So Much for Bananas

 

 

Resellers who source bananas at farmgate are now enjoying premium prices for the ripe product, with consumers reporting paying up to $800 for one dozen fingers of the fruit, up from $200 earlier in 2024.

Jeffrey Hall of Jamaica Producers    explains the limited supply and higher prices as being due to shortages created when farm output was dislocated by Beryl.

He outlined, “In the first week of July, Hurricane Beryl swept over Jamaica and destroyed an estimated 95 per cent of the banana crop.”  Hall is CEO and Vice Chairman of Pan Jamaica Group Limited. He is also the Group Managing Director of Jamaica Producers Group Limited whose JP Farms was a major source of the fruit.

Anecdotally, many consumers have decided to wait for lower prices to return. Agricultural engineer Winston Simpson, acting chief executive officer of the Rural Agricultural Development Authority (RADA). told Caribbean Money Daily that not all areas are being starved of bananas, but high prices seem to prevail.

Simpson said, “While eastern parishes were affected by heavy wind under Beryl, “Those in the west got rain does not breeze. Portland and eastern parishes suffered heavy wind. Trelawny and the West got rain, and they are doing well. They have bananas.”

Still, he noted, it is the resellers who are enjoying the higher prices for the produce which is in short supply in the East. They are buying the fruit at farm gate, where they are available for $200 per plant in reported cases.

Hall whose St. Mary operation saw devastation for the banana sector noted, “It takes approximately 9-months to grow bananas, although some smaller plants were rescued and will come back sooner (within 6-7 months).”

He indicated that JP immediately undertook measures to restore its farm after Beryl and with this now in an advanced stage, full production will not be achieved until early next year.

The 2024 outturn, due to the hurricane, is the reverse of what was expected. While there were similar storms in 2022, the rebound was more robust. The Jamaica Information Service (JIS) that bananas recorded a 2.8 per cent increase in banana production and 18.7 per cent for plantain.

“Despite the effects of Tropical Storms Grace and Ida in 2021, the industry rebounded to produce more than 72,000 metric tonnes of banana and more than 60,000 metric tonnes of plantain in 2022,” it was outlined.

The Banana Board indicated the island expected to exceed the target of annual production of 70,000 metric tonnes of banana and 47,300 metric tonnes of plantains by 2023

Meanwhile export markets without normal supplies. The market for Jamaican bananas extends to Europe, Canada, the US and Cayman. A total of 898.21 tonnes of banana were exported in 2022, up 9.17 per cent increase over 2021.

Hall stated that Jamaica Producers will continue to de-emphasize bananas in favor of pineapples in which it is now heavily invested, because of the weather impacts.

He told Caribbean Money Daily, “JP Farms is now a leading pineapple farmer in Jamaica. This reflects a critical part of JP’s diversification strategy. This crop did not suffer the same level of damage because it is low to the ground.

“This product is in the market and makes a contribution to the revenues of the business. Importantly it ensures a supply of competitively priced fruit for consumers during a period in which banana supply is disrupted.”

Paid in fertiliser

The total cost to JP Farms of the replanting bananas is approximately $200 million, Hall outlined. He noted that while here has been some relief from a small catastrophe fund to which banana farmers contribute, plus some additional support from the Government of Jamaica, “in all cases the payout was in the form of fertiliser. “

Hall said, “The contribution from these sources is valuable and appreciated by the industry, but it is less than 10 per cent of the cost of restoration which includes labour, irrigation and other materials for pest control over the restoration period.”

He added, “Some farms had somewhat lower impact, but the overall supply was severely affected with the largest farms facing near total damage. Frankly, it is a credit to the Jamaican farmer and farm workers that production is being dutifully restored.”

For larger farms such as JP restoration of the banana sector covers weed control, disease management, and repairs to damaged drainage and cableways,” it was noted.

Caribbean Money Daily

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