As Ecuador's new Free Trade Agreement (FTA) with China comes into full effect, the South American country's banana industry is keen to increase export volumes to the Asian nation. Jorge Alex Serrano, from Jasafrut based in El Guabo, El Oro in Ecuador, says: "This FTA will eventually change how our industry trades with China, from a spot market to long-term contracts."
He says they welcome the opportunity to increase volumes and sales to China. However, it is a market that is vastly different to Europe. "China has come to an FTA agreement with Ecuador and the tariff will be reduced every year, which is an opportunity for our country. The difference with the EU is that China is mainly a spot market compared to Europe which has long term contract relationships, which means that we can depend on this area completely. I think this situation will change," explains Serrano. Jasafrut exports the banana brands Equapak and pacific Bananas.
He says the current 2024 season is hotter, with higher temperatures. That's good for banana production, but does bring other challenges. "This 2024 we had a hot season with very high temperatures which is good for production. But when it reaches levels at risk for many days, the plants come to a stress situation which affects the quality too. We have faced this situation in the last two years and the results have been very hard economically. By now, the production hasn't reached the normal levels yet. It's still low," states Serrano.
Additionally, the disease burden and challenges has been increasing in Ecuador. "Lately, a big added problem are the two new menaces we are facing, the fungus FOC RT4 (Fusarium Oxysporum) and lately the bacteria MOKO (Ralstonia solanacearum R2). There are some areas lost in the fields of Ecuador, and it's increasing. This will reduce the volumes available for the future if we don't act as soon as we should," emphasises Serrano.
The Ecuadorian banana industry will be attending Asia Fruit Logistica again. Visit them at Booth 3-3F02.
For more information:
Jorge Alex Serrano
Jasafruit
Tel: +593 7-295-0469 Ext: 100
Email: [email protected]
www.equapak.com.ec