The latest announcements by the President of the Republic, Guillermo Lasso, on the analysis of compensation measures for the banana sector due to the impact they suffer due to the conflict between Russia and Ukraine, do not fully convince the export sector and not at all the producer, who They urgently seek a meeting with the president to present their points of view and suggestions.
This in a context in which the banana sector stopped exporting, only last week, 750,000 boxes of bananas to Russia and Ukraine.
Lasso revealed this Tuesday: “We are going to work with our government team. Precisely this week we will have meetings with our Minister of Production (Julio José Prado), with the Minister of Economy (Simón Cueva), to see, as far as possible, compensation measures that allow us to sustain production, sustain employment and generate hope, because this will be transitory”.
Government analyzes lines of credit and negotiates with China and South Korea to place bananas affected by the conflict between Russia and Ukraine
When consulted by this newspaper, Franklin Torres, president of the Federation of Banana Producers of Ecuador (Fenabe)regretted that the union had not been invited to any meeting to discuss the problem, thus referring to the appointment held on Monday by authorities of the Ministry of Agriculture and Livestock (MAG), with the coordinator of the country’s banana and plantain cluster, Juan José Pons, who is also a director ad honorem on agricultural issues of President Lasso.
I am very concerned about the small producers affected by the war in Ukraine. That is why we are working on compensatory measures and locating new markets, such as China, so that they can sell and generate income.
????: Radio link Let’s meet for citizenship.
— Guillermo Lasso (@LassoGuillermo) March 15, 2022
“We want to explain to the president how we want to buy bunches,” said Torres, who last week proposed the creation of a contingency fund with its own financing (from the banana producers themselves), through the retention of $0, 05 per box sold to minimize the losses that the conflict may cause.
Regarding the proposal that the Government buy the production, Torres proposed the direct purchase of bunches from small and medium producers with the aim of avoiding oversupply and speculation on the price of the fruit. This, according to the leader, would benefit producers of less than 50 hectares, up to 35 clusters per hectare would be purchased at a price of $3 each cluster to remove 2 million clusters from the market.
Banana growers propose a contingency fund to minimize losses due to the war between Russia and Ukraine
However, the proposal was discarded by Lasso on Tuesday. “To think that the government has to buy the banana production that is lost by the Russian market, that is not realistic. What we have to do is locate other markets in the world,” said the President of the Republic, who commented that there was a meeting with the Chinese ambassador Chen Gouyou on the possibility of compensating for the loss of the Russian banana market.
A line of credit for producers of up to $55,000 through BanEcuador is also being analyzed.
About, Richard Salazar, executive director of the Banana Marketing and Export Association (Acorbanec), which represents producers and exporters of the fruit, indicated that placing that amount of bananas, which does not go to Russia, in other destinations is utopian. In January, Ecuador exported 8.1 million boxes of bananas to Russia, 23.99% of all Ecuadorian banana exports to the world.
“If you go to China or Korea or other destinations, that will take time and it will not be immediate, we need solutions now and unfortunately I do not think this measure will be so fast,” lamented Salazar, who revealed that knowing of the dependence that the Ecuadorian banana has on the Russian market, buyers in China and the Middle East intend to buy the cheapest fruit.
For this reason, the leader suggested that the Government regulate the exportable supply of bananas in Ecuador, if these markets are closed more, to avoid oversupply in other destinations that will affect the price of the fruit.
“We ask for a regulation of the exportable supply to lower that export volume that cannot be exported to prevent it from going out and being sold at a low price, to avoid that price crisis that we are going through, how they do it is part of what has to be done. agree. The producers said a contingency fund, well that is a recommendation from them, because of the concept we agree, which is to regulate and take out at least 1 million bunches per week for at least 10 weeks,” said Salazar.
The Government estimates non-permanent extra income of $1,500 million due to the increase in the price of oil; will analyze measures for small agricultural producers
Salazar views with concern President Lasso’s statements about alleged speculation on the price of bananas.
The president pointed out, regarding the official price of bananas, that some companies are not “playing fair” with producers, so it is planned not only to sanction, but also to cancel the export licenses of those exporters who do not respect the law.
“It gives us the impression that the President of the Republic has misinformed him and this is an issue that has to work hand in hand with the public sector and the private sector to find a consensus average. The truth is that it is very disappointing to hear that the exporters are the ones to blame for this problem that is public knowledge, so the truth is that it is important for us to have a direct meeting with him (President Lasso) and be able to expose our point of view and to listen to us”, concluded Salazar. (I)
Source: Eluniverso
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