Ecuador’s banana exports to the European Union (EU) and also the US are continuing to decline in line with the downward trend of the last two years, according to a report by El Comercio.
Shipments to the EU fell by 8.66 per cent during the first three months of 2013, compared with the same period last year, the report said.
According to figures from the Ecuadorean Banana Exporters Association (Aebe), exports to the last year reached just 85m boxes last year, against 110m boxes in 2011.
The outlook for the medium-term is apparently not set to improve either but there is some hope for the sector following the Ecuadorean government’s announcement that it would resume trade negotiations with the EU.
“I believe in the words of President Rafael Correa that he will sit down and negotiate with the European Union in order to achieve a mutually beneficial agreement,” stated Eduardo Ledesma, director of Aebe.
Ledesma claims that Ecuador’s banana exports to the EU will continue to decline in view of the financial crisis in the region, the conflict in the Middle East and Ecuador’s lack of competitiveness against its neighbouring supply nations who have all succeeded in signing beneficial agreements with the EU.
“Our bananas are very expensive,” Ledesma explained. “While one box [from Ecuador] now costs US$11, a box from Colombia, Peru and Central America costs US$9.”
Furthermore, Ledesma claims that raising the official price per box from US$6 to US$6.25 will not be effective since the fruit continues to be exported illegally – or not under contract.
He believes Ecuador needs to reduce both its export and production costs for bananas in order to compete more effectively with other suppliers.
The industry and its international buyers are due to convene on 28 May to evaluate the situation for Ecuadorean bananas at a three-day forum to be held at the Hilton Colón in Guayaquil.
