Ecuador: Banana producers face increased competition from other L.A. countries

freshplaza.com reported there is currently a worldwide oversupply of bananas. Traders in Europe, Russia and the U.S. pointed out that prices are low due to a large supply. In China, prices fell because of a large domestic crop and increased imports. In Latin America, several countries started producing bananas, creating new competitors for Ecuador. In the U.S., for example, multinationals seem more prone to sign contracts with growers outside Ecuador. In Ecuador, a proposal was made to reduce the price next year to ten cents per box. The Philippines faces increasing competition in the banana market, as other countries in South East Asia are exporting to the archipelago’s traditional markets. And while El Niño may take a negative toll on the harvest in South America, its impact may be positive in Australia. The weather phenomenon will likely guarantee fewer hurricanes in Australia: a reassurance to the growers there.

South America
The impact of El Niño on bananas is still unclear. The weather phenomenon usually has the most influence around Christmas. The last El Niño had a great impact on Ecuador’s banana production. At the moment, there are no problems, and this means that there are enough bananas available. Even countries in Africa or China, which have their own banana sector, register demand for the South American bananas. Read Article