The spot prices for bananas started on a high note this year but have reduced a bit. According to Jorge Alex Serrano, from the exporter Jasafrut based in El Guabo, El Oro in Ecuador, "In the beginning of the year, the spot price was very high, but it has reduced slightly in these past few weeks."
Ecuador and other South American banana-growing and exporting countries experienced lower production volumes at the end of last year due to the warmer and drier weather. This has led to lower export volumes too. The situation has turned around with more rain, which is more beneficial for banana growing.
"The regular supply at the beginning of the year is higher than the rest of the year naturally at each farm because we have more sunlight and natural irrigation through the rain, which help the plantation's production," states Serrano.
Ecuador is traditionally a main supplier of bananas to Russia. "Ecuador is the main supplier for Russia and the Eastern Market, but it will keep a spot system because the contract price is higher than their expectations," says Serrano.
Shared responsibility is a big issue for Latin American banana growers who have been advocating for EU retailers to also commit to the cause. This includes a lot of effort and expenses on social and environmental sustainability as well as several audits, which banana growers are asked to comply with. "Our best hope is that the retailer understands that every demand for extra procedures in certifications means more costs for the growers, and we comply with all the legal requirements in our country, which surpasses their expectations," explains Serrano.
Ecuador has also experienced electricity cuts recently after its many hydroelectric power plants suffered due to lower rainfall. "The cuts in power do not affect our operations much because the irrigation systems in the banana plantations use diesel engines mainly, only some farms have changed to electric motors. The packing stations demand little energy, and they can be supplied by a small engine and all the ports have their own power supply for emergencies," concludes Serrano.
Visit Serrano and his team at the Ecuador pavilion at Fruit Logistica, Berlin, Hall 23 A-31.
For more information:
Jorge Alex Serrano
Jasafrut
Tel: +593 7-295-0469 Ext: 100
Jorgealex@equapak.ec
www.equapak.com.ec