Supplies of bananas are improving. That’s a very good thing says Anthony Serafino of Exp Group, LLC. “Supply has been pretty strong but it’s going to improve going into the summer,” he says. “The growers have revved up what they need to do to keep supplies stable and that should keep pricing stable.”
Stability is what’s being sought after in banana movement in 2023. Serafino notes that consumers, retailers and wholesalers are all looking for consistent supplies and pricing. “You don’t want it to be an adventure always and they feel like really the last 12 months have been an adventure. We said the supply chain in 2022 would be more difficult than the uncertainty in 2020. However this year is when things are back and on schedule,” he says, noting the majority of supplies are coming from Ecuador and Guatemala right now. Behind them are Honduras and Costa Rica, though Mexico also supplies a sizeable amount to the Central to Midwest U.S.
Wet weather and production
Along with supply chain challenges on steady supplies, the weather has been a factor for growers--particularly the wetter-than-usual conditions in Central America. “Growers though have been very cognizant of what they need to do to improve irrigation systems and the supply chain on the farm level so that they can improve supplies,” says Serafino.
Meanwhile, banana demand has been strong but is of course tied to supply. “If we continue to improve supplies, we’ll see demand improve as well. However it has been good and consistent and that’s what we’re looking for,” he says.
What is on watch is pricing in the near future and Serafino wonders if the peak on banana pricing has been reached. “Looking ahead, we’ll see some softening in pricing. I’m seeing a lot of multinationals react on price,” he says, noting price softening generally happens every year around Memorial Day. This year it’s beginning likely in weeks 15-16. “The only thing that will allow the price to stay where it is is if supply doesn’t react the way we think it will. We think supply will remain consistent and pricing should come off a little bit in Q2 compared to Q1.”
For more information:
Anthony Serafino
Exp. Group LLC
Tel: (+1) 201-662-2001
anthony@expgroup.us
www.expgroup.us