More countries, including Mexico, Ecuador, and Colombia, are now increasing their organic banana supply. "This is maintaining stability in availability," says Mayra Velazquez de León of Organics Unlimited. "These countries consistently export organic bananas to meet global demand, particularly in North America and Europe."
Left to right: Mayra Velazquez de León; Daniella Velazquez de León.
That said, supply right now is very similar to last year at this time. "It's hard to know how production is going to react to weather factors," she says. "Banana production is year-round, but it does get affected by weather conditions. In the last couple of years, the strong season has started later and sharply declined when it was least expected. Climate change is playing a big role in the seasonality of produce."
Meanwhile, the demand for organic bananas remains robust, especially in the U.S. and Europe, and that's largely driven by health-conscious and environmentally aware consumers. "Organic certifications and Fairly Traded labels add value and help differentiate the product in competitive markets," says Velazquez de León.
The demand for organic bananas remains robust, especially in the U.S. and Europe.
Sourcing regions
As for organic banana supply coming into the U.S., it's coming mainly from Ecuador, Mexico–which has a different season compared to South America which complements the other growing regions–and Peru. Industry-wide, Brazil is also producing, though it keeps its production for local consumption, as is Colombia, India, the Philippines, the Canary Islands, Vietnam, and more.
The global banana market is expected to grow significantly with the organic segment outpacing the conventional market.
All of this is leaving pricing relatively higher than last year. "A price increase was way overdue. However, competition from large multinationals and other organic fruit categories has created pricing pressure for smaller suppliers," says Velazquez de León. She adds that the global banana market is expected to grow significantly with the organic segment outpacing the conventional market due to factors such as emerging markets as well as the focus on sustainable and ethical products.
Looking ahead, the pricing in the organic banana market is expected to remain relatively consistent, with possible slight increases due to higher input costs like labor and transportation. "As we head into the first quarter, we can expect spot prices to increase as supply is generally tighter during this season. However, consumer demand is forecasted to remain robust, driven by sustained interest in organic and sustainable products," adds Velazquez de León.
For more information:
Mayra Velazquez de León
Organics Unlimited
Tel: (+1) 619-710-0658
[email protected]
www.organicsunlimited.com