Banana exports are recovering and experiencing one of the best moments in recent months with shipments reaching $1.055 million in the first quarter of this year, with growth of 12% compared to the same period in 2022, with increases important in destinations such as such as China, the European Union, the United States and Russia, according to the latest official data from the Central Bank. However, internally, there is no end in sight to the struggles between fruit producers and exporters.

The recovery of banana exports to Europe is pushing the growth of 5.76% in shipments from the port of Guayaquil

These disagreements have a common denominator, the alleged non-compliance with the minimum support price (PSM) of the banana box set for this year at $6.50. Small and medium-sized producers assure that the export sector wants to pay them, for about seven weeks, only $3 per box, which is why some banana growers have decided to chop their fruit instead of selling it at a low price.

Segundo Solano, vice president of the Ecuadorian Banana Federation (Fenabe) and president of the El Oro Banana Association (ABO), assures that about 300 producers have decided on this measure and that more will be added because about 6,000 are affected by the alleged non-compliance with prices in the provinces of Guayas, Los Ríos, El Oro, Esmeraldas and Cotopaxi.

According to the leader, the damage to the manufacturing sector amounts to 70 million dollars from the 14th week, that is, from the beginning of last March until today.

One of those producers was Iván Gootman from El Oro: “If they’re going to pay me $3, I’d rather throw it on the ground because they won’t even pay me the workers.” He calculated that his production costs to produce a box of bananas are $7.50 more than the current PSM.

Gootman, appearing in an interview published on Fenabe’s official Twitter account, explains that according to his costs, the minimum price at which he would need to sell a box of fruit would be $7.50 to make a profit.

Another producer who decided to chop his fruit was Luis Calle, in the area of ​​Valencia, in Los Ríos. “I am cutting my fruit, my sacrifice, my work, my passion… because the prices they pay are not enough to make a box of bananas,” he said as he lowered the bunches to the ground with the help of a worker, to whom he owed three fortnight’s wages. cut them with a machete.

Producers are threatening to strike if the ‘spot’ price is included in the new Banana Law

On the other hand, Mauricio Ortiz, president of the Machala Cantonal Agricultural Center, warned that the indebtedness of small and medium-sized producers with private and state banks is high, so the price of 3 dollars per box is not enough to sustain them. farms and their workers.

“We are asking the executive branch to forgive our debt to the province of El Oro, because we suffered an earthquake, we suffered very bad weather, very heavy rains that flooded our plantations and we have debts,” said Ortiz, who asked why the debts could be forgiven to the bank and not to our manufacturing sector which provides so many sources of work?

Meanwhile, from the export sector, Richard Salazar, executive director of the Association for the Marketing and Export of Bananas of Ecuador (Acorbanec), assures that the producers who cut their fruit “are the same ones who did not want to sign contracts when the Ministry of Agriculture and Livestock were called to sign sales contracts , they broke the law to sell in stains“, criticized the leader who recalled that during the last quarter of 2022 and the first quarter of 2023 it averaged between 6.32 to 7.20 dollars, more than the PMS.

Russia is again the fourth destination of Ecuadorian exports

Salazar added that there were weeks where the price stains It reached $13 per box, but those markets that buy in this modality are currently falling due to reduced demand.

“Unfortunately, there are double standards, that’s why we asked for the fairness of the price stains in bananas, but now one hears certain leaders and certain members of the assembly advocating this problem, saying and misinforming that we want to eliminate PMS just to maintain spots”complained Salazar, who reiterated that 55% of Ecuador’s banana destinations are processed through this modality place.

The vice president of Fenabe and head of the ABO, Segundo Solano, rejected what Salazar indicated. A total lie, the minister himself gave an extension until March (for signing the contract) at the exporter’s request, the presenter said.