Inclusion of pricing modality stains (without contract and at market value) in the purchase and sale of bananas in the Draft Law on regulating the production and marketing of bananas, which is in the second debate in the National Assembly, also has the support of the export sector, which adds to the support of several associations last week manufacturers also publicly announced the proposal.

Richard Salazar, executive director of the Ecuadorian Banana Marketing and Export Association (Acorbanec), assured that the export sector is maintained from 2018 with the request to incorporate this modality into the banana regulations; but he clarified that it must be voluntary and not mandatory, that is, it is an optional issue, because he assured that there is a group of producers that “misinforms public opinion”, noting that this new modality will be mandatory in the new law.

Producers support the inclusion of a ‘spot’ price in the new law, which, although not in the current law, monopolizes banana exports

“Specifically this year, when MAG invited producers to sign contracts, we wanted to sign contracts, and those same leaders who are now coming out to say that stains it’s bad that they decided to sell this year stains. So there is a double discourse, because first one thing is said and then another is done,” criticized Salazar, who assured that currently 55% of the destination markets for Ecuadorian bananas are managed through the modality stains.

These markets are the Middle East, East Asia, Central Asia, Eastern Europe, Africa and parts of Russia.

According to the latest data from Acorbanec, from January to March, the last export amounted to 99.86 million boxes, 4.57% more than what was exported in the same period in 2022.

Of the 99.86 million exported boxes, 31.88% went to the European Union (27) as the main market; 23.53%, to Russia as the second largest destination; 12.54%, to the Middle East; 10.26% to the United States; 6.22%, to the Southern Cone; 4.53% was exported to Africa as the sixth largest destination; 4.31% was exported to East Asia; 2.76% was exported to Central Asia; 1.44%, towards Eastern Europe; 1.28% was exported to the United Kingdom; 0.80%, towards Oceania (New Zealand); 0.37% according to EFTA (Norway); 0.01% in Canada; and 0.07% to other markets.

Meanwhile, Salazar assured that Ecuador cannot be compared to other producing countries, such as Colombia, Guatemala or Costa Rica, that sign contracts because 90% of their export supply is destined for Europe and the United States, markets that are governed 100% by contracts and to which Ecuador lost its competitiveness.

“Those countries planted bananas when in Ecuador it was forbidden by the banana law of 26 years ago and they pushed us out of those markets. That banana law did us a lot of damage,” Salazar lamented.

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He agrees with José Antonio Hidalgo, executive director of the Association of Ecuadorian Banana Exporters (AEBE), who assured that the United States and Europe only want to negotiate once a year. “Your biggest risk is to be left with an empty shelf; So they have to ensure that they do one contract a year. But there are other markets where we had to grow precisely because we lost competitiveness in relation to Central America and Colombia. We had to adapt this reality to the current banana regulations and not stay with the reality of 20 years ago,” explained Hidalgo, referring to the price. stains.

Hidalgo assured that small producers who are in favor of updating the banana law for greater transparency in the sector are producers who are focused on production efficiency and associativeness and understand market dynamics.

“The reality of our country is not the same as in 1997, when the law was passed. In 1997, eight companies had an oligopoly that controlled all banana exports in the country. We mostly exported to the USA and Europe, these are stable markets, markets that sign contracts. And all cargo was transshipped in refrigerated ships. This is no longer the reality of the banana business,” concluded the head of AEBE.

Exporters respond to the ministry’s inquiry: MAG already has all the information

In the meantime, regarding the request made by the Ministry of Agriculture and Livestock on May 4 that all actors in the chain submit all documentation for this within ten days, the export sector, represented by AEBE and Acorbanec, which represent 92% of banana exports in the country, described in detail the type of documentation requested by MAG and responded to the competent authorities on the same day by means of an official letter.

Banana price: The Ministry of Agriculture gives the entire chain 10 days to submit the documentation

The documents requested by MAG were:

In the case of the “List of natural and legal persons with whom they maintain commercial relations for the purchase and sale of fruit”, the exporters stated that in order to put fruit on the market, contracts must be signed and registered in MAG. , in accordance with the provisions of the law, so MAG already has or should have a list of concluded contracts between exporters and producers, which implies a list of natural and legal persons with whom exporters maintain a commercial relationship in the Control System. Unibanana banana.

This also applies, according to exporters, to the list of MAG codes used to commercialize bananas.

Regarding the annual contracts for the sale of fruit with foreign buyers, the exporters clarified that the Ministry does not regulate or control commercial relations between exporters and foreign buyers.

“These private relations are outside the regulations of the ministry, and besides, they are not relevant for the control functions of the agrarian authorities,” they explain in the letter.

In this regard, Salazar added that an intent to purchase request duly authenticated by an international buyer can only be requested when qualifying as a first-time or renewing exporter, given that it is used as a mechanism to verify whether the exporter will be able to comply with the export procedure, since without it the registry is deactivated; In this case, the check can be done through AUCP (Unique Authorization for Advance Control) which is already present on MAG platforms.

The Ministry of Agriculture reported to the prosecutor’s office the alleged trade in influence for a fictitious farm, in its own name, in the Unibanano system

Finally, regarding the details of the brands under which the fruit is marketed, AEBE and Acorbanec stated that they do not currently exist within the current regulation.

“It should be noted that this request is not relevant for the control functions of the agrarian body. These data are also visible in the shipping plans, which are known to the competent authority in accordance with the law,” the unions conclude.

In this regard, the executive director of AEBE, José Antonio Hidalgo, indicated that the ministry, as a body, can make any request for information, but always to avoid bureaucracy that creates costs and consumes time.

“You have to take into account that the MAG already has all the information it requires from companies in its system. Why not do an internal check and just send an invitation by individual letters to those who don’t have their records? I think that would be the most correct, to avoid wasting time and resources for companies that have their documentation on file,” said the manager.