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2012.11.20.Tue

Ecuador: Heavy rains likely to raise banana prices

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Ecuador Bananas, the world’s most traded fruit, are getting more expensive after Latin American rains that were 60 percent above normal in Ecuador curbed output.

Exports from Ecuador, the world’s biggest shipper, may drop 10 percent this year, said Eduardo Ledesma, executive director of the Ecuadorean Banana Exporters’ Association. Rain damaged crops especially in Los Rios, the top producing province, he said.

While Ecuador’s export prices have dropped 16 percent from a record in March, they still are 35 percent higher than the 10-year average, according to International Monetary Fund data.

Banana exports rose to the highest level in at least a decade last year, making it the most-traded fruit, ahead of citrus, apples and pears, according to the World Trade Organization. Dublin-based Fyffes said this month it plans to raise prices because of higher fuel and fruit costs.

“Supply is relatively tight at the moment,” said Seamus Keenan, company secretary at Fyffes, Europe’s biggest banana supplier. “That’s to a large extent driven by some issues in Ecuador and Colombia, mainly weather issues.”

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Ecuador Bananas, the world’s most traded fruit, are getting more expensive after Latin American ra

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