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Alfredo Saltos Guale:

"Ecuador: "The banana loses its leadership"

Last year, after several decades of being the number one export, banana exports amounted to $2.522 million dollars and were below shrimp exports, which amounted to $2,571,800,000 dollars and demonstrated the enormous thrust of the shrimp industry. Other export products that are growing are natural flowers, broccoli and asparagus, which have great international perspectives, and the quinoa, for which there are huge expectations and that is ascending rapidly.

This leads the sector to reflect about the banana, which has increased exports but is losing space in some consumer countries. Such is the case of the United States where, after being a protagonist, it has been replaced by the banana from Guatemala; a situation that is also happening in the European Union, which is being tempted by Central American exports, Colombian exports and even exports from the Philippines. Even though the actual acreage of banana for exports is still a mystery, Ecuador has enough available supply and the alternative to quickly raise its reduced productivity by increasing its technological innovation; hence, the country can meet the requirements of a world population that firmly demands it. Ecuador grew about 38.7 million boxes in volume in 2014, but the country could have grown more if it didn't have to face a series of regulations and bad legal interpretations impeding the dynamics of a perishable products that can have no delays and requires continuity in its cold chain, as it would otherwise affect the product's quality and well deserved prestige.

There are so many requirements to fulfil, and some are completely unnecessary, that it discourages investment and affects competitiveness. Exporters find it amazing that they have to pay a bond to export, as it involves high costs and complicates complying with orders. There have been some known cases of domestic and foreign investors that have been discouraged from settling in Ecuador because of these obstacles, which take place within lower level officials. It is almost impossible to get an exporting record, when producers have yields of more than 40 cases per hectare they must overcome a particular process to demonstrate that they improved their productivity via work and technologies.

Undoubtedly, this frustrating scenario took the head of state to lambaste what he calls red tape and rightly said that "there is no better bureaucracy than the one that doesn't exist", and to advocate for controls that don't interfere with the processes. We hope that the superfluous restrictions that led to bananas to lose its leadership in non-oil exports are soon removed.



Source: eluniverso.com
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