Banana Producers in Latin America Demand Higher Pay Amid Climate Crisis

Banana producers across banana latin america are facing significant production declines due to extreme weather during the current super El Niño event, prompting calls for increased compensation to handle climate impacts. The Fairtrade Foundation reports that heavy rainfall in Ecuador and Peru, alongside high winds in Colombian regions supplying the UK market, are severely affecting harvests. Meanwhile, the Dominican Republic anticipates drought conditions and warmer weather.

Historical data from Fairtrade indicates that productivity dropped significantly during the previous El Niño cycle, with decreases of 13 percent in the Dominican Republic, 22 percent in Ecuador, and 6 percent in Peru. Furthermore, the strong 1983 El Niño event impacted 15 percent of Ecuador's planted banana area and reduced exports by 36 percent. Dr Carley-Jane Stanton, climate and environment lead at Fairtrade, warns that the current cycle is expected to cause more severe impacts due to heavy rains and strong winds.

Evidence of these risks is already mounting. Association of Banana Growers of Magdalena and La Guajira data reported by Fruitnet shows that exports from the Colombian Caribbean fell 32 percent to $122m between July and September. In September alone, shipments dropped 42 percent year-on-year, and earnings nearly halved to $40m.

Climate impacts and extreme weather are threatening the economic sustainability of banana production in Latin America.

The association stated that climate-related productivity losses and declining export earnings are undermining the industry's economic sustainability, urging international markets to recognize actual production costs. Agrosiete worker Ever Antonio Flores Muños noted that rising temperatures, flooding, and strong winds over the past decade pose a great risk to workers and decrease wages.

Fairtrade is urging the UK to introduce legislation against unfair trading practices, such as low payments and risk-shifting contracts, to help producers invest in weather resilience. While some major retailers like Sainsbury's, Co-op, and Waitrose source Fairtrade bananas with minimum pricing guarantees, ethical trading research indicates that supplier prices in 2026 failed to cover basic production costs for 66.7 percent of producers. Fyffes chief corporate affairs officer Caoimhe Buckley emphasized that supermarket prices must reflect real production costs, including labor and climate adaptation investments. Research for the Inter-American Development Bank indicates that suitable land for banana cultivation could shrink by an average of 61 percent across Latin America and the Caribbean by 2050 without adequate adaptation help.

Why it matters

This crisis threatens the continuity and economic stability of banana supply chains for major consumer markets like the UK. Without fair pricing and financial support to tackle extreme weather, producers face severe productivity losses that could permanently alter the availability and cost of bananas globally.