29/06/2023 | Paraguay

Challenging period for Paraguay's banana farmers

Banana industry in Paraguay has a strong focus on exports, which generate annual revenues of $18 million. However, according to farmers, the lack of government assistance and a management and intermediation policy with Argentina are putting the sector in a difficult position.

As a result, small-scale producers face challenges in producing high-quality bananas and competing in the international market. This is leading many to consider abandoning the industry or seeking alternative options to prevent abandoning their land.

The Ministry of Agriculture and Livestock (MAG) provides limited or no technical assistance to small-scale banana farmers and lacks a credit policy that would help them produce top-quality bananas and sell them at competitive prices in the domestic and international markets.

Large banana exporters are also experiencing delays in receiving payments for their exported products in Argentina. Moreover, there is a suspension of import permits for bananas from traders in the neighboring country. This situation has paralyzed the banana industry and jeopardized thousands of banana plants.

One of the banana exporters, Engineer Luis Meza, shared with local media that there are currently around 7,000 banana plants in the country, with 75% of them being produced in Tembiaporâ. He stated that they have been unable to export their products for 30 days due to the restrictions imposed by Argentina.

He further explained that the Argentine market accounts for 90% of banana exports, and if this situation continues, many workers will be left without income, and thousands of banana plants are at risk of being lost.

The Director of Commercialization at MAG, Engineer Ernesto Sotelo, commented that the challenges facing the banana industry are due to overproduction in the country, resulting in market saturation both domestically and internationally. Sotelo added that small-scale producers are selling their bananas at G. 20,000 ($2,74) per box.

 

 

 

source: abc.com.py

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