Revista Científica Interdisciplinaria Investigación y Saberes

2022, Vol. 12, No. 3 e-ISSN: 1390-8146

Published by: Universidad Técnica Luis Vargas Torres

Muñoz, S., Miranda, D., Torres, Y., Reyes, M. (2022) Characteristics of the commercialization of the

Cavendish banana crop in the canton of Las Naves, Revista Científica Interdisciplinaria Investigación y

Saberes, 12(3) 84-

Characteristics of the commercialization of the Cavendish banana crop in

the canton of Las Naves

Características de la comercialización del cultivo de banano variedad Cavendish, en el

cantón Las Naves

Sandra Muñoz Macías

Dr. Universidad Tecnica Estatal de Quevedo, smunoz@uteq.edu.ec,

ORCID: 0000-0002-5348-4817

Diana Cadena Miranda

Dr. Universidad Técnica Estatal de Quevedo, dcadena@uteq.edu.ec,

ORCID: 0000-0001-5708-9737

Yenny Torres Navarrete

Dr. Universidad Tecnica Estatal de Quevedo, ytorres@uteq.edu.ec,

ORCID: 0000-0003-3056-8708

Magaly Reyes Cevallos

Dr. Universidad Técnica Estatal de Quevedo, mreyes@uteq.edu.ec

ORCID: 0000-0002-5347-1522

Agricultural production is a necessary activity for the survival of

mankind, bananas are one of the products consumed

worldwide, and Ecuador is an important producer and

marketer of this fruit. Within the exportable supply of the

country, bananas represent an important item. This research

analyzes the commercialization processes of the Cavendish

banana variety in the canton of Las Naves, for which five

banana producers of this canton were investigated. The

methodology used was descriptive and analytical, applying

interviews and surveys to these producers, as well as reviewing

secondary information to know the global and specific context

of the problem of study. The most important results obtained

were: that the producers-traders, who have important

volumes, have the possibility of committing their product to

the large transnational companies such as Chiquita

International Limited, Del Monte, etc., the large producers

have integrated the entire marketing process, since they are

also wholesalers, so they have warehouses that allow them to

Abstract

Received 2022-01-06

Revised 2022-02-11

Accepted 2022-04-17

Published 2022-09-04

Corresponding Author

Juan Cano Intriago

jcano@uteq.edu.ec

Pages: 84-92

https://creativecommons.or

g/licenses/by-nc-sa/4.0/

Distributed under

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

sell large volumes produced or fruit from other companies that

have been subject to a process of intermediation, in the case

of small producers, In the case of small producers, their small

volumes do not allow them to sell directly to the central supply

center, not even via commission agents, so their sales are

made through the local collector, who in turn will sell to the

commission agent of the central supply center, who in turn will

sell to the wholesaler.

Keywords:

Banana; Distribution; Trade

Resumen

La producción agropecuaria es una actividad necesaria para la

supervivencia de la humanidad, el banano es uno de los

productos consumidos a nivel mundial, y Ecuador es un

importante productor y comercializador de dicha fruta. Dentro

de la oferta exportable del país el banano representa un

importante rubro. La presente investigación analiza los

procesos de comercialización del banano variedad Cavendish

en el cantón las Naves, para lo cual se investigó a cinco,

productores de banano de dicho cantón. La metodología

utilizada fue descriptiva y analítica, aplicando entrevistas y

encuestas a dichos productores, así como también revisando

información secundaria para conocer el contexto global y

específico de la problemática de estudio. Los resultados

obtenidos más importantes fueron: que los productores-

comerciantes, que cuentan con volúmenes importantes,

tienen la posibilidad de comprometer su producto, a las

grandes empresas transnacionales como son Chiquita

International Limited, Del Monte, etc., los grandes

productores tienen integrado, todo el proceso de

comercialización, ya que, a su vez, son comerciantes

mayoristas, por lo que cuentan con bodegas que les permite

vender grandes volúmenes producidos o bien fruta de otras

empresas que han estado sujeta a un proceso de

intermediación, en el caso de los pequeños productores, sus

escasos volúmenes producidos, no les permiten vender de

manera directa a la central, ni siquiera vía comisionista, por lo

que sus comercializaciones la hacen a través del acopiador

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

local, el cual a su vez lo venderá al comisionista de la central

de abasto y este al comerciante mayorista.

