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Ecuador Banana Guide

Plátano (banana) fresco
Ecuador
Publicado 30 de ago. de 2021

Customs & Tariffs

What is the latest signed free trade agreement by Ecuador?

A trade agreement between Ecuador and the United Kingdom entered into force. From January 1, 2021, the exportable offer from Ecuador enters without paying tariffs to the United Kingdom. The agreement was signed in May 2019.


The Minister of Foreign Trade, Iván Ontaneda, reported that the trade agreement between Ecuador and the United Kingdom entered into force as of January 1, 2021.


According to Ontaneda, the agreement allows 95% of the country's exportable offer to enter British territory without paying tariffs.


With the validity of the agreement, Ecuador maintains the tariff preferences that were reached with the United Kingdom, when this country was part of the European Union (EU).


Precisely the commercial instrument entered into force on the same day that Brexit was consummated or the United Kingdom left the EU.


On the other hand, in 2019 Ecuadorian exports to the British market represented USD 166.1M. Bananas are the most demanded product, according to information from the Central Bank.


Source: Acuerdo comercial entre Ecuador y Reino Unido entró en vigencia

Production Supply Chain

Which Are the Main Issues or Barriers in the Value Chain Supply Network of Ecuadorian Bananas?





Trade Overview

What are Ecuador's major exported products?

Shrimp-prawns and bananas are the top two exported products. The third place is be fish, mainly tuna with HS code “1604”. Then cocoa beans and cocoa preparations holds the 4th position as a major exported product with its HS code  “1801”.


At the present, Ecuador is the global leading supplier of bananas. The country holds approximately 23.4% of the global export share. Despite Ecuador’s small geographic area, the country is considered a powerful and important supplier of shrimps & prawns, fish, and cocoa representing global export shares of 5.6%, 7.5%, and 6.5% respectively.


MAJOR EXPORTED PRODUCTS


Who Are the Main Importers for Ecuadorian Bananas?

1. US

Second-largest import market, but is heavily dominated and monopolized by large players such as Dole, Del Monte, and Fyffes.


 2. Europe

-UK, Spain, France, Germany, Netherlands, Belgium (small market, organic)

-Biggest market for organic bananas

-Scandinavia is a niche market for organic bananas that is growing every year. 


3. Russia 

-Largest import market.

-Stable importer. Usually engaged with small or medium-sized exporters (growers).


4. Asia

S. Korea, Japan, China: premium prices around USD 8-9 FOB per box

-S. Korea operates on a fixed program (contract).

-Chinese demand is extremely unstable. Prices will rise substantially or decrease to as low as USD 2 per box if there is good production from the Philippines. 





Who Are the Main Exporters of Ecuadorian Banana?

The Top 10 exporters take up 42.36% of the market share, with the non-top 100 exporters’ share taking up 8.4% of the market. In general, there is still room for small-scale farmers to trade in the market.



Seasonality of Main Producing Regions

Which Are the Main Banana Productive Regions in Ecuador?

Los Ríos (37.14%) is the province with the highest banana production. Then follows the province of Guayas (32.25%) and in the third position El Oro (24,12%). (Source: MAGAP Ecuador, Map of estimated banana cultivation area 2021 in mainland Ecuador). 

Similar numbers reveal the “Situational analysis of banana crops from the MAGAP” where it appears the same top three the provinces with highest banana production (Source: Agricultural Public Information System of Ecuador, SIPA).


If we look at the number of growers, the ranking reveals a very different outcome in 2021. Therefore, considering the number of Agricultural Production Units (UPA), banana growers are mainly located in El Oro (14.68 % UPA) and in smaller numbers in Los Ríos (12.09 %) and Guayas (11.18%).

This difference between the distribution of production and the number of farms is because El Oro has the largest number of small banana growers. On the other hand, in Guayas and Los Ríos are located the big growers. Therefore, in 2021 the yield per hectare is smaller in El Oro than in the two other regions.




What Are the Common Varieties of Ecuadorian Bananas?

