16:30 UK, 7th December 2009, by Agrimoney.com
Sagging bananas lose slump-busting record

As if the world needed more evidence of the severity of the global recession, the United Nations has provided it – a fall in US banana imports.

America's purchases of bananas from abroad are set to fall 4.1% to 3.84m tonnes this year.

While a small drop by the standards of some other industries, a second successive year of decline questions the banana's image for economic resilience.

US demand had increased with little interruption since the early 1970s, growing both through the 1973-75 recession and the downturn of 1980-83.

Everyfruit 

The UN's Food and Agriculture Organisation explained the banana's previous resilience in America, which is responsible for 28% of global imports, to being something of an everyman of fruit.

US banana imports - a v-shaped recovery?

2011: 4.14m tonnes

2010: 4.03m tonnes

2009: 3.84m tonnes

2008: 3.92m tonnes

2007: 4.00m tonnes

Source: UN  FAO

The banana wasn't just prized for its nutritional value and its convenience of consumption.

"Banana consumption differed little between household income levels, suggesting that banana consumption was not sensitive to changes in income," the UN FAO said in a report to the fourth session of its subgroup on bananas and fifth session of its sub-group on tropical fruits.

"At the same time, the banana price was relatively low compared with prices of other fruits, which induced consumers to buy more banana and to lower consumption of other fruits when purchasing power fell."

'A necessity'

The FAO gave no explanation as to why US banana imports have fallen this time, along with European purchases, down 5.5%, which have a richer history of moving in time with external economic forces.

However, the organisation defended the banana's recession-proof credentials, noting a 2.5% increase in imports this year by developing countries, notably China.

"Bananas are expected to resist the impact of the global financial crisis more than other agricultural commodities," the report said.

"The main reason… is because the fruit is deemed by consumers to be a necessity and is therefore less sensitive to changes in income and price."

Furthermore, it forecast that US demand would jump 5.0% in 2010, more than making up for lost ground.

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