So far, the current economic crisis affecting Ecuador has not negatively affected the country's banana production, in part because there have not been any considerable climate changes or natural disasters in the producing provinces.
However, Jorge Alex Serrano, president of the Association of Banana Exporters of Ecuador (AEBE), states that the market has been affected, as even though the price for 2015 was set at 6.55 dollars per box by Ministerial Decision No. 598 25/11/14, nobody is currently adhering to it.
"Neither producers or exporters are adhering to the law; I have heard that boxes are being sold for three dollars and fifty cents, almost half of the official price," he explained.
Exports
This is mainly the result of a banana surplus worldwide. The North American market is acquiring bananas grown in Guatemala at a lower price and with the same quality as that of the Ecuadorian product.
"There are big companies that are planting more bananas in Guatemala and Costa Rica, and that is driving us away from the U.S. market, because it is cheaper to buy them there."
El Niño
The imminent arrival of this climate phenomenon to Ecuador is also another factor that banana producers and exporters are on the lookout for, as in case it hit in the same way as in 1997-1998, it would affect a large amount of hectares and cause significant economic losses.
The phenomenon would also affect Central America's banana production and have an impact on the international price of the product. "We'll see how the phenomenon of El Niño develops in our country; it may or may not be very strong, so we'll have to wait and see what lies ahead."
Price for a banana box in 2016
The president of the AEBE said that the banana advisory committee held one of its first meetings at the Ministry of Agriculture, Livestock, Aquaculture and Fisheries (MAGAP) to set the new price of a box of bananas for 2016. If a consensus is not reached, the Minister of Agriculture, Javier Ponce, would be in charge of setting the price for next year.
