Pandemic threatens global banana exports

Currently, a disease is threatening the Cavendish, the most important banana variety worldwide. The Tropical Race 4 (TR4) strain of the Fusarium fungus has caused a pandemic on banana plantations and is devastating the crop in several countries and thereby causing a major threat to millions of smallholder farmers producing these bananas. In the 1950s, another strain of the same fungus, Race 1, destroyed the entire harvest of the then-popular Gros Michel bananas in Central America, effectively wiping out the variety. Now, the Cavendish is facing a similar threat: TR4 is known predominantly for infecting this variety, which is the most widely cultivated in the world.

TR4 is a disease for which there is currently no treatment. It is transmitted through the soil and devastates banana plantations. The only way to stop the spread, once it is detected, is to burn down the plants in and around the infected area, but the disease stays in the soil for many years. In 2019 the fungus was detected in Colombia and immediately biosecurity measures were implemented. In April 2021, the TR4 strain had been detected in a half-hectare banana plantation in the Piura district of Peru. Immediately, a phytosanitary emergency was declared, calling for strict prevention measures to avoid the spread of the disease to the other banana and plantain plantations that cover 170,000 hectares of the country. TR4 appearing in Peru set off alarm bells in neighbouring Ecuador as well. The affected area is very close to the El Oro province in Ecuador, where production of – mostly organic – bananas takes place on around 50,000 hectares.

Cavendish bananas account for approximately 95 percent of exported bananas worldwide. Bananas are particularly important for vulnerable populations, who obtain up to 20 to 25 percent of their daily calorie intake from this fruit. TR4 could devastate banana plantations in just a few years, causing serious economic and social implications. Considering that bananas play a vital part in global food security and the survival of rural economies, collaboration is vital for seeking solutions and taking immediate steps to stop the disease before it can cause more serious damage.

Rabo Partnerships has a strategic cooperation with Banco Pichincha from Ecuador to support them by giving access to Rabobank's knowledge, network and financial solutions. The aim of this partnership is to improve financial inclusion, rural livelihoods and increased finance of the Food & Agri sector in Ecuador. Ecuador is the world's largest banana exporting country, so the threat of TR4 is very relevant for its future. Therefore, Rabo Partnerships also supports Banco Pichincha in establishing a relevant network to cope with this threat.

In February, Rabo Partnerships introduced our partner bank, Banco Pichincha from Ecuador, to our partner and client Bayer with the goal to set up a collaboration to help Ecuadorian banana farmers prevent the appearance and spreading of the disease. The bilateral collaboration between Bayer and Banco Pichincha took off swiftly. Together, Bayer and Banco Pichincha are ready to execute a big campaign to create more awareness and to train smallholder farmers in Ecuador on the prevention of the spread of TR4.

Trainings for farmers are being organized by Bayer and Banco Pichincha in two ways: through a webinar for farmers with internet access and by local radio transmission in order to reach as many farmers as possible. The first trainings are planned for around 500 smallholders banking with Banco Pichincha located in the most at-risk southern part of Ecuador. The farmers were contacted by account executives from Banco Pichincha. In addition to the training, Bayer also provided their BayG.A.P. biosecurity measure against TR4 training material and reminders, such as banners with a summary of security measures that can be hung in strategic locations on the different farms, text messages, and short videos that will be published on the local website of Agro Bayer Ecuador. By the second quarter of 2021, Banco Pichincha’s executives will inspect the farms to confirm the implementation of the measures and reinforce specific issues where necessary. Further follow-up trainings will be planned based on the success of this first one.