Rethinking the Banana Supply Chain from Farm to Shelf

Following its whole-chain hotspot analysis on domestic strawberries, the U.S. Food Waste Pact has published a new study tracing the global banana supply chain, highlighting key waste drivers.

banana full value chain (primary and secondary).jpg
Food loss and waste (FLW) rates and secondary diversion pathways across the banana value chain
(Image courtesy of U.S. Food Waste Pact)

While bananas remain the most popular fresh fruit in the U.S., managing their cross-border journey presents a distinct set of supply chain challenges compared to domestic produce. A new whole-chain study published by the U.S. Food Waste Pact — co-managed by ReFED and the World Wildlife Fund (WWF) — examines where loss occurs along the banana supply chain, from farms in Ecuador to U.S. ports of entry, distribution centers and grocery retail shelves.

Unlike commodities with limited secondary channels, the banana industry has already established robust outlets for surplus fruit. However, capturing higher value remains a key economic goal.

“The one thing that really jumped out to me is just the number of secondary channels that they, as a commodity group, have really made sure they’ve developed,” says Anne Garsztka, WWF program manager for food waste. “They’re doing well with what they have, but it would be great for it to get more to more people or more monetization for the sake of the farmers.”

Key findings include:

  • Volume and impact — Bananas represent the highest-volume fresh fruit imported into the U.S., meaning even low loss percentages equate to hundreds of millions of pounds of wasted fruit annually.
  • Upstream farm loss — The largest geographic loss occurs on farms in origin countries like Ecuador, where seasonal production spikes lead to surplus fruit that stays in domestic secondary markets rather than entering export channels.
  • Port entry bottlenecks — Approximately 2% to 4% of imported banana volume is lost at U.S. ports of entry due to cold chain disruptions, container shipping delays and strict phytosanitary quality rejections.
  • Retail shrink — Retailers experience a 5% to 7% loss in overall banana inventory, driven largely by cosmetic standards, over-ripening (Stage 5 and 6 yellow fruit) and consumer rejection of single bananas.
  • Carbon footprint — Every ton of wasted bananas carries an estimated footprint of 0.8 to 1.1 metric tons of embedded carbon dioxide equivalent emissions from cultivation, overseas transport and ripening logistics.

Balancing Seasonal Surges and Buyer Demand

The study identified the farm level as the largest geographic hotspot for volume loss upstream, driven mostly by seasonal production surges. Because international suppliers overplant to meet year-round U.S. retail demand, seasonal harvest spikes inevitably lead to excess volume that remains in the country of origin.

Addressing this imbalance requires bridging the communication gap between international producers and domestic procurement teams. Garsztka suggests that better alignment between international growers and retail buyers could absorb these seasonal surges.

“Could buyers change their buying standards or their buying patterns to match the harvest peak when it’s high?” Garsztka asks. “It’s kind of a conversation that both parties need to have around what do you do when you have extra.”

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Primary causes and percentage distribution of banana diversion at the farm level
(Image courtesy of U.S. Food Waste Pact)

Overcoming Operational Hurdles at Retail

At the retail level, loss stems less from systemic logistics and more from operational constraints and consumer preferences. While smaller operations can flexibly repurpose ripe fruit into in-store bakery items or delis, larger chains often struggle to establish uniform processes across every store.

“Retailers’ standard operations make things run smoother,” Garsztka says. “There’s just not enough consistency for that to be a standard process across the entire chain.”

Logistical hurdles also complicate donation efforts. While bananas offer a slightly longer shelf life than delicate commodities like peaches or strawberries, grocery stores frequently encounter holdups related to pickup frequency, backroom storage capacity and precise timing. Without dedicated management at the individual store level, surplus fruit often risks spoiling before donation partners can collect it.

Rescuing ‘Sad Bananas’ on the Shelf

To address retail shrink without overburdening store operations, researchers are exploring consumer-facing strategies to shift purchasing behavior directly at the shelf. One upcoming initiative focuses on testing retail messaging around single bananas — often referred to as “sad bananas” — which buyers frequently break off from bunches and leave behind.

“People grab a bunch of three, four or five; they don’t buy singles, and those get tucked on the end of the row and eventually don’t get bought,” Garsztka says. “We’re testing this idea of humanizing bananas and creating a relationship with the fruit so people will buy the singles because they’re just as good.”

By trialing subtle merchandising interventions and consumer awareness campaigns, researchers hope to rescue viable produce while providing actionable, low-cost strategies for retailers across multiple commodity categories.

Your Next Read: Rescuing Surplus Produce Delivers Financial Wins for Growers and Foodservice

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