7th January 2010, El Comercio, Ecuador

Within the last six days, producers in the province of El Oro have received $121,000 for the bunches delivered.  The purchasing system for bunches of bananas that the Government has pursued since 31st December has not convinced many producers in El Oro.  Yesterday, in the Council of El Oro (la Gobernación), no agreement was reached to increase the price.  Representatives of 10 banana producer organizations tried to persuade the authority to be paid between $4 and $5 per bunch. This would help to finance the labour costs for the handling, cutting, washing and transportation of the fruit.

The banana purchasing strategy is to reduce the oversupply in the market that provides food and livestock in Manabi which is affected by drought.  Bunches accepted must be made up of six hands of bananas (smaller bunches) in order to receive the $2.  A bunch of this size matches, cut and selected, 1.5 exportable boxes of 43 pounds. In El Oro there are over 4,000 farmers.  The government offers an additional 90 cents per bunch, as compensation for the transfer of the fruit.  This is because producers must, after an inspection of the fruit on the farms, mobilize the fruit to the municipalities in Manabi.  There, experts from the Ministry of Agriculture and Livestock (MAGAP) receive the bunches and give collection documents to the producer.  Payment will be made after eight days, through the National Development Bank, announced MAGAP.

The chairman of the Agricultural Center Guabo, Segundo Solano, said the price of $2 is "a palliative," during these months when the price of the box is below the official price ($5.40), but insisted that the payment should be between $4 and $5 per bunch.  Dolores Ramón, leader of the small producers of Passage, after a meeting with provincial leaders on Tuesday, said that the farmers are being given the freedom to decide whether to sell to the Government or not. "We see no alternative, because the box went last week down to $1, and we preferred, for two months, not cut to avoid losing. What we are selling to the Government is what we had left over."

The secretary of the Association of Banana Oviedo, Jorge Toapanta mentioned that the purchase of clusters does not solve the oversupply and believes that the government should revive the proposal to sell the fruit to Libya. "We had a proposal to send 70,000 boxes a week to that market, but the process was interrupted."

The purchase of the bunches continued yesterday.  In El Oro, up until noon, 42,000 clusters had been sent to Manabi.

Simultaneously, legal action continues against traders who buy below the official price of the box.  The national director of Transparency, Jose Serrano, announced yesterday in Machala that the contract to the company marketing Cefru SA would be suspended.  A month ago, the Government submitted a complaint for fraud against the firm, by paying less than $2 per box of fruit.  He said it follows a similar process against seven other marketers.

Source: El Comercio, Ecuador