Banana Market Overview in Tanzania

The revenue of the banana market in Tanzania amounted to $2.2B in 2010, jumping by 8.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, banana consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2009 with an increase of 19% against the previous year. Banana consumption peaked in 2010 and is likely to continue its growth in the near future.

In value terms, banana production amounted to $2.1B in 2010 estimated in export prices. Over the period under review, banana production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2009 with an increase of 17% year-to-year. Banana production peaked in 2010 and is likely to see steady growth in the immediate term.

In 2010, the average banana yield in Tanzania stood at 7.6 tonne per ha, surging by 28% against the previous year. In general, the banana yield, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 when yield increased by 28% against the previous year. Banana yield peaked at 7.6 tonne per ha in 2007; however, from 2008 to 2010, yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

Banana harvested area in Tanzania amounted to 418K ha in 2010, declining by -17.7% against the previous year. The harvested area increased at an average annual rate of +1.1% from 2007 to 2010; the trend pattern remained consistent, with only minor fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2009 when harvested area increased by 21% against the previous year. In that year, the banana harvested area reached its peak level of 508K ha, and then declined slightly in the following year.

In 2010, the consumption of bananas in Tanzania stood at 3.2M tonnes, going up by 5% against the previous year. In general, banana consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2009 with an increase of 23% y-o-y. Over the period under review, the banana consumption attained its peak figure volume in 2010 and is likely to continue its growth in the immediate term.

The revenue of the banana market in Tanzania amounted to $2.2B in 2010, surging by 8.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, banana consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2009 with an increase of 19% against the previous year. Over the period under review, the banana market reached its peak figure level in 2010 and is expected to retain its growth in the immediate term.

Driven by increasing demand for banana in Tanzania, the market is expected to continue an upward consumption trend over the next fifteen-year period. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +1.6% for the fifteen-year period from 2010 to 2025, which is projected to bring the market volume to 4M tonnes by the end of 2025.

Over the period under review, imports of banana in Tanzania were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for banana.

This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.