Production and exports resume, but still deal with unemployment losses

After the 18 days of strike, the productive sectors resume their production operations, some are rescheduling their air and sea routes, which implies surcharges and fines, but 85% of the products that were retained on the days of the strike were perishable and “ that was the load that could not be placed”, indicates Xavier Rosero, executive vice president of the Ecuadorian Federation of Exporters (Fedexpor).

When the strike ended last Thursday, shipments began to normalize, says Richard Salazar, executive director of the Banana Marketing and Export Association (Acorbanec), after not being able to export 1,700 containers due to the closure of roads and lack of packaging material on the farms.

“Our suppliers have already been able to send packaging materials to the farms of producers, the carriers still circulate without problems and the different ports work without any problem,” says Salazar.

The strike is over, but the banana producers of El Oro continue with their de facto measures against the Government

The leader commented that in the 18 days that the strike lasted, scheduled cuts of the fruit had to be suspended because the containers could not reach the farms, nor were there packaging materials and supplies for production and export.

“The staff of many farms, especially in the north of Los Ríos, La Maná in Cotopaxi, El Triunfo, La Troncal and in El Oro, were not able to enter the farms, and the farms that did process and send the production to the ports many containers were stuck on the roads, and those that passed arrived late at the ports and the ships had already set sail, causing that container to stay until the following week and with connection costs; but the most serious thing is that the client from abroad was not complied with and the payment of false freight was assumed”, lamented the Acorbanec spokesman.

For its part, Eduardo Manrique, president of the Banana Exporters Association (Asoexpla), He also indicated that exports normalized since last Friday and containers went out to its main markets, which are the United States, the European Union and the Southern Cone. He revealed that 150 containers of fresh bananas and 50 of processed bananas are exported per week.

With these figures, Manrique calculates that during the strike they stopped exporting 140 containers, between fresh and processed bananas, assuring that of the 18 days of unemployment, the sector was paralyzed for 14 days.

In the case of bananas, the leader stated that fines were paid for not being able to fill the scheduled containers. According to the leader, $500 was paid to the shipping companies or to the owners of the containers for one that could not be filled, without adding the damages for the false freight and the fruit that could not reach the port and was lost.

In the case of processed bananas, he indicated that nearly $7 million were lost and it continues to be accounted for.

The effects of the strike could be reflected in the negotiations of trade agreements, analysts warn

“During the processing, (it was paralyzed) due to the lack of oils, of plastic to cover the snacks and chips; the factories were stopped, especially those in Santo Domingo (of the Tsáchilas), they stopped producing, they stopped packing, they stopped selling,” lamented the leader, who assured that only next week will the real value of losses, although he estimates that in total they can reach $20 million, between fresh and processed bananas.

Banana and plantain exporters quantify losses of around $40 million between the two sectors, without considering yet the destruction of properties, vehicles and the impact on some farms that suffered attacks on their infrastructure and warehouses that were looted.

Another sector hit by unemployment and announcing the beginning of its recovery is the poultry industry. The National Corporation of Poultry Farmers of Ecuador (Conave) assured that the poultry sector will recover from the $38 million of losses left by unemployment.

During the strike, table eggs were one of the most scarce products and a bucket of 30 eggs cost up to $10 when the normal price fluctuates between $3.50 and $5, depending on the size.

The Corporation estimated, days before the end of the strike, that 4 million chickens did not reach the slaughter centers and markets, and 60 million table eggs did not reach the main distribution points either.

Sectors expect lower prices due to the discount in fuel prices

In contrast to the losses caused by the protests, something that could benefit the final consumer is the effect on prices of the 15 cents that the Government lowered the price of fuel.

For example, in the case of bananas, Richard Salazar, from the Banana Marketing and Export Association, indicated that this discount in the price of fuel will help to lower the cost of production somewhat due to the use of diesel in the production systems. pumping for irrigation and drainage, as well as for transporting the fruit to the port, which will benefit final consumers in international markets; and also to the local consumer. “Because transportation should also go down,” said the executive director of Acorbanec, who pointed out that 5% of banana production remains for domestic consumption, while 95% is exported.

Policy for fuels and oil changed the same day the stoppages ended

Eduardo Manrique, from the Banana Exporters Association, believes that the price of the products should be adjusted downwards, no later than the end of July.

“The market should be reduced, because by lowering and reducing freight costs they should be regulated, then that should allow for a considerable discount and a discount on the purchase of the domestic product,” explained Manrique, who recalled that the 14% of the banana production is consumed internally. (YO)