Although the French banana market has been very dynamic this year, black rot, the number 1 scourge for banana producers, is gradually gaining ground. Pierre Monteux, managing director of UGPBAN, takes a look back at 2024 and the short- and medium-term outlook for the French banana sector.
A dynamic market in 2024
At 190,000 tons, this year's production is almost identical to that of 2023. "Volumes were perfectly in line with the demand," according to Pierre Monteux. As for wrapped bananas, they performed very well once again this year, with more than 40,000 tons (+15% from last year). This segmentation "meets the growing demand from distributors and consumers for French products. We hope that this momentum will continue in 2025." And while French bananas are particularly well represented in independent supermarket networks, the UGPBAN is keen to support their listing in integrated networks. Prices have increased as well. "We have an average selling price, across all categories, that is slightly higher than last year, at €790 [829 USD] per ton (compared with €780 [818 USD] per ton in n-1). This is a fairly decent price, given that the trade negotiations at the end of 2023 tended to go downwards.
95% of volumes are destined for the French market, the market of choice for bananas from Guadeloupe and Martinique, which accounts for 23% of the French market.
Dissolution and censorship: when will drone treatments be available?
Despite the absence of any major climatic events this year, the French banana sector is struggling to return to the volumes of 15 years ago, when production was close to 250,000 tons. "For the past 3 months, with the return of the rainy season, the situation has been complex, as the pressure of black cercosporiosis is increasing and the means of combating it (molecules) that we have at our disposal are weak. As a result, the gaps upon arrival are larger, which is reducing the volumes available on the market." However, the sector remains hopeful with the imminent arrival of NGTs (new genome-editing techniques) and their tolerant varieties, in 4 years' time. In the meantime, growers are pinning their hopes on drone treatments from early 2025. "We were impatiently awaiting the agricultural orientation law, which should have been voted on in July 2024, but unfortunately the vote was postponed following the dissolution of the French National Assembly. And MP Jean-Luc Fugit's bill (aimed at improving the treatment of diseases using remotely piloted aircraft), which was debated in December, fell through when it was censured by the government last month. So we have lost between 3 and 6 months and that is dramatic." According to the managing director of UGPBAN, this legal instability and total lack of visibility are "extremely damaging." Given this situation, production forecasts for 2025 remain similar to those for 2024. "There are no decisive factual elements that would lead us to expect an increase in production."
"We have a few cards to play in relation to premium bananas"
"Supermarkets are turning a deaf ear to the high cost of environmental, social and societal initiatives in our European territories and in other production areas, because their credo remains price," explains Pierre Monteux. Once again this year, the trade negotiations "which are coming to a late end, are difficult. Supermarkets are pushing down prices, although banana prices should rise, given all the challenges faced in production. So price levels will certainly be the same as this year." But the French banana sector still has a few cards to play and is determined to continue banking on its 'rare product' strategy. As far as segmentation is concerned, we still have an advantage compared with budget bananas, which mainly come from South America or Africa. We need to continue to develop the French Banana concept through partnerships with supermarkets and the catering sector, which is also opening doors for us under the Egalim law.
On the right: Pierre Monteux
The banana has become the No. 1 fruit eaten by the French
With an average per capita consumption of 11.7 kilos per year, compared to 8 kilos fifteen years ago, France has made up for lost time. While the breakthrough is real, the country is still lagging behind its European neighbours, particularly those to the north, with their 12.6 kilos per capita per year. According to Pierre Monteux, this difference can be explained by a more marked seasonal pattern in southern Europe. "France is a producer country with a very varied fruit offer. In the summer months, for example, the French are used to eating stone fruit, which is not necessarily the case in some Nordic countries, where most produce is imported." And if the French are increasingly keen on bananas, it's also because of their price. "In these times of crisis and inflation, the banana is a safe haven because it remains the cheapest fruit on the shelf." Having become the No. 1 fruit consumed by the French, the market (all origins combined) is expected to reach 800,000 tons in 2024.