Ecuador: The Ecuadorian banana faces problems

The extended negotiations with the European Union (EU), the advantage that Colombia has after signing the Free Trade Agreement (FTA) with the U.S., and the risk of Panama raising the fee for the use of the canal keeps banana agricultural exporters in complete uncertainty.

On the last subject, Panama threatens to raise the rate by 7.5% , as of the 1st of July of this year, up to 15.5% in 2013 (by ton transported). "You may say that only goes up a few cents, but 60 or 70 cents weigh on a box of bananas, especially when we pay about USD 0.07 per box for the European Union," said Eduardo Ledesma, director of Ecuador´s Association of Banana Exporters (AEBE).

With this scenario, the country loses competitiveness. And even more this year, that has registered a record drop in fruit shipments abroad, because of the low productivity caused by the severe winter, assured Ledesma. 50,000 hectares were affected by the excess water during the harsh winter that is about to end. According to statistics of the guild, in the first quarter´s exports fell by 10.5 million boxes, compared to the same period of last year.

An industry forum

As of today until next Thursday, the IX International Banana Forum will be held in Guayaquil. The forum will be made for the first time in alliance with the Biotechnology Research Center of Ecuador, of the Escuela Politécnica del Litoral (ESPOL), and in parallel with the First Congress of Biotechnology and Biodiversity. The forum will be held at the Hilton Colon where Ecuadorian producers and exporters, representatives of cartoneras, certification companies, plastic input suppliers and producers of Latin American countries will meet.

Source: ElComercio.com