Ecuadorian banana seeks to broaden its presence in markets of East Asia

East Asia represents a great interest for the banana industry of Ecuador. Ecuadorian banana is already present in the markets of Japan, China and South Korea, however, in recent times, sales to these destinations have suffered a decline.

In 2019, this region of the world represented 8.8% of Ecuadorian banana exports; in 2020, this participation decreased to 6.9%; and until week 30 of 2021, the indicator was set at 5%.

According to Marianela Ubilla, president of the Association of Banana Exporters of Ecuador (AEBE), the downward trend is explained by the increase in banana supply from countries geographically close to China, such as Cambodia, which in 2020 increased its production of the fruit by 1.200%.

The cost of transportation is another factor. Currently, the freight of a container from Ecuador to the East Asian region costs about $4.000, while from the Philippines the cost reaches $1.200.

In addition, there is the issue of taxes, since Ecuador pays tariffs to supply the fruit to the markets of Japan, China and South Korea, while some Asian and Latin American competitors have zero tariffs.

Ubilla stressed that the other exporting countries are already ahead of Ecuador and are gaining ground in these markets. For this reason, it is urgent to reach trade agreements with the East Asian countries, first of all, with China.

The Ecuadorian Government has already announced its intention to begin negotiations as soon as possible to sign a trade agreement with China, so that it is ready by 2022.

Ubilla affirmed that for Ecuador it is the ideal time to also take advantage of current situations in the world, such as the affectation of Fusarium Raza 4 Tropical (TR4) in the Philippines, the second world exporter of bananas, which caused a decline in production and cost rise for banana growers of this country.

Above all, the climatic conditions of Ecuador ensure a stable supply, while Asian producers constantly face natural threats in the plantations.

Marianela Ubilla stated that achieving a zero tariff will make Ecuadorian bananas more competitive in these markets.

source: vistazo.com

photo: banano.ebizor.com