Is the dessert banana threatened by a mass extinction crisis?

In the wake of the major annual Fruit Logistica trade fair, held in Berlin from 8 to 10 February 2023, La Tribune Afrique examines the challenges facing the banana industry in Africa, against the backdrop of ongoing renegotiations of EPA (Economic Partnership Agreements) and with the Spanish presidency of the European Council just months away.

The banana originated approximately 7,000 years ago in South-East Asia before gradually spreading across different latitudes. « At the end of the nineteenth century, banana fever took hold in the United States. This marked the beginning of an industrialisation process that was accompanied by the creation of the United Fruit Company (renamed Chiquita Brands International in 1989, ed.) », explains Jean-François Billot, Secretary-General of AFRUIBANA (Association of African Producers of Banana and Other Fruits), which champions the interests of banana producers in Côte d’Ivoire, Cameroon, and Ghana.

By the close of the twentieth century, the export market for dessert bananas had exploded. « At 140 million tonnes per year, it is the world’s most widely traded fresh fruit, supporting a market that sustains between 3 and 4 million people », notes Denis Loeillet, an economist at Cirad (French Agricultural Research Centre for International Development).

« Today, Asia is the world’s largest producer, but its output is consumed almost exclusively domestically. Latin America dominates trade in dessert bananas, accounting for 75% of world exports, while Africa accounts for approximately 5% », adds Denis Loeillet.

Although the African industry still appears modest alongside its South American counterparts, it is deeply rooted in the history of the continent. « Bananas are believed to have been cultivated in Africa as early as the first millennium BC, first as a food crop and subsequently for trade », explains Denis Loeillet.

« Export banana cultivation arrived in Cameroon at the beginning of the twentieth century, during the German colonial era, with the early plantations established in the Tiko region of the South-West. In Côte d’Ivoire, production began in the 1930s under French colonial rule, initially in the Azaguié area and later in the Niekié basin. Ghana’s export sector, although more recent, has grown since the 1990s, largely driven by private investment and located mainly in the Volta and Eastern regions », details Jean-François Billot.

As the industry moves towards an increasingly concentrated structure, the Cameroonian sector now centres on three major companies, while Côte d’Ivoire hosts five principal exporters. Combined banana exports from Cameroon, Côte d’Ivoire, and Ghana represent approximately 850,000 tonnes per year, the majority destined for European markets.

Throughout the twentieth century, the standardisation of the fruit produced a single model of dessert banana for the global market: the Cavendish variety. « This is a giant with feet of clay. It accounts for about 47% of global production and almost all international trade in bananas », confirms Denis Loeillet. « All the varieties grown for export are Cavendish clones ».

In the second half of the twentieth century, a fungus originating in Asia — Fusarium wilt of banana, commonly known as Panama disease — devastated the then-dominant Gros Michel variety and forced the industry to switch to the Cavendish. « History could repeat itself. A new strain of this disease, known as Tropical Race 4 (TR4), is currently spreading worldwide and poses a direct threat to the Cavendish. If TR4 were to reach West Africa at scale, it could wipe out our industry », warns Jean-François Billot.

Faced with the urgency of the situation, diversifying production has become an imperative. « As things stand, we are not aware of any promising varieties that could replace the Cavendish commercially », laments Adrien Richard, president of Compagnie Fruitière de Marseille (CFM), the fresh fruit subsidiary of the Compagnie Fruitière group.

Beyond the scientific necessity alone, the long-term viability of the industry is also a recurring topic. « Our production costs are approximately 50% higher than those in Latin America. This is due to smaller scales of production, higher input and logistics costs, and less developed infrastructure », points out Jean-François Billot.

Diversifying into higher-value processed banana products could also offset the gradual downward trend in export prices. « We had to overcome the consequences of Covid, the disruption of supply chains, and the surge in input costs. We now face the regulatory wave coming from Europe, notably the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Deforestation Regulation (EUDR). These rules are understandable in principle, but their implementation costs place a disproportionate burden on African producers, especially smallholders », he continues.

Some 95% of dessert bananas produced in Africa are exported to the European Union. In 1993, the EU introduced a common market organisation for bananas, which established a tariff and quota system designed to protect European producers and former ACP colonies. « The €75 per tonne customs duty on bananas is the only protection for both European and ACP countries. Any erosion of this tariff would be catastrophic for our industry », stresses Jean-François Billot.

« Dollar bananas enjoy privileged, if not exclusive, access to the American market at extremely competitive prices. Unfettered access to the European market as well would spell the end of African and Caribbean production », he adds.

Some observers believe that the last remaining tariff barrier within the EU could come under threat during the forthcoming Spanish presidency of the European Council. « Spain, as the EU’s largest producer of bananas through the Canary Islands, has traditionally been sensitive to the interests of the countries of Latin America. The free trade agreements signed in 2012 and 2013 with Latin America had previously dismantled the tariff regime that had been in place up until the previous Spanish presidency », explains Jean-François Billot.

« If ACP bananas disappear from the European market, this will inevitably lead to the gradual disappearance of European and Caribbean production as well. It is in everyone’s interest to maintain this protection », explains Joseph Owona, President of AFRUIBANA (Association of African Producers of Banana and Other Fruits). For Jean-François Billot, « the Spanish should seek to preserve ACP banana production in order to protect the Canary Islands industry ». The Spanish archipelago is home to more than 8,000 banana producers, with an annual output of 400 million kilos, according to the Association of Banana Producers of the Canary Islands (ASPROCAN, 2022).

Marie-France Réveillard / La Tribune Afrique