GLOBAL MARKET OVERVIEW BANANAS

Market conditions remain mixed across producing and importing regions. Some European markets are seeing stable demand and balanced supply, although pricing trends vary between countries and market segments. Organic and Fairtrade bananas continue to perform well in several markets, while exporters in Latin America are focusing on market diversification, cost management, and maintaining export volumes amid changing trade conditions and seasonal demand patterns.Italy: Wholesale prices increase against seasonal trendAccording to a BMTI analysis based on wholesale data collected from Rete Italmercati markets, the Central and South American banana sector entered 2026 under stable market conditions. However, during the first quarter, geopolitical tensions in the Middle East and the resulting increase in fuel costs created volatility in wholesale markets, leading to a slight but steady rise in prices. By mid-April, the price per carton with a declared net weight of 18.14 kilograms ranged from €28.00 to €29.00 for Chiquita, from €25.00 to €27.00 for Dole, and from €19.00 to €21.00 for other brands. No major changes were initially observed for Chiquita and Dole products in May, although slight increases emerged during week 21. Overall, this trend is considered unusual for the sector, as price increases are rarely recorded at this time of year, which normally precedes the seasonal decline associated with school closures and changing consumption patterns.A Sicilian importer stated that the banana market has remained stable over the past two weeks due to a good balance between incoming volumes and sales. However, the sector is currently facing a delicate phase influenced by geopolitical and logistical dynamics, product quality, and the seasonal transition. "Tensions in the Strait of Hormuz initially caused a shortage of empty containers, which affected prices at origin. However, the situation is gradually returning to normal. Over the past two weeks, we have recorded a slight decline in prices. However, we are implementing targeted strategies to maintain stable prices, paying particular attention to Ecuadorian bananas, which are considered a premium product."The fruit currently arriving originates from Ecuador's rainy season. This has caused minor quality issues and requires closer monitoring of shipments. "Additionally, at the end of May, the market enters the so-called 'low season,' which is characterised by a natural slowdown in consumption due to the arrival of summer fruit. Consequently, a decline in traded volumes is anticipated, in line with weakening demand."According to YouGov data, 87% of Italian households purchase bananas. The average amount spent per purchase is increasing, with larger and therefore more expensive shopping baskets compared to last year's average. From a seasonal perspective, market penetration peaks between May and June and remains above 50% throughout the year.Netherlands: Spot market remains weaker than last yearWhile banana sales are continuing at a reasonable pace, spot market prices during the first months of the year have remained below last year's level, according to a Dutch importer. "Green bananas are currently selling at around €12 to €13, whereas prices were a few euros higher at the same time last year."The importer says there is no obvious reason for the lower prices. "I do not have the impression that exceptionally large volumes are arriving on the market. However, I also doubt whether we will see much improvement in the coming weeks. June is traditionally still a decent sales month, but the banana trade does not generally benefit from the holiday season."Sales of organic bananas are providing a more positive picture. "We are satisfied with that segment, as customers are buying increasing volumes of organic bananas," the importer explains. Logistics continue to be a challenge this year as well. "There is a shortage of containers and many delays from Central and South America. In addition, both ocean freight and domestic transport costs have increased significantly."Germany: Stable market despite slower demandCustomers tended to focus on seasonal fruit, which limited storage capacity for bananas. Ripening facilities responded by reducing supply, helping to keep supply and demand reasonably balanced. Prices generally remained at previous levels when quality was satisfactory, although some small price reductions were introduced to support sales. Overall, prices for premium brands were slightly below last year's levels.Sales of Fairtrade bananas rose again last year by 7 per cent to more than 130,000 tons. The market share for organic bananas reached around 80 per cent.Switzerland: Banana imports reach record levelIn 2025, Switzerland imported a record 110,400 tons of bananas, equivalent to around 12 kg per capita. Colombia accounted for more than 40 per cent