In Russia, where the average banana prices increased the most, the prices increased one and a half times and the wholesale price of bananas reached $1.44 per kg. In Tajikistan, one of the Central Asian countries where prices are traditionally high due to the logistics distance, the average kg of bananas is 1.57 $ , and in Uzbekistan it is 1.99 $ .
Meanwhile, banana prices in Belarus increased by 25% on average compared to the previous year, reaching $1.31/kg ; In Poland and Georgia, prices increased by 21% on average. Banana prices in the Moldovan market increased by 9% , and by 6% in Ukraine and Tajikistan.
Why did banana prices rise in Eastern Europe and all regions of Central Asia?
The social protests in the country as a result of the Ecuadorian government moving the capital to another city in the autumn of 2019 and the subsequent Covid-19 epidemic put the country in serious trouble and the country's economy contracted by 8% in 2020.
In addition to the decrease in global demand in 2020 as a result of the collapsed economy of the country and the spread of Covid-19, the explosion of the Sangay volcano in the country in September caused a decrease in the quality and export of bananas.
Meanwhile, the floods that ravaged Central America in November 2020 took a hard hit to banana production in Guatemala, Honduras and other countries that mainly export bananas to the United States. With this development, Ecuador shifted most of its banana exports to the US market, and as a result, exports to Russia decreased in the first quarter of 2021, while the amount of bananas bought by the USA from Ecuador increased.
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Ecuadorian exporters also draw attention to the decrease in the demand for bananas from Russia. During the Covid-19 era, Russia significantly reduced its natural gas and oil supplies. Because of this, the prices of imported fruits have risen, and the demand for them in the Russian market has decreased. In addition, due to the depreciation of the Russian Ruble during the year, imported products became more expensive in the domestic market. Similar currency trends were observed in the markets of other Eastern European and Central Asian countries, with the exception of Moldova and Poland, where their national currencies were somewhat stronger.
All these negative trends also increase the rumors that the existing banana industry in South America may disappear. Apart from this, Tropical Race 4 (TR4), a type of Fusarium Wilt disease seen in bananas; Cavendish, which is the most exported variety in the banana industry, is seriously affecting.
The Gros Michel banana cultivar, which was the region's export leader in the 1950s, was destroyed by the rapid spread of TR4 disease. The disease, which was seen in South America in 2019, was also seen in Peru, the neighbor of Ecuador, in April this year.