Ecuadorian bananas face uncertainty in 2020

In the last four years, producers, investors, and speculators in Ecuador's banana sector thought that the business boom would last a lifetime. The shortage of fruit both in Ecuador and in other countries gave producers the momentary opportunity to sell their product for up to three times the official price, a situation that many took advantage of.

However, the sector's concern is growing this year due to the difficulties they are experiencing in the international commercialization of this fruit. Those who signed contracts, apparently, are going to be the only ones without economic concerns.

The Banana is highly consumed in the cold season due to its energy level and because it is not seasonal, unlike the fruit that is produced in the northern hemisphere. However, this year the climate in the north has been special, as winter wasn't so cold and even had warm periods. In addition, there have been transportation issues due to the retention of containers in the Far and Middle East because of sanitary quarantines, and an increase in productivity and new plantings, which have led to an oversupply of fruit that the market cannot absorb and a collapse in prices.

Something curious that only happens in Ecuador is that, despite all the controls exercised by authorities, many exporters go from selling a volume abroad and the following week they sell double, triple, or half or a third of that volume. That's why the country is considered the world's banana warehouse: any importer can go to Ecuador at any given moment and buy bananas at the price they want. However, the bonanza of the banana 'casino' is over; it is necessary to return to normality, even if it is by force.

 

Source: eluniverso.com 


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