Banana value chain profile for Colombia: Production and Fusarium Tropical Race 4 (TR4) at a crossroad Diego Alejandro Álvarez Caro1, Leslie E. Mosquera 1, Thea Ritter1, Jonathan Mockshell1, and Miguel Dita2 1 Performance, Innovation and Strategic Analysis for Impact (PISA4Impact), Applied Economics and Impact Evaluation, International Center for Tropical Agriculture (CIAT) 2 Biodiversity for Food and Agriculture, Bioversity International HIGHLIGHTS The banana sector is an important part of Colombia’s economy, generating approximately 293,648 direct and indirect jobs and contributing to 5.3% of Colombia’s agricultural GDP. Colombia is the world’s fifth largest banana exporter. Banana exports are a major source of foreign exchange for the country, helping finance imports of other foods. Bananas are produced in 23 of Colombia’s 32 departments, with Antioquia, Magdalena, and La Guajira focused on international markets. The largest banana-producing department is Antioquia, where most banana production is concentrated within the subregion of Urabá. The banana value chain is long and complex, involving many different actors, such as producers, state entities, financial institutions, producer associations and cooperatives, research centers, marketing companies, logistical service and input suppliers, and certification firms. The presence of Fusarium TR4 poses a significant threat to Colombia’s banana sector. This fungal disease could have a severe impact on the country’s economy and global banana supply. The Colombian government and banana industry are working together to prevent the spread of TR4. Some measures include strengthening biosecurity plans, conducting risk assessments, continuous monitoring, raising awareness among producers, and trying to develop TR4-resistant varieties of bananas. The most common varieties produced in Colombia are Cavendish and Gros Michel, with the former produced for international markets and the latter for domestic markets. Colombian Cavendish bananas are threatened by the presence of Fusarium Tropical Race 4 (TR4) in the country since the detection of the first plant infected in 2019 in La Guajira (ICA, 2019). Given the importance of bananas for the region and the potential impacts of TR4, in this profile, we examine the banana sector and value chain in Colombia. The importance of the banana sector for the economy The agricultural sector, in general, and the banana sector, in particular, play important roles in Colombia’s economy. There are two varieties of bananas in Colombia: bananas for export (Cavendish) and bananas for domestic consumption (banano criollo). More than 2 million tons of bananas were exported from Colombia in 2021 (FAOSTAT, 2022), corresponding to 86% of its national banana production. Colombia’s main export destinations are Belgium, the United Kingdom, Italy, the United States, Germany, the Netherlands, and Slovenia. Exports to these countries account for 89% of Colombia’s total banana exports with the remaining 11% exported to 35 other countries (FAOSTAT, 2022). In 2020, the agricultural sector represented 25.3% of total exports, and banana exports were valued at USD 916.2 million, representing 11.6% of the country’s agricultural exports (Augura, 2021). Income from banana exports helps finance imports of other foods (FAO, n.d.). The banana sector is also important for employment: it generates approximately 293,648 direct and indirect jobs and has a 5.3% share of Colombia’s agricultural GDP (MADR, 2020). On average, each person in Colombia consumes 6.16 kg of bananas and 36.2 kg of plantains per year, which is the highest of any other fruit in the country (FAOSTAT, 2022). MusaNet Banana production across the country Colombia is the eleventh Banana production varies across the country. Colombia largest banana producer in produced approximately 2.4 million tons of bananas in 2020 (FAOSTAT, 2022). Production is carried out by the world and the fifth in different types of producers: small and large producers, as well as producers for export and producers for Latin America, behind Brazil, domestic markets. Colombian banana producers grow bananas on five hectares of land, on average (MADR, Ecuador, Guatemala, and 2020). There are 35,139 agricultural production units1 dedicated to banana production in Colombia (MADR, Costa Rica (FAOSTAT, 2022). 