Ecuadorian banana producers face problems due to sanctions against Russia

Producers of bananas in Ecuador have faced problems in the supply of goods to Russia due to sanctions and their consequences, Report informs referring to The Wall Street Journal.

Leading supplier companies had to stop exporting to the Russian Federation, and manufacturers suffer financial losses.

Before the start of the military operation, Russia accounted for more than 20% of the export of Ecuadorian bananas.

Russia was an essential buyer of Ecuador’s third-largest export: bananas, which brought in $3.5 billion last year.

But sanctions against Moscow, coupled with logjams at European ports, have led shipping companies to halt deliveries to Russia, leaving many Ecuadorean bananas with no place to go. With a glut on the market that has sharply lowered prices, many farmers are leaving bananas to rot in the fields—low prices don’t cover the cost of production.

Two other top Ecuadorean exports - fresh-cut flowers and shrimp - were also destined for Russia, the fourth-largest market for Ecuador’s non-oil exports.

“Prices have dropped about 15%, so with this there will be companies that will leave the business,” said flower grower Guillermo Guzmán, 53. “Imagine, a problem that is so far away wreaking havoc on family businesses like those in our countries.”

Landlocked Paraguay, a country of seven million in the heart of South America, is having the same problem with its beef.

Heavily dependent on agriculture sales, Paraguay last year shipped nearly 20% of its beef exports to Russia.

When the invasion began on February 24, Paraguay beef was en route to Russia. Some was turned back. Beef was diverted to storage in third countries. And with sanctions kicking in against Moscow, buyers were unable to pay Paraguay for some of the meat that was delivered - a problem that also left Ecuador’s exporters searching for other options.