Ministers agree to promote, before international markets, an amount of compensation for banana producers and exporters due to rising costs

Five ministers of Agriculture from the region and two delegates participated in the Latin American Summit for Banana Unity

The Ministers of Agriculture ofCosta Rica, Honduras, Guatemala, Colombia and Ecuador; and the delegates ofDominican Republic and PanamaThey agreed to promote an amount of compensation, in international markets, for banana producers and exporters in their countries.

This, under the concept of shared responsibility and in the face of the rise in fruit production costs and shipping freight that the large distributor chains in international markets do not recognize and that are absorbed by producers and exporters.

This problem was analyzed this Wednesday in theLatin American Summit for Banana Unitywhich was developed electronically and was convened by the Minister of Agriculture and Livestock of Ecuador,Pedro Álava.

“We are not here to lament our current situation, no, but so that there is a unanimous voice that vindicates our rights,” said Álava when declaring the summit inaugurated.

At the meeting, which lasted approximately one hour, each country analyzed its situation.

Regarding the amount of compensation,Alfredo Saltos, former Minister of Agriculture of Ecuador, who participated as moderator of the event, explained that this must establish as a reference the parameters already used in the only certification that recognizes exogenous impacts and sustainability efforts in the production and export chain, basing the minimum reference price per country and for a “Fair Trade” certified product that analyzes the particularities of each country and a premium of one dollar per additional box.

Rodolfo Zea, Minister of Agriculture of Colombia,He pointed out that banana exports, which represent 5.3% of that country's agricultural GDP, generated $9 million in 2021 by sending 1,200 tons to international markets.

“We have been subjected by the marketing companies of the purchasing countries,” said Zea, who indicated that the prices they pay for the fruit have been decreasing, as he recalled that in 2015 a kilo of banana was paid at 47 cents, while which now pays 0.45 cents.

ForRenato Alvarado, Minister of Agriculture of Costa Rica, the problem "does not seem to be solved in the short term", so he indicated that we must work together and above all work and talk with the shipping companies 'because the issue is out of control'.

"Let's raise our voices to demand that our Latin American countries be paid the fair price for our products, we cannot be subject to a voracious and ruthless market...", said the Costa Rican official.

The Minister of Agriculture of Guatemala, José Ángel López, He proposed the creation of working groups among the participating countries and taking actions to begin a process of searching for alternatives in all links of the chain.

“If the actions are not sustainable, banana production and food security are put at risk,” said López.

For its part,Mauricio Guevara, Secretary of Agriculture and Livestock of Honduras,He regretted that the problems addressed add to an already existing problem regarding food sovereignty in the countries of the region.

Bananas are Honduras' second export item or at least it was until 2018 when there were 14,000 hectares of bananas that generated $531 million for that country, which today has seen its production decimated by the storm by 60%. .

“More than 60% of the banana plantations were lost due to the hurricanes… we have lost the market because we have not had national production and they import from Costa Rica for national consumption,” explained Guevara, who indicated that they are in the reconstruction phase.

Guevara indicated that he will put the new authorities of his country in the context of the meeting, since he has eleven days left to hand over the position.

While,Darío Vargas, Vice Minister of Agriculture of the Dominican Republic,He clarified that the banana problem is not a government issue with the European Union, but with clients in Europe and pointed out that a study by country is necessary to know the price increase that each one must need for there to be equity.

Vargas added that the call for the meeting was timely for his country, since they seek to know and learn from the experiences that the countries of the region have had with Fusarium Race 4, another of the topics that were addressed at the meeting.

Regarding the pest, the ministers and delegates agreed to create an alliance for the management of international resources to combat Fusarium Race 4 in phytosanitary research, training and dissemination measures.

Finally, Saltos indicated that the countries participating in the summit will carry out a joint in-person or virtual visit to theFruit Logistics Fairwhich will be next April in Berlin and an agenda in Brussels to promote regional objectives.