Producers and exporters without agreement for the banana box. Price must be set by MAG in 7 days

After almost three hours, the negotiating table between producers and exporters to set the price of the banana box that will govern for 2022 ended without agreements on Friday, which was held from 10:00 am at the Government’s Undersecretariat for Strengthening Musáceas. Zonal, in Guayaquil.

The proposal presented by the producers, through the National Federation of Banana Producers of Ecuador (Fenabe), was to increase the current price from $ 6.25 to $ 7.50.

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

For this, Franklin Torres, president of Fenabe, argued that the sector’s proposal was made 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 costs. of production and a reasonable profit.

To establish the national average, a banana plantation of 50 hectares (ha) was 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.

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.

With this argument, several producers reached the bottom of the Zonal Government to demand an increase in the price.

Meanwhile, the export sector came to the table with the intention that the price of $ 6.25 is maintained, to maintain competitiveness against other market players.

According to Richard Salazar, CEO of Acorbanec, there is pressure from supermarkets to pay less in international markets for the fruit.

José Antonio Hidalgo: It is essential for the sustainability of the industry to maintain the minimum price of support at $ 6.25

“Since 2015 it was at almost 14.50 euros, now they are paying 11.20 euros for the box, that is the reality, it is the trend,” said Salazar, who pointed out that no matter how much good will they may have, they must of some or another way to adapt to the market, which is what Ecuador has done.

“Three years ago it was put at $ 6.50 a box, at $ 6.40 and at the end of the day we had to lower it to $ 6.25 because it could not be sold at that price level abroad, this is no longer new. The bottom line is that and trying to find a reasonable price, ”Salazar said.

He added that, however, the export sector has been requesting through a statement to the market players in Europe to pay the fair price of the fruit and that next week there will be a meeting of the banana unions to take up this issue.

Meanwhile, on the setting of the price for 2022, it will be the Minister of Agriculture, Pedro Álava, who must resolve it in the next seven days in accordance with the regulations. (I)