Challenging start to Ecuadorian banana export season

Ecuador's banana industry had a challenging start in 2024, with a 12.9% drop in exports compared to the previous year.

 

According to data from the Central Bank of Ecuador, international banana sales generated $331 million in January 2024, compared to more than $380 million in the same month of 2023.

 

According to data from the Banana Marketing and Export Association (ACORBANEC), several factors contributed to this decline in exports. First, there was a 15% reduction in production due to adverse weather conditions.

 

In addition, the increase in the official price of the banana box from US$6.5 to US$6.85 also had a significant impact. This price adjustment resulted in only 75% of EU customers renewing their contracts with Ecuador, thus losing ground to competitors such as Colombia and Costa Rica.

 

The economic situation in Russia also affected negatively, with a 15 per cent decrease in banana purchases. Another obstacle was the incident in the Suez Canal, which caused delays in the transit of several vessels. This caused saturation in the destination markets as several ships arrived simultaneously, which in turn resulted in a reduction in orders.

 

Despite this unfavourable start, it is important to note that in 2023, the Ecuadorian banana sector experienced a 15.4% growth in exports, reaching US$3,770.7 million. Bananas remain the second most important product in Ecuador's traditional non-oil exports.