Ecuador eyes new banana export record in 2014 - FreshFruitPortal.com

Ecuador eyes new banana export record in 2014

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Ecuador eyes new banana export record in 2014

Improved agricultural practices driving up yields have led to Ecuador believing it might surpass its banana export record this year, and an industry head says a big future is on the horizon.banana_87251656 - small

The current export record was set in 2011, when the industry shipped 280 million boxes of Ecuador's most heavily exported product to foreign markets.

Association of Ecuadorian Banana Exporters (AEBE) executive director Eduardo Ledesma told www.freshfruitportal.com although so far it had been a pretty good season, there remained some things to improve upon.

"To date we have exported almost 200 million boxes, and we hope that by the end of December this year to reach 288-290 million, which would be a historical record in terms of both production and exports," he said.

"This is because since 2011 growers have been improving their plantations and the way they farm them. They're producing bigger volumes, and better prices have also helped the numbers increase."

In terms of markets, Ledesma said the EU continued to receive their largest quantities, followed by Russia, the U.S. and China, which has improved substantially.

"We are exporting around 300,000 boxes each week to China, and we have the capacity to increase by an addition 200,000 boxes," he said.

According to Ledesma, 95% of all the imported bananas in Russia are of Ecuadorian origin, although recent economic problems in the ex-Soviet country have led to some suppliers being paid slightly later than normal.

He went on to say one of the biggest problems hindering Ecuador's competitiveness in global banana markets were its high tariffs.

"We ship to all the markets in the world, but the problem is that our tariffs are just so much more expensive than our competitors. If we take Switzerland, for example, Colombia enters the market with 0% tariff, while for Ecuador it's 25%," he said.

However, he highlighted the situation would change immensely when the lower tariff deal with the EU comes into effect.

The South American country is set to improve its position through a trade agreement aimed at further cutting tariffs by €39 (US$52) more per metric ton (MT) than previously scheduled for 2020.

"We hope this agreement will help to reach similar agreements with Switzerland, Turkey, China, Japan, South Korea Qatar, and parts of the Far East. The doors are going to be swung wide open for us," Ledesma said.

"But obviously, we have to do some work here at home as well. We still have to increase our productivity and competitiveness, and with that there will be a distinct possibility of improving our tariffs. That is the potential of the Ecuadorian banana industry, is going to grow immensely."

Related stories: European banana growers respond to Ecuador-EU trade deal

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