W5 Banana Update: Russian Ban on Ecuadorian Bananas, Paraguay-Chile Export Approval, and Financial Woes for Vietnamese Farmers

Russian Authorities Impose Ban on Ecuadorian Banana Certification Due to Pest Concerns

Russian authorities have requested the suspension of banana certification from five Ecuadorian companies, citing the discovery of a supposed quarantine pest. These firms, including Agzulasa and Don Carlos Fruit, now face restrictions on banana exports to Russia. Russia raised the heightened concern about a "dangerous pest" in Ecuadorian bananas, shortly after Ecuador decided to swap old Russian-made equipment for new military gear from the United States (US). This has led to Moscow’s disapproval. Ecuador stands as the world's top banana exporter, with bananas contributing over 20% to its export earnings.

Paraguay Receives Approval to Export Bananas to Chile After Phytosanitary Certification

Paraguay gains approval to export bananas to Chile after completing phytosanitary certification processes, with the first shipments anticipated to start in Feb-24. The Ministry of Agriculture has authorized exports, aligning with Chilean phytosanitary measures via resolution No. 568. The National Service of Quality and Plant Health and of Semillas (SENAVE) oversees compliance, with plans for corrective measures if Chilean entry requirements are not met. Chile's Technical Mission (verified in situ the systems applied to the banana production and packaging plant) conducted inspections of production and packaging systems at a Paraguayan farm as a step in the market reopening process. Continuous monitoring and adjustments will guarantee adherence to Chilean import standards.

Vietnamese Banana Farmers are Facing Financial Concerns Due to Plummeting Prices and Halted Purchases

In Vietnam, banana farmers in Trảng Bom district, Thống Nhất, Đồng Nai province are facing worries as traders have halted banana purchases, causing concerns of financial loss. The prices have plummeted from over USD 0.41 per kilogram (kg) last year to as low as USD 0.062 to 0.10/kg. Many growers in the Thanh Bình commune are leaving bananas unpicked due to a lack of buyers. Traders now select only top-quality bunches, discarding up to 30% of harvested bananas. Despite Vietnam and China's banana export trend, Đồng Nai province anticipates a decrease in export volume by 40% due to China's favorable weather conditions in the 2023/24 season.