian Federation, and some three
America and the European Union, added further percent to Ukraine. Industry sources from Ecuador
pressure on producers and exporters, as produce not reported that the sudden loss of both export markets
meeting these new requirements could not be and lack of alternative destinations resulted in large
exported. Continuing shortages in refrigerated quantities of bananas going to waste during these
containers stemming from the prolonged lockdowns months, a plummeting of producer prices from
implemented in some Asian countries that extended USD 6.25 to around USD 1.20–1.50 per box, and a
to 2022, and the high global transportation costs in dramatic number of bankruptcies among producers,
the first half of the year, posed additional obstacles to mostly small producers selling through spot markets.
export growth. Severe concerns about the spread of Although export flows of bananas from Ecuador to the
plant diseases, importantly the accelerated spread of Russian Federation seemingly recovered to near pre-
the Banana Fusarium Wilt Tropical Race 4 (TR4) war levels during the remainder of the year – as
disease in the Philippines and its alarming presence in suggested by available trade partner data – the
Peru and Colombia, caused substantial additional continuation and recent intensification of the conflict
economic strain, both in terms of the additional costs are leaving the outlook highly uncertain.
associated with disease prevention and production
losses. Moreover, in view of the pandemic, the The difficult operating environment in 2022 was
persisting necessity to apply elevated sanitary further complicated by the significant depreciation of
measures and physical distancing to protect workers currencies against the United States dollar, which
from COVID-19 continued to cause additional costs to affected operations all along the value chain since
producers and operators along the supply chain, transactions in the banana industry, including the
especially during the first half of 2022. purchasing of inputs, are normally conducted in
United States dollars.

1
Banana Market Review ⚫ 2022 ⚫

This exerted additional upward pressure on costs to For example, export unit values from Ecuador and
producers, exporters, and importers. Although some Colombia, two of the leading suppliers of bananas to
prices along the value chain displayed a tendency to global markets, each averaged around 1 percent
increase in 2022, following years of relatively little below their previous year’s level in 2022 (Fig. 1).
fluctuation amid a highly competitive global operating Import prices in the European Union, meanwhile,
environment, this was not sufficient to compensate stood at an average of USD 944 per tonne in 2022, a
for the substantially higher costs. Importantly, prices mere 2.2 percent higher than in 2021. Retail prices in
received by producers and exporters were exposed to France, a key banana consuming market in the
further downward pressure stemming from the European Union, declined by nine percent in 2022,
production difficulties that caused quality concerns in despite inflation being recorded at 5.9 percent for the
many origins in 2022 as well as the saturation in global country in 2022. Wholesale and retail prices of
markets during the early months of the Ukraine war. bananas in the United States of America respectively
As a consequence, the erosion of profit margins rose by 9.5 and 6 percent year-on-year in 2022, with
became an issue of critical concern to the retail prices rising less than the inflation rate of eight
sustainability of the banana industry (Box 1). While percent recorded in the United States of America in
producer costs reportedly ranged some 40– 2022. As such bananas remained among the cheapest
50 percent above their pre-pandemic levels, prices at fruits on the shelves in key import markets, despite
farm-gate, export, import, wholesale and retail level the plethora of simultaneous difficulties and severe
saw in most cases comparatively little upward cost increases experienced by the sector in 2022.
movement, if not negative change.

Figure 1. Change in average export unit values from selected exporting countries, 2022/2021

Côte d'Ivoire -9.6%

Nicaragua -3.8%

Colombia -1.1%

Ecuador -0.6%

Peru 0.3%

Mexico 0.9%

Philippines 1.9%

Guatemala 5.4%

-10% -8% -6% -4% -2% 0% 2% 4% 6%

Source: FAO.

2
 Banana Market Review ⚫ 2022 ⚫

Box 1: Indicators of developments in producer

margins in the banana industry
To shed further light on the difficulties experienced by the global banana sector, Figure 2 shows the results of an
analysis of recent developments in producer margins in banana production in Ecuador, the leading exporter of
bananas globally. Monthly producer prices for the period January 2016 to March 2023 are plotted against an indicative
index of producer costs, which was constructed using the cost shares stated in the methodological note below. The
results imply a dramatic collapse in producer margins that started in early 2021 and amplified until mid-2022, on the
back of not only strongly rising costs but also a significant fall in prices.

