Banana Market Overview in Tanzania

The Tanzanian banana market skyrocketed to $ in 2018, surging by % 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, the total consumption indicated moderate growth from 2007 to 2018: its value increased at an average annual rate of +% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, consumption decreased by -% against 2016 indices. The most prominent rate of growth was recorded in 2016 when the market value increased by % against the previous year. As a result, consumption attained the peak level of $. From 2017 to 2018, the growth of the market remained at a somewhat lower figure.

In value terms, banana production skyrocketed to $ in 2018 estimated in export prices. Over the period under review, production continues to indicate a buoyant expansion. The pace of growth was the most pronounced in 2016 when the production volume increased by % against the previous year. As a result, production attained the peak level of $. From 2017 to 2018, production growth remained at a lower figure.

The average yield of bananas in Tanzania dropped modestly to tonnes per ha in 2018, remaining stable against the year before. In general, the yield saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2010 when the yield increased by % against the previous year. Over the period under review, the average banana yield reached the peak level at tonnes per ha in 2015; however, from 2016 to 2018, the yield failed to regain the momentum. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2018, the total area harvested in terms of bananas production in Tanzania was estimated at ha, increasing by % compared with 2017 figures. The harvested area increased at an average annual rate of +% over the period from 2007 to 2018; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2011 when the harvested area increased by % year-to-year. As a result, the harvested area reached the peak level of ha. From 2012 to 2018, the growth of the banana harvested area remained at a somewhat lower figure.

In 2018, consumption of bananas was finally on the rise to reach tonnes for the first time since 2015, thus ending a two-year declining trend. The total consumption volume increased at an average annual rate of +% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2009 with an increase of % against the previous year. Over the period under review, consumption reached the maximum volume at tonnes in 2015; however, from 2016 to 2018, consumption failed to regain the momentum.

The revenue of the banana market in Tanzania soared to $ in 2018, increasing by % 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). Over the period under review, the total consumption indicated noticeable growth from 2007 to 2018: its value increased at an average annual rate of +% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, consumption decreased by -% against 2016 indices. The growth pace was the most rapid in 2016 when the market value increased by % against the previous year. As a result, consumption reached the peak level of $. From 2017 to 2018, the growth of the market failed to regain the momentum.

Driven by increasing demand for banana in Tanzania, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from 2018 to , which is projected to bring the market volume to tonnes by the end of .

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.