The Ministry of Agriculture and Livestock (MAG), through the Ministerial Agreement 135 of last Friday, set the minimum support price of a 41.5 to 43-pound box of bananas for export, which corresponds to the 22XU box, at $6.30 for 2019, which is equivalent to 0.1518 per pound.
This year the box stood at $ 6.20. The agreement, signed by Minister Xavier Lazo, also establishes the minimum support prices for the other types of banana and musacea boxes (orito and purple), as well as export values in port (FOB).
Eduardo Ledesma, the executive director of the Association of Banana Exporters of Ecuador (AEBE), disagreed with the price set by the authorities and said that it should remain at its current price ($ 6.20).
According to the leader, the changes and alterations that have been made in the Agreement distort the reality of the markets by establishing a mandatory FOB that prevents negotiation between the parties. "However, we have to abide with the price and other conditions established by the Ministry of Agriculture," he added.
The other conditions cited by the union leader are a series of actions to promote the sector's productivity and development, according to the agreement. These actions include the promotion of specialized credit for the strengthening of production.