Ecuador set to have a national banana export company

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Ecuador set to have a national banana export company

The Ecuadorian government is planning to create a state banana export company to stabilize the market and protect smaller banana producers, website reported.

President Rafael Correa, in an interview with Piñas local radio station Impacto, urged small producers to overcome their fear and denounce exporter companies that commit illegal practices such as removing quotas and charging for training.

Correa noted that although there were 200 exporting companies, in reality 80% of the market was operated by four to five companies who had an agreement.

"We know this. We are getting involved but we need some help from certain producers to discipline them and make the law well-known so that we can report these abuses," he was quoted as saying.

In the high season many exporters and producers don't want the government to get involved, preferring to sell on the spot market, but in the off-season they want state protection through, for example, a guaranteed minimum price for bananas.

Related stories: Ecuadorian banana exporter hit with US$1.8M fine


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