Ecuador's banana production is undergoing a complex phase, marked by adverse weather conditions, low supply, and unusually high prices. Winter brought torrential rains, which, together with the cold and low amount of sunshine, are affecting the fruit's normal development, stated Jorge Álex Serrano, general manager of Jasafrut.
© Jasafrut S.A.
Bananas require direct sunlight. These days have been completely cloudy, which has significantly reduced production. We are seeing 35% to 45% drops in some farms," Serrano said.
"While consumption in Europe and Russia typically declines during summer, spot prices have reached unusual levels. A few weeks ago, prices were around $16-17 FOB. Now, they have fallen but still range between $11 and $12, which is still high for this time of year," he added.
© Jasafrut S.A.
The situation is aggravated by the impossibility of meeting contracted volumes due to a shortage of fruit. In addition, the permanent closure of Chiquita's operations in Panama means there are around 500,000 boxes per week less in the global market, further increasing supply pressure.
© Jasafrut S.A.
Despite these challenges, Serrano says the plantations are better prepared than in previous years. Investments in fertilization and drainage have been key to dealing with the effects of the weather. However, extreme events, such as floods, have left some areas out of production for weeks.
Regarding plant health, Ecuador has not yet recorded any cases of Fusarium R4T, although a bacterium known as moko has begun to spread. Its control is being managed exclusively with microorganisms, as there are no effective chemicals.
In terms of destinations, Jasafrut continues to focus on demanding markets such as the United Kingdom, Europe, and New Zealand. "These clients require multiple certifications, from GlobalGAP to social standards such as SMETA. That differentiates us from those who export to less demanding markets such as Russia or the Middle East," he said.
© Jasafrut S.A.
"Ecuador produces bananas all year round, but production peaks between December and April. Currently, Ecuador is shipping 4 to 6 million boxes per week, a lower figure than usual. Fruit that does not meet export standards is redirected to the local market, for processing, or animal feed," he said.
Despite the challenges, Serrano is pragmatic: "It's part of the business. Adapting to the weather and maintaining quality is important to stay on your feet."
© Jasafrut S.A. For more information:
Jorge Álex Serrano
Jasafrut
Tel: +593 7-295-0469 Ext: 100
Email: [email protected]
www.equapak.com.ec