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Ecuador banana industry becomes casualty of Russia-Ukraine conflict

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The South American country is the world’s largest banana exporter, but the sector has been hammered hard by Russia’s military campaign in Ukraine.

Until recently, the incessant bustle of Ecuadoran banana plantations provided evidence of the industry’s robust export business. But from one week to the next, the groves have fallen silent –– trade victims to a conflict half a world away.

Ecuador is the world’s largest banana exporter, but the sector has been hammered by the conflict in Ukraine. Now, with nowhere to send them, containers of the rotting fruit are piling up not far from where they were originally harvested.

“One in every five bananas produced in Ecuador goes to Ukraine and Russia,” said Franklin Torres, president of Ecuador’s FENABE banana producers federation. “This war really affected us in that sense.”

The vast majority of that portion goes to Russia, where banana sales are worth $698 million a year to Ecuador, which usually sends almost two million boxes of bananas a week to the eastern European neighbours.

But due to international transport sanctions over its assault on Ukraine, Russia is not receiving its cargos of bananas.

The conflict has put the brakes on production in El Triunfo, close to Guayaquil, the site of Ecuador’s main port.

“The banana producers are finished, I have not processed a single box for three weeks,” said Mireya Carrera, 62, the owner of the Thalia banana plantation.

Banana farmers demand the government to declare an emergency in the sector since it is suffering losses in exports due to the war between Russia and Ukraine, in Guayaquil, Ecuador, on March 28, 2022. (AFP)

‘Price crisis’

The industry had already been hit by falling prices.

Torres said it costs $5.50 to produce a box of bananas, and even though the internal sales price is $6.25, “right now we’re receiving less than $2 for each box of bananas, we’re receiving $1 or $1.20.

“Truly it’s an insult to any type of business. What we’re receiving is shameful and it’s not even worth picking them.”

He said the industry has lost “more than $10 million in three weeks.”

Seeing Ecuador’s surplus of bananas, other markets “have started reducing their price offers,” said Richard Salazar, president of the ACORBANEC association for banana commercialization and export.

According to Jose Antonio Hidalgo, director of the AEBE association of banana exporters, within a week of the offensive starting, the bananas destined for Russia and Ukraine needed a new market, “causing a price crisis.”

Around a million boxes have remained unsold in the last month.

Ecuador has 160,000 hectares of banana plantations that in 2021 generated almost $3.5 billion in sales around the world. The South American country has more than 260 banana exporters.

Unrealistic utopia

The banana industry generates 50,000 direct jobs and 250,000 indirect ones in Ecuador.

The offensive in Ukraine has already cost around 6,000 permanent employees their jobs, according to ACORBANEC.

Banana producers, who protested in Guayaquil last week, want the government to help them out by buying their fruit for its food programmes.

President Guillermo Lasso said that “is not realistic. We need to place them in other markets in the world.”

But for Salazar, “Putting them in other markets is utopian. There’s no other market in the world that can buy as much as Russia,” he said.

Source: TRT World 

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Dubai company awarded the development of SEZ

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An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

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Over USD 713M generated attributing to revenue increasing by 3.7%

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Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews

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Maldivian regional fleet grows with fourth ATR arrival

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Maldivian, the national carrier of the island nation on Wednesday, announced the arrival of its newest addition to the fleet, a fourth ATR 42-600 aircraft.

The new aircraft added to the carrier landed at Velana International Airport some time on Wednesday.

In order to commemorate the milestone, a special ceremony was held at VIA which was attended by distinguished guests, officials and key partners.

The new aircraft, Maldivian added, will enhance the airline’s capacity to serve more routes and provide increased connectivity for both locals and tourists. Moreover, this fleet expansion also reflects Maldivian’s commitment to offering exceptional service and convenience to its passengers.

At Wednesday’s event to welcome the new ATR aircraft, Maldivian’s Managing Director Ibrahim Iyas emphasized the importance of the new aircraft in the company’s growth strategy.

“We have made great strides toward achieving both operational excellence and a greater passenger experience with the addition of this brand-new ATR aircraft to our fleet,” Iyas commented.

“This aircraft offers an unprecedented level of comfort thanks to improved interior humidity control and much lower noise levels. Modern avionics and exceptional fuel economy which further support our dedication to sustainability while maximizing performance throughout our expanding network.”

Maldivian fleet currently has 25 aircraft which include an Airbus A320 commercial carrier, four ATRs, nine Dash-8 series aircraft and eleven Twin Otter seaplanes.

Source(s): sun.mv

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