The global banana industry is facing growing challenges from plant diseases, as Fusarium Tropical Race 4 (TR4) and Black Sigatoka continue to affect production across major regions. Fresh Del Monte CEO Mohammad Abu-Ghazaleh warned during the company's Q3 earnings call that the industry is "losing the battle" against both diseases.
"People really don't understand how serious this issue is," said Abu-Ghazaleh, stressing that the problem extends beyond Fresh Del Monte's farms in Costa Rica, Guatemala, and the Philippines. "There will come a time that people realize that there are not enough bananas… and prices will shoot up in a way that will be a shock to the market."
TR4, first identified in Southeast Asia, has now spread through Asia Pacific, Africa, and South America, including Ecuador, one of the world's largest banana producers. "It is a highly contagious soil-borne disease with no cure, and it's already destabilizing the region," he said. In Peru's Piura region, "a recent study found that 45% of farms are already infected and about 10% have been completely eradicated."
While Central America has not yet reported TR4, Abu-Ghazaleh warned it is "just a matter of time." He noted reinfection remains an issue. "You can replant and then three years later, four years later, you lose a tree again. I see that in the Philippines. I saw that in Africa. This is going to happen. I see that as we speak right now in Ecuador."
Fresh Del Monte is developing TR4-resistant banana varieties and has strengthened biosecurity measures, though these come at rising costs. "The farmer can no longer absorb these rising costs," he said. "If we don't act collectively to support growers and stabilize this supply chain, we risk seeing this fruit and the livelihoods behind it disappear before our eyes."
In Costa Rica, Black Sigatoka has reduced production by 22%, equal to roughly 18 million boxes. Abu-Ghazaleh said the price of fungicides has increased 40–50% in the past two years. "And the problem is that the disease is adapting to that chemical, so you need to keep applying more. It's a vicious cycle."
Fresh Del Monte's banana segment recorded Q3 sales of US$358 million, up 3.7%, but margins fell due to disease management costs, lower supply, and weather-related disruptions.
In Central America, the company remains in a "proactive prevention phase" against TR4, applying lessons from Asia on early detection and containment. Longer-term efforts include developing resistant varieties with Queensland University of Technology and UK-based Tropic.
Jorge Pelaez Reyes, Fresh Del Monte's Central America SVP, said the firm is expanding into new production areas, including Somalia, to diversify supply. He added that climate and disease pressures require "a shift from traditional chemical-based approaches to more integrated and sustainable solutions."
Source: AFN
