The socioeconomic effects of Fusarium TR4 on banana producers in Peru

Fusarium oxysporum f. sp. cubense Tropical Race 4 (TR4) is spreading throughout South America and the world, threatening the banana industry as it decimates the Cavendish plantations and many other local varieties. This study addresses a major gap in the literature by employing a socioeconomic and cost-benefit analysis to explore the vulnerability of banana producers to TR4 and the financial viability of disease management strategies and potential losses in the event of TR4 spreading within the study area. Semi-structured interviews and focus group discussions were conducted with producers and key stakeholders in Piura, Peru, which is Peru’s most important region for producing organic bananas for export. The results show that 45% of farms have TR4 and 10% of banana farms have been completely devastated by TR4. Production, banana sales, income, and food security are lower among producers with TR4 in their plantations. Prevention and mitigation strategies, such as disinfecting shoes, tools, and machinery at farm entrances, are critical and financially viable methods to prevent the spread of TR4. On average, producers without TR4 have a net present value (NPV) of $48,014 per hectare, which is significantly higher than the NPV of $8,535 per hectare for producers affected by TR4, highlighting TR4′s severe economic impact and the need to implement mitigation strategies. Recommendations to the public and private sector to build a banana sector more resilient to TR4 include supporting the implementation of surveillance and mitigation strategies, as well as raising awareness about TR4 and the importance of certified banana seeds.