Banana imports to Russia from all countries have declined by 3.43% over the past year.

Ecuador’s banana industry aims to sustain exports to Russia, following a “historic drop” in shipments to that market over the past year due to the invasion of Ukraine.

The industry hopes that, despite the decline, Ecuador’s market share in Russia will remain steady at 18.09%.

Additionally, the sector seeks to increase exports to China with the implementation of a free trade agreement.

“Russia is a very large market, and we cannot afford to lose more share,” said Marianela Ubilla, vice president of the Association of Banana Exporters of Ecuador (AEBE).

She added that maintaining the current 18% market share through next year is crucial, as a resolution to the conflict between Russia and Ukraine is not expected soon.

Russia, the largest destination for Ecuadorian bananas

Russia remains the largest single-country destination for Ecuadorian bananas and the second-largest market after the European Union (EU), which accounts for 30.15% of Ecuador’s banana exports.

Over the past year, exports to Russia have dropped by 3.43%, the steepest decline among all regions and countries importing the fruit.

Ubilla noted that it will be difficult for Ecuador to recover the lost share between 2023 and 2024. The ongoing conflict has limited the number of shipping companies traveling to Russia to just two, driving up transportation costs.

This increase in transport costs translates to higher banana prices for consumers. “When prices rise, consumers tend to reduce their purchases,” Ubilla explained.

Despite the challenges, Ubilla expressed optimism that transportation costs might decrease slightly, which could help stabilize exports.

Another strategy involves establishing annual contracts with Russian clients to ensure greater stability and potentially achieve modest growth.

Ubilla discussed these strategies on Thursday at the 21st edition of Banana Time, the largest international banana industry convention, held annually in Guayaquil by AEBE. This year’s event ran from October 23rd to 25th.

Opportunities in China and Japan

During the conference, Ubilla provided an in-depth analysis of global banana trade trends, outlining the challenges and opportunities for Ecuadorian exporters in an evolving market.

She highlighted China and Japan as key markets for Ecuador to target in the coming years to expand its global presence.

According to AEBE data, China is the second-largest banana importer, after the United States.

“For this reason, the export sector has emphasized the importance of the trade agreement with China, which came into effect this May,” Ubilla said.

She also pointed out that Japan, the sixth-largest banana importer with 4.60% of the global share, presents another important opportunity, underscoring the need to pursue a trade agreement with the country.

With both trade agreements in place, Ecuador would be better positioned to compete with emerging banana exporters like Cambodia, India, and Vietnam, which are also vying for access to these markets.

Expanding in the U.S. market

Ubilla believes there is also potential for growth in the U.S. market, particularly as competitors like Guatemala have reduced their banana exports to the region.

In fact, between 2023 and 2024, Ecuador increased its U.S. market share by 2.79%, reversing recent declines.

“It’s essential to maintain the progress we’ve made by ensuring the industry remains formal and consistent,” she concluded.