Augura and Asbama on the Low International Prices of Bananas

2024-07-19

The Association of Banana Growers of Colombia, Augura, along with the Association of Banana Growers of Magdalena, Cesar, and La Guajira, Asbama, have spoken out about the situation regarding international banana prices. Both associations emphasized their desire for banana prices in the global market to increase so that the relationship between the commercialization value and production costs is fairer. They highlighted the importance of factors such as the exchange rate, labour costs, and productivity, which influence the need for price increases.  According to figures from Asbama, the banana sector has impacted more than 55,000 families and has managed to export more than 1,850 tons of the product.

However, the sector's situation is currently challenging. They stated that labour costs continue to rise while purchase prices remain stable or even decrease in some cases. This is due to the formal production model in the banana sector. "Prices are not increasing in the international market; the trend is downward. Labor is costly due to the formal production model," said José Francisco Zúñiga, president of Asbama. He added that, on average, bananas in the international market cost US$0.80 per kilo, which has not risen in over seven years and does not favour producers.

Similarly, the president of Augura, Emerson Aguirre, stated that the association "continues to work tirelessly for the increase in banana prices at the international level." He noted that the sector's efforts in terms of expenses need to be recognized through price increases in the market. Ecuador, the Dominican Republic, Costa Rica, and Peru have joined the demands of the Colombian banana sector, sharing concerns about low prices in European markets such as Germany and Italy. "It is not fair that we depend on variables such as productivity and the exchange rate," added the president of Asbama.