The Canary Islands banana sector is navigating a tough period
The banana trade in the Canary Islands is experiencing a notable downturn. Beyond the usual summer fluctuations, demand for the islands’ flagship fruit has fallen, with July and August typically cooling as schools open and consumers turn to watermelons and melons. Recently, the decline has been more pronounced than in prior years.
According to the Canary Islands Banana Producers Association, known as Asprocan, the gap in export prices to the Peninsula has widened. The association estimates a drop of around 26 percent. Bananas that earlier averaged about 95 cents per kilo before summer are now trading near 70 cents per kilo. The strain comes from tensions among groups such as Banana Friends and For a Fair Price, which remain divided over how to stem losses in the sector.
Growers have not reached a consensus on the root cause of the depressed prices. Asprocan argues that the market price reflects oversupply during warmer months. Sergio Cáceres, Asprocan’s manager, notes that even a modest rise in temperature across the Islands during July and August boosted production. As a result, the market has moved about 268 million kilos of bananas so far this year, compared with a decade-long average of roughly 235 million kilos for this period. In total, a surplus of around 33 million kilos, or about 14 percent, has accumulated. When heat spikes amplified demand-supply imbalances, the extra volume became harder to absorb.
distribution chain
Supporters aligned with Banana Friends offer a different viewpoint. Jorge Eulogio Hernández, a member of that platform, argues that the core issue lies in the distribution chain and points to Asprocan for not operating with sufficient professionalism or transparency in this area. He says, farmers simply harvest bananas and hand them to the packer who ships them to the Peninsula. There is a contract and an agreement with distributors that sets the price. Promotional activities are part of that setup.
Hernández also recalls criticism directed at Domingo Martín Ortega, president of the Association of Banana Producers Organizations of the Canary Islands, who had described the farmers as poorly organized and blamed them for the current situation. He notes that the Banana Friends platform estimates almost 97 billion kilos of fruit have been discarded over the last 12 years, underscoring a major waste concern in the sector.
market loss and price pressures
In a recent document titled Brief Analysis of the Banana Industry and Suggestions for Improvement, circulated to the Ministry of Agriculture of the Canary Islands, the same platform argues that the price crisis has intensified even as the market faced a heavy influx of supply. The document cites half-year figures for 2023 showing tens of thousands of tons entering circulation and highlights a disconnect between production and market absorption, noting alarming price signals as a result.
Hernández explains that traditional banana growers are earning as little as two cents per kilo, while those cultivating organic bananas in his group receive roughly sixty cents per kilo, compared with the typical euro price for conventional fruit. He views such disparities as unsustainable, raising questions about generational entry into banana farming and making the practice less attractive to younger generations who often rely on family support or subsidies. The broader implication is that banana cultivation no longer appears profitable for many families, threatening the continuity of farming as a viable livelihood.
banana bites
For years, eliminating excess production has been a major concern for Canarian growers. Some see potential in new policy mechanisms like the Banana Friends and Fair Price initiatives to shape production costs and channel flows. A demonstration has been scheduled for this Saturday at 11:00 in front of La Palma City Hall, signaling the sector’s willingness to mobilize. Yet Asprocan argues that the proposed Chain Law may not guarantee product reception at the farm level and could impose penalties on cooperatives amounting to millions of dollars, risking significant losses for the industry if adopted without safeguards.
Ministry sources confirm that officials will meet with Asprocan at the end of the month to seek constructive mediation and support the producers in finding practical solutions. They emphasize a willingness to foster dialogue that could stabilize prices while protecting the viability of farms across the archipelago. The overarching aim is to find a path that preserves livelihoods without distorting market incentives or imposing unsustainable costs on growers and distributors. Citations: Ministry sources and industry associations.