Ministers agree to promote, before international markets, an amount of compensation for banana producers and exporters due to increased costs

The Ministers of Agriculture of Costa Rica, Honduras, Guatemala, Colombia and Ecuador; and the delegates of Dominican Republic and Panama They agreed to promote a compensation amount, before international markets, for banana producers and exporters in their countries.

This, under the concept of shared responsibility and in view of the rise in fruit production costs and shipping freights that the large chains of distributors in international markets do not recognize and that are absorbed by producers and exporters.

This problem was analyzed this Wednesday in the Latin American Summit for Banana Unity that was developed via telematics and that was summoned by the Minister of Agriculture and Livestock of Ecuador, Pedro Alava.

Banana producing countries in the region seek a common position in the face of rising costs and international markets

“We are not here to lament our current situation, no, but so that there is a unanimous voice that claims our rights,” said Álava when declaring the summit inaugurated.

At the meeting, which lasted approximately one hour, each country analyzed their situation.

Regarding the amount of compensation, Alfredo Saltos, former Minister of Agriculture of Ecuador, who participated as moderator of the meeting, explained that it should establish as a reference the parameters already used in the only certification that recognizes exogenous impacts and sustainability efforts in the production and export chain, based on the minimum reference price per country and for a certified “Fair Trade” product that analyzes the particularities of each country and a prize of one dollar per additional box.

Rodolfo Zea, Minister of Agriculture of Colombia, He pointed out that the export of bananas, which represents 5.3% of that country’s agricultural GDP, generated $ 9 million in 2021 to send 1,200 tons to international markets.

“We have been subjected by the trading companies of the purchasing countries,” said Zea, who indicated that the prices they pay for the fruit have gone down, as he recalled that in 2015 the kilo of bananas was paid at 47 cents, while which is now paid 0.45 cents.

For Renato Alvarado, Minister of Agriculture of Costa Rica, the problem “does not seem to be solved in the short term”, so he indicated that they should work together and above all work and talk with shipping companies “because the issue is out of control.”

“Let us raise our voices to demand that our Latin American countries be paid the fair price for our products, we cannot be subject to a voracious and ruthless market …”, said the Costa Rican official.

The Minister of Agriculture of Guatemala, José Ángel López, He proposed the creation of working groups among the participating countries and taking actions to initiate a process of searching for alternatives in all the links of the chain.

“If the actions are not sustainable, banana production and food security are put at risk,” said López.

For its part, Mauricio Guevara, Secretary of Agriculture and Livestock of Honduras, regretted that the problems addressed add to an existing problem regarding food sovereignty in the countries of the region.

Bananas are the second export item in Honduras or at least it was until 2018 when there were 14,000 hectares of bananas that generated $ 531 million for that country, which today has seen its production decimated by the storm by 60% .

“More than 60% of the banana plantations were lost due to the hurricanes … we have lost market because we have not had national production and they import from Costa Rica for national consumption,” explained Guevara, who indicated that they are in the reconstruction phase.

Guevara indicated that he will put the new authorities of his country in the context of the meeting, since he has eleven days left to deliver the position.

While, Darío Vargas, Vice Minister of Agriculture of the Dominican Republic, He clarified that the banana problem is not a matter for governments with the European Union, but with clients in Europe and pointed out that a study is necessary by country to know the price increase that each one must need for there to be equity.

Vargas added that the call for the meeting was timely for his country, as they seek to know and learn from the experiences that the countries of the region have had with the Fusarium Raza 4, another of the issues that were addressed at the meeting.

Producers support plan against Fusarium race 4 in Ecuador

Regarding the plague, the ministers and delegates agreed to create an alliance for the management of international resources to combat Fusarium Race 4 in phytosanitary research, training and dissemination measures.

Finally, Saltos indicated that the countries participating in the summit will make a joint face-to-face or virtual visit to the Fruit Logistics Fair which will be next April in Berlin and an agenda in Brussels to promote regional objectives.