Latin America wants to limit banana production
to prevent a price fall in May

Tholen - The expected surplus production of bananas which is foreseen for May this year is a reason for concern for Latin American banana producers. During the international banana conference which was held Monday and Tuesday in Guayaquil, Ecuador, this week, Jorge Saume, the president of Corbana, the national banana corporation of Costa Rica, suggested to limit the offer of bananas in an effort to sustain the high price of bananas. Presently these prices are around $ 18 per box in Europe and around $ 12 per box in the US. If growers reach an agreement to limit production now, a price fall in May can be prevented.

The vice-president of the Ecuadorian Association of Banana exporters Aebe, Rafael Reyes, proposed to include a regulation of trade in purchasing and sales contracts. However, he also recoginised that such a contract, which has always been promoted by authorities, has never functioned in practice between growers and exporters.

Publication date: 25 Jan 2006
Author: Andre van der Wiel
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