Palabras clave:

Banano; Distribución; Comercio

Introduction

This research work is relevant, considering that the

commercialization of Cavendish bananas has an important

preeminence in terms of national production and export

volumes. The objective is to present the characteristics of

banana marketing of the Cavendish variety in the canton of Las

Naves, in the province of Los Ríos.

From a marketing point of view, marketing includes the

planning and control of goods and services that favor the

proper development of the product, to ensure that the product

is in the right place, at the right time, at the right price and in

the required quantities to guarantee profitable sales over time.

The exact origin of the banana plant is not entirely clear.

Anthropologist Spiden wrote, "it is likely that the banana is

native to the tropical humid regions of Southeast Asia "(The

Agro, 2017).

Fernández (2013), considers that the edible banana originated

through a series of mutations and genetic changes from wild

species of small fruits, with numerous seeds and inedible.

Soto (2011) indicates that wild bananas have probably been

used by man since the beginning of his existence.

El Agro (2017), states that the fruit known as "banana" or

"banana", a word that is African and was supposedly invented

by the Portuguese. It was they who, looking for the route to

China, more than 500 years ago, landed on the coast of

Guinea, and upon seeing the natives cultivating the fruit, were

impressed with its delicious flavor and dedicated themselves

to spreading its goodness throughout the territories under

their dominion.

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

Fernández (2013), states that, according to statistics, Ecuador

began exporting bananas in 1910, with the export of 71,617

bunches of more than 100 pounds.

Ecuador is currently the world's leading exporter of bananas

and the second largest producer of this fruit in the world. Since

the 1950s, banana activity has become an important source of

foreign exchange (BCE, 2020), (Naranjo, 2017) also indicates

that the contribution of bananas to the Gross Domestic

Product (GDP) is of great benefit to the country's foreign

exchange earnings.

Markets for Ecuadorian bananas are diversified as follows:

Main markets; United States 21 % and European Union 34 %.

Marginal markets; Eastern Europe 28 %, Middle East 7 %,

Orient 2 %, Southern Cone 5 %, North Africa 2 %, and Oceania

1 % (AEBE, 2016).

From the 1950s to the new millennium, the banana industry

continues to be a driving force for socioeconomic growth

through the generation of foreign exchange, employment and

the multiplier effect through which more than two million

Ecuadorians benefit from the production and marketing of the

fruit, equivalent to 12% of the national population. Díaz (2016).

Over the last 10 years, banana exports have generated an

average of US$1 billion per year in foreign exchange for the

Ecuadorian economy (ECB, 2020).

However, it is important to recognize that, in Ecuador, there is

a high concentration of banana production based on certain

geographical locations. By 2012, of the 180 thousand hectares

existing, 85% was concentrated in three provinces: Los Ríos

(30.55 %), El Guayas (27.78%) and El Oro (26.67 %). Cañar and

Cotopaxi together owned 6.65%, while the remaining 8.35%

were located in provinces with lower production (SICA, 2010).

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

Methodology

In order to achieve the objectives proposed in this study, descriptive-

analytical research was used. The study began with the collection of

bibliographic information from brochures, magazines, texts and

books to understand the general context of banana production and

marketing in Ecuador and in the province of Los Ríos. Observation,

interviews and surveys were used as research instruments. The study

sample consisted of 5 banana producers in the canton of Las Naves,

to whom research instruments such as interviews and surveys were

applied.

Results

The following are the results of the research carried out with the

producers of the canton of Las Naves:

In the case of marketing for the domestic market, it is possible to

distinguish three channels, which are identified as the most common

in the region and whose difference lies in the type of producer.

The large producers have integrated the entire marketing process,

since they are also wholesalers and therefore have warehouses that

allow them to sell their large volumes produced or fruit from other

companies that have been subject to an intermediation process. This

is the most representative channel, since it is estimated that close to

80% of the region's volumes destined for the domestic market are

sold through this mechanism.