Low producer margins greatly hinder the adequate remuneration of workers and smallholder farmers in the industry
and act as a major obstacle for producers in coping with emerging challenges and supply chain disruptions. This
threatens to restrain supplies and poses an elevated risk of industry contraction due to business closures, reduced
supplies to world markets and higher food prices. Data on developments in world export and import markets over the
course of 2022 already point to this, with all key regions being affected. On the upside, rising producer prices and
falling input prices from September 2022 saw producer margins recover considerably by the end of the year and into
early 2023, indicating improving conditions for producers in the banana industry in 2023.

Figure 2. Evolution of producer margins in banana production in Ecuador

800 2.50
January 2016 to May 2023
700

Production cost index (2020=1)

efer 2.00
600

500
USD/tonne

1.50
400

300 1.00

200
Producer Price 0.50
100
Production Cost Index (right axis)
0 0.00

Source: Monthly producer price data for the period January 2016 to March 2023 provided by the Ministerio de
Agricultura y Ganadería, Ecuador.

Methodological note: Production cost shares for commercially traded bananas in Ecuador were estimated by the
Asociación de Exportadores de Banano del Ecuador (Ecuador’s Association of Banana Exporters) in 2013 as follows:
direct and indirect labour costs 38 percent; agrochemicals and other inputs 40 percent; transport 7 percent; and the
remainder for materials, general services, equipment et al..

The cost index in the figure was constructed by applying the fertilizer price index as provided by the World Bank to
the assumed 40 percent share for agrochemicals, and an index of the West Texas Intermediate oil price to the 7
percent transportation share. The remaining costs with a 53 percent share were assumed not to have changed over
the period. Further research is needed to find monthly series on these other costs, e.g. on direct and indirect labour
costs, to extrapolate these inputs appropriately

3
Banana Market Review ⚫ 2022 ⚫

exporting region, fell by 5.7 percent in 2022, to a total

Exports of approximately 14.5 million tonnes – some 900 000
tonnes lower than their 2021 level. Ecuador, the
Available full-year data indicate that global exports of largest exporter of bananas globally, registered an
bananas, excluding plantain, experienced a decline of unprecedented 12.4 percent decline in shipments in
6.1 percent in 2022, marking another year of 2022, meaning that total exports from the country
disruption to the fast-paced growth experienced in dropped to approximately 5.8 million tonnes. Industry
pre-pandemic years. Total export quantities thereby sources reported that colder than normal
fell from 20.4 million tonnes in 2021 to approximately temperatures in the country affected production by
19.1 million tonnes in 2022. Similar to the situation in slowing the growth of fruits and affecting their quality
2021, most of the leading global suppliers of bananas grading, in turn raising costs and reducing profit
– with the exception of Guatemala and Colombia – opportunities. Shortages in the availability of critical
were affected by contraction, registering double-digit fertilizers such as urea, which were previously
percentage declines in quantities exported in several imported from the Russian Federation and Ukraine,
cases. The persistently high costs of fertilizers, which additionally lowered the quality of fruits for export.
had already led to a reduction in use in 2021, were Further pressure on growers arose from continuously
quoted as the key obstacle affecting producers’ ability increasing production costs associated with higher
to supply bananas in adequate quantities and to the prices for inputs and transport, particularly during the
quality standards expected in export markets in all first half of the year, as well as from higher
regions. Adverse weather conditions affecting expenditures stemming from the necessity to
production and yields additionally continued to be of maintain rigorous TR4 mitigation measures in view of
concern during 2022, while high costs for land the outbreaks of TR4 in neighbouring Colombia and
transport and long-distance shipping reduced Peru. The depreciation of the Euro against the United
exporters’ capacity to supply international markets. States dollar furthermore resulted in double-digit
declines in exports to key European Union importers
Against this background, shipments from Latin in 2022, with data obtained from the Ecuador Central
America and the Caribbean (LAC), the world’s leading Bank showing particularly large year-on-year drops of

