Report: Banana sector ripe for more sustainability

Ottawa, May 25, 2020 – Banana producers are increasingly using voluntary sustainability standards (VSSs) to tackle the sector’s sustainability challenges, including crop diseases, climate change impacts, excessive pesticide use, low farm-gate prices, and poor labour practices, according to a new report released today by the International Institute for Sustainable Development (IISD).

“With standards such as Rainforest Alliance, Organic, and Fairtrade, banana plantations are more likely to do things like fairly compensate workers and reduce pesticide use and water depletion,” says Vivek Voora, an author of the report and associate with IISD.

The report tracks the use of VSSs in the sector, which experienced a 43% compound annual growth rate (CAGR) from 2008 to 2016, compared to a 0.71% CAGR for conventional bananas. By 2016 at least 7% of global banana production was certified by a VSS, representing 36% of exported bananas.

“Consumers in North America and Europe are demanding healthier and more sustainable bananas in the marketplace,” Voora says. Unlike other commodity markets, VSS-compliant bananas tend to be sold as such, according to the report.

Overall banana consumption is estimated to reach 136 million tonnes by 2025, an increase of 20 million tonnes from 2017, driven by demand from producer countries in the developing world, where bananas are an important source of nutrition and food security. The Asia-Pacific region, which accounts for 61% of current demand, is expected to lead this growth.

Voora says the massive Asia-Pacific market has huge potential to move the sector towards sustainability if it develops demand for VSS-compliant bananas. “It’s critical for VSSs to become more accessible so smallholder producers can easily adopt the standards, and consumers in developing countries can afford to buy them.”

Full report: Sustainable Commodities Marketplace Series: Bananas

ABOUT THE SUSTAINABLE COMMODITIES MARKETPLACE SERIES

The banana report is the sixth in IISD’s Sustainable Commodities Marketplace Series, which presents market information and analysis on agricultural commodities to foster transparency, knowledge, and strategic decision making for sustainable development. The first five reports focused on coffee, cocoa, tea, sugar, and palm oil. Future reports will cover cotton and soybeans.

ABOUT THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT

The International Institute for Sustainable Development (IISD) is an independent think tank that delivers the knowledge to act. Our mission is to promote human development and environmental sustainability. Our big-picture view allows us to address the root causes of some of the greatest challenges facing our planet today—ecological destruction, social exclusion, unfair laws and economic and social rules, a changing climate. With offices in Winnipeg, Geneva, Ottawa, Toronto, and Beijing, our work impacts lives in nearly 100 countries.

For more information, please contact: media@iisd.org or +1 (613) 238 2296 ext. 114.