Markets and Trade

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
03/04/2000

FAO’s first forecast of world cereal production in 2000 is 1 890 million tonnes, some 1 percent above 1999. Output of wheat is forecast at 595 million tonnes, 1 percent up from 1999, that of coarse grains at 900 million tonnes, nearly 3 percent up, while the rice crop (milled basis) is tentatively forecast to fall by 1 percent to 395 million tonnes. While early forecasts point to higher cereal production in 2000, output would not be sufficient to meet expected utilization requirements in 2000/01, and global cereal reserves would have to be drawn down. Food emergencies persist in 34 countries throughout the world, and unfavourable prospects in several others could lead to localized supply difficulties. FAO’s latest forecast of world cereal trade in 1999/2000 is 222 million tonnes, unchanged from the previous report and some 4 percent above the previous year’s volume. The increase is attributed to larger imports of both wheat and coarse grains, which would more than offset the likely decline in rice trade. International grain prices have been volatile and slightly higher in recent weeks, reflecting active trade and concern over adverse weather for the 2000 crop in the major producing areas of the United States. Ample new-crop supplies and dull trading pressured international rice prices downward. The FAO Export Price Index for Rice averaged 104 points in March, its lowest level since June 1994. Global cassava production recovered in 1999, resulting in an overall increase in food, feed and industrial utilization. Large export availabilities led to a substantial expansion of trade, but prices fell to their lowest level in the decade. Global milk production is forecast to increase slightly in 2000, but with sustained import demand expected, exportable supplies, especially of milk powder, could be in short supply. As a result, international prices for most dairy products, and especially milk powder, are expected to increase during 2000.

03/02/2000

FAO now estimates world cereal output in 1999 at 1 872 million tonnes, (including rice in milled terms), above average, and only slightly below the previous year’s level. However, this would be below anticipated global cereal utilization in 1999/2000 and, as a result, global cereal stocks will have to be drawn down for the first time in 4 years. The early outlook for 2000 cereal crops is mixed. In the northern hemisphere, winter wheat plantings fell in the United States, but the spring wheat area in Canada could rise. In Europe, the winter wheat area expanded in the EC and in several eastern European countries. In the southern hemisphere, prospects are favourable for the 2000 coarse grains crops in southern Africa and South America. In the equatorial belt and the southern hemisphere the harvest of the 2000 rice crop will start soon but plantings were reduced and output will be down. Food emergencies persist in many countries throughout the world due to frequent natural hazards and, increasingly, by man-made disasters. FAO latest forecast of world trade in cereals in 1999/2000 is 222 million tonnes, 1 million tonnes more than earlier anticipated, and 7 million tonnes up from the previous year. Latest indications point to an increase of about 6 percent in global wheat shipments and 3 percent for coarse grains, but a 4 percent reduction for rice. International export prices for most cereals strengthened in recent weeks. Latest indications of a tighter than expected cereal balance in the United States lent significant support to wheat and coarse grains markets in January, while some unexpected buying activity helped the FAO Rice Export Price Index gain one point from its December low. Global meat output grew 2 percent in 1999 buoyed by low feed prices. World trade in meat also grew, surging by 5 percent, mostly as a result of recovering Asian demand and increasing use of export programmes. This expansion is unlikely to be replicated in 2000 as red meat supplies are expected to contract. Prices of oilseed products are anticipated to recover in 1999/2000, in response to a tightening supply/demand situation. Oilseed production is expected to rise only marginally and overall output of oilcrop-based products is likely to fall short of demand. Regarding trade, a rise in shipments of oils and fats is expected to contrast with reduced growth in trade of oilcakes and meals.

 

 

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.