Figure 3. World banana exports by region, 2018-2022, million tonnes

25

0.7
0.6
20 0.7
0.7
5.9 0.7
5.2
3.5 4.2
3.9
15

10

15.5 15.9 15.6 15.4 14.5

0
2018 2019 2020 2021 2022
Source: FAO. Latin America and Cari. Asia Africa

4
 Banana Market Review ⚫ 2022 ⚫

41 percent and 31 percent in shipments to Germany quality of fruits for export, which hindered the export
and Italy, respectively. According to specialized potential for bananas from Costa Rica, particularly in
media, the increasingly frequent placement of illegal the first half of 2022. At the time of writing, export
substances into banana containers also continued to data from the Costa Rica National Institute of
be of mounting concern for exporters, who were Statistics were still preliminary and subject to revision,
reportedly faced with losses of over USD 12 000 per hence only an indicative estimate derived from
confiscated container. 1 More stringent maximum available trade partner data can be provided. These
residue level regulations in some key destination data show a year-on-year decline of 9.2 percent in
markets such as the European Union and the United quantity terms in 2022, pointing to a full-year total of
States of America posed further obstacles. approximately 2.1 million tonnes. Shipments to the
Meanwhile, the war in Ukraine resulted in banana United States of America, the major destination for
shipments from Ecuador to Ukraine declining by some banana exports from Costa Rica, fell by 17 percent,
by 86 percent in 2022, equivalent to a decrease of while those to major European Union destinations,
150 000 tonnes. Italy and Spain, were reported to have declined by
19 percent and 16 percent, respectively.
Shipments from Costa Rica, the second largest
exporter from the region in 2021 and third leading Meanwhile, shipments from Guatemala, the third
exporter to the European Union (EU-27), continued to largest exporter from the LAC region in 2021,
be affected by severe production shortages in 2022. registered growth of nine percent in 2022, to a total
Already starting in 2021, like most other banana of 2.2 million tonnes. This marks a strong recovery
exporting countries from the region, Costa Rica had from the Hurricane-induced production shortages and
faced difficulty arising from the higher costs of inputs subsequent slight fall in exports that had affected
and transportation as well as the need to maintain banana supplies from Guatemala in 2021 and reflects
stringent and costly TR4 mitigation measures. successful investments in plantation recovery. Trade
According to industry information, these constraints data by destination for the full year of 2022 indicate
on production resulted in a deterioration in the that a 7 percent year-on-year increase in shipments to

Figure 4. World banana exports by selected origins, 2018–2022, million tonnes

7
2018 2022
6

0
Ecuador Philippines Costa Rica Guatemala Colombia Côte d'Ivoire
Source: FAO.

1
https://www.ecuavisa.com/noticias/ecuador/por-cada-contenedor-de-banano-que-los-narcos-contaminan-con-droga-en-
ecuador-el-exportador-pierde-algo-mas-de-usd-12000-NM3284294

