Pineapple farmers project 30% decrease in production by 2023
Ecuador
Friday 24 June 2022
VU
When normally a ton of pineapple is sold for $300 dollars, when there is a greater supply it is sold for $210, affecting the cash flow. Informality dominates the Ecuadorian producer and makes the real price of the fruit precarious, resulting in losses.(photo:alamy.com)
In Ecuador, the pineapple producers alert an export and marketing crisis within the sector, although in 2021, according to data from the Ministry of Production, the country became the first exporter of said fruit in South America and the eighth worldwide.
According to local farmers, from 2010 there was a rebound in shipments to Chile, Argentina, Uruguay, and moderately to the United States and the European Union.
During the pandemic, exports increased, but problems arose due to the reduction in maritime transport and the few quotas in containers, due to security measures against covid.
Another important factor was Russia's invasion of Ukraine, which resulted in an 80% rise in the value of fertilizers.
Local producers project that by the end of 2023 they will stop producing 3 to 4 hectares per week, assuming a 30% decrease in production and 20% in exports.
The crisis deepens due to the taxes applied by the Government to the productive sector, without developing a strategic plan. The price of pineapple remains the same when diesel, cardboard, freight, salaries, fertilizers go up.
Luis Ortiz, district director of the Phytosanitary and Zoosanitary Regulation and Control Agency (Agrocalidad), commented that in 2021 they exported 99,749 tons of said fruit. This first half, shipments reached just 32,072 tons, and they expect to reach 60,000 tons by the end of the year.
85% of Ecuadorian pineapple production is exported, the rest goes to the local market. The high freight prices and lack of containers impede the transfer to other regions, oversaturating the national market, where supply increases and prices fall.
When normally a ton of pineapple is sold for $300 dollars, when there is a greater supply it is sold for $210, affecting the cash flow. Informality dominates the Ecuadorian producer and makes the real price of the fruit precarious, resulting in losses.
In contrast, the price in international markets remained the same, between $7 and $8 for a 22-kilo box. Ecuadorian producers do not raise the price for fear that importers will simply stop buying the product.
source: lahora.com.ec