Banana production in Honduras

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Banana production is a key part of Honduras’ economy. In 1992 bananas brought in about US$287 million in revenue and, with coffee, made up roughly half of the country’s exports. In 1999 Honduras produced about 861,000 tons of bananas. The industry is largely controlled by two U.S. companies, Chiquita Brands International and Dole Food Company, which export most of the fruit.

Bananas began exporting in the late 1800s. At first, most were grown on the Bay Islands, and mainland production started around 1880. By 1894 exports through Puerto Cortés were worth about US$350,000, and by 1903 they reached nearly US$900,000. The trade grew quickly, with more steamships and more ports serving banana shipments.

Much of the early growth came from small northern Honduran growers. The industry helped some farmers expand land ownership and shift political power away from cattle ranchers. To support export, steamship companies needed better local infrastructure, so railroads were built along the Caribbean coast.

U.S. companies gained large land concessions in exchange for building rail lines. By 1929 United Fruit controlled major areas and ports on Honduras’ Atlantic coast, with operations around Puerto Cortés, La Ceiba, Tela, and Trujillo. The early dominant export variety was Gros Michel, prized for shipping, but a Panama disease in the 1920s and soil exhaustion led to a switch to Cavendish bananas.

The banana trade gave foreign companies considerable influence in Honduras and sometimes led to corruption and land disputes. In the mid-20th century, consolidation continued: Castle & Cooke bought Standard Fruit in 1964, and the industry remained closely linked to the Dole brand. A severe hurricane, Fifi, hit in 1974, destroying a large portion of agricultural production and pushing some workers to form independent farming groups.

Hurricane Mitch in 1998 dealt a severe blow, destroying about half to 80% of the banana and coffee crops and causing roughly US$3 billion in damage. The industry recovered in the following years. In 2003 scientists warned that global banana production could be at risk from disease, and Honduran researchers, backed by United Brands, began large-scale breeding to develop resistant varieties, including the FHIA banana crop.