Mohammad Abu-Ghazaleh highlights the growing imbalance between banana supply and demand as disease pressures mount, while announcing upcoming field tests of TR4-resistant banana varieties
Fresh Del Monte Produce chairman and chief executive officer Mohammad Abu-Ghazaleh has warned that there is a global shortage in banana production.
Speaking during the company’s second quarter earnings call today (30 July), Abu-Ghazaleh highlighted the spread of Black Sigatoka and TR4, and the imbalance between global supply and demand, as critical issues to address.
”I believe it’s important to discuss an industry-wide situation regarding bananas – one that I have been predicting and warning about for years,” he said on the call. “There is a global shortage in banana production.
”The causes are clear: shifting climate patterns – particularly warmer temperatures combined with humidity – are accelerating the spread of disease in key growing regions, primarily Black Sigatoka.
”On top of that, the continued spread of Fusarium wilt, known as Tropical Race 4 (TR4), is adding further pressure,” Abu-Ghazaleh commented.
”These diseases are having a direct impact on supply. Sigatoka is affecting crops across Central America, while other countries are facing the compounded impact of both diseases.”
He explained that Fresh Del Monte’s R&D teams have been working to address the global threat posed by Fusarium wilt.
”We’re pleased to report that field testing of TR4-resistant, gene-edited banana lines will begin in the coming months – a meaningful step toward long-term category resilience,” Abu-Ghazaleh continued.
Meanwhile, global demand for bananas remains strong, he confirmed, as the fruit continues to be one of the most affordable and accessible in the grocery aisle.
”We’re already seeing a clear imbalance between supply and demand, and we anticipate this will remain a key industry dynamic in the quarters ahead,” he added.
The call came after the company released its results for the second quarter of the year, recording growth in net sales and net income.
