The new 2024 minimum support price for a box of bananas was set in Ecuador at $6.85 between producers and exporters yesterday. This follows after two previous rounds of negotiations failed to reach an agreement, while producers are said to not be happy, exporters were hoping not to increase from this year’s price of $6.50, but common ground had to be found.
Ecuador’s outgoing minister of Agriculture and Livestock, Eduardo Izaguirre, made the announcement of the price increase in Guayaquil yesterday. The producers were represented by Franklin Torres, president of the Federation of Banana Growers of Ecuador (Fenabe), while the exporters were represented by Marianela Ubilla, president of the Board of Directors of the Association of Banana Exporters of Ecuador (Aebe).
A generational farmer in one of the production areas of Machala who was visited late last month, who manages their family farm and is an economist by training said while the minimum price is very important, there is so much more at stake for producers with minimum prices covering the basics.
Another producer and exporter with thousands of hectares close to Machala said on a recent visit to his farms and offices, every cent makes a huge difference for banana producers. “Given the large volumes produced as well as the input costs, a few cents more translates to so much more needed income for banana producers to cover expensive input costs. One of the main costs include us paying more than minimum wages, while also supporting the many sustainability initiatives that include worker safety, training as well as community involvement.”
Richard Salazar, executive director of the Banana Marketing and Export Association (Acorbanec), celebrated that the parties have found an agreed price. “Basically, even though we had requested that the price not be so high, a consensus of $6.85 was reached among the representatives of producers and exporters at the negotiation table analysing all the points for and against, but what is notable about this is the consensus that finally occurred.”
Despite the minimum price there are producers who prefer not to enter into the agreements because the spot market very often pays higher prices that can be on average $6.96 per box and can go as high as $11. It is however risky because the spot price can also drop and has reached a low of $3.30 in week 18 this year.
For more information:
Richard Salazar
Acorbanec
Tel. +593 42136348
Email: [email protected]
www.acorbanec.com