Production of MD2 pineapples in Ecuador is reportedly in decline as an increasing number of suppliers exit the business in favour of more profitable crops like maize.
Following another year of negative sales growth, planted area is expected to decrease by a further 600ha-1,000ha during 2011, compared with 3,700ha in 2010, according to a report by El Universo.
The publication cites global oversupply, high production costs and falling prices as the reasons for the cut-back.
“People aren’t consuming as many pineapples as was hoped, so there isn’t a great demand but there has still been an increase in offer due to the large production in Central America, and that has affected us,” James Brown, chairman of pineapple association Asopiña, told El Universo.
Ecuadorean pineapples are primarily exported to the US and the European Union, but exports fell by 5.37 per cent in value between January and December 2010 to US$41.9m, according to figures from the Ecuadorean Customs Agency.
Román Olivé Planelles of Barcelona-based organics grower-marketer Fruta Del Pacífico told Fruitnet.com that one of the biggest challenges facing the pineapple industry in Ecuador is how to increase levels of automation in order to minimise the impact of soaring labour costs.
According to Mr Olivé, the social policies being pursued by the government are placing a heavy burden on the sector and threatening its future profitability.
Indeed, salaries in the sector have reportedly risen by 10 per cent this year, which is driving up the cost of production since wages represent 30 per cent of outgoings.
Mr Olivé added that the effects of La Niña weather phenomenon, in the form of wake lower temperatures and fewer hours of sunlight, have also affected Ecuador’s pineapple production.
