February 15 2006, 09:06

Banana prices are growing now, but they can slump in summer 2006

According to the information provided by FreshPlaza.com, the investments in banana production in Ecuador increased much due to high banana prices in the country, and the policy of the local government which in fact guarantees Ecuador producers high prices and profits. New large banana plantations are set now in nearly all main production regions throughout the country.

As a result, to the analysts' opinion of Palmar company, in June 2006 the export of Ecuador bananas will reach record level, so that the prices can slump drastically.

Not everybody think that the developing situation would result in the significant price decrease on Russian and Ukrainian markets, as the transportation expenses will definitely grow in line with the increasing export volumes. But, banana price decrease is able to stimulate the consumption, so that the prices will be kept from the further slumping.

The analysts of "Agrooglyad: Vegetables and Fruits" journal think that banana price level will have a great importance for the produce market of Ukraine, as the Ukrainians consume and purchase this product quite regularly and frequently. In fact, during the recent 5-7 years bananas have captured a significant part of apple, pear and other fruits' market, even berry and vegetable market. Banana consumption goes on increasing dynamically in our country. It is time for the national fruit and vegetable producers to think how to attract the consumers' attention to their produce. For example, banana price growth is observed on market now, and apple prices remain relatively moderate; so, many consumers have chosen for apple.