Page 54 - 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
the Government of Ecuador has targeted 15 000-18 000 banana plantations for crop conversion. A voluntary programme was initiated by MAGAP with respect to loans to producers who wish to convert from bananas to other crops. Under the programme, the Government will offer credit lines through the National Finance Corporation for the first four years, covering 100 percent of the production costs to farmers with less than 25 ha and 7 percent for additional fields (LACENA).
4.2.1 Expanding domestic demand for bananas
Domestic demand for the banana is low in Ecuador, since 95 percent of its production is exported. The Government is addressing the oversupply issue by creating new market outlets. One example is to encourage the use of banana flour as a potential substitute for wheat or to be mixed with the latter in small portions. Another concept is to introduce the banana fruit into school lunch programmes. According to the Ministry of Education, the Government serves breakfast to 1.7 million students under the school breakfast programme, covering 1 600 educational units and benefitting students between 4 and 12 years
of age (LACENA). Adding banana to the breakfast menu will require at least
145 000 boxes of bananas a day for distribution among students, or 2.9 million boxes of fruit per month if the initiative is put into effect. MAGAP is also studying the possibility of extending banana consumption to military institutions and public hospitals.
4.3 Support to farmers with regard to productivity
Officially, the plan to upgrade banana productivity for small-scale farmers is
based on four types of support interventions: (i) strengthening associations
and businesses; (ii) technical assistance; (iii) financing through loans; and (iv) research. In addressing the issue of low productivity on small farms, the Ministry of Agriculture recognizes that not all small plantations are located in suitable production areas and that some substitution with other crops may be required for some farms.12 Moreover, access to technology and improvement of management techniques hinge on stable incomes for small producers. Stabilizing small producers’ incomes is being addressed, in part, by the Government of Ecuador through minimum price and contract enforcement. The Government has also implemented a measure to encourage the formation of producer associations and to facilitate alternative marketing channels.
Small farmers have not yet mastered common management techniques, such as sound fertilization programmes. The objective of training programmes to build the managerial capacity of farmers to improve banana productivity is being considered.
4.4 Social protection and the policy on the rights of workers
An important pillar of the Banana Law is to formalize the status of banana workers within plantations; ensure improved working conditions through formal contracts; and enforce compliance with the minimum wage policy, social security
12 Personal communication by the author with Ministry officials.
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