  • Bungulan – The fruit is long, slightly curved, and slightly angular. The peel is yellow-green when ripened at an ambient temperature of 28 degrees Celsius. The flesh is sweet, melting, and aromatic with a creamy color when ripe.
  • Cavendish – The fruit is long, slightly curved, and slightly angular. The peel is yellow-green when ripened normally and has a bright yellow color at an ambient temperature of 28 degrees celsius. The flesh is sweet, melting, strongly aromatic, and with a creamy color when ripe.
  • Lakatan – The fruit is long, slightly angular, with a thick peel that turns orange-yellow when ripe. The flesh is sweet, aromatic, firm, and is light orange-yellow when ripe.
  • Latundan – The fruit is short and round. The peel is thin and yellow when ripe. The flesh is white, soft, and slightly sub-acid.
  • Morado – The fruit is medium size and slightly angular to round. The peel is thick and purplish-red when ripe. The flesh is smooth, melting, sweet, slightly aromatic, and has cream-colored pulp.
  • Señorita – The fruit is small, short, and round with blunt tips. The peel is thin and yellow when ripe. The flesh is very sweet, smooth, aromatic, melting, and has creamy yellow pulp.

What Is the Seasonality of Ecuadorian Bananas?



Bananas in Ecuador are a whole year seasonality product. During the 52 weeks of the year, banana producers cultivate their plantations parallel with the harvest labors. Approximately, mid-December up to next year’s mid of May develops the “high season” when production hits its highest peak. The upcoming time phase is categorized as the “cold and low season” when production falls.

Quality Control/Certification

What Are the Different Grades of Bananas?

UNECE Classification for Bananas

  • Extra Class – Bananas in this class must be of superior quality. It must have all the typical characteristics and colors of the variety and/or commercial type. It must be mature, clean, well-formed, well-trimmed, and free of decay, split fingers, loose fingers, bruises, blemishes, and discoloration caused by diseases, insects, molds, latex burn, and mechanical damage. Very slight superficial defects are allowed, provided these do not affect the general appearance of the produce, the quality, the keeping quality, and the presentation in the package.
  • Class I – Bananas in this class must be of good quality. It must have all the typical characteristics and colors of the variety and/or commercial type. It must be mature, clean, well-formed, well-trimmed, and free of decay, split fingers, loose fingers, bruises, blemishes, and discoloration caused by diseases, insects, molds, latex burn, and mechanical damage. Slight defects of the fingers, however, may be allowed, provided these do not affect the general appearance of the produce, the quality, the keeping quality, and presentation in the package:

        - Slight defects in shape and color;

        - Slight defects on the skin due to rubbing and other defects such as sunburns and blemishes not exceeding 5% of the total surface area.

The defects must not, in any case, affect the flesh of the fruit.

  • Class II – This class includes bananas that do not qualify for inclusion in higher classes but satisfy the minimum requirements. The following defects, however, may be allowed, provided the banana retains its essential characteristics as regards the quality, the keeping quality, and presentation in the package:

        - Defects in shape and color;

        - Defects on the skin due to rubbing and other defects such as sunburn and blemishes not exceeding 10% of the total surface area.

The defects must not, in any case, affect the flesh of the fruit.

What Are the Minimum Quality Requirements for Ecuadorian Bananas?

The banana in all classes, subject to the provisions for each class and the tolerances allowed, the banana should have the minimum quality requirements:

  • Mature
  • Whole (finger as the reference)
  • Firm and sound (fit for consumption)
  • Clean: Practically free of any visible foreign matter
  • Preferably free of bruises and blemishes
  • Preferably free of pests
  • Preferably free of damage caused by pests
  • Free of abnormal external moisture, excluding condensation following removal from cold storage
  • Free of any foreign smell and/or taste
  • The flower remnants are removed

In addition, hands and clusters must include a sufficient portion of the crown with or without peduncle fragments, sound, and free of fungal contamination.

Which Diseases to Look For in the Ecuadorian Banana Quality Control?

Aside from Fusarium TR4, Sigatoka is caused by Ascomycete Mycosphaerella Fijiensis Morelet. The disease attacked the leaves primarily significantly reducing the photosynthetic capacity of the plant thereby hampering its ability to maximize yields. The pathogen produces conidia and ascospores, both of which are infective. They are formed under high moisture conditions and are disseminated by wind, and in the case of conidia, also by rain and irrigation water. Due to their greater abundance and small size, ascospores are more important than conidia in spreading the disease within plants and plantations.

General Product Introduction

What are the key factors that determine the banana price?

There are some key factors that determine the prices of bananas:

  • Types of banana varieties
  • Good quality based on their classification and size
  • Matured fruits with excellent eating quality
  • Physical appearance and absence of damages or blemishes
  • Time of harvest
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