Exporters ‘invite’ banana producers, who demand prices, to export and see what happens in international markets

José Antonio Hidalgo, executive director of Aebe, assured that no one prevents producers from exporting “from going and doing it.”

The export sector reacted to the request made public this Friday morning by the banana producers affiliated with theNational Federation of Banana Producers of Ecuador (Fenabe), about the intention to directly market the fruit with international supermarkets.

The request was made by the president of Fenabe,Franklin Torres, who requested economic and legal support from the Government to carry out this project.

From Fenabe it was indicated that small and medium banana producers lost around$600 millionin 2021, receiving an average of $4 per box of export bananas, despite the fact that the minimum support price was $6.25; and it was assured that some exporters intend to make them sign, this year, contracts below the price established by law. For 2022 the price of the box remained at $6.25.

Given the position of the producers, José Antonio Hidalgo, Executive Director of the Association of Banana Exporters of Ecuador (AEBE), was in favor of the producers' announcement about exporting directly and assured that "no one is preventing them from going and doing it."

However, he clarified several details that producers must comply with to achieve this.

“The ideal is for them to generate their association, get certified, make an effort, work with productivity and competitiveness and be able to make their approaches as an association, more or less, as an example I take Asoguabo or San Miguel from Brazil, who have known how to associate and work in sustainability and that they are reaching supermarkets, international buyers, but it is a process of discipline, of following standards, the rules of law and having a collective effort,” said Hidalgo. Sign up for the Pocket Economy newsletter

Meanwhile, regarding the complaints of producers about the alleged disrespect for the minimum support price of the box of bananas, Hidalgo indicated that there are official channels where producers can make their complaints formally by presenting all supporting documentation.

“I think that the media (of communication) are not a form, but that they also have concrete actions, if they are also within a formality,” said Hidalgo.

For its part,Richard Salazar, Executive Director of the Banana Marketing and Export Association (Acorbanec),He described the producers' request as absurd from the point of view of who it is addressed to, although he also had reservations about the final intention of the request.

He assured that it does not depend on the Government for an exporter or producer to access a supermarket and clarified that supermarkets or importers are very demanding in quality, certifications and compliance.

“You have to deliver to the supermarket warehouses and the investment is high, since you have to hire freight and ripening at the destination. But the most important thing is that it is a business between private parties and governments do not intervene beyond helping to promote exports,” said the Acorbanec director, who warned that the market is managed by supply and demand.

Salazar analyzed that Fenabe producers are giving the wrong approach to the current situation of international banana prices, by ensuring that supermarkets are the ones that intend to pay less for the fruit, despite the increase in production and export costs and shipping freight.

“It is an issue that originates from international buyers, they try to blame the exporters on behalf of this group of producers, for them nothing happens outside, which is wrong from that point of view,” said Salazar, and made an invitation to this producing sector.

"We invite them to export fruits like other associations of banana producers do that directly export their fruits, they sell, market and see what is happening outside, not like these who only live complaining (...) for them the only solution is price issue, there are no other problems and the only culprits are the exporters,” criticized Salazar, who regretted that they minimize the work of the rest of the actors in the chain.