Rising production costs and pressure on banana prices risk undermining the investment needed to build more resilient farms and supply chains, Fyffes has warned.
The tropical fruit supplier is calling for closer cooperation between growers, producers, importers and retailers, arguing that environmental and social progress depends on the economic viability of banana production.
According to Fyffes, growers across producing countries face higher costs for labour, fertilisers, crop protection, packaging, energy and transport. Climate-related disruption, plant diseases and increasingly complex supply chains are adding to the challenge of maintaining reliable production and consistent fruit quality.
The company says retail prices have failed to keep pace with the cost of producing and delivering bananas, leaving the industry absorbing increases that could otherwise support investment.
“The banana industry is under very significant pressure,” said Frank Burkhardt, Chief Commercial Officer at Fyffes. “Costs have increased across virtually every part of the supply chain, from farm inputs and labour to logistics and transportation.”
He added: “For many years, the industry has absorbed those increases. That is no longer sustainable.”
The Economics Of Resilience
For a sector facing mounting environmental pressures, the warning raises a central question: how can farms fund adaptation and improve production practices while their returns remain under strain?
Fyffes argues that investment in climate resilience, responsible farming, worker welfare and supply chain improvements cannot be sustained indefinitely without an economically viable model.
“Sustainability has environmental, social and economic dimensions,” Burkhardt said. “The industry is rightly being asked to invest more in climate adaptation, responsible farming and the wellbeing of workers and communities. But those investments depend on economically viable farms and supply chains.”
The company is calling for discussions across the value chain that explicitly address pricing and recognise the costs involved in maintaining production.
“This is a shared responsibility,” Burkhardt said. “Growers, producers, importers and retailers need to work together to develop a long-term sustainable plan for the category. That discussion must include banana pricing.”
Diversification And Regenerative Agriculture
Fyffes says its own approach to supply resilience includes sourcing from ten origins worldwide, supported by an integrated logistics network and long-standing partnerships. The strategy is intended to reduce exposure to localised disruption and maintain continuity of supply.
The company has also announced an ambition to source 30% of its produce from regenerative agriculture systems by 2035. This is a sourcing ambition across its produce portfolio, rather than a banana-specific target.
Such commitments underline the relationship between agricultural change and the resources needed to deliver it. Fyffes maintains that continued progress will depend on growers and producers achieving returns that allow them to invest in their farms, workers and communities.
“Bananas have been available and affordable for so long that it is easy to underestimate the investment, expertise and complexity required to bring them from farms to supermarket shelves,” Burkhardt said.
