Banana producers throughout Latin America are advocating for improved compensation to address economic pressures created by climate-related disruptions to their operations. The current El Niño weather cycle is generating severe conditions including high winds, excessive rainfall, and drought across major banana-growing regions including Colombia, Peru, Ecuador, and the Dominican Republic.
Production figures from previous El Niño cycles indicate the scope of potential damage. During the prior cycle, productivity declines ranged from 6% in Peru to 22% in Ecuador and 13% in the Dominican Republic. Historical data shows that the strong 1983 El Niño event reduced Ecuador’s banana exports by 36% and affected 15% of planted banana area. Current indicators suggest similar or greater impacts may occur this cycle. Export data from Colombia’s Caribbean region demonstrates the immediate effects, with shipments declining 32% in value to $122 million between July and September, and September alone seeing a 42% year-on-year drop in shipments.
Industry representatives and workers describe mounting challenges affecting both economic viability and working conditions. Currency fluctuations compounding production losses are described as undermining the sector’s sustainability. Climate conditions are creating not only productivity declines but also increased risks from pests and diseases, with worker wages and safety expected to face additional pressure. The Fairtrade Foundation and industry leaders assert that investment in climate resilience requires adequate financial resources that current market conditions do not provide.
A significant disconnect exists between production costs and retail prices. Research indicates that 2026 prices paid to suppliers did not cover basic production costs for approximately two-thirds of producers. Retail banana prices have remained relatively static for nearly four decades despite escalating expenses for fertilizers, fuel, and labor. The Ethical Trading Initiative and industry suppliers emphasize that supermarket pricing must account for actual production costs including labor, environmental management, and climate adaptation investments.
Projections indicate worsening conditions ahead, with potential suitable land for banana cultivation potentially shrinking by an average of 61% across Latin America and the Caribbean by 2050. Fairtrade is calling for legislation to address unfair trading practices and ensure producers receive fair compensation, though some retailers have voluntarily committed to sourcing exclusively Fairtrade-certified bananas with guaranteed minimum prices.
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