Ecuador: banana growers denounce 6 exporters
minimum banana price not respected

Tholen - A group of banana growers from Guayas, El Oro and Los Ríos has denounced 6 banana exporting companies to the undersecretary of Agriculture. These companies refuse to pay the minimum banana price of $ 3. It conerns Banalitoral, Yudafín and Sertecban, which sell bananas under the brand name Excelban. Also exporters Isbelni, Kimtech and JFC Ecuador have been reported.

According to the growers, the companies paid prices in between $ 2,20 and $ 2,70 last week and have announced even lower prices for the coming week. Other exporters have respected the minimum price thus far, but are expected to lower prices during the coming weeks also.

Director of JFC Ecuador, Dmitri Martines, says it is too early for any charges, as payments are due within eight days after shipping. There’s no reason to denounce anything, when growers do not yet know the precise price they will receive as yet. He stressed that the 230K boxes of bananas which are exported weekly, are all bought at $ 3 per box. JFC buys from about 200 companies and persons.

The undersecretary received the complaints and will look into it this week, by declaring an investigation into the book keeping of the respective companies. The new banana act which was recently introduced in Ecuadorian law dictates exporters which do not respect the minimum price will be suspended for a period of 15 days and will be obliged to pay 25 the amount that was deducted from the minimum price to growers.

According to the association of banana exporters AEBE, the company Kimtech exported 1,6 mln. boxes in May, while JFC exported 1,1 mln. and Isbelni 442K. Ecuador weekly exports 5 mln. boxes, of which 3 mln. is sold in the spot market.