Ecuador sets new minimum box price for bananas

Ecuador’s new minimum support price for a box of bananas will be US$7.25 as of 1 January, 2025. This is an increase of US$0.40 on the 2024 price, according to Richard Salazar, executive director of the Association for the Marketing and Exportation of Bananas of Ecuador (Acorbanec).

The price was agreed at a meeting between producers and exporters held in Guayaquil. Agriculture minister Danilo Palacios now has a period of seven working days to issue the ministerial agreement that makes the new price official.

Exporters proposed to maintain the price at the 2024 level, or increase it to a maximum of US$7, while producers requested a price of US$8.33.

Salazar indicated that it is difficult to make a projection because they depend on the world market. “Obviously this is supply and demand. Lower production this year has caused prices to increase, and we hope that our international buyers assume that value. The reality is that to guarantee the sustainability of production it is worth paying such a price,” he said.

Salazar pointed to uncertainty is Russia, the second biggest market for Ecuadorean bananas, where purchase prices have fallen by an average of 13 per cent due to the ongoing conflict.

Franklin Torres, president of the National Federation of Banana Growers (Fenabe), said that although the new price was approved by producers, it fell short of their initial expectations. He noted that most producers had achieved contract prices above US$7 this year, maintaining the hope of obtaining prices above US$7.50 by 2025.