Although Rosselkhoznadzor has withdrawn its claims against banana producers in Ecuador, suppliers of these products to Russia, especially large retailers, are exploring alternative channels to secure the fruit. A recent report from Kommersant details how market participants are adapting to the shift, weighing the options and the implications for prices and availability.
The political climate in Ecuador remains unsettled due to ongoing unrest linked to criminal gang activity, which raises concerns for importers. Chains are beginning to diversify sourcing beyond Ecuador, turning to India, Costa Rica, Colombia, Brazil, and other producing countries. Transitioning long-standing supply chains away from Ecuador will likely take years, given its historical role as Russia’s principal banana supplier. Analysts warn that the move could push prices higher as new routes and partners are established.
Major Russian retailers are already adjusting procurement strategies. X5 Group, which operates Pyaterochka and Perekrestok, has started importing bananas from India and is awaiting shipments from Costa Rica. In addition to Colombia and Brazil, discussions are underway about shipments from Turkey and Egypt, with potential imports from Vietnam, China, and Cameroon on the horizon. These steps reflect a broader push to diversify risk in a market heavily dependent on a single origin and reinforce the importance of flexible logistics networks.
Last year, X5 emerged as the leading banana importer to Russia, increasing its intake by about 8 percent to roughly 386,000 tons, with Ecuador continuing to supply the bulk of these goods. Overall, Russia’s banana imports grew by nearly 29,000 tons in 2023, driven largely by Ecuador, reaching around 1.38 million tons. The recent disruptions threaten to reduce those volumes and compel adjustments across the chain of custody, from growers to in-country distributors.
In February, Rosselkhoznadzor suspended banana certification for five Ecuadorian suppliers after inspectors found humpbacked fruit flies in consignments. The timing of these health concerns coincided with broader geopolitical anxieties, including a report from the Ecuadorian president about the movement of certain Russian weapons through the United States, which heightened suspicions about possible transfers to conflict zones. These factors collectively amplify importers’ risk assessments and push for closer scrutiny of origin controls and pest management practices. [Source: Kommersant]
Meanwhile, traditional bilateral payment patterns have begun to shift in Africa as well, with several countries moderating the use of the ruble for exports from Russia. This trend underscores a wider trend toward currency diversification and financing arrangements that can better withstand regional sanctions and market volatility. [Industry insights]