Fairtrade to raise Minimum Price for bananas

Fairtrade has announced an increase in its Minimum Price for bananas due to rising export costs and falling import prices, which have hit producers hard. As of 1 January 2022, Fairtrade Minimum Prices for bananas will go up by an average of 8%, with contracts for next year currently being negotiated between producers and buyers.
The increase in banana export costs is reportedly being driven by a steep rise in the price of packaging materials, as well as a 60% rise in freight costs, with no sign of this trend ending soon. Production costs have also been affected by the Covid-19 pandemic and by measures to protect against the fusarium TR4 fungus. Meanwhile, import prices have plummeted to a record 10-year low of less than €10 per box.
Nicolas Léger, Fairtrade’s global lead for bananas.

“The financial squeeze on banana producers has been devastating for their livelihoods and a real threat for their long-term gains. An uptick in the Fairtrade Minimum Price will provide vital support for banana producers, especially in these times of distress and global fluctuations in the market. It’s critical for the world to know, however, that Fairtrade’s efforts are only one part of the solution when it comes to banana farmers and workers earning a decent living. The banana industry as a whole needs to change to make banana farming sustainable in the long term.”