In northern coastal Peru, particularly in the Chira Valley (Piura region), organic banana production has become one of the most representative activities of family farming. More than 9,000 smallholders — most managing plots of less than one hectare — have sustained a value chain that has endured climatic, phytosanitary, and logistical challenges, relying on innovation, cooperative organization, and diversification.
Since the early 2000s, Peru has positioned itself as one of the world's leading exporters of organic bananas. However, since 2017, production has shown a downward trend, mainly due to the increasing frequency of extreme weather events such as torrential rains, prolonged droughts, and the spread of diseases such as Fusarium Tropical Race 4 (TR4).
Extreme weather and reorganization of the production model
Carlos Huamán, representative of CEDEPAS Norte — an organization with over 40 years of experience in rural development and technology transfer — notes that climate change is currently the sector's most pressing challenge. "In 2023, we experienced heavy rains, and in 2024, a drought lasting nearly six months, which directly affected production and highlighted the need to modernize water access systems," he explains.
In response to these limitations, cooperatives have begun drilling tubular wells, implementing water harvesting systems, and optimizing legacy irrigation infrastructure. Kelvin Atoche Escobar, commercial manager of the cooperative alliance Norchira, reports a 20% to 30% drop in fresh fruit production compared to the previous year. "At the same time, it pushed us to seek more sustainable solutions," he adds.
Norchira and the push toward diversification
Norchira is an umbrella organization uniting three major cooperatives from the Chira Valley: APPBOSA, Usuarios Río y Valle, and APBOSMAM. Its creation responds to the need to consolidate efforts and pursue economies of scale in a context of high logistical costs in Peru. "Joint negotiation has significantly reduced transport, input, and packaging costs," says Atoche.
After more than two decades focused on fresh banana exports, Norchira is now entering a new phase centered on the processing of non-export-grade bananas. Beginning in 2025, the organization will launch exports of banana purée and organic dried banana, products aligned with rising European demand for healthy snacks and natural goods. "We have the capacity, the raw material, and access to a market that demands it," Atoche states.
Banana purée is produced from fruit that does not meet fresh export standards. Approximately one kilogram of purée is obtained from two kilograms of fresh banana. It is marketed at prices ranging from USD 1.40 to 1.50 per kilogram and shipped in 220-kg aseptic tanks. This alternative allows producers to add value to fruit previously sold domestically at low prices, improving their income stability.
Agricultural innovation and fusarium management
One of the sector's key phytosanitary threats is the presence of Fusarium TR4, first detected in Peru in 2021. This soil-borne fungus can remain active for up to 40 years, making its containment a national priority. As part of the "Strengthening the Organic Banana Value Chain" project — co-financed by the Swiss Cooperation (SECO) and implemented by CEDEPAS Norte — technical packages are being developed, including the use of biofertilizers, beneficial microorganisms, and soil enhancers, along with strict biosecurity protocols.
In parallel, field trials are being conducted with support from SENASA, CIRAD (France), and Agrofair to introduce TR4-resistant banana varieties. "If these varieties adapt well, it would be a major step forward for the long-term sustainability of organic banana cultivation in Peru," says Huamán.
Certifications, logistics, and market access
Organic and Fairtrade certifications remain key tools for accessing premium markets, particularly in the United States (which accounts for 54% of exports), as well as the Netherlands, Germany, and Italy. However, market dynamics are evolving, and profitability is under pressure. According to Norchira, demand for Fairtrade bananas has declined. "In 2018, 95% of our fruit carried the Fairtrade label. Today, it's only around 70%. The rest is organic but uncertified, and sells at prices that often fall below production costs," Atoche points out.
Adding to the pressure are high logistical costs. The shortage of shipping containers and disruptions at ports have negatively impacted competitiveness. "Rescheduling and delays result in additional costs that reduce smallholder margins," Huamán adds.
Outlook and sector sustainability
The Peruvian organic banana sector is at a turning point. On the one hand, it remains a sustainable option, rooted in environmental and social responsibility. On the other hand, it must rapidly adapt to a shifting global context. Product diversification, modernized irrigation and soil management, disease control, and stronger cooperative organization are key pillars in the current development strategy.
Over the next five years, the sector aims to stabilize production levels, enhance value through processed exports, and reinforce its presence in organic markets.
As Atoche concludes: "We are moving forward with a positive vision — toward a value chain that is fairer, more efficient, and more sustainable, ensuring decent prices for producers and quality products with traceability and social value for consumers."
This article was previously published in Primeur May 2025. Click here for the link to the entire edition
For more information:
Karlhos Quinde Rodríguez
CEDEPAS Norte
Piura – Perú
Tel.: +51 (073) 346287
Tel.: +51 968 809 984
[email protected]
www.cedepas.org.pe
Kelvin Atoche Escobar
NORCHIRA
Piura – Perú
Tel.: +51 945 040 766
[email protected]
www.norchira.com