In the case of medium-sized producers, since they do not have the

possibility of having warehouses, they sell their product through

commission agents to wholesalers who compete with large producers

in the central supply center. In this case, it may be through two

modalities:

Delivering the product to a previously established warehouse.

Entering the auction market.

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

In both cases, the price is established and negotiated with the product

already placed in the plant, and the cost of transportation and

packaging is paid by them.

3) In the case of small producers, the small volumes produced do not

allow them to sell directly to the central, not even via commission

agents, so their sales are made through the local collector, who in turn

will sell to the commission agent of the central supply center, who will

sell to the wholesaler.

For marketing in the international market, basically two channels were

distinguished and, curiously, they are also distinguished by the type

of producer:

1) The producer-trader, who has important volumes, has the

possibility of committing his product to the large transnational

companies such as Chiquita International Limited, Del Monte, etc.

For which you can use two modalities:

The product is delivered from the packing plant to the transnationals'

refrigerated transport to Guatemalan shores, from where it will be

shipped in temperature- and humidity-controlled containers to

terminal markets in the United States.

Or, the producer places the banana on the border line. In both cases

the price is established for every six months.

2) In the case of medium-sized producers, who also have the

possibility of selling in the international market, they do so through

transnational companies, with the difference that they cannot commit

their product, due to the lower volumes they handle, so the purchase

made by these companies is according to their needs, so they can

stop buying when they wish or pay a lower price.

What is important to highlight is that, in the case of international

marketing, transnational companies play a fundamental role, since it

is the most common way in which our product and that of many other

countries have entered the international market, as Chiquita

International, Dolé and Del Monte alone market a little more than 70%

of the world's bananas.

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

Figure 1.

Banana Marketing Channels.

Diaz (2016), cites that since the decade of the 50s of the last century,

the banana activity continues to remain as a driving source of

socioeconomic growth, through the generation of foreign exchange,

employment and through the multiplier effect by which more than two

million Ecuadorians receive the benefit of the production and

marketing of the fruit, equivalent to 12% of the national population,

coinciding with what indicates (BCE, 2020), stating that during the last

10 years, banana exports have generated to the Ecuadorian economy

an average of 1.1 billion dollars per year in foreign exchange.

(Naranjo, 2017) indicates that the contribution of bananas to the

Gross Domestic Product (GDP), turns out to be the one with the best

results, as also outlined by SICA, 2010), when it indicates that, in

Ecuador, there is a high concentration of banana production. By 2012,

of the 180 thousand hectares existing, 85% was concentrated in three

provinces: Los Ríos (30.55 %), El Guayas (27.78%) and El Oro (26.67

%). Cañar and Cotopaxi together owned 6.65%, while the remaining

8.35% were located in provinces with lower production.

Conclusions

Large producers have greater and better opportunities, given that

their infrastructure and logistical structure allows them to adopt more

Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3

competitive practices, especially by virtue of large production and

marketing volumes.

The medium-sized producers, not having the possibility of having

warehouses, sell their product through commission agents to

wholesalers who compete with the large producers in the central

supply center.

Small producers, due to their low production and marketing volumes,

have greater difficulties, which does not allow them to sell directly to

the central, not even via commission agents, so their sales are made

through the local stockpiler, who in turn will sell to the commission

agent of the central supply center and the latter to the wholesaler.

Reference

AEBE (Association of Banana Exporters of Ecuador) 2016.

Yearbook: the Ecuadorian banana industry. Accessed,

19/01/2011.mavailable at http//www. Aebe.ec.

Álvarez, F. (1981). El periodista Andrés Bello. La Casa de Bello.

Caracas.

ECB (Central Bank of Ecuador) 2020. Evolution of the Trade

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Accessed06/06/2022.https://contenido.bce.fin.ec/docum

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DÍAZ, F. 2002. Banana exports react. El bananero. Vol. 21:28-

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FERNÁNDEZ, A. 2013. Banana in Ecuador: Cultivation, pests

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SOTO, M. 2011. Bananas, cultivation and marketing. San José -

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Characteristics of the commercialization of the Cavendish banana crop in the canton of Las Naves

Revista Científica Interdisciplinaria Investigación y Saberes , / 2022/ , Vol. 12, No. 3