The warmer and drier weather in many of the South American countries where bananas are grown has led to lower export volumes. Jorge Alex Serrano, from the exporter Jasafrut based in El Guabo, El Oro in Ecuador, says: "As a result buyers are again turning to Ecuador to secure more banana volumes. The better prices that we are receiving now are due to many reasons, but mainly because there is a lack of fruit in all of Latin America."
This year has been hotter, with the higher temperatures affecting the banana trees negatively leading to lower volumes in Ecuador as well as Central America and Colombia. "Some European importers are coming back to Ecuador because there is a lack of production in Central America and Colombia. This is good for us. The official price increased by $0,40 per box for next year and this will help growers," states Serrano.
Banana trees in Ecuador are also affected with the yield of the trees impacted. "In normal years, we can get 1.5 boxes per each bunch of bananas, but now we are getting only 0.9 boxes per each bunch. This is because the temperature has been so intense that the plantations were stressed. This is not related to the internal practice in social aspects," explains Serrano.
Ecuador China FTA in full effect
The free trade agreement between Ecuador and China, that will see import tariffs in the Asian nation reduce each year, will come into full effect from early next year. "The FTA and the reduction will help to increase the volume, but this will be taken by the actual exporters because the Chinese culture is very conservative and they respect the relationships a lot. They will keep their suppliers with more quantities," notes Serrano.
High Russian market demand and prices
Russia is another big market for Ecuador's banana exports that remains stable with high spot market prices says Serrano. "The Russian market has not changed. Ecuador has always been the main supplier and quite exclusive. Their demands have kept the price very high this year in the spot market system."
He says they are looking forward to a better 2025 export season. "The team is fine and working ahead for next year, with the market looking good in 2025. Now that we have better prices, we will be able to get better conditions for accomplishing everything the markets demand In Europe and USA," predicts Serrano.
For more information:
Jorge Alex Serrano
Jasafrut
Tel: +593 7-295-0469 Ext: 100
Email: [email protected]
www.equapak.com.ec