Bananas started the second half of 2023 on the right foot. According to the data of the Association of Traders and Exporters of Bananas of Ecuador (Acorbanec), last year in July 30.11 million boxes of bananas were exported, that is, 4.61 million boxes more than in July 2022, that is 6.99% more if we take into account the accumulated exports from January to July last year (220.17 million) compared to the same period last year, when at that time fruit exports fell by 7.96% (205.80 million) .
However, despite the positive numbers, shipments do not quite cover the drop in 2022 (7.96%) compared to what was exported in 2021 over the same period. With this in mind, Richard Salazar, CEO of Acorbanec, explained that the level of production in 2022 was affected by the climatic factor (cold), but also by the lack of proper maintenance of banana farms as a result of the drop in prices that occurred last year, last year, between March, April, May and June.
Almost 4% of the bananas that Ecuador exports to the world are organic, which are gradually gaining ground in Europe, Asia and the United States
“Without a doubt, this has caused a significant drop in production. However, in the last quarter of 2022, prices began to recover and many producers began to invest in farms, but apparently the level of production from 2021 has not returned,” the presenter explained. However, he highlighted the sector’s recovery that is evident this year compared to last year, stating that these are different scenarios.
The best destinations are the European Union and Russia
This year, as a bloc, the European Union (EU) established itself as the number one destination for Ecuadorian bananas, receiving 30.20% of the fruit’s total exports. However, when exports are classified by country, Russia is the destination for the most bananas, with a share of 21.18%; in second place is the United States of America with 9.55%; in third place is the Netherlands with 7.35%; in fourth place is Turkey with 5.34%, and in fifth place is Germany with 4.39%.
“We practically increased our exports to the EU, a super complicated market, such as the United Kingdom and New Zealand. The part of Central Asia is still very important, which is growing,” Salazar pointed out, saving the sector’s resilience.
This is the participation of other destinations, by blocks:
Richard Salazar, executive director of Acorbanec, explained that the main increase in exports is evident in the European Union, with 23.54%; Russia, with 6.12%; United States, with 4.77%; Great Britain, with 21.72%; Africa, with 23.53%; East Asia, with 7.85%; Central Asia, with 3.71%; Oceania, with 19.38%; Southern cone, with 1.08%. And the reductions are evident in the Middle East (8.98%), Eastern Europe (48.62%), especially due to the drastic reduction of exports to Ukraine due to the conflict with Russia; EFTA (13.811%) and Canada (78.43%).
The recovery of banana exports to Europe is pushing the growth of 5.76% in shipments from the port of Guayaquil
The crisis in Ukraine is pulling Eastern Europe
Regarding the drop in exports to Eastern Europe (Albania, Belarus, Georgia, Montenegro, Serbia and Ukraine), Salazar explained that, despite the fact that the Russian-Ukrainian war was already present in 2022, Ukraine was more affected this year because of its port infrastructure. From January to July 2022, Ukraine received 1.6 million boxes of bananas from Ecuador, but in the same period in 2023, it reached only 13,000 boxes, representing a decrease of 99.20%. Belarus and Serbia also fell: they practically did not import Ecuadorian bananas this year. While Albania fell 86.92%, Montenegro (-32.43%) and Georgia (-11.53%)
“Distribution also had certain complications, but above all due to the economic problems of the countries, which hit them hard due to high inflation,” added Salazar.
Growth projections depend on El Niño
Meanwhile, the good health of exports makes the sector project, under normal conditions, sustainable growth by the end of the year between 5% and 6%, Salazar said. However, if there are “moderately strong” effects due to a possible El Niño phenomenon, these projections could be cut in half to stop at 2.5%; and, in case of strong affectation, the growth would be zero.
Questions and answers Elections 2023
Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
