Market analysts from EastFruit report that banana prices have hit an all-time high for this season across Eastern Europe. The increase, albeit slight, is setting new records and casting a shadow on the market’s consumption outlook.
Andriy Yarmak, an economist with the FAO’s Investment Department, sheds light on the factors driving this trend: “This year’s price hike can be attributed to two primary factors. Firstly, climate change has adversely impacted fruit production volumes in Central America. Consequently, the demand for bananas from Ecuador, the primary supplier for Ukraine and its neighbors, has surged, inflating prices. Secondly, the retail and wholesale sectors are leveraging the relatively high cost of apples to justify elevating banana prices as well.”
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In Ukraine, wholesale banana prices have soared to $1.26 USD per kg, surpassing the previous year’s high of $1.23 USD per kg. Typically, Ukraine enjoys the region’s lowest banana prices, but recent geopolitical tensions have led to port blockades, disrupting supply chains and driving up local market prices as imports are rerouted through alternative ports.
Retail banana prices in Ukraine now fluctuate between $1.7 and $1.8 USD per kg. Meanwhile, in Poland, the wholesale rate has reached $1.35 USD per kg, a significant increase from the usual $1.1-1.2 USD range and last year’s peak of $1.27 USD per kg.
May usually signals a seasonal downturn in banana demand and pricing in Eastern Europe. However, this year, traders are hesitant to predict a substantial decline, considering the robust demand for Ecuadorian bananas.
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