GUAYAQUIL, Ecuador, Oct. 29, 2024 /PRNewswire/ -- Ecuador's banana industry is working to maintain its 18.09% share in the Russian market following a "historic decline" in exports, with a goal to boost shipments to China under the new free trade agreement.
"Russia is a very large market, and we can't afford to lose any more ground. I think the priority right now is to maintain next year's 18% share because we know the solution to the Russia-Ukraine conflict isn't coming any time soon," said Marianela Ubilla, vice president of the Association of Banana Exporters of Ecuador (AEBE), in an interview with EFE.
Russia is the primary destination for Ecuadorian bananas and the second-largest market after the European Union, which holds a 30.15% share. However, over the past year, exports to Russia dropped by 3.43%, the largest decline among all destinations.
Ubilla believes it will be challenging to regain lost ground in the short term, as the conflict with Ukraine has reduced shipping routes to Russia, raising transport costs and the final price of bananas. "Consumers' sensitivity to price increases means consumption begins to fall," she explained.
Nevertheless, AEBE is hopeful that transport costs will decrease and is seeking annual contracts with Russian clients to stabilize exports.
Ubilla addressed these issues at Banana Time, the international banana convention in Guayaquil, highlighting China and Japan as key markets for Ecuador.
China, the world's second-largest banana importer after the United States, is a crucial market, especially under the trade agreement in effect since May.
In the U.S., Ubilla sees potential as well, where Ecuador has increased its market share by 2.79% following supply drops from Guatemala. "It's important to retain the position we've gained with formal industry practices," she concluded.
"We see Japan in sixth place, accounting for 4.60% of global banana imports, which is why signing a trade agreement with Japan is also essential," Ubilla noted.
With both agreements, Ecuador could compete with emerging banana-exporting countries like Cambodia, India, and Vietnam.
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