Banana producers propose a minimum price to support the fruit of $ 7.50

A few days after the development of the negotiation table to set the minimum support price of the banana box that will govern by 2022, the banana producing sector presents its position and proposal, which focuses on a price of $ 7.50 , that is, $ 1.25 more than the current one.

The negotiating table will be at the Musáceas Strengthening Undersecretariat in Guayaquil, starting at 10:00.

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This will be the second negotiation under the new scheme that the Ministry of Agriculture and Livestock (MAG) applied since 2020 to set the price for 2021. This new system was introduced, through Executive Decree 1127, in August of last year to benefit to the closing of contracts that occur between October and December of each year and that apply to the next.

In this way, at the end of October, producers were able to sign contracts with an annual weighted average price equivalent to the minimum support of $ 6.25, a price lower than that of 2020, which was $ 6.40, or take advantage of to a table of four minimum prices depending on the season.

This consisted of a box of 22 XU bananas (18.14 kg) having a cost of $ 6.90 from week 1 to 16. While from week 17 to 32, a cost of $ 6.60 . From week 33 to 42, $ 4.50. And from week 43 to 52, $ 6.40.

Meanwhile, for the negotiation next Friday, Franklin Torres, president of the National Federation of Banana Producers of Ecuador (Fenabe), indicated that the proposal of the sector is carried out in accordance with what is determined by the current Banana Law, in which It is mentioned that the minimum support price will be based on a study of production costs and a reasonable profit.

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He added that to establish the national average a banana plantation of 50 hectares (ha) is considered, with a production of 2,000 boxes per hectare, which corresponds to a medium producer.

In this way, the union detailed the cost of each item per box of bananas to support their request. Thus, for example, direct and indirect labor represents $ 1.43 and $ 1.46 respectively; inputs, $ 2.36; $ 0.17 for depreciation of infrastructure and equipment; $ 0.04 for miscellaneous materials; $ 0.55 for taxes and miscellaneous services; $ 1.20 as “20% reasonable profit”; and finally, $ 0.30, which represents 5% for contingencies.

“Although the minimum support price is not respected, it is necessary to fix it, because it will allow the banana business to be projected,” said Torres. (I)