The Russia–Ukraine conflict has resulted not only in a global economic crisis, but also in the displacement of hundreds of thousands of people from their homes as well as irreparable human losses. In the midst of this situation, we express our solidarity and call for peace for these nations.
Due to the 60 percent reduction in exports to Russia, our country currently faces negative consequences, especially in the local produce sector.
Due to the 60 percent reduction in exports to Russia, Ecuador currently faces negative consequences, especially in the local produce sector.
Each week, Ecuador sends approximately 1.8 million boxes of bananas to Russia, and about 180,000 boxes to Ukraine. However, as a result of this confrontation, access to these markets has become limited.
According to the Banana Exporters Association of Ecuador (AEBE), since the banana industry is one of the main sources of employment in rural areas of our country, around 250,000 indirect jobs and 50,000 direct jobs are currently at risk.
“The sanctions executed by the United States and some European countries have caused the devaluation of the ruble which is a detriment to the purchasing power of the consumer, thus reducing demand. In addition, the restrictions applied to shipping agencies destined for Russia have resulted in a negative effect, since the product has to be diverted to other countries, causing an oversupply,” says Palacios, CEO of Corporación Palmar.
Palacios suggests finding a way to place that surplus product in new markets and to regulate the internal supply in Ecuador, allocating the fruit to school feeding and cattle feeding, among other uses. He also mentions that while this conflict takes place, credit lines should be enabled for producers so they can purchase supplies required to keep the banana from losing its quality or its production level.
Given what we currently face, Corporación Palmar reinforces its full commitment to the association of producers and exporters of Ecuador, and to the associations of small producers so we can work together to mitigate these prejudices for the good of the industry and of our country.
For more information:
Danilo Palacios
Palmar
Tel: +593 99 977 5521
[email protected]