5
Banana Market Review ⚫ 2022 ⚫

the United States of America, the main destination for La Niña weather phenomenon as well as farm
bananas from Guatemala, underpinned this closures, which resulted in a reduction in supplies for
development. Despite inflationary pressures, demand export markets and a five percent year-on-year
for bananas in the United States of America continued increase in the average export unit value, which
to be supported by the fruit’s relative affordability, diminished to a one percent increase over the full
thereby enabling a five percent year-on-year increase year.3
in the average export unit value for shipments from
Guatemala to the United States of America over the Exports from Honduras, also a comparatively minor
period January to December 2022. exporter from the region, meanwhile, displayed year-
on-year growth of 54 percent in quantity terms in
Exports from Colombia, the fourth leading supplier of 2022, thereby reaching some 490 000 tonnes.
bananas in the LAC region in 2021, increased by Successful investments in production recovery after
5.8 percent to approximately 2.2 million tonnes in two back-to-back Hurricanes had destroyed
2022, albeit accompanied by a two percent decrease approximately 40 percent of the country’s banana
in average export unit values. According to industry plants in November 2020 were the key reason behind
information, amid a difficult global operating this strong growth. Some 95 percent of bananas from
environment, the country was able to keep export Honduras are destined for the United States of
quantities comparatively steady through the America, where demand for bananas continued to be
implementation of successful disease mitigation relatively strong in 2022.
strategies pertaining to both the TR4 outbreak
discovered in plantations in 2019 and to the impact of Available partner data and information indicate that
COVID-19. Further investments into the containment exports from the Caribbean sub-region fell by
of the TR4 outbreak were announced to be 8.5 percent over the full year 2022, to some
forthcoming. 2 However, despite the comparatively 240 000 tonnes. An apparent reduction in shipments
positive situation for export supplies, industry sources from the Dominican Republic, which accounts on
reported severe difficulties stemming from the fact average for some 95 percent of banana supplies from
that the prices received by growers had remained at the Caribbean, was the key reason behind this. While
the same level as five years earlier, forcing growers to at the time of writing, direct monthly data on trade
absorb the recent hikes in the prices for fertilizers, quantities from the Dominican Republic were not
other inputs and transport, as well as the additional obtainable, banana production in the Dominican
costs arising from the need for implementation of TR4 Republic was reportedly heavily affected by the
and COVID-19 mitigation measures. substantially higher costs of inputs and transport in
2022, including domestic land transport, which
Available full-year data indicate that shipments from reduced producers’ ability to remain operational.4 In
Mexico fell by 1.6 percent in 2022, to some addition to these difficulties, the Dominican Republic
500 000 tonnes. While Mexico continues to be a was affected by the passing of Hurricane Fiona in
comparatively small exporter in global banana September 2022, with the estimated damage to
markets, the country emerged as the second leading plantations further reducing growth prospects for
supplier of organic bananas to the United States of shipments from the country for the remainder of 2022
America in recent years, behind Ecuador. On average, and into 2023.5
some 80 percent of Mexican supplies are destined for
the United States of America, with the remainder According to full-year data and information, banana
primarily going to Japan. In the first half of 2022, exports from Asia contracted by 6.8 percent in 2022,
production in Mexico was reportedly affected by the to 3.9 million tonnes. This marked the third year of

2
https://www.elcolombiano.com/negocios/fusarium-en-colombia-amenaza-cultivos-de-banano-EA16616651
3
https://www.freshplaza.com/europe/article/9446905/tight-banana-supplies-push-up-pricing/
4
https://www.freshplaza.com/europe/article/9458299/we-hope-the-world-will-understand-that-it-is-impossible-to-keep-
banana-prices-at-the-same-level-in-this-situation-of-rising-costs/
5
https://www.freshplaza.com/europe/article/9461476/concerns-over-dominican-republic-banana-operations-post-fiona/

