Growing banana sales in Uzbekistan drive lower prices and imports

Banana sales in Uzbekistan have experienced significant growth, resulting in lower wholesale prices compared to other countries in the region, EastFruit reports.

Specifically, the wholesale price of bananas in Uzbekistan is now lower than in Georgia and Moldova. This is a notable change since Uzbekistan used to have higher banana prices than its neighboring countries, mainly due to its lack of direct access to the sea, requiring the transportation of bananas across two borders.

The removal of import duties on fruits imported from abroad has also played a positive role in reducing the relative price of bananas in Uzbekistan. Additionally, bananas are a popular and convenient product for supermarket chains, and Uzbekistan has emerged as a regional leader in developing the retail trade network.

Although Uzbekistan set a record for banana imports in 2022, the import volume decreased in 2023. In the first four months of the year, banana imports amounted to 29,200 tons, which is 27% less than the same period last year. This decline can be attributed to relatively high banana prices between January and April 2023, with prices in April showing a significant increase of 40-50% compared to the previous year.

However, at the end of April 2023, wholesale prices of bananas in Uzbekistan began to decline and reached a record low for that time of the year. This decrease in prices is expected to stimulate an increase in banana imports, as Uzbekistan is still a country with relatively low consumer incomes, and the price directly affects sales volume.

Fyodor Rybalko, an international consultant from the UN Food and Agriculture Organization (FAO), believes there are further opportunities to enhance the efficiency of banana imports in Uzbekistan. He suggests implementing a pooling system for banana imports, which would reduce costs for supermarket chains and importers, ultimately making the fruit more affordable. Rybalko estimates that such a system could save banana importers over $10mn annually.

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