The Iran war is driving up costs across the banana supply chain, threatening to raise prices for America’s most popular fruit. Since the conflict began in February, companies like Del Monte North America have faced rising diesel costs, fertilizer prices, and other challenges, with Danny Dumas, the president of Del Monte North America, calling the situation a "crisis."
Bananas travel a long, delicate journey from Central American farms to U.S. grocery stores, relying on efficient, low-cost logistics. However, diesel prices for refrigerated shipments have surged 70%, while fertilizer costs, dependent on Middle Eastern natural gas, have also spiked. Tariffs, truck driver shortages, and the El Niño weather phenomenon are adding further strain, according to Tom Stenzel, president of the Banana Association of North America.
Current contract prices lock in costs, but farmers are already absorbing higher expenses. One producer reported a 5% cost increase from last year, with some switching to alternative fruits. Banana contract prices are set to expire in December, leaving grocers uncertain about future pricing. In 2025, costs hit a six-year high of 67 cents per pound, though some tariffs have since been lifted.
Long-term threats include Panama disease, a fungus that previously wiped out the Gros Michel banana and now endangers the Cavendish variety, the world’s most popular banana.