Between January and July, Ecuador exported 223 million boxes of bananas, i.e. 3.79% fewer boxes than in the same period of last year. However, sales improved in July.
According to data from the Banana Marketing and Export Association (Acorbanec), the country exported 28.9 million boxes of bananas in July, a higher volume than in the same month of 2020 and a record volume in this month in the last five years.
The negative result of the first seven months of the year was driven by the drop in sales in important markets, such as the European Union (-3.84%), Russia (-6%), the Middle East (-18.59%), and East Asia (-27%). Meanwhile, purchases to the United States, Africa, Eastern Europe, and the Southern Cone increased.
In this context, Acorbanec has set three key objectives to meet in the second half of this year: improving the positioning of Ecuadorian bananas in current and potential markets, serving new customers that may require credit sales, and increasing the volume of exports minimizing risk.
Export credit insurance
To do this, the union signed an agreement with Coface, a leading French multinational in credit insurance, so that the companies affiliated with the association have products and services that allow them to access the commercial information of their buyers to guarantee, to the greatest extent possible, the fulfillment of their obligations.
Thus, Coface will provide these banana exporting firms with commercial reports, analyzes, and evaluations that allow knowing the risk of the possible debtor, their payment capacity, and the sale quota that they could have according to their financial history, aiming to get clients with credit sales.
In addition, they will provide the collection management service, with national and international coverage, in around 100 countries; and advice on Export Credit Insurance to mitigate the risk of non-payment (default) of buyers of the product abroad.
"We need to get more customers in markets whose payment chain is stable. We also hope to achieve trade agreements with the Eurasian zone, Japan, South Korea, and China to reduce or eliminate tariffs in these markets," said Richard Salazar, the executive director of Acorbanec.
The Export Credit Insurance, in addition, has a 150% deductibility in Income Tax and also serves to reduce the provision of bad debts, thus generating cost efficiency for exporters.