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Ecuador: Poor outlook for bananas

Although the weather has calmed down, the negative effects on the banana sector are ongoing. Fruit exports continue to fall, according to the Ecuadorian Association of Banana Exporters (AEBE). In April and May, monthly sales decreased by about 5 million cases on average. Adding reductions in sales for the months of January, February and March, in total Ecuador's banana exports have dropped about 15 million boxes.

According to consolidated figures, between January and March of this year, Ecuador exported a monthly average of 23.2 million banana cases. This was 3.5 million cases less per month, compared to what was sold in the same period for 2011, when the average was 26.7 million cases.

Major buyers

According to data from the AEBE, the drop in sales occurs in three major markets of the Ecuadorian banana: the United States, Russia and the Mediterranean countries. In the first quarter of 2011, for example, the U.S. purchased about 14.5 million
cases from Ecuador, but in the same period of this year, it fell to 12.1 million cases, ie Ecuadoria banana exports in that market declined by 16.32%.

Russia, which is the second largest buyer, in the analyzed period bought 19.2 million cases last year, but in this current period it decreased to 15.6 million cases.

Eduardo Ledesma, president of the AEBE, said the weather affected fruit production, so there was less supply to sell to the world. Although the rains have stopped a bit on the banana plantations, "it is considered that exports will not
recover until the end of the year, in fact, in June it is estimated to have a fall between 15% and 18%, because we entered the period of low demand," he explained.

Effects

The fall in fruit exports implies less foreign exchange earnings for the country.

According to the Central Bank of Ecuador, for example, banana or plantain exports reached USD 22,100 is in the first quarter. This compared to the same period of last year was USD 60,000 less, since the amount reached was of USD 83,620.

Regarding banana exports for cooking, between January and March of this year USD 16.07 million were sold, but in the same period of last year USD 17.26 million were sold.

Low sales

Felipe Ribadeneira, president of the Ecuadorian Federation of Exporters, said that the fall of this fruit is even observed in the low growth of total non-oil exports, according to figures it was 2.9%. In total USD 2.325 million were exported without counting oil exports. If crude exports are added the figure reaches USD 6,127
million.

5 million cases are left to sell each month since January.

Source: Lahora

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