6
 Banana Market Review ⚫ 2022 ⚫

consecutive declines in shipments from the region, priced some 20-30 percent lower than those from
following drastic falls because of COVID-19-related Côte d’Ivoire. In November 2020, Côte d’Ivoire had
difficulties and the impact of TR4 in 2020 and 2021. signed an Economic Partnership Agreement with the
The main exporter from the region continued to be United Kingdom of Great Britain and Northern
the Philippines, which supplied some 60 percent of Ireland, which encompasses tariff-free trade of
Asian banana shipments on average in 2022 but saw bananas between the two partners. Export data by
production severely affected by the spread of TR4 in destination show an increase of 65 percent in exports
the country as well as the high costs of inputs and from Cote d’Ivoire to the United Kingdom of Great
fertilizers. 6 Both developments reportedly had a Britain and Northern Ireland in 2022, to
particularly detrimental effect on small-scale banana approximately 33 000 tonnes.
producers in the Philippines, who struggled to procure
the necessary agricultural inputs to meet the quality Supplies from Cameroon, meanwhile, grew by
requirements of export markets. Based on available 8.5 percent in 2022, to some 220 000 tonnes.
data and information, banana shipments from the Available EuroStat partner data show an increase in
Philippines fell by 8.2 percent over the full year, to imports from Belgium, the largest recipient of
2.3 million tonnes. Strong import demand from China bananas from Cameroon, by three percent in 2022, to
and from some emerging importers in the Middle some 80 000 tonnes. Trade data from the United
East, meanwhile, continued to drive investments in Kingdom HM Customs, meanwhile, indicate that
banana plantations in Viet Nam, Cambodia and India, shipments from Cameroon to the United Kingdom of
three rising banana exporters from the region. While Great Britain and Northern Ireland grew by 81 percent
Viet Nam and Cambodia registered double-digit in 2022, totalling some 53 000 tonnes. At an
growth in exports in 2022, shipping some 410 000 approximate quantity share of 32 percent over the
tonnes each, supplies from India reached 2016 to 2020 period, Cameroon ranks as the second
approximately 360 000 tonnes, accounting for largest banana exporter from the region behind Côte
6.3 percent year-on-year growth. d’Ivoire. In 2022, supplies from Cameroon reportedly
benefitted from successful investments in production
Based on available data and information, exports from expansion, although it is difficult to assess the weight
Africa 7 registered a decrease of two percent in of various drivers such as increases in area and in
quantity terms in 2022, to some 660 000 tonnes, productivity and the improved security situation in
thereby remaining some 12 percent below their pre- the country.
pandemic levels (2017–2019 average). A 3.9 percent
decline in shipments from Côte d’Ivoire, the leading
exporter from the region, was the main reason behind Imports
this contraction. Full year exports from Côte d’Ivoire
thereby fell to some 330 000 tonnes in 2022, Available full-year data for 2022 suggest that global
accompanied by a ten percent drop in the average net import quantities of bananas declined by
export unit value. Shipments from Côte d’Ivoire 5.8 percent in 2022, a reduction of 1.1 million tonnes
primarily go to the European Union, mainly France, from the previous year, to 18.6 million tonnes. While
which typically receives 60 to 65 percent of total demand in most import markets reportedly remained
quantities every year. Available partner data from the constant, growth was hindered by a reduced
European Commission’s EuroStat show that supplies availability of export supplies as well as continuing
from Côte d’Ivoire to France declined by eight percent bottlenecks in global shipping, which created
in quantity terms in 2022, to some 220 000 tonnes, as obstacles to supplies from reaching their destination.
France significantly increased procurements of These factors particularly affected the level of import
cheaper bananas from Colombia and Guatemala. At
average export unit values of around USD 600–700
per tonne in 2022, bananas from both origins were

6
https://businessmirror.com.ph/2022/10/23/race-for-survival/
7
Data in this market review exclude intra-African trade.

7
Banana Market Review ⚫ 2022 ⚫

Figure 5. European Union monthly indicative import sources reported severe difficulties for importers
unit values 2021–2022, USD per tonne arising from the higher costs along global supply
chains as well as from the appreciation of the US
1 050 dollar against the Euro, since bananas are mostly sold
in US dollars at the export stage. Against this
background of lower supplies, rising costs and
1 000 relatively stable demand, import prices in the
European Union displayed a tendency to increase in
2022, averaging USD 944 per tonne, some
950
two percent higher than in 2021, with a seasonal
trough in July and August 2022 when competition
from summer fruits was once again high, and a
900
particularly fast rise thereafter (Fig. 5).