of imports, followed by Ecuador with 30 per cent, according to Swiss customs figures.North America: Sector faces mounting supply pressuresThe next two years are expected to be challenging for the banana industry. Key issues include climate change and extreme weather events, rising operational costs, labour shortages in some regions, logistics disruptions, phytosanitary threats such as TR4, and increasing regulatory and sustainability requirements from international markets.At present, banana supply across most North American markets is good. In general, supply from Latin America improves after Easter. Demand for conventional bananas remains strong due to their affordability and consistency. Demand for organic bananas has also remained elevated, and the outlook for the segment is favourable.However, more difficult conditions are expected ahead following recent banana farm closures in Costa Rica and Mexico, which could affect future supply. Added to this is the continued downward pressure on the U.S. dollar.Rising fuel costs are also having an impact, although any fuel surcharges are likely to be absorbed by transnationals or distributors. Pricing remains challenging, as producers are locked into fixed contract prices while being paid in U.S. dollars that have weakened considerably.South Africa: Prices remain under pressureBananas are trading at municipal markets at between €0.26/kg and €0.37/kg for 18kg boxes, following a period of elevated banana prices over the past five years. Rising production, electricity, and fuel costs continue to play a significant role."The pressure on consumers is clearly visible in this market, and it's keeping banana prices under pressure. At the same time, there are reports that more volumes of bananas could be heading to the markets over the coming weeks, which would keep prices at lower levels," says a market analyst.Three of the largest retailers are respectively charging €1.8, €2, and €2.2 for a 1.2kg box of bananas. A fourth retailer is currently offering bananas on promotion at €0.6/kg.Demand usually picks up towards the end of the month, but with higher banana volumes expected, prices are likely to remain at current levels.Ecuador: Production declines under weather pressureThe 2026 season is facing a production decline of 25-35% compared to the seasonal peak, aggravated by water stress caused by unusual solar radiation. Irrigation systems are struggling to cope during what should be the rainy season, despite the lack of rainfall. Fruit quality has been affected on some farms. Production costs continue to rise due to higher diesel prices, fertiliser costs, and labour shortages. China is recovering as a destination market following the trade agreement, although it remains highly price-sensitive. Fusarium TR4 remains contained under strict biosecurity protocols, with only one affected farm having been dismantled.Colombia: Exports expected to declineFollowing record exports in 2025, exceeding 2.5 million tons and €1.12 billion, Colombia is projecting at least a 5% decline in 2026 due to excessive rainfall, strong winds in Magdalena, and the appreciation of the Colombian peso. Fertiliser costs have increased as a result of the conflict in the Middle East. The transition towards Puerto Antioquia is reducing berthing windows from 24 hours to only 8 hours. The industry is demanding fairer prices due to the burden of complying with 11 certifications that are not reflected in final market returns.Costa Rica: Rising costs pressure producersProducers are facing increases of 20% in fuel costs and 10% in agricultural input costs, while production volumes remain below 2025 levels. Weather conditions continue to be highly unpredictable, with forecasts alternating between floods and droughts. Port fees at Moín are currently under negotiation and could increase further. The industry strategy is increasingly focused on direct contracts with U.S. retailers to achieve greater commercial stability. European agrochemical regulations and Living Wage standards are adding further pressure on the sector's competitiveness.Peru: TR4 remains key threatRainfall at the beginning of 2026 in northern Peru, where more than 80% of the country's banana production is concentrated, was moderate and did not significantly increase production volumes. Fusarium Tropical Race 4 continues to be the industry's main threat, causing localised production losses. International banana prices currently stand at €0.91/kg compared to €0.78/kg the previous year, although this increase has not been sufficient to offset rising production costs. Europe remains the leading export destination, while exports to the U.S. continue to grow steadily. A project is currently underway to evaluate six banana varieties resistant to the fungus.Next Topic: BlueberriesPublication date: Fri 22 May 2026© FreshPlaza.com / Stefan Jansen van Nieuwenhuizen