Marianela Ubilla, the CEO of the Ecuadorian banana grower and exporter Agzulasa, is very serious about supplying Asian consumers with “bananas as the basis of good nutrition.” This is demonstrated by her and the company not having missed attending Asia Fruit Logistica for the past decade.
“Our plans in Asia is to continue promoting the Ecuadorian bananas and turn our product into a daily basic nutrition source for the Asian consumers. We are very popular in the region because of the premium quality and commitment with our customers in the long term agreements. Local and international companies know our perseverance and confidence in the Asian market and come to visit us every year for networking or interest in working with us. The market share of Ecuador in 2023 to the Asian markets represents only 5,42% While for Agzulasa it represents 15% of our total exports to the world, which is important for us, especially when we are in the top three of the Ecuadorian exporters to Asia,” explains Ubilla.
She says Agzulasa started supplying the Asian market in 2013, with their first client in Ningbo, China. “I remember at the start we faced a lot of challenges. After 10 years, we have so far achieved agreements with clients in terms of volumes, price and year round negotiations. Especially in China our fruit is present in Shanghai, Xingang, Qingdao, Shekou and Dalian. But we also have established long term commercial relations with a few of our clients in South Korea. This is despite our Ecuadorian bananas facing a tariff of 30%. Based on this experience, our aim in the coming years is to continue developing these long term relations with more customers in the region. I confirm that Asia Fruit Logistica has been the most important platform for building this goal.”
Remembering her first AFL in 2013
“I started attending as an exhibitor in 2013, and I have never been in China before then. During the first exhibition, I remember a very small show, only one hall for all the exhibitors and the Ecuadorian stand was quite small with a short capacity for four to six exhibitors and six sq. meters for each company. Agzulasa continued our participation the coming six years, without skipping any show because we met a lot of potential clients from Asia, Europe, Middle East and Australia. In 2020 and 2021 the show was not released because of the pandemic, but in 2022 we attended the show as an exhibitor in Thailand. It means that we have never failed to attend the AFL exhibition in the last 10 years. One more reason is that it is the opportunity for visiting our current clients in the region and strengthening our bond and constant support between each other,” remembers Ubilla fondly.
Ecuador FTA with China pending
While the Free Trade Agreement between Ecuador and China awaits final approval from the South American countries’ Congress, Ubilla is hopeful this will eventually be done to start early in 2024.
“The FTA is pending because of the political situation in Ecuador, the congress was dissolved and they had to make the final approval. We are expecting the new Congress possession by the end of 2023, so that we hope the FTA will enter in vigour in February of 2024. The FTA was ready in terms of negotiations and technical issues from December of 2022, and it states for the banana tariff which currently is 10%, that this product will have an annual reduction of 1% in the coming 10 years. Currently the market share from Ecuador to China is only 3,72% of our total volume and we are expecting to see the effect of the FTA after five years of the tariff reduction. China is the biggest buyer of Ecuadorian bananas, followed by Japan with 1.39% and in minority South Korea with only 0.30%.”
Ubilla concludes by saying: “We export to China mainly and South Korea. I would like to grow Japan as a new destination, but I think the China market is the one with more potential.”
Visit Ubilla and hear team in Hong Kong at Hall 5 stand 5D.
For more information:
Marianela Ubilla
Agzulasa
Tel: +593 98 985 2027
Email: [email protected]
www.ecuasabor.com