FAO: Developing Countries Can Generate $10bn Annually from Banana Export

Gilbert Ekugbe

The Food and Agricultural Organisation (FAO) has stated that developing countries have the capacity to generate over $10 billion in export revenue from banana annually.

The United Nations food body also stated that the income from growing banana could account for up to three quarters of the total monthly household income for smallholder farmers.

The FAO Director-General, Mr. QU Dongyu, highlighted the importance of banana in several aspects at the fourth Global Conference of The World Banana Forum (WBF), to discuss an array of challenges faced by banana producers, including the impacts of the climate crisis, high energy and fertilizer costs, and the spread of the destructive Fusarium wilt Tropical Race 4 (TR4) disease.

According to Dongyu, “Bananas are among the most produced, traded and consumed fruits globally, with more than 1000 varieties produced worldwide they provide vital nutrients to many populations.”

He noted that the banana sector is particularly significant in some of the least developed and low-income food-deficit countries, where it has contributed not only to household food security as a staple, but also to job creation and income generation as a cash crop.

He pointed out that the conference is aimed at finding ways to boost the banana sector, which faced several constraints including high costs of transportation, energy, and inputs, in particular fertilizer prices, and the spread of diseases such as TR4.

“In response to the various constraints, the sector should turn these challenges into opportunities through close collaboration by partners across the banana sector,” the FAO director general said.

He called for all stakeholders to work together to boost investments and adopt more sustainable production practices.

The FAO boss also noted that inflation has reduced the purchasing power of consumers, placing bananas under an increasing competition from various tropical fruits.

“Better market access will require substantial investment of resources, including financial,” he said.

He added that the spread of diseases is a big concern in the sector, recalling that in 2019, TR4 reached several countries in Latin America after many years of spreading worldwide.

“As the Cavendish variety, which forms the bulk of banana exports, is vulnerable to the disease, the variety diversification should be a key strategy to ensure the future of banana trade,” he recommended.

Dangyu lamented that banana producers also face the daunting challenge of climate change, increasingly frequent droughts, floods, hurricanes, and other natural disasters have badly affected the Latin American and Asian producers who account for more than 95 per cent of the global banana trade.

“The agricultural sector is both a contributor to, and a victim of, climate change and we have consistently argued that rapid and forceful actions by all stakeholder groups are needed to address it,” he urged.

He stressed that the forum would also be focusing on the effects on the banana trade of high transportation costs and shipping disruptions in various areas of the world, including in the Black Sea, Red Sea and Panama Canal, caused by conflicts, geopolitical tensions and low water levels.

The forum, which was established in 2009, offered members a range of tools and resources to help the sector become more efficient, inclusive, resilient and sustainable. These include a practical tool for measuring carbon and water footprints, being piloted in nine countries and a Banana Occupational Health and Safety Initiative (BOHESI), being implemented in Ecuador and Cameroon