With the prices of bananas, a paradoxical situation has developed in Russia. The wholesale prices of this overseas fruit have become higher than what the buyer sees on store shelves. In theory, it should be the other way around. But here, for example, a kilogram of bananas in the “Foodcity” in the wholesale and small-scale wholesale market costs 100-110 rubles. (box – 1900-2100 rubles).
At the same time, bananas in chain stores cost from 90 to 100 rubles, even taking into account the logistics and trade margin costs. And these prices have developed not only in the stores of the Moscow region, but also in many cities of Russia (not counting the remote regions of the Far East).
Even in Khanty-Mansiysk, which is not the most accessible in terms of logistics, a kilo of bananas is sold for 89.89 rubles in the Lenta and Magnit retail chains.
According to local media reports in Veliky Novgorod, last week bananas were sold for 40 rubles, then 20 rubles.
Buyers used their wits on this occasion. Some said that they were “ready to climb a palm tree for joy,” while others regretted that bananas at these prices did not reach Sakhalin and Khabarovsk.
Buyers guessed why prices fell so much in the same Veliky Novgorod. One of the versions is that they “accidentally” brought to the city not four, but forty tons. As a result, the bananas were not bought, they began to deteriorate. Then the retail chains had to evacuate to get at least some income.
But banana prices have increased significantly in recent months. In winter, a kilogram in the Moscow region costs from 49 to 60-70 rubles. (depending on maturity).
“According to April 8, compared to the “reference” week (February 12-18, before increased demand and sanctions by hostile foreign states), the cost of bananas increased by 26.47 percent, the Ministry of Industry and Trade told Gazeta ru.
At the same time, the ministry added that there was a downward trend in banana prices in April compared to March.
The Ministry of Industry and Trade also noted that there is no price regulation for bananas, as the fruit is not buckwheat or butter and does not belong to socially important food products. However, the ministry noted that they are constantly monitoring how the prices of food products, including bananas, are developing. The Ministry of Industry and Trade said, “So far, no information has been given about the problems and interruptions in supply from retail chains.”
The Federal Antimonopoly Service made a similar comment. “Retail fruit markets are competitive. Banana is not included in the list of socially important staple foods. The FAS said retailers have the right to independently set prices for products sold based on supply and demand.
Bananas at old prices
Experts confirm that an atypical situation has developed in the food market. Wholesale prices for the same bananas are often higher than in stores of large retail chains. There are several explanations for this. “For one, many retailers import bananas. Irina Koziy, CEO of the FruitNews news agency, says they have substantial stocks of products supplied at “old” prices during the breakup of their supply chain.
Second, suppliers work with retail chains on long-term, fixed-price contracts. “It usually takes a long time to agree on new prices. In order to avoid penalties for violation of delivery terms and to maintain the possibility of further work with the network, trading companies are forced to work at a loss for some time, ”says the expert.
Thirdly, retail itself is trying to avoid too sharp price changes on the shelves. Chains often trade below the purchase price, reducing their profit margins. “This was done to avoid shocking consumers,” Koziy said.
At the same time, according to the expert, wholesale prices and the cost of products in off-chain retail fully reflect the current cost of fruits and a long period of ripening, up to one and a half months. public transport. “And of course, this price includes the problems that importers experience due to the sanctions of Western countries and companies,” the expert said.
they don’t want to empty
Bananas are mainly imported to Russia from Latin American countries, with the most significant volume coming from Ecuador. Up to 20 percent of the banana exports grown in the country go to Russia. On March 25, the Wall Street Journal reported that farmers in Ecuador were on strike – it was impossible to send bananas to Russia due to Western sanctions against Russia and logistical failures. Banana exports are also an important source of income in India, the Philippines, Vietnam, Indonesia and Turkey.
The problem is that bananas do not come directly to Russia. Black Sea and Baltic Russian ports do not accept ships with bananas from South America. The fruits are first transported to Europe by sea and then to different countries, including Russia, by trucks. However, the EU has banned trucks from the Russian Federation and Belarus from entering its territory. Now that supply chain is broken.
“And the majority of shipping companies refused to transport goods to Russia. As a result, bananas are becoming a scarce product and more expensive,” said Koziy of FruitNews.
Russia imports $1.1-1.6 billion worth of bananas annually. Logistics chains have been interrupted even in the midst of the pandemic. After Russia started its special operation in Ukraine, the problems of importers with the delivery of goods worsened and sanctions were added from Western countries.
On April 11, the European Union announced that as part of the fifth package of sanctions against Russia, it has closed its ports to the entrance of ships flying the Russian Federation flag. Ships that changed their registration were also banned. In addition, sanctions are interpreted as broadly as possible. Russian ships became “poisoned” in European ports, with loaders refusing to unload them, Interfax reported on April 11.
“Banana stocks in the warehouses of Russian retail and wholesale companies are coming to an end, and import opportunities are significantly reduced. “It is likely that a decrease in the presence of such fruits and an increase in cost will be observed in the Russian market in the future,” Koziy said.
Next up are lemons and oranges.
Koziy believes that replacing Ecuadorian bananas with ingredients from other countries is not worth the wait. All major exporters of this type of fruit – the Philippines, Guatemala, Colombia, Costa Rica – are also overseas. Accordingly, like Ecuador, they have similar problems in organizing the transport of their products to Russia.
The expert noted that the supply of bananas at current retail prices takes about one to two weeks.
From the comments of the press service of the X5 (supermarkets Perekrestok, Pyaterochka, Karusel and others) conclude the following: course rubles “.
“This product was purchased in dollars. Exchange pricing mechanisms are in place,” the company explained.
Experts agree with this view. “Most of the bananas are brought to Russia from Ecuador and of course they are paid in dollars through the banking system. “Naturally, the jump in the ruble exchange rate and the complexity of bank transfers abroad cannot lead to the fact that banana prices increase,” said Sergey Chernikov, Associate Professor of the Faculty of Economics of RUDN University.
Experts point to another factor affecting the retail price of bananas. “As with buckwheat, sugar, borscht, the government does not regulate the price of bananas, and retailers may raise bananas that are not obtained from the sale of socially important goods,” he said. about. Oleg Moskvitin, Director of the Institute for Competition Policy and Market Regulation at the National Research University Higher School of Economics.
According to Fruitnews Koziy, the next victims of transportation and financial problems will be lemons and oranges. The season of lemons and oranges from Turkey and Egypt is coming to an end. During the summer, supplies of these fruits usually come from Argentina and South Africa. And this is a sea route, as you know, with the same transport restrictions,” Koziy said.