Ecuador's banana industry calls for govt loans

Top Stories
Ecuador's banana industry calls for govt loans

Ecuador's banana growers and exporters have requested the government declare a six-week state of emergency for the sector, website reported.

The industry claims many buyers are not paying the official price of US$5.50 per 43lbs (19.5kg) box, with some growers only getting US$2 due to falls in the international price.

As a result local banana unions are calling on more punishment for those who do not follow the country's pricing system, along with loans for businesses that don't have liquidity, the story reported.

The unions also requested the government enforce restricted export volumes to help improve prices, as the country's supply has saturated markets along with Colombia and Costa Rica.

Machala Agricultural Center Paúl González, said many exporters did not have the available cash to pay the official price given the low levels of international returns, so government assistance of around US$17 million was needed to avoid losses, the story reported.

Exporters claimed a series of factors including the financial crisis, high temperatures, unrest in the Middle East and European holidays led to the price falls.

"Exports have to be reduced so the price can recover abroad. If there isn't a consensus between the stakeholders then we can't get out of this crisis," Ecuador Association of Banana Exporters (AEBE) director Eduardo Ledesma was quoted as saying.

Related stories: Ecuadorian president signs banana regulation decree

Ecuador finds 20 uncompliant banana exporters

Ecuador's banana growers in tough spot with Sigatoka

Photo: Think Progress

Subscribe to our newsletter