About FAO News Multimedia Main topics Statistics Members Publications

Markets and Trade

Bananas

Commodity in focus

Bananas are among the most produced, traded and consumed fruits globally. More than 1 000 varieties of bananas exist in the world, and they each provide vital nutrients to populations in producing and importing countries alike. The most traded variety is the Cavendish banana, which accounts for just under half of global production and has an estimated annual production volume of 50 million tonnes. Bananas are particularly significant in some of the least-developed, low-income, food-deficit countries, where they can contribute not only to household food security as a staple but also to income generation as a cash crop.

World banana trade has recorded comparatively high levels of around 20 million tonnes per annum in recent years. Key drivers of trade include supply growth in both leading and emerging export countries, as well as ample global import demand. However, increasingly erratic and adverse weather conditions, rising costs of production, tight producer margins, and the spread of plant pests and diseases are causing severe concern to the industry.

Current releases
Banana Market Review - Preliminary results 2024
10/01/2025

The Banana Market Review Preliminary Results are issued on an annual basis to Members and Observers of the Sub-Group on Bananas of the Intergovernmental...

Banana Market Review 2023
26/08/2024

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...

More Publications
Food Outlook - July 2002
02/07/2002

The new 2002/03 marketing season could mark the beginning of a much tighter supply and demand situation for cereals: opening stocks are smaller than in the previous season, production is forecast to fall and consumption is expected to rise. A total of 31 countries throughout the world are currently experiencing severe food shortages and require international food assistance. A new food crisis has emerged in southern Africa, following two successive years of poor harvests in most countries of the subregion, calling for immediate international response. FAO’s forecast of global cereal output in 2002 has been revised downward to 1 878 million tones, considerably less than expectations in May, and marginally below last year’s level. On latest indications, output of wheat is forecast at 578 million tonnes, down 0.6 percent, while that of coarse grains would be down 0.3 percent at 903 million tones. Production of rice is seen to remain virtually unchanged from the previous year, at 397 million tonnes (milled basis). World cereal trade in 2002/03 is forecast at 235 million tonnes, down 1 million tonnes from 2001/02, mostly due to smaller wheat and rice imports, while trade in coarse grains is expected to increase slightly. A sharp reduction in imports by the developed countries would be almost offset by a large increase for the developing countries. World cereal utilization is forecast to reach 1 938 million tones in 2001/02, 1.4 percent up from the previous year’s level. Early indications for 2002/03 indicate that the growth in cereal utilization could continue but at a slower pace. World cereal stocks by the end of the crop seasons in 2003 are forecast to fall sharply to 498 million tonnes, 71 million tonnes down from their already reduced opening level. At the global level, the anticipated decline in wheat inventories would be most significant but reductions in coarse grains and rice stocks are also expected to be substantial. International cereal prices moved up in the past two months. Wheat prices rose considerably in response to poorer crop prospects in a number of major exporting countries. Maize prices have also strengthened, largely reflecting faster pace in import purchases in recent weeks. Rice prices rose slightly, reflecting tighter supplies in some exporting countries and policy measures in others.

Food Outlook - May 2002
03/05/2002

FAO’s first forecasts for cereal production in 2002 and utilization in 2002/03 indicate that output will remain below the expected level of utilization and stocks will have to be drawn down again in 2003 for the fourth consecutive year. However, supplies are expected to remain ample, particularly of wheat and coarse grains. Despite a generally favourable global food outlook, some 34 countries around the world are experiencing food shortages. The emerging situation in southern Africa gives particular cause for concern. World cereal output in 2002 is forecast at 1 905 million tonnes (including rice in milled equivalent), up 1.1 percent from 2001. Output of wheat is forecast at 603 million tonnes, up 3.7 percent, while that of coarse grains is seen to rise marginally to 910 million tonnes. By contrast, production of rice is tentatively forecast at 392 million tonnes (milled basis), down 1.1 percent from 2001. FAO’s first forecast of world cereal trade in 2002/03 is 236 million tonnes, 1 million tonnes down from the estimated volume in 2001/02. Global imports of wheat are forecast to decline in the 2002/03 July/June trade year while those of coarse grains are expected to increase. Rice trade in 2003 is tentatively forecast to decrease. International wheat and coarse grain prices remain under downward pressure, on the basis of large exportable supplies and generally favourable production prospects. By contrast, rice prices have held steady notwithstanding the arrival of new crop supply on the market. Meat supplies on international markets are expected to rebound in 2002 as animal disease restrictions are lifted for previously afflicted meat exporting countries. A return to normal consumption patterns should favour increased trade, but large supplies of all meats are expected to dampen any significant upward price movement. International prices for dairy products have fallen substantially since mid-2001, with the result that prices for most dairy products are currently at levels rarely seen over the past decade. It would appear that the decline has bottomed out and that prices for some dairy products may rise during the second-half of the year. Growth in global output of oils and fats is forecast to slow down in 2001/02, but could increase for oilcakes and meals. While international prices for oils and fats are expected to recover further from the previous season, the oilcakes and meals sector could suffer downward price pressure as supplies increase relatively more than demand. World pulse production is forecast to grow strongly in 2002, and trade could also increase, but prices will likely decline as exportable supplies are expected to be large. Sugar production is forecast to increase again in 2002/03, signaling another season of excess supply and potentially weaker prices.

 

 

Bananas are predominantly produced in Asia, Latin America and Africa. The largest producers for domestic consumption are India and China

 

Banana cultivar diversity comprises dessert types, like the Cavendish banana, and cooking types, like plantains. Some cultivars can have dual uses.

 

Harsh methods are often used to control irrigation and plant diseases in large-scale banana production, and such production methods can carry significant negative repercussions for the environment and the health and safety of workers and local communities.

 

A serious threat to the industry continues to be Fusarium Tropical Race 4 (TR4), a fungal disease affecting banana plants. It is currently confirmed in 21 banana-producing countries. In all reported cases, once a piece of farmland is contaminated with TR4, managing the disease is challenging and costly.

 The global banana value chain is increasingly characterized by the direct downstream activities of large retail chains from the key importing countries. These chains operate independent of traditional fruit companies by sourcing bananas directly from growers and distributors.   

 

 

On average, more than 90 percent of bananas for export originate from Central and South America and the Philippines. The largest importers are the EU, the United States of America, China, the Russian Federation, and Japan. 

 

Banana export earnings help to finance food import bills, supporting the economies of major banana-producing countries.

 

Research in ten banana producing countries found that income from banana farming can account for around three-quarters of the total monthly household income of smallholder farmers. 

 

The effects of global warming are resulting in a higher occurrence of droughts, floods, hurricanes and other natural disasters. These environmental concerns render banana production increasingly difficult, uncertain and costly, and threaten to disrupt global supplies and smallholder livelihoods.