NOVA MEDIA PUBLISHING INC.

Statement of the Ecuadorian Banana Industry Regarding Fair Prices

12.11.2019

It’s that time of the year again. When banana contracts are being negotiated between producing countries and consuming countries. The sector faces a lot of new challenges, the supermarkets demand a lot more out of the plantations... and want it for free.

According to ReeferTrends Nov 08 publication, German retailer Aldi will increase their banana buying price for 2020. The Ecuadorian Banana Sector sees this as a positive action, but it’s not really an increase that reflects the reality of the business. 

IMO 2020 is the international mandatory regulation that would seek to reduce Sulphur of MGO or other fuel with Sulphur content of max 0.5% oxides emission from ships, by reducing current levels of Sulphur in the bunker IFO380 actually used from 3,50% to 0,5%, as from January 1, incremental cost be approx. USD 400-700 per cntr depending on the trade. 

This is just one of the increases facing the industry next year, Foc TR4 is a reality that is threatening banana plantations and the Ecuadorian Banana Sector has been working hard on this. But implementing Biosecurity Measures to protect the plantations requires heavy investments. 

Not to mention Sustainability certification costs such as RFA and others  that require more investments, higher production costs due to changes in the production products for disease protections etc. 

The world wants vessels with cleaner fuel, less emissions, bananas that are protected from the threat of Foc R4T, sustainably growns with integrated and technical pest management, with the best practices that protects the workers and ensures living wages, , that have full traceability, that are clean and perfect, adjusted to specification requirements and that use less plastic. That is all good, we embrace and encourage that, but who pays for it? Because it is certainly not free. 

German apples are 3 times more expensive in a German Discounter than bananas that come all they way from Ecuador. 

Our sector is attacked by ONGs as being unfair, when it’s the other way around. Adding a few cents to the banana Kg at the shops makes no impact on the consumers, but it relieves a lot of the burdens facing the Ecuadorian Banana Sector.  

Sincerely,

 

Ing. Raúl Villacres Vanegas                                           

Director Ejecutivo (e)                                                       

AEBE                                                                                   

 

Ing. Richard Salazar Veloz

Director Ejecutivo

ACORBANEC

 

Ing. Leonidas Estrada Vásquez                                                

Presidente                                                                           

AGROBAN                                                                           

 

Ing. Kleber Sigüenza Rojas 

Comisión Banano

Cámara de Agricultura II Zona

 

 

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