Crisis in Argentina affects Brazilian banana shipments

Dec, 06, 2023 Posted by Gabriel Malheiros

Week 202345

Brazilian banana exports have declined this year. Despite improved banana shipments to the European Union, they have sharply dropped for the Mercosur – the main destination for Brazilian bananas. About 70% of Brazil’s exported bananas go to the South American bloc.

The decrease in shipments to Mercosur reflects the impact of recurring cyclones in Southern Brazil, where the primary exporting region, North Santa Catarina, is located, and the economic crisis in Argentina, a significant national destination. Exporters have reported payment issues in the Argentine market.

See below banana exports (hs 0803) shipped in containers from Brazil between Jan 2019 and Oct 2023. The data is from DataLiner.

Banana shipments | Jan 2019 – Oct 2023 | TEU

Source: DataLiner (click here to request a demo)

It’s important to note the influence of some competing countries. Despite production issues, Ecuador experienced an increase in exports due to marketing during the offseason of other producing countries and reduced maritime freight costs compared to the previous year. Meanwhile, Paraguay had a good production season and offered lower prices, making it attractive to Mercosur buyers.

Source: HF

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