2020). Small producers can be organized in cooperatives 2 | BRIEF and associations, especially when they are aiming to sell to international markets since these institutions allow producers to sell bananas together with other producers. The cooperatives and associations assist producers with different production activities, such as providing inputs for harvest and packaging, assisting with pest and disease control, and helping producers obtain the certifications required by international markets. Large producers hire plantation laborers to carry out different activities, such as planting, harvesting, and packaging. It is common to find cases of people managing more than one farm in areas where there are large producers since these producers are part of large banana marketing companies that cover several agricultural production units, as is the case of banana production in the Urabá region in the department of Antioquia. Bananas are produced in 23 of Colombia’s 32 departments, of which three produce for international markets (Figure 1) and 21 for domestic markets. Banana production in Antioquia, Magdalena, and La Guajira is focused mainly on international markets; however, it is common for bananas that do not meet international standards to be sold in local markets. Antioquia is the only department that has farms producing for international trade and farms producing for local markets only. Figure 1 shows production information for departments that export bananas. These departments are the only ones with yields greater than 20 tons/ha. Indeed, departments dedicated to international production have higher yields. The national average yield (23.6 tons/ha) is greater than the average yield in La Guajira (21 tons/ha) because the highest yields are in the largest banana-producing departments (Antioquia and Magdalena, with average yields of 33 tons/ ha and 39.6 tons/ha, respectively, which account for 83% of the country’s total banana production). Figure 2 compares planted areas and production in the domestic producing and exporting departments. The figure provides us with an idea of how intensive banana production is in the areas that produce for international markets, as they produce 84% of the bananas produced in Colombia and allocate 57% of their agricultural land for this crop. The largest banana-producing department is Antioquia where most banana production is concentrated within the subregion of Urabá in the municipalities of Apartadó, Carepa, Chigorodó, and Turbo. Antioquia represents 53% of the country’s production and 38% of the land dedicated to banana production (MADR, 2022). 1 An agricultural production unit is a unit used in Colombia. It refers to a farm dedicated to agricultural production and can be a fraction, one, or more fields, but has just one owner who MusaNet is responsible for the farm agricultural production (Franco et al., 2021). Banana value chain profile for Colombia 3 Production: 30,884 tons Area: 1,472 ha Yield: 21 tons/ha Production: 714,621 tons Area: 18,047 ha Yield: 39,6 tons/ha Production: 1,303,741 tons Area: 39,496 ha Yield: 33 tons/ha Figure 1 Banana-producing departments for international markets Source: Own elaboration using data from MADR (2022) 4 | BRIEF (a) Share of national banana production (%) (b) Production area (%) 16% 43% 84% 57% National markets International markets Figure 2 Share of national banana production and production area in Colombia Source: Own elaboration – data from MADR (2022) Note: *Departments producing for international markets are Antioquia, Magdalena, and La Guajira Actors in the banana to produce for international markets since they produce value chain small quantities individually, but pooling their production together in cooperatives allows them to contribute Bananas pass through many stages and hands in the value significant volumes for markets. chain before arriving at their destination, the consumer. After harvest, and as part of post-harvest activities, Figure 3 shows the wide range of actors involved in the produce is transported to domestic markets or banana value chain. State entities affect different links international markets. One of the largest Colombian in the value chain since they are not only responsible transport companies is Serteba S.A., which transports for designing and implementing agricultural laws, but bananas from packaging sites at farms to the port in also for allocating resources, subsidies, loans, and Santa Marta for delivery to international markets. This phytosanitary regulations and assistance. These actors company also provides other logistical services, such as include the Colombian Agricultural Institute (ICA) and storage according to required temperature and humidity Agrosavia. Agrosavia is the national institution of science, conditions. Marketing companies act as intermediaries technology, and innovation that contributes to technical between producers and international consumers. They change to improve the productivity and competitiveness also support other activities in the value chain, such as of the agricultural sector in Colombia. ICA is the national by providing fungicides to producers so they can prevent plant protection organization in Colombia, overseeing, Black Sigatoka (a fungal disease that affects banana designing, and executing strategies and regulations plants) from entering their farms. for preserving the plant health. Financial institutions play a role in the value chain by providing financing to Certification firms ensure that production meets different producers so they can establish agricultural production. standards. Production in Antioquia, Magdalena, and La The machinery and equipment manufacturers, as well as Guajira follows the Voluntary Sustainability Standards agrochemical producers, participate