Small banana producers in El Oro warn of a loss of 50,000 hectares due to El Niño. For the exporting union, this calculation is an “exaggeration”.
Image of a banana harvest in Ecuador. Photo from August 2022.
Banana producers from El Oro and exporters differ on the possible effects of the El Niño phenomenon on crops and the sale price of a box of bananas.
According to the Orenses Banana Growers Association, which brings together small and medium producers in the province, the El Niño phenomenon could cause the loss of up to 50,000 hectares of banana plantations.
This calculation was released by the association during a press conference offered on July 3, 2023.
They assured that they will not be able to afford these losses or take preventive measures because the price of the box of bananas that they are being paid at the moment is between USD 2.5 and USD 3, below the minimum support price, which is $6.50.
The executive director of the Banana Marketing and Exporters Association (Acorbanec), Richard Salazar, described as “exaggeration and irresponsibility” to speak of a possible loss of 50,000 hectares due to El Niño.
“Let them show the studies they used for that estimate. In the winter, only 1,500 hectares of bananas were lost,” recalls Salazar.
For the president of Acorbanec, at this moment it is not possible to calculate future losses due to El Niño. “You have to work on prevention measures, start dredging the rivers, do maintenance on the drains.”
Price variations
Regarding the price that El Oro producers are being paid for a box of bananas, Salazar recalls that members of the El Oro Banana Growers Association did not sign contracts by the end of 2022 for their sales this year.
Therefore, their sales are made in the spot market, where the price is variable, says Salazar.
According to Acorbanec, the average price per box of bananas paid to producers in El Oro between the first week of January and the last week of June 2023 was USD 6.68.
In the last week of June 2023, the price was at USD 3.35, but in January 2023, the price was above USD 12 and in February around USD 9, according to Acorbanec statistics.
“What did they do with the money from the weeks that they were overpaid?” asks Salazar.
Other El Oro producers export directly, under contract. According to the Association of Small Banana Producers El Guabo, 70% of its members do so.
Lyanne Zoeteweij, administrator of the Association, assures that as they are organic producers they are paid USD 9 per box of bananas.
