The deadline for the registration of contracts for banana exports leaving the country from January 1., to the different international destinations was met on December 31, 2023, and, according to exporters and producers, only some of the fruit was contracted. As established by the Banana Law, 100% of the fruit to be exported should have a contract as it is the only mechanism for exporting the fruit.

The situation worries the export sector, which added that with the beginning of the year, the high season, and the increase in demand for fruit, there is the possibility that they will not be allowed to export due to the lack of contracts. Richard Salazar, executive director of the Banana Marketing and Export Association (Acorbanec), assured this January 2., that contracts have continued arriving - those that were signed until December 31, 2023 -but he estimates that there would be only around 55% of the total fruit offer. With the beginning of the high season, demand increases for our bananas. The export sector is willing to sign contracts, but unfortunately, many producers do not want to," Salazar lamented. The last official figure disclosed by the MAG was on Thursday, December 21, 2023, by the Undersecretariat for Strengthening Musaceae, which indicated that up to that date, 831 contracts had been signed, representing 38% of the total hectares registered and that they received on average between 60 and 70 weekly requests for registration of purchase and sale contracts. Meanwhile, Salazar hopes that the Ministry of Agriculture and Livestock (MAG) will convene exporters and producers to analyze and find a solution to the lack of contract signing, which is familiar to the sector.  In 2022, as in 2023, producers and exporters also reached a consensus to set the minimum support price (MSP) for fruit, but last year, according to the export sector, only 40% of the fruit went out through contracts. The rest was sold on spot prices (at market price and without warrants). Last year, after the consensus was reached, exporters and producers committed that 100% of the fruit would be contracted in 2024.

The exporters recognized that in 2023, 55% of the markets where Ecuadorian bananas were sold received the fruit on a spot basis, a modality not established by the current law but whose average price of $7.20 in 2023 exceeded the Minimum Support Price. The minimum price for 2022 is $6.50 and exceeded the minimum price for 2024 that is in force, which was set at $6.85.

Salazar insisted that reforming the Banana Law was necessary. "It is important to incorporate the spot price within the legal framework," stated the head of Acorbanec.