850
2022 Banana production in the European Union declined to
2021 583 179 tonnes in 2022, an approximate nine percent
decrease from 2021.8 On average, over 90 percent of
800 the European Union banana production takes place in
January April July October Spain and France, namely in the Canaries and the
Source: FAO. French West Indies. In 2022, banana production in
Spain, which typically accounts for over 60 percent of
quantities received by the European Union, the
the European Union banana production alone, was
United States of America, China, Japan, the United
reportedly heavily affected by the aftermath of an 85-
Kingdom of Great Britain and Northern Ireland, and
day long volcano eruption on the island of La Palma, a
Canada, which jointly account for some 70 percent of
key cultivating area of the Canaries. Although the
global imports.
eruption had already started in September 2021, the
damage caused by scorching and lava combined
Available full-year data show that net imports by the
continued to heavily affect some 900 hectares of
European Union (EU-27), the largest importer of
plantations throughout the year. Data provided by the
bananas globally, decreased by some 3.6 percent in
2022, to just below five million tonnes. This marked Figure 6. United States of America monthly import
the second consecutive year of declining imports in prices 2021–2022, USD per tonne
the European Union, following over one decade of
nearly uninterrupted expansion prior to the 1 800
pandemic. While consumer demand reportedly
displayed a tendency to increase in most European
Union markets, supported not only by the 1 600
convenience factor and nutritional characteristics of
bananas but also by their relative affordability with
1 400
respect to other fruits, import growth remained
2022
curtailed by the supply shortages experienced in the
2021
key origins of Latin America and the Caribbean. For 1 200
example, shipments from Ecuador and Costa Rica to
Germany and Italy, two major importers of bananas
within the European Union, registered double digit 1 000
year-on-year declines in quantity terms in 2022. Along January April July October
with the negative overall performance of banana
imports into the European Union in 2022, industry Source: FAO.

8
Data provided by the European Commission in March 2023.

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 Banana Market Review ⚫ 2022 ⚫

European Commission in March 2023 show a drop in origins, alongside logistical issues. Available import
banana production in Spain of 15 percent in 2022, data by origin show that, while shipments from
equivalent to a reduction of some 62 000 tonnes. Guatemala, from which the United States of America
Quantities produced in France, meanwhile, grew by obtains some 40 percent of total procurements,
1.9 percent in 2022, on account of favourable showed relatively fast year-on-year growth of 3.9
weather conditions in the country’s two production percent in quantity terms in 2022, those from most
areas, Guadeloupe and Martinique. Trade data for other origins were hampered by supply shortages and
2022 accordingly show a year-on-year drop of 38 transport bottlenecks. This affected in particular
percent for shipments from Spain, and an expansion imports from key LAC origins, notably Costa Rica,
of 5.7 percent for exports from France. At an average Ecuador, Mexico, Colombia, Panama and Peru, several
export unit value of EUR 680 per tonne in 2022, of which registered double-digit year-on-year declines
banana supplies from France competed fairly well in quantity terms in 2022. The reduction in combined
against larger global exporters, while those from imports from these origins amounted to some 240
Spain reached a high level of EUR 1 280 per tonne. 9 000 tonnes over the full year, as indicated by available
Meanwhile, the average import unit value of bananas data and information. Although the United States of
supplied by Ecuador to the European Union in 2022 America simultaneously raised its procurements from
stood at EUR 673 per tonne, while the average import Honduras by nearly 70 percent in 2022, to some 480
unit value to the European Union from all origins was 000 tonnes, the overall growth potential for imports
EUR 645 per tonne. to the United States of America remained restrained.
Against this background, United States of America
Net imports into the United States of America import prices displayed a strong tendency to rise in
declined by one percent in 2022, to approximately 2022 (Fig. 6) and were on average some 24 percent
four million tonnes, according to data disseminated higher than in 2021 and some 40 percent higher than
by the US Census Bureau. Similar to the situation their ten-year average (2012–2021). Similarly, US
observed in the European Union, consumer demand wholesale and retail prices displayed a strong
for bananas in the United States of America remained tendency to rise in 2022, respectively averaging some
relatively stable, but import growth was subdued by 9.5 percent and six percent higher than in the
quality concerns and production difficulties in key previous year.
Figure 7. Distribution of global net imports by market, 2022, million tonnes and share in global imports
5
26.7%

4
21.7%

2
10.1%

7.5%
1
5.7% 5.3%

0
European Union United States of China Russian Federation Japan Latin America and
Source: FAO. America Cari.

9
Data refer to the estimated average unit value of EU green bananas based on average selling prices at the stage of delivery at
the first port of unloading, as reported by the European Commission in September 2021.

