Asbama, an association representing banana producers and exporters in Colombia's Magdalena and La Guajira regions, has voiced concerns about how the strengthening of the Colombian peso is affecting the sector's competitiveness. They warn that this trend is directly threatening the financial sustainability of producers.
© Asbama
The association notes that the decline in the exchange rate occurs amid a particularly challenging situation for the industry. Since Colombian bananas are sold in dollars on global markets but produced in pesos, each decrease in the exchange rate cuts into profit margins.
"Colombian bananas are sold in dollars, but they are produced in pesos. Every time the dollar falls, it directly impacts the producer's profitability," said José Francisco Zúñiga Cotes, executive president of Asbama.
© Asbama
Beyond the exchange rate scenario, several other factors are driving up production costs. The union points to rising labor and operating expenses, as well as high logistics and energy costs. Additionally, the rural property tax has increased and is becoming more noticeable in 2026. Producers also face ongoing pressure from international banana prices, which are dictated by the global market, limiting their ability to pass these cost increases on to the final consumer.
In this context, Asbama warns that the peso's revaluation is reducing the sector's margins, particularly threatening the viability of small and medium-sized producers.
© Asbama
The banana industry in Colombia's North Coast plays a significant role in the regional economy, providing over 19,500 formal jobs and serving as a major driver of growth in Magdalena and La Guajira. Furthermore, bananas are the country's third-largest agricultural export, vital for earning foreign currency and supporting rural development.
In response to this situation, the association has urged the national government to take action to safeguard the export sector's competitiveness and offset the impact of the exchange rate. Asbama warns that rising internal costs paired with a decline in exchange rate competitiveness could threaten jobs, investments, and the long-term viability of Colombia's banana industry.
The guild warns that if not addressed promptly, the country may experience a serious decline in a key agro-export sector.
For more information:
Asbama
www.asbama.com
