Producers, traders and exporters of bananas have one month to register fruit export contracts that will be in force until 2024. The reminder was published by the Ministry of Agriculture and Livestock (MAG), through a statement for the banana sector transmitted by the Regional Corporation of Ecuadorian Banana Growers ( Agroban).

The government portfolio points out that all contracts and renewals must be submitted by December 31, 2023 through a physical one-stop shop or a virtual one-stop shop. For the next year, a minimum support price (MSP) of $6.85 per box of bananas applies.

Resistance to the new banana price for 2024 puts the signing of the contract with the main destination, Europe, on hold

“All producers, traders and exporters will be required to sign contracts for the sale of fruit and the clauses freely and voluntarily agreed upon by the parties will be respected, as long as this does not contradict this law and its regulations,” said MAG. he recalled citing Article 1 of the Banana Law, which prescribes only the signing of the contract as the only mechanism for the fruit to leave the country.

However, Agroban states: “It is said that by 2023, 40 percent of the contracted fruit will be. The rest was place (without contract and at international market prices). This one (because of) the price place (in) 2022 (it was) high (and) manufacturers took the plunge.” The union added that it will end the price in 2023 place between $7 and $7.20, higher than even next year’s PMS.

This is why, according to Agroban, it is necessary to update the Banana Law in order to legalize the modality of business. place, so manufacturers and exporters who wish to opt for this scheme are not in an informal position.

They stated that for the 2024 contracts there are some alternatives for signing contracts:

“It is true that there are markets and markets, so we must carefully analyze the situation, the profile of exporters and producers in order to make the business sustainable,” suggested the union.

Meanwhile, Franklin Torres, president of the Federation of Banana Producers of Ecuador (Fenabe), insisted that the production sector is not asking for a new law, but that the PMS be respected throughout the year. He reminded that in recent years the union presented a plan to the ministers of agriculture on duty to regulate the supply and in some way keep prices stable for years.

Banana prices: How much leaves Ecuador and how much comes in and is sold on international shelves?

“Unfortunately, this was not taken into account by the ministers on duty and has obviously caused this commercial instability that we currently have. Today, we once again present to the Minister of Agriculture (Danilo Palacios) a plan to regulate the supply during the weeks when we believe that demand is decreasing, we are talking between the 18th and 32nd weeks to reduce the amount of fruit so that it does not serve as an excuse to lower the internal price of a box of bananas,” explained Torres.