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Banana Market Review ⚫ 2022 ⚫

Net imports by China declined by 3.2 percent in from the previous year. Imports of Filipino bananas,
quantity terms in 2022, to 1.9 million tonnes, meanwhile, dropped by a reported 14 percent in 2022
according to data obtained from the Ministry of due to the continuing production difficulties
Agriculture and Rural Affairs of the People's Republic experienced in the Philippines. China had previously
of China. Despite this negative development, total imported some 50 to 75 percent of its total banana
imports by China remained at a high absolute level, imports from the Philippines, but this share stood at a
consolidating the country’s position as the third mere 40 percent in 2022. Similarly, Chinese
largest importer of bananas globally at a quantity procurements from Ecuador, which had seen fast
share of ten percent of global imports in 2022. expansion before the pandemic, declined by a
Available information suggests that Chinese imports reported 7.4 percent in 2022. As such, at a total
continued to be driven by ample domestic demand in quantity of some 200 000 tonnes, imports from
combination with a limited and decreasing availability Ecuador remained more than 50 percent below their
of high-quality domestically produced bananas. pre-pandemic levels, due to the supply issues
However, supply issues in key exporting countries experienced in the Andean country and the
hindered import growth in 2022, resulting in the substantial increases in global costs of transport,
above-stated decline in quantities alongside a which rendered shipments over this long distance
15 percent increase in the annual average import unit uncompetitive. At an average unit price of USD 726
value. Against this background, a noticeable shift in per tonne in 2022, imports from Ecuador were
the origins of imports to China was visible in 2022. This approximately 34 percent more expensive than
was primarily enabled by the fast expansion in bananas originating in Viet Nam. Chinese imports
supplies originating in Viet Nam and Cambodia, two from Laos, another recently emerging location of
emerging exporters in Asia, where an upsurge in Chinese investments in banana production facilities,
Chinese-owned banana plantations has been meanwhile continued to be hindered by the
reported in recent years. Available estimates of trade implementation of strict COVID-19 mitigation
data by origin show that Chinese imports from these measures in the country, which included the closure
two countries amounted to approximately 800 000 of ports and export routes up until May 2022.
tonnes combined in 2022, a rise of some 13 percent Available data accordingly show a decline of

Figure 8. World banana import by destination, 2018–2022, million tonnes

6

2018 2022
5

0
European Union United States of China Russian Federation Japan Latin America and
Source: FAO. America Cari.

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 Banana Market Review ⚫ 2022 ⚫

26 percent in Chinese banana imports from Laos for shipments from Ecuador displaying a particularly large
the full year 2022, combined with a 22 percent drop of 16 percent.
increase in the average import unit value.

