W14 Banana Update: Paraguay Exported First Banana Shipment to Chile, Banana Imports in Russia Soared by 10% YoY in 2024, Philippine Government Prepares Local Banana Industry for FTA Ratification with South Korea

Published 2024년 4월 11일

In W14 in the banana landscape, Paraguay successfully entered the Chilean banana market by sending its first 22.1 thousand kg of domestically produced bananas. Meanwhile, Brazil's dwarf banana prices dropped during W13 due to supply increases and reduced shipments. Moreover, banana imports to Russia rose by 10% YoY in 2024, with 424.4 thousand tons imported. Lastly, the Philippine government is preparing for FTA ratification with South Korea, focusing on technical cooperation and gradual tariff reduction.

Paraguay Makes Breakthrough in Agricultural Exports with First Banana Shipment to Chile

Paraguay achieved a significant milestone in its agricultural export sector by sending its first shipment of 22.1 thousand kilograms (kg) of domestically produced bananas from the Misionero farm to Chile. This marks Paraguay's entry into one of the most challenging markets, previously dominated by Ecuador, the world's largest banana exporter. Despite significant phytosanitary barriers, the successful entry into the Chilean market resulted from collaboration between the public and private sectors. This achievement underscores the importance of market diversification, local labor, and the potential for Paraguay to expand its presence in more international markets.

Dwarf Banana Prices Drop in Main Producing Regions in Brazil During W13

In W13, prices for dwarf bananas dropped in the main producing regions in Brazil, as indicated by Cepea surveys. The price for top-quality variety in Vale do Ribeira, São Paulo, averaged USD 0.42/kg (BRL 2.12/kg), marking a 19% week-over-week (WoW) decrease. Similarly, in the North of Santa Catarina, prices dropped by 16% WoW, with a kg selling at USD 0.29/kg (BRL 1.49/kg). The price decline is due to a slight supply increase and reduced shipments due to the Good Friday holiday. They expect the market to normalize in the coming weeks, which could improve the flow of Nanica bananas, which are expected to be readily available on Apr-24.

Banana Imports to Russia Rose by 10% in 2024

Banana supplies to the Russian Federation have increased by 10% year-over-year (YoY) since the beginning of 2024, with 424.4 thousand tons imported as of March 31, 2024. This is 1.1 times more than last year's level of 394.3 thousand tons. The Russian Service has not detected any problems in the supply of bananas from abroad, and there are no interruptions in large retail chains. Banana prices are declining in Russia, and experts suggest that banana supplies could be increased from India, Guatemala, the Philippines, Colombia, Costa Rica, and other countries.

Philippines Anticipates FTA Ratification with South Korea in Mid-2024

The Philippine government is preparing to adjust fiscal incentives for the local banana industry ahead of the free trade agreement (FTA) with South Korea. The initiative also includes technical cooperation with South Korea, focusing on mechanical equipment. The FTA is anticipated to be ratified by mid-year of 2024, and Philippine exports of processed pineapple are set to benefit from a gradual tariff reduction over seven years.