The Association of Banana Exporters of Ecuador (AEBE) stated that, after this year's first quarter, there is slowdown in the growth rate of banana export.
The export volume in the first quarter of 2016, when compared to the same moment of 2015, was 2.03%. This percentage is lower than the 7.42% achieved in the same period of 2015 when compared to first quarter of 2014.
"Taking these indicators into considerations, estimates are that, by the end of 2016, Ecuador will export a similar volume to last year," the AEBE said.
According to the AEBE, there is a reduction in the export growth of bananas because the country is reaching its production ceiling due to the following factors: the climate, increased production costs (a rise in agricultural oil and diesel), lack of incentives; as well as internal administrative factors, such as red tape that leads to having additional costs and delays in shipments, how hard it is to use a brand, and the existence of an export quota.
Finally, the AEBE said it trusted the Government would achieve signing an agreement with the European Union, and that there would be progress in other negotiations to reduce tariffs for Ecuadorian bananas.
Source: eltelegrafo.com.ec