The banana industry in Ecuador is one of the most important contributors to the country’s economic growth, thanks to the fact that Ecuador has been one of the world’s leaders in banana production and banana export over the decades. Today, banana exports represent over 2% of Ecuador’s total GDP and about 35% of the country’s agricultural output, therefore banana is also acknowledged as Ecuador’s main exported product after petroleum. As the global demand for banana remains high, business opportunities in Ecuador’s banana industry are expected to flourish further in the near future.
Banana production is mainly depended on two major aspects, natural resources, and labor force. Thankfully, Ecuador is blessed with both aspects, plus business-friendly trade policies. There are different types of bananas grown and exported from the country; the most widely grown variety is Cavendish. Cavendish bananas account for more than half of the global banana production and export.
Grow your business network in this industry, and connect with the top banana suppliers in Ecuador
According to the latest Report on Ecuador’s Banana Sector, there were 4,473 banana producers cultivate the fruit over 162,236 hectares banana planting area in Ecuador. In 2016, Ecuador produced about 6.6 million tonnes of bananas, as reported by the UN’s FAO, representing over 6% of the world’s total banana production.
Even though the banana-producing area has been shrinking since 2012 (when banana producing area was recorded over 200,000 hectares), mainly caused by production difficulties linked to black leaf streak, competition from cheaper fruit and issues with the country’s banana farm legalization process, the volume of the banana exports from Ecuador only fell marginally from 2012 to 2016. This also reflects a strong demand for bananas in the global market.
Currently, Major banana suppliers in Ecuador are concentrated primarily in the provinces of El Oro, Guayas and Los Ríos, home to 41%, 34% and 16% of bandanna producers respectively. The largest concentration of small producers is situated in the El Oro province (approx. 42%), while the larger producers are gathered primarily in the Guayas and Los Ríos provinces.
Ecuador has been dominating global banana exports for decades. More than 65% of the bananas grown in Ecuador is exported to the European Union, Russia, and the USA. Bananas exported from Ecuador is well-known around the world for their quality, taste, and nutrition. The government of Ecuador has also relaxed their export rules in recent years to make it more trade friendly.
According to the recent figures from ITC (International Trade Centre), Ecuador exported US$ 2.7 billion worth or equivalent of 6.2 million tonnes of bananas to the global market in 2016, representing over 25.2% of the world’s total banana exports in the same year, making Ecuador once again the world’s largest banana exporter. Ecuador’s Ministry of Foreign Trade also suggests that the banana sector had led Ecuadorian exports in 2016 with 40.6%. Russia, the USA, Germany, Italy, and Argentina are currently some of the top importers for Ecuadorian bananas.
Russia has been the largest importer of Ecuador’s bananas industry for years, and amount of banana shipments to Russia still growing. Ecuador exported US$59 million worth of bananas to Russia in the first half of 2017, 9.2% more than in the same period last year, according to the South American country’s trade mission. Bananas have become Ecuador’s biggest export to Russia, overtaking shrimp, frozen fish and fruit puree.
The banana industry in Ecuador reached a consensus on the price of a box of bananas; it will be paid at $6.20 by late 2017, reported by Eltelegrafo. Alex Serrano, chairman of the board of the Association of Exporters of Ecuador’s Bananas (AEBE), suggests that this price allowed the producer to have profit margins and that it would help them in the seasons in which the price of the fruit fell below $4.
Meanwhile, Miriam Barona, CEO of the Fruta de Oro company — one of the leading banana suppliers in Ecuador estimates that banana prices in 2018 will start much higher than in 2017, and they will remain high until March or April. Prices are expected to stabilize in the middle of the year, as usually happens every summer in the northern hemisphere. This estimated price growth is mainly due to a lower volume of production caused by low temperatures and low luminosity.
The prominence of the banana industry in Ecuador has attracted a significant number of buyers and traders from all over the world. To help your fruit business stays at the top of the industry, BizVibe provides the best solutions to source products and make the best business deals with the top banana suppliers in Ecuador. Don’t miss your chance to connect with the best industry suppliers, manufacturers, and companies on BizVibe.
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