Ecuadorian banana prices don't grow at the same rate as exports

In the first four months of 2020 Ecuadorean banana exports increased by 9.8% and totaled 140.13 million boxes. However, the price of this fruit has not shown the same positive trend. Richard Salazar, the executive director of the Banana Export Marketing Association (Acorbanec), stated that the current spot price of a box of bananas stood at nearly 3.5 dollars, while the support price for producers us 6.3 dollars. According to Salazar's calculations, this could continue like this until week 32.

China is paying less for the box of bananas, Europe and Russia are on the same track; Algeria has imposed licenses to prevent the outflow of dollars after the fall in oil, and things in Argentina are worse: the Argentine government has banned the outflow of dollars, and some Ecuadorian banana exporters are already having trouble receiving payments.

Between January and April, 29.23% of the bananas that Ecuador exported were sent to the European Union, 21.40% to Russia; 14.97% to the Middle East; 9.48% to the United States; 7.23% to East Asia; 5.08% to Eastern Europe; 5.54% to the Southern Cone; 4% to Africa; and 1.70% to the United Kingdom.

During this period, the growth of banana exports to the European Union (without the United Kingdom) grew by 16.26%; while export to the Middle East increased by 22.27%, and shipments to Eastern Europe increased by 16.04%.

According to Acorbanec's statistical analysis, the exporting companies that recorded the best performances in the first four months of 2020 were Chiquita Banana Agbe, Green Express, Fresh Banana, Bagatocorp, Reybanpac, and Comersur. Meanwhile, Truisfruit left the market to make way for Noboa Trading Co. (Noboa Group).



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