in the value chain established by the United Nations Conference on Trade by fabricating and supplying inputs. Some producer and Development. These standards strive to increase associations and cooperatives also provide inputs for the ability of countries to boost their exports and bananas, such as fertilizers or packaging materials, to improve their market access to more profitable markets their banana-producing members. The cooperatives are while requiring products to meet economic, social, and key for small producers in the banana value chain that aim environmental sustainability metrics (UNCTAD, n.d.). In the Banana value chain profile for Colombia 5 Colombian banana sector, the most important Voluntary addition to consumers who purchase bananas, other Sustainability Standards are Global G.A.P., Rainforest consumers are households who grow bananas for their Alliance, Fairtrade, and USDA-Organic. Banana production own consumption. Bananas are important for food is labeled and certified when standards are successfully security through the income to consumption pathway, as met. As mentioned above, cooperatives help producers well as through the production to consumption pathway. obtain these certifications and meet the requirements Bananas are a widely consumed staple food in Colombia: they entail. the average banana consumption per capita in 2018 was 14 kilograms, which is 2 kilograms more than the worldwide At the end of the value chain are consumers. Bananas average (FAOSTAT, 2022). are exported to international and domestic markets. In Financial services and resources Knowledge and technology transfer Suppliers of agricultural supplies, machinery and tools Finagro Banco Agrario ICA-Colombian Agricultural Institute Agrosavia Agrochemicals Fertilizers Irrigation system Ministry of Agriculture Extension agents Packaging materials Machinery and tools INPUTS Producers Augura Cooperatives Corporate groups Associations Asbama Exporters Coobana Banafrucoop Agrobit Banana labors Domestic Coobamag Asobanarcoop consumption Agroinversiones Renacer Emprebancoop Bananeras del Caribe SAS PRODUCTION + Other cooperatives -Cutting -Labeling Harvest -Separation of the covers -Weighing protecting bananas Post-harvest -Removing the flowers -Packaging -Cleaning - Control -Pruning -Transportation -Fruit selection PROCESSING -Fumigation International market Domestic Market Logistic Services Marketing companies Local Intermediaries marketplaces buyers -Packers Antioquia Caribe - Storage warehouses Food industry - Transportation companies C.I. Banacol Uniban Tecbaco -Customs services MARKETING -Port Society of Banafrut C.I. Banasan SantaMarta S.A. +15 Other marketing companies International consumers Consumption within producer households Belgium United States CONSUMPTION Domestic consumers United Kingdom Germany Italy Slovenia Netherlands Spain + Others Figure 3 Actors in the banana value chain Source: Own elaboration 6 | BRIEF CERTIFICATION COMPANIES Bioversity & CIAT. Fusarium Tropical Race 4 Colombia. In 2019, the declaration regarding TR4 changed and, to date, it is officially considered a “phytosanitary (TR4) emergency” as declared by ICA – the Colombian national plant protection organization – (ICA, 2023). As of May 25th, Banana production in Colombia is threatened by the recent 2023, TR4 has been confirmed on 17 farms in Colombia, arrival of Fusarium Tropical Race 4 (TR4). TR4 is a fungus resulting in on 3,176.54 hectares under quarantine (6 farms that affects the vascular system of the plant, constricting in Magdalena and 11 in La Guajira) (ICA, 2023). the transport of water and nutrients, which kills the host tissue and might lead to the death of infected plants (Pegg Since TR4 entered Colombia, a united front has been et al., 2019). Pegg et al. (2019) reviewed different studies created among different actors in the banana value that analyzed TR4 survival and found that this soil-borne chain to prevent the spread of the disease. Producers, fungus can stay alive in the soil for more than 50 years. ICA, Agrosavia, the Ministry of Agriculture, producer TR4 is a major concern for banana production, not only associations (such as ASBAMA and AUGURA), and other in Colombia, but throughout the world since there is no institutions are working together in public-private effective treatment against it, it leads to complete yield partnerships to articulate efforts to contain the disease. loss, and there are no commercial varieties resistant to For instance, an agreement signed by ICA and AUGURA this long-lasting disease. with 5.8 million Colombian Pesos (equivalent to about USD 1.2 million) in funding aims at strengthening ICA has been working to keep TR4 out of the country since biosecurity plans, continuing epidemiologic surveillance, 2013. By 2015, this fungus was declared a “quarantine raising awareness, and sensitizing producers on the pest.” In 2017, ICA conducted risk assessments regarding prevention and control of TR4 (ICA, 2022). A total of 1,340 the possible entry of Fusarium into Colombia. However, producers (of which 69% are small producers) have been in June 2019, the first symptoms of TR4 were identified beneficiaries of these public-private partnerships (ICA, in two banana farms in the department of La Guajira. 