Week in Review: Banana companies sound the alarm

This week, banana companies reminded the produce supply chain not to take this fruit for granted. 

For so long, everyone has, including consumers. They are the most consumed produce item, and they are seemingly the same, predictable, high-quality fruit found in every grocery store, at a relatively inexpensive price. 

But the banana supply chain is under threat from many directions. 

“Americans tend to think of bananas as one of the simplest and most dependable foods in the produce department,” said Tom Stenzel, Managing Director of the Banana Association of North America (BANA). “But producing a banana that can be harvested, packed, shipped thousands of miles, and arrive in a U.S. supermarket at an affordable price requires an extraordinarily complex agricultural and supply chain system. That system is under growing pressure.”  

Among the threats are rising production and transportation costs, extreme weather in growing areas, and disease challenges. 

BANA members are asking everyone from government policymakers to retailers to consumers to recognize the threats and make investments to keep the supply chain sustainable. 

European banana giant Fyffes this week also called for greater collaboration across the banana supply chain to develop a long-term sustainable model that ensures growers, producers, importers, and retailers can continue investing in the future of the category.

“The banana industry is under very significant pressure,” said Frank Burkhardt, Chief Commercial Officer at Fyffes. “Costs have increased across virtually every part of the supply chain, from farm inputs and labor to logistics and transportation. Yet bananas continue to be sold at prices that often do not reflect the reality of what it costs to grow and deliver them responsibly. For many years, the industry has absorbed those increases. That is no longer sustainable.” 

In no way would I minimize the threat, but BANA members and Fyffes are not specific about what anyone can do in the short term to help the supply chain. 

Last year, when bananas were subject to tariffs, banana inflation was a major concern. 

If banana prices went up 10 percent at retail due to tariffs, would that limit consumption? 

Then and now, I don’t believe it would. A 10-percent rise on a weekly three-pound banana purchase wouldn’t register for most households. 

I think it’s worth a shot for retailers to test where banana price points affect purchases because I believe American consumers could handle a price rise and keep buying them in the same numbers.