Brief
Banana prices face pressure as Iran war drives up fuel and fertilizer costs
Industry executives cite soaring diesel, natural‑gas‑based fertilizer and shipping challenges as a “crisis” for banana growers.
By Felo News Desk · Published
U.S. banana prices could climb as the war in Iran, which began in February, pushes up diesel, fertilizer and shipping costs, the New York Post reported on October 13.
Del Monte North America president Danny Dumas described the situation as a “crisis,” noting that diesel needed for refrigerated tankers has risen 70% since the war started. The price of banana fertilizer, which relies on natural gas from the Middle East, has also surged. Tom Stenzel, president of the Banana Association of North America, said the combination of higher fuel, fertilizer, tariffs, a truck‑driver shortage and El Niño‑related shipping uncertainty is straining the supply chain.
The New York Times, cited by the Post, said a single banana can cost as little as 15 cents in a highly efficient supply chain, but that margin is eroding. One producer told the Times his costs jumped 5 % from the previous year. Contract prices for bananas, set to expire in December, are currently locked in, leaving farmers to absorb the higher expenses.
Banana contract prices reached a six‑year high of 67 cents per pound in 2025 after tariffs on imports from Guatemala, Ecuador, Honduras and Costa Rica were lifted. August 2026 data showed banana costs were 2.2 percentage points higher than the prior year. Long‑term concerns also include Panama disease, a fungus that has devastated banana crops in the past.
Key facts
- Diesel costs for refrigerated banana tankers have risen 70% since the Iran war began (nypost.com)
- Banana fertilizer prices, tied to Middle‑East natural gas, have sharply increased (nypost.com)
- Del Monte North America president Danny Dumas called the situation a “crisis” (nypost.com)
- Banana contract prices hit 67 cents per pound in 2025, a six‑year high (nypost.com)
- One producer reported a 5% cost increase compared with the previous year (nypost.com)
Sources
- [1] nypost.com — originally reported as “Iran war could bring price hikes to banana, America’s most consumed fruit”
