An average of 780,000 less banana cases per week were exported from Ecuador during the first five months of the year, compared to a similar winter period from last year. Statistics from the Association of Banana Exporters of Ecuador (AEBE) show the critical situation of the sector.
A fall of half a million cases per week was registered from June up to last week. "That was week 27 of the year and we placed less than 4 million cases," said Cecilio Jalil, director of Ecuador's Banana Industry Association (Asisbane). Historically, for this date, sales reached 4.5 million cases, he also said.
Summer in the northern hemisphere, that raises the demand for juicy fruits, plus the financial crisis of European countries and low productivity of Ecuadorian crops due to the severe winter contributed to lower export supply. To this we must also take into consideration the inspection done by the Ministry of Agriculture, Livestock, Aquaculture and Fisheries (MAGAP), to prevent the departure of fruit without a contract. According to reports from producers, companies continue to operate with irregularities, they pay USD 2 per box, when the price
is a minimum of USD5.50. Hence the government´s operations.
However, there are complaints from producers. Evaristo Baque, president of the Chamber of Agriculture Zone II, believes that to stick to a business only under contract 'binds' producers to the available quotas for export. "In Ecuador there are many restrictions that are in the law and do not allow immediate regulation," said Baque. The guild proposed the Government to allow Ecuador to export 75% of fruit under contract and 25% for the spot market. But the exporters guild emphasize that the Banana Law and its regulations only permit fruit to exported under contract and therefore it must comply with it. Eduardo Ledesma, director of AEBE, believes that the formalization of business will be achieved by only regulating the market.
Source: ElComercio.com