Ecuador's banana industry is pressing European supermarket chains to adopt fair-price purchasing schemes and stop using the fruit as a loss-leader sold below one euro per kilogram, according to the country's banana export association.
José Antonio Hidalgo, executive director of the Association of Banana Exporters of Ecuador (AEBE), said shelf prices in European markets do not reflect production costs or the sustainability standards, living wages, social security coverage, regulated agrochemical use, and international certifications that characterise Ecuador's banana sector.
One Chain Changed, Others Have Not
Hidalgo said the sector had succeeded in getting Aldi Süd, one of Europe's major retail chains, to shift its purchasing model to one based on fair-trade pricing. The challenge now, he said, is persuading the remaining chains to follow. Supermarkets continue to run aggressive promotions that fix an artificially low price for bananas in consumers' minds.
He added that large retail chains have joined coalitions through cooperation agencies, including German development cooperation and the IDH organisation, and that Ecuador has taken the pricing debate to the World Banana Forum of the United Nations Food and Agriculture Organisation. Hidalgo said that within those cooperation frameworks, studies and processes have repeatedly delayed the conclusion of concrete fair-price agreements.
Wages and Social Indicators
According to the AEBE, Ecuadorian banana workers' wages are set annually by the National Labour and Wages Council and in 2025 exceeded the thresholds established by the Global Living Wage Coalition and the Anker Institute by 16.8 percent. Workers also receive a legally mandated 15 percent share of company profits, as well as performance bonuses and benefits in kind such as meals and transport.
The AEBE reported that the Gini index in banana-producing regions stands at 46.9 percent, reflecting faster poverty reduction in those areas compared with the national picture. It also noted that 75 percent of banana farms cover fewer than 30 hectares, 89 percent are family-owned, and small producers account for 74.13 percent of the sector. All formal workers are enrolled in Ecuador's social security institute, with employers contributing an additional 11.15 percent of salary toward health and pension benefits.
Preparing for EU Due Diligence Rules
Hidalgo referred to the European Union's Corporate Sustainability Due Diligence Directive, which is set to take effect in 2030 and will require supplier countries to demonstrate compliance with standards covering water and carbon footprints and verified payment of living wages.
He said Ecuador is already running a three-year project funded by the Global Environment Facility to measure and reduce the water and carbon footprint across 150,000 hectares of its banana sector. He concluded that the industry is advancing its preparation for these environmental and social regulations and that communicating those achievements is essential to maintaining Ecuador's position in the world's most demanding fruit markets.