Available trade partner data indicate that net imports Constraints and
by the Russian Federation declined by four percent in
2022, to 1.4 million tonnes.10 The Russian Federation uncertainties
imports bananas almost exclusively from Ecuador via
previously agreed contracts, which are settled in US
With regard to the outlook, several significant threats
dollars. According to available monthly trade data and
to global production, trade and consumption of
industry reports, shipments from Ecuador to the
bananas are present. On the demand side, prevailing
Russian Federation were heavily curtailed by logistical
high inflation rates, high interest expenses and
issues during the first few months of the war in
exchange rate fluctuations threaten to hinder the
Ukraine, with exports from Ecuador posting
demand for bananas, especially for consumers in
approximate 30 percent and 10 percent year-on-year
lower economic strata who need to spend a higher
declines in March and April 2022. The situation eased
proportion of their income on food. Many analysts are
over the summer months, with imports growing by
also predicting slower economic growth globally in
over 20 percent year-on-year in June and July 2022.
2023, which may further restrain demand. The
Nevertheless, overall growth opportunities continued
uncertainties surrounding the war in Ukraine with
to be severely limited by the economic sanctions
regard to its impact on global supply chains, fertilizer
imposed against the Russian Federation, which
markets, transport routes and access to export
contributed to a temporary economic crisis in the
markets add further risks for the outlook.
country. Monthly trade data accordingly show a
15 percent year-on-year drop in shipments from
On the supply side, the effects of global warming are
Ecuador to the Russian Federation again in August
resulting in a higher occurrence of droughts, floods,
2022. According to industry information from the
hurricanes, and other natural disasters, which render
same month, Russian importers frequently requested
the production of bananas increasingly difficult and
price discounts from Ecuadorian exporters or even
costly. In the face of rising temperatures, more rapid
cancelled previously agreed orders. The situation was
and more severe spreads of plant pests and diseases
exacerbated by the supply difficulties experienced in
are additionally being observed, as for example is the
Ecuador, which posed additional obstacles to higher
case with the fungus Banana Fusarium Wilt. The
import growth.
currently expanding strain of the disease, described as
Tropical Race 4 (TR4), poses particularly high risks to
Net imports by Japan decreased by five percent in
global banana supplies as it can affect a much broader
2022, to just below 1.1 million tonnes. However, in
range of banana and plantain cultivars than other
absolute terms, banana imports remained some
strains of Fusarium wilt. Furthermore, no effective
seven percent above their 2016–2020 average and
fungicide or other eradication method is currently
thereby at a comparatively high level. While demand
available. Some breakthroughs in the engineering of
for bananas in the country remained relatively stable,
resistant varieties have been achieved recently, but it
import growth was dampened by the production
remains to be seen if traders, retailers, and consumers
shortages and supply chain issues experienced in
will accept these new varieties. According to official
global markets. Japan typically sources some 75 to
information, TR4 is currently confirmed in
80 percent of its banana imports from the Philippines
21 countries, predominantly in South and Southeast
and some 12 percent from Ecuador, both of which
Asia, but also in the Middle East, Africa, Oceania, and
experienced production difficulties in 2022. Available
Latin America, with Colombia reporting the first
trade data by origin accordingly show year-on-year
infection in August 2019, Peru in April 2021, and the
declines in imports into Japan from most origins, with

10
At the time of writing, official import data from the Russian Federation for 2022 could not be obtained, rendering a precise
assessment of developments difficult and contingent on the information provided by trade partner data.

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Banana Market Review ⚫ 2022 ⚫

Bolivarian Republic of Venezuela in January 2023. An The transparent collaboration among all stakeholders
indicative assessment of the potential economic of the banana sector will be critical, especially with
impact of the TR4 disease on global banana regard to containing a further spread of TR4 and
production and trade showed that a further spread of managing the disease where it has already emerged.
TR4 would, inter alia, entail considerable loss of FAO is monitoring global developments closely and
income and employment in the banana sector in the has implemented an emergency project under its
affected countries, as well as significantly higher Technical Cooperation Programme to help countries
consumer prices in importing countries, at varying in Latin America and the Caribbean to contain the
degrees contingent on the actual spread of the spread of Fusarium wilt. It is also assisting Andean
disease.11 countries in developing a technical cooperation
programme. Under the umbrella of the multi-
Governments and producer organizations of stakeholder World Banana Forum12, FAO has further
producing countries have a key role to play in established the TR4 Global Network 13 , a neutral
mitigating the possible impacts stemming from these platform for information exchange and global
various risks, particularly in view of their potential collaboration that supports collective actions
repercussions for smallholder banana farmers and worldwide to fight the disease.
workers employed in the industry. Close co-ordination
of the capacity-development and extension activities
of all concerned national institutions will be beneficial
to the development of proper policies, regulations
and strategic measures that address these challenges
in a comprehensive way.

11
An alternative simulation was run in 2019 to assess the potential economic impact of the Banana Fusarium Wilt Tropical Race
4 disease on global banana production and trade. The results of this scenario were published in the November 2019 issue of
FAO’s biannual publication Food Outlook (http://www.fao.org/3/CA6911EN/CA6911EN.pdf).
12
www.fao.org/wbf
13
www.fao.org/tr4gn

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 Banana Market Review ⚫ 2022 ⚫

NOTES

13
CONTACT
Markets and Trade Division – Economic and Social Development stream
www.fao.org/markets-and-trade

Team on Responsible Global Value Chains

Tropical-Fruits@fao.org

Food and Agriculture Organization of the United Nations

Rome, Italy
CC6952EN/1/07.23