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Ecuador: Minimum Set the Price of the Banana Box at US$ 6.40 for 2020

15.11.2019

The Ministry of Agriculture and Livestock (MAG) set the minimum support price for the banana box at US$ 6.40 for the 2020 season. That equates to 10 cents more than the official value that has been in force this year, which is of US$ 6.30.

The MAG also suggested four reference prices according to the week, which can be applied depending on the time of the year or according to the seasons in the international market (high and low). Prices range from US$ 5.30 to US$ 7.50. But these can be applied as long as there is a private agreement signed between producers and exporters and that the minimum support price is respected as an annual average.

The Minister of Agriculture and Livestock, Xavier Lazo, signed the Ministerial Agreement that contains five articles and two general provisions on Friday, November 8th, 2019. He did so after actors in the chain did not reach a consensus at the negotiating table on October 29th. Producers wanted a price of US$ 6.80 and exporters wanted it to remain at US$ 6.30. The minimum support price of US$ 6.40 applies to the 41.5-43 pound banana box that corresponds to the so-called 22XU box.

Based on the minimum support price, the MAG this time established a table of four referential prices that can be set by mutual agreement provided that in the 52 weeks of the year 2020, its annual average “is never less than US$ 6.40 " For this, two payment methods are proposed, which are fixed weekly and variable weekly, which were not available in the 2019 season. In the fixed contract model the price will be in force for 52 weeks of the year without variation and in the other it will be applied in accordance with a variable table by mutual agreement, but the annual average may not be less than US$ 6.40.

The following is the Reference table suggested by MAG.

Week 1 to 14, US$ 7.50

Week 15 to 24, US$ 6.40

Week 25 to 38, US$ 5.30

Week 39 to 52, US$ 6.40

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