The lack of agreement between exporters and banana producers in Ecuador to set the price of a box of bananas for 2020 has forced the Ministry of Agriculture to set its value. The price decreed by the Ecuadorian Government for a box of bananas for 2019 was US $6.30.
The current increase in free-market prices in spot purchases of bananas has boosted contract sales, whose fixed price is conditioned by the value that the Government imposes on a box of bananas, which is currently less than the spot price of the fruit.
This year, 40% of all the Ecuadorian bananas exported were exported under the spot mode, especially to China, Algeria, Russia, Eastern Europe, or Turkey, among other markets.
"Those markets, especially the Russian market, will demand contract sales by 2020," said Richard Salazar, the administrator of the Banana Marketing and Export Association (Acorbanec). Something similar happens in China.
From January to August 2019, Ecuador has been unable to substantially increase its fruit exports, as they only grew by 2.5% in volume (4.6 million tons) and 3.4% in value (2.2 billion dollars), according to data from the Central Bank of Ecuador.
However, the growing importation of vegetative material (meristems in this case) will lead to greater productivity on the farms next year.