Progress in social and labor sustainability; in social and joint responsibility; as well as the prospects for 2024 in the banana sector; and the situation in consumer markets with the United States and Europe are some of the topics dealt with by the XXth International Banana Convention, which brings together in Guayaquil more than 80 national and international companies that offer different services within the supply chain. the value of bananas.

The event, which was inaugurated on Tuesday the 24th and will run until Friday the 27th, takes place amid uncertainty in the sector due to the fact that it does not yet have a banana box price in 2024, to start doing business with its clients, some of whom are present at the event which is held at the Hilton Colón hotel.

No agreement, second meeting of producers and exporters to determine the price of bananas for 2024 ended, MAG has 7 days to announce the new value

The sector is waiting for the statement of the Ministry of Agriculture and Livestock on the new price of boxes, after producers and exporters did not reach an agreement. The current price is $6.50.

According to the executive director of the Association of Ecuadorian Banana Exporters (AEBE), José Antonio Hidalgo, it was important that the technical vision prevail, considering everything that encompasses the environment, to reach an agreement. “We have expressed our position, which is to keep the price at $6.50, but always taking into account that the minimum support price must be considered a base, because from that base there are other efforts, such as certifications,” he noted. .

Iván Wong, manager of Dola Ecuador: External events put a lot of pressure on the markets

For his part, the general manager of Dola Ecuador, Iván Wong, pointed out that there is a dialogue and closeness between the production and export sectors. “As in all negotiations, you must listen to both sides, you must always aim for a win. “Export without producers does not exist, and neither do producers who produce for export without exporters,” he pointed out.

For his part, Hidalgo indicated that he now hopes that the Ministry of Agriculture will take into account all the variables when determining the price of a box of bananas, because it will make a decision that will affect all markets. “We hope that competitiveness will prevail and that the best decision will be made so that Ecuador does not lose its competitive advantage over Colombia, Central America, Asians, Africans,” he said.

Wong, who was announced as a possible Minister of Agriculture and Livestock in the government of the newly elected President Daniel Noboa, pointed out that the difference between Ecuador and other fruit supplier countries is that Ecuador enters many markets, so it does not have as much concentration as other countries can have.

“Ecuador is part of the global offer and the more markets there are, the market behaviors are different and unfortunately in recent years there have been some external events that have put a lot of pressure,” he said.

As an example, he cited the pandemic, the post-pandemic process, as well as the failure to completely reactivate economies. “There are recessionary processes in the economies and on the markets, in addition we had logistics crises, raw material price increases. Today, there is some dynamic that is changing, but there are also reactions from countries outside, where either due to anti-inflationary policy or due to current circumstances they are looking for price reductions, so we have to somehow react and align with what the markets are asking for.”, held.

Producers and exporters will insist, although without major changes in the proposals, on the agreement on the price of bananas in 2024.

International buyers are at the Convention, including a group of five from a major South Korean conglomerate, as well as from Europe and the Middle East.

Customer vision and comments, according to Hidalgo, is what happens in consumer markets. “High inflation leads to significant contractions,” he said.

Wong indicated that there is always an important local plan which is to be more competitive, more productive and that it allows us not to depend on one variable that is relevant to everyone today, such as price.

“We must in some way strive to have high production, be productive, be competitive because we are not the only supplier of bananas in the world, we are part of the global supply, so we believe that in some way the strength of the market, in the agreements that exist between producers and exporters, will continue to strengthen the chain, which we must work on together,” said Wong.

The importance of the price in the markets was also discussed at the technical congress. “Not all customers are the same, everyone decides what they are looking for, be it taste, quality or something related to sustainability; The importance of the price and how much they are willing to pay will depend on this. The client must be adequately surprised. Value is in the hands of the one who receives it, not the one who gives it; their preferences and based on that they can pay what they see fit,” said speaker Juan David Alarcón, of Fyffes North America, who presented on the topic: Consumer and Buyer Trends in the United States and Europe.