Looking to place a million boxes per month
Ecuador: Banana farmers look to the Chinese market
The idea is to place in the Asian market around 1 million boxes per month. First, according to the Banana Exporters Association in Ecuador (Aebe), they must raise productivity levels.
Meaning, if presently a hectare of banana produces 1,100 boxes, this could be raised to 2,000. In a total area of 250,000 hectares dedicated to this fruit, it would mean that by the end of the year there will be an extra 500 million boxes.
But along with the productivity increase, commercial agreements must be signed with China, as affirmed by Eduardo Ledesma, director of Aebe, when questioned about it during the Banana Forum 2012.
He also suggest the Government, along with the private sector, set up a commission dedicated to develop this business.
Historically, the buying of bananas by an Asian country is assured, as in 1998 the annual sales were 300,000 tons per year, but in 2011 this was reduced to 7,000 tons per year. Then, one of the sales promotors of fruit to China was Segundo Wong, from Reybanpac.
"Today there's an opportunity. Mainly due to the fact that presently, China is going through a bad political moment with Philippines, one of its main suppliers of bananas," affirmed Vicente Wong, president of the Chino-Ecuadorian Chamber and representative for Reybanpac.
Wong and Ledesma agree that with an agreement, the tariff of 10% that exists presently for Ecuadorian banana could be eliminated.
In fact, the first approach was done in Guayaquil to the representative of the Chinese Council for Exports, Zhang Wei, when visiting Ecuador. During the meeting, Wei pointed to the fact that a tariff reduction can happen; Francisco Rivadeneira has the same opinion. The vice-minister for External Commerce bases his opinion in the versions he saw during a visit to the Asian country.
Despite the reduction in external sales showing negative numbers, the situation can get even worst. The organization that gathers national banana exporters estimates that until the end of 2012, this drop could mean 25 million boxes, the equivalent to more than $130 million.
More than that, sector members predict that things will get worst when the European Union reduces the tariff for fruit coming from Colombia and Peru.
The market
The European Union buys 5.2 millions tons of banana per year.
The United States buy 4.1 millions tons per year from the whole world; Asia buys 2.1 millions and Russia buys 1.5 millions.
Central America supplies 46% of the market; 30% produced by South America.
Ecuador supplies presently 35% of the EU banana market.
Source: Hoy