The Ecuadorean banana industry is reportedly facing mounting problems due to a price crash on the global banana market caused by the financial crisis in Europe and the US; the conflicts in Syria, Tunisia, Libya and Egypt; and an oversupply of volume from banana-producing nations.
Each week that the crisis continues, approximately 1.2m boxes of fruit (30 per cent of weekly volume) are having to be re-directed to other markets where demand is said to be low, causing significant losses for suppliers, according to a report by El Universo.
The re-direction of exports is forcing some producer groups to sell their fruit for up to US$2 per box, well below the official US$5.50 rate, the report said.
Eduardo Lesdema, executive director of the Ecuadorean Banana Exporters Association (AEBE) has renewed industry calls for government support to help alleviate the situation.
The sector is lobbying the government to declare a six-week emergency period during which the state would give credit to exporters who do not have liquidity to pay the official price per box, according to the report.
The industry has also requested that the Ministry of Agriculture reduces Ecuador’s banana export volume during the six weeks by at least 1m boxes per week.
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