Global banana market in crisis
After 2018 got off to such a positive start in terms of both price and volume, the banana market has experienced a rapid fall in prices since April due to overproduction. This crisis, which started in Russia before moving westwards, comes at a time when negotiations are set to begin between Europe and the countries of the dollar zone with a view to lowering tariffs. This crisis has been on the horizon for some time now and has only been averted thus far by adverse weather conditions lowering output. But the long-expected trouble now appears to be at the gate. The exceptional beginning to 2018 has made the subsequent fall that much more dramatic. Prices have fallen from a record high of €18-19 to a record low of €3-4.
The oversupply derives from the huge international production base which has grown to meet the rising consumer demand. Meanwhile, productivity is also rising and other producing countries are re-emerging such as Honduras and Nicaragua. West Africa is also expanding (with the noteable exception of Cameroon.)
