GLOBAL MARKET REPORT Banana prices and sustainability

The report analyzes the global banana industry, highlighting the role of VSSs like Fairtrade and Organic in improving producer prices and resilience. It details the sector's high vulnerability to climate-driven pests and diseases, such as Tropical Race 4, and the economic pressures caused by retail price wars and market concentration. The document argues for a shared responsibility model across the value chain to ensure living wages and sustainable production.

• The Cavendish variety dominates the global market, accounting for nearly 100% of internationally traded fresh bananas, but its lack of genetic diversity makes it highly vulnerable to pests and diseases like Tropical Race 4 and Sigatoka fungi.
• Transport and storage are the primary drivers of the banana's carbon footprint, representing approximately 65% of the total emissions.
• Climate change is expected to reduce suitable banana-growing areas in the subtropics by over 1 million km2 by 2050, although 5 million km2 in other regions may become viable by 2070.
• VSS-compliant bananas represented between 9% and 20% of total global production in 2019, depending on whether GLOBALG.A.P. is included in the assessment.
• The banana value chain is characterized by an asymmetrical distribution of value, with retailers capturing about 40% of the final price, while the production stage captures around 20%.
• VSSs, particularly Fairtrade and Organic, provide significantly higher prices for producers compared to conventional bananas; in 2021, VSS-compliant prices in major exporting countries may have been more than 60% higher than conventional prices.
• Fairtrade International implemented a base wage for plantation workers in July 2021, aiming to ensure workers receive at least 70% of the take-home pay needed for a living income.
• Market disruptions, including the COVID-19 pandemic and the Russia-Ukraine conflict, have caused significant price volatility and oversupply, particularly affecting Ecuadorian producers who rely on Russia as a major export destination.
• Retailers in Europe and North America exert significant power over global pricing, with Aldi's annual fixed price contracts often serving as the market-making benchmark for the region.

APA

Voora, V., Bermúdez, S., Farrell, J. J., Larrea, C., & Luna, E. (2023). GLOBAL MARKET REPORT Banana prices and sustainability. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-03/2023-global-market-report-banana.pdf

Chicago

Voora, Vivek, Steffany Bermúdez, Johanna Joy Farrell, Cristina Larrea, and Erika Luna. GLOBAL MARKET REPORT Banana prices and sustainability. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-03/2023-global-market-report-banana.pdf.

Wikipedia

{{cite report |last1=Voora |first1=Vivek |last2=Bermúdez |first2=Steffany |last3=Farrell |first3=Johanna Joy |last4=Larrea |first4=Cristina |last5=Luna |first5=Erika |title=GLOBAL MARKET REPORT Banana prices and sustainability |publisher=International Institute for Sustainable Development |date=March 2023 |url=https://www.iisd.org/system/files/2023-03/2023-global-market-report-banana.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{voora2023global, author = {Voora, Vivek and Bermúdez, Steffany and Farrell, Johanna Joy and Larrea, Cristina and Luna, Erika}, title = {{GLOBAL MARKET REPORT Banana prices and sustainability}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = mar, url = {https://www.iisd.org/system/files/2023-03/2023-global-market-report-banana.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }