Page 44 - Ecuador's Banana Sector under Climate Change

ecuador’s banana sector under climate change: an economic and biophysical assessment to promote a sustainable and climate-compatible strategy
Organic banana producers receive higher prices than conventional banana producers, despite the fact that they sell to the same exporters who handle conventional bananas and they face the same price bargaining mechanism. Unlike bananas that are certified under the Fairtrade label, there are no fixed prices for organic bananas, which are subject to buyer-seller negotiations and, hence, the risk of the commoditization of organic bananas. This creates uncertainty in the organic market and a source of significant variation in the conditions of supply
and demand. This explains, in part, why Ecuador’s organic exports have sharply declined over the last five years, dropping from 25 000 boxes exported per week five years ago to only 13 000 boxes per week in 2012 (LACENA).
3.2.1 Exporters
The number of registered export companies in Ecuador in 2012 was 224, including companies that only export during the high-price season. In 2013, there were 172 active exporters, with the topmost 20 exporters accounting
for 62 percent of total banana exports. Table 6 summarizes the export shares of the leading ten banana exporters for 2013. Among these, MNCs are represented through local subsidiaries. Dole Food Company, along with its subsidiary, Union de Bananeros Ecuatorianos S.A., secured the highest export share at 10.5 percent of total. Chiquita is represented by Brundicorpi S.A.
(3.5 percent total share) in Ecuador, while Del Monte Foods Inc. is represented by Bandecua S.A. Ecuador’s own company is Noboa – one of the leading five banana companies worldwide and which is also among the topmost exporters of bananas in Ecuador.4 Among the international companies, only Dole Food Company has maintained direct production, owning 900 hectares in the country.
Table 6 Export shares of the leading ten banana exporters in Ecuador
Exporter
Union de Bananeros Ecuatorianos S.A. (Dole subsidiary) Trusfruit S.A.
Reybanano del Pacific C.A.
Obsa Oro Banana S.A.
Comesur S.A.
Brundicorpi S.A. (Chiquita subsidiary)
Asociación de Agricultores Bananeros del Litoral Ecuagreenprodex S.A.
Baguilasa S.A.
Caragrofrut S.A.
Source: Unibanano (unpublished; communicated to author; January 2014)
Export market share (of total Ecuador exports)
10.5 7.3 5.2 4.2 4.1 3.5 3.4 2.7 2.2 2.1
Dole Food Company (United States), Chiquita (USA), Del Monte Foods Inc. (based in the
4
United States), Fyffes (Ireland), Noboa (Ecuador).
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