The banana industry is under “very significant pressure” and needs support with more appropriate retail pricing, a leading brand has warned.
Fyffes has said that while bananas remain one of the most affordable food products on supermarket shelves, the supply chain is facing “unprecedented pressure”.
It added that banana growers were facing rising costs for labour, fertilisers, crop protection, packaging, energy and transportation.
The sector is also facing climate-related disruption, plant disease pressures and complex supply chains which the brand said was making it “more challenging and more expensive to maintain reliable production and consistent fruit quality”.
“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 labour to logistics and transportation.”
However, bananas “continue to be sold at prices that often do not reflect the reality of what it costs to grow and deliver them responsibly,” he explained.
“For many years, the industry has absorbed those increases. That is no longer sustainable.”
Bananas have been for a long time famous loss leaders for the major multiples. According to analysis by The Grocer, banana pack prices have stayed at £1.12 per unit over the past 12 months [Assosia 12 months/5 October].
The company warned that the industry could not continue to absorb rising costs indefinitely while simultaneously investing in climate resilience, responsible farming practices, worker welfare, community development and supply chain improvements.
“If growers and producers cannot achieve sustainable returns, the long-term future of the category is put at risk,” added Burkhardt.
It comes following warnings from several key grower groups that UK producers were being threatened with delistings by the major retailers when requesting more money to fund inflation in core production costs.
Fyffes has called for greater collaboration across the industry to develop a long-term sustainable model that ensures growers, producers, importers and retailers can continue to invest in the future.
Burkhardt said it was a “shared responsibility” to develop this long-term plan and that the discussion “must include banana pricing”.
“If we want consumers to continue enjoying reliable access to high-quality bananas, the value chain needs to recognise the real cost of producing and delivering the fruit.”
Last month, Fyffes launched its Sustainability Strategy 2025-2035, with a series of long-term commitments across climate, agriculture, packaging, food loss and waste, human rights and community impact. Among these commitments is the target to achieve gender parity in senior leadership and at least 30% female representation in supervisory operational roles by 2035 in its own operations.
No comments yet