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Government intervention demanded

Colombia: Urabá bananas facing severe crisis

The 1,400 growers associated to the Urabá Banana Growers Federation, who market their production through Banacol, reported that they have not been paid for the fruit for the past 12 weeks, which is causing severe social issues in the region. 
 
According to Maria Olivia Rosero Garcés, a member of the Federation's board, the problem affects about 25 families who are suffering hunger and about 3,000 children who were unable to return to their schools because parents do not have the means to.

Union representatives stated that the Government is already aware of what is going on, but so far nothing has been done to solve the problem, and consequently the possibility of organising roadblocks in Urabá to protest has not been ruled out, as the situation is no longer sustainable.
 
Mrs. Garcés Romero said that the fruit has already been sold overseas by the distributor, so they do not understand the delay in the payments.
 
Banacol, one of the country's largest international banana and plantain marketers, was authorised on 7 March by the Corporations' Superintendence to carry out a corporate restructuring. 
 
The decision was made, according to the company, due to the negative effects in recent years of the appreciation of the peso against the U.S. dollar, to low international prices, the climate impact, the high price of agricultural raw goods and the low competitiveness against other countries with lower production costs.

Banacol's debt amounts to 374,650 million pesos, and the assets meant to support its recovery stand at 425,785 million, according to figures from 30 November 2013 provided by the group.


Source: caracol.com.co
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