Sweet and smooth: Russians want to feed domestic bananas

Banana cultivation in Russia can reduce prices by one and a half to two times, according to economist Igor Balynin. Also, the production of these fruits will give our country an increase in jobs and create export potential. However, not all experts share this position. Growing bananas in the Russian climate requires large investments in greenhouses and additional lighting systems. In addition, producers may face high costs for imported seeds, utilities, and labor. Izvestia found out how many bananas Russia currently buys and how quickly the investment costs of its production will be recouped.

How many bananas does Russia import and for what amount

About $1.5 billion worth of bananas are imported to Russia per year, Babken Ispirian, an expert at the LDPR Economic Council and deputy chairman of the Council of the People's Farmer Association, cites data.

"Therefore, in terms of food security, the cultivation of bananas in the country is of interest. But this is unlikely to affect prices, since today large investments are required in the construction of greenhouses, since, after all, the banana is a tropical crop, and special conditions are needed for its cultivation in Russia," he says.

According to the expert, bananas will not grow in the open ground. In addition, they require additional lighting, especially during the winter season.

In 2024, according to ACRA, Russia imported about 1.4 million tons of bananas. The Stavropol Territory plans to harvest Russia's first banana crop next year, the head of the Ministry of Agriculture of the region, Sergey Izmalkov, said earlier. According to him, an industrial complex for fruit cultivation will be created in Nevinnomyssk on an area of 46 hectares.

However, experts express doubts about the ability of such a complex to provide bananas to the whole country.

— The 46—hectare complex will not be able to create a highly competitive base for imported bananas, since bananas are an inexpensive fruit widely consumed in the diet of the population. And all over the world, bananas are considered a fruit for the poor. This is a product with a traditionally low margin due to its initial cheapness. 150 rubles for a fruit that is delivered across half the globe is extremely inexpensive, given the large transport shoulder," says Ekaterina Kosareva, managing partner of the VMT Consult analytical agency.

The price of bananas in Russia

The Russian price of bananas is quite competitive and reflects the state of the global market for this product and the current exchange rate. The wholesale price of bananas from Central America and Ecuador, excluding shipping and duties, was $1.3 per kilogram in the first quarter of 2025, according to the IMF. That is, shipping, duties, VAT, and retail margins add about 50% to the price, says Doctor of Economics, a leading researcher at the Center for Agri-food Policy at the Institute of Applied Economic Research (IPEI). Denis Ternovsky Presidential Academy.

— Given that the Russian climate is not as favorable for banana cultivation as the climate of tropical countries, it is necessary to be careful when estimating that the cost of production will be lower. On the contrary, we can expect that an increase in production costs will outweigh the benefits associated with a reduction in shipping leverage," he says.

Kosareva agrees that banana cultivation in Russia will not give a significant price advantage.

— It will turn out like with greenhouse cucumbers, the prices of which have not dropped after the New Year's rush. In a kilogram of a Russian cucumber (and, accordingly, a future banana), a significant part of the costs will fall on R&D costs, imported seeds and cuttings, and utilities for the greenhouse complex, which rose in price by 10% by the end of 2024 and which will become more expensive by another 11.9% in 2025. Plus, labor resources (due to the shortage of personnel, salaries in the agricultural sector increased by 20-35% in 2024, depending on the profession and region), fertilizers, and so on," the expert listed.

According to her, all this will not allow the cost of a kilogram of bananas to drop fourfold, even with relatively low transportation costs, as some experts claim. In addition, research is needed to understand which plants, fungi, and insects typical of the Russian Black Earth region may be harmful to unadapted crops.

How many bananas are planned to be grown in Russia

There are still too many banana growing projects in Russia, says Anton Trenin, an expert at the ACRA Corporate ratings group.

— The cost of investments in the banana growing project is estimated at 1.4 billion rubles. To replace a significant part of imports, for example 20%, it will be necessary to produce about 280 thousand tons of bananas," he says.

This figure is equivalent to sales of about 70%, as in the Stavropol Territory, where it is planned to grow about 4 thousand tons of bananas per year. "The total investment in this case should amount to about 100 billion rubles," the analyst estimated.

According to Anton Trenin, the prospect of these investments in banana production looks controversial, since this amount is significant and amounts to about 10% of the total annual investments in fixed assets of the entire Russian agriculture.

— In Russia, there are many areas in agriculture, the development of which is a higher priority. In addition, from an economic point of view, the project also raises questions, since bananas require a long ripening period and a constant temperature of at least 15 degrees Celsius. This significantly increases the cost of maintaining the necessary conditions for their cultivation compared to natural conditions. That is why the prices of bananas will not fall by half," the expert commented.

Izvestia sent requests to the Ministry of Economic Development, the Ministry of Agriculture and the Rosselkhoznadzor. Rosselkhoznadzor representatives stated that the issue was within the competence of the Ministry of Agriculture. By the time the material was published, the ministries had not responded to Izvestia's requests.