As the year is nearing its end, the Ecuadorian banana industry stands at a crossroads. The looming December 31st deadline for producers and exporters to sign contracts for the 2024 exports is fast approaching. However, the pace of adherence to the process remains sluggish.
The industry reached a consensus in November to set the price for a box of bananas at $6.85 for 2024. Still, according to executive director of the Association of Banana Exporters of Ecuador (AEBE), Jose Anronio Hidalgo, contract signings are proceeding at a slow pace. Some producers are either delaying or avoiding signing contracts altogether, albeit with the hope that 100% of the fruit will be contracted as per regulation.
Producers often wait until the last moment to sign contracts, hoping for better terms or favorable market conditions. The signing of international contracts is progressing at a snail’s pace, with notable resistance from European clients due to the newly agreed price.
Franklin Torres, president of the National Federation of Banana Growers (Fenabe), confirms this reluctance among producers. He attributes this hesitance to past issues such as contract breaches and illegal discounts affecting final prices. However, Torres also points out that compared to the previous year, more producers are signing contracts this time around. Unfortunately he remains skeptical about the high percentage of contracts being signed by the year-end.
Source: bnnbreaking.com