2023). In parallel, Agrosavia has been working on finding Pathogenicity tests confirmed that TR4 had arrived in and developing TR4-resistant varieties. Banana value chain profile for Colombia 7 Although national production and exports are not yet outbreak. Since then, areas have been reduced by 51.8% affected according to statistics, data on planted areas and and production has significantly decreased by 73.7% by production in La Guajira suggests an influence of the TR4 2020. Fusarium was first confirmed in Magdalena in 2021 outbreak on production. Figure 4 shows the trends for this (ICA, 2021);, however, due to data availability, we are unable department from 2016 to 2020. Peak production and areas to see any changes in this department yet. of bananas were observed in 2018, one year before the 3,500 140,000 3,000 120,000 2,500 100,000 2,000 80,000 1,500 60,000 1,000 40,000 500 20,000 0 0 2016 2017 2018 2019 2020 Production (tons) Area (ha) Figure 4 Produced area and production in La Guajira (2016-2020) Source: Own elaboration based on data from MADR (2022) Given that Fusarium has already been in Colombia for more than three years, it is imperative to conduct socioeconomic and cost-benefit analysis studies to better understand the effects of measures taken to prevent and contain TR4. Results from these studies can quantify and compare the effectiveness of different mitigation strategies and would allow stakeholders to make better informed, evidence-based decisions to tackle the consequences of the presence of TR4 not only in Colombia, but in other countries as well. 8 | BRIEF Area (hectares) Production (tons) References AUGURA (Asociación de Bananeros de Colombia). 2021. Coyuntura ICA (Instituto Colombiano Agropecuario). 2022. AUGURA, AGROSAVIA y el Bananera 2021. Augura. https://bit.ly/3OHITTh Accessed 13 Dec 2022. ICA realizaron simulacro ante una posible aparición de Fusarium Raza FAO (Food and Agriculture Organization of the United Nations). n.d. Markets 4 Tropical en Urabá. ICA. https://bit.ly/44WhjHC and Trade | Bananas. Extracted from: https://bit.ly/3OJemo0 ICA (Instituto Colombiano Agropecuario). 2023. Situación actual en FAOSTAT (Food and Agriculture Organization of the United Nations Colombia – Lecciones aprendidas. [PowerPoint Slides]. Dirección Statistical Database). 2022. FAOSTAT statistical database. Extracted Técnica de Sanidad Vegetal, ICA. https://bit.ly/3On7Ba3 from: https://www.fao.org/faostat/es/#data/TCL. Accessed: 11 Nov MADR (Ministerio de Agricultura y Desarrollo Rural). 2020. Cadena de 2022 Banano. Dirección de Cadenas Agrícolas y Forestales. [PowerPoint Franco NTF; Dávalos E; Morales LF. 2021. Heterogeneous Effects of Slides]. https://bit.ly/3Ow4NaW Agricultural Technical Assistance in Colombia. Journal of Agricultural MADR (Ministerio de Agricultura y Desarrollo Rural). 2022. Evaluaciones and Applied Economics, 53(4), 459-481. agropecuarias municipales EVA. Base histórica de periodo 2016–2020. https://doi.org/10.1017/aae.2021.18 Producción nacional agrícola, Bogotá. ICA (Instituto Colombiano Agropecuario). 2019. Primer reporte de la Pegg KG; Coates LM; O’neill WT; Turner DW. 2019. The epidemiology of marchitez por Fusarium en bananos tipo Cavendish causada por Fusarium wilt of banana. Frontiers in Plant Science, 10. la Raza 4 Tropical, en Colombia [First report of Fusarium wilt of https://doi.org/10.3389/fpls.2019.01395 Cavendish banana caused by Tropical Race 4 in Colombia]. Extracted UNCTAD (United Nations Conference on Trade and Development). n.d. from: https://bit.ly/44WshwA Voluntary Sustainability Standards. https://bit.ly/443f2c9 ICA (Instituto Colombiano Agropecuario). 2021. Informe Gestión - Vigencia 2021. ICA. https://bit.ly/3rVRMzM Accessed 13 Dec 2022. Bioversity & CIAT Banana value chain profile for Colombia 9 Acknowledgements Citation We acknowledge financial support by the Deutsche Álvarez D; Mosquera L; Ritter T; Mockshell J; Dita M. 2023. Banana value chain Gesellschaft für Internationale Zusammenarbeit (GIZ) profile for Colombia: Production and Fusarium Tropical Race 4 (TR4) at GmbH in the project, “Innovations for the prevention a crossroad. Bioversity International and the International Center for and management of the banana fungal disease Foc TR4 Tropical Agriculture (CIAT). Cali, Colombia. 10 p. (ALER4TA) ”, implemented by the Fund for the Promotion in Agriculture (i4Ag) as part of the special initiative Transformation of Agricultural and Food Systems. The views and opinions expressed in this brief are those of the authors and should not be attributed to GIZ or its Executive Board. CONTACT Jonathan Mockshell j.mockshell@cgiar.org The Alliance is part of CGIAR, a global research partnership for a food-secure future dedicated to transforming food, land and water systems in a climate crisis. alliancebioversityciat.org cgiar.org August 2023