Ecuador's banana sector is studying a proposal to reduce the official price of a box of bananas for export by $ 0.10. This price is agreed annually by the members of the Consultative Banana Council and is fixed by decree of the Ministry of Agriculture and Livestock (Magap). In 2015, the Magap set the price of the 43 pound box, which is the most exported one, at $ 6.55.
The proposal to reduce the price was discussed at the meeting of the Consultative Council, which takes place every November. "It was proposed by the export sector and supported by a large share of the production sector," explained Manuel Romero, executive director of Agroban, which is the national association that brings together 40 producers cultivating about 7,000 hectares. Mr Romero believes that the reduction would result in greater competitiveness compared to other producers, such as Colombia or Costa Rica, whose export prices stand below 5 USD per box.
The cost of production, one of the parameters to set the official price, fluctuates depending on the production area. Paúl González, president of the Agricultural Centre of Machala (El Oro), explained that this cost is higher in areas of Los Ríos and Guayas due to the greater extension of the plantations, which require more manpower. In Guayas, the current production cost averages $ 5.60, said Romero. "If this reduction is applied, it will be in force throughout 2016," he stated.
Ecuador exported 4.7 million tonnes of bananas between January and September 2015, according to Central Bank figures. Shipments accounted for 2,182 million dollars, a 3.4% increase compared to the same period of 2014.
