Banana sector in Magdalena faces crisis from low dollar and windstorms

The banana sector in Magdalena, Colombia, is facing a dual crisis driven by unfavorable exchange rates and severe weather. The Asociación de Bananeros del Magdalena y La Guajira (ASBAMA) has submitted a technical report to the Ministry of Agriculture warning that the current exchange rate is pushing export operations below the break-even point.

ASBAMA calculates that the industry loses profitability when the Representative Market Rate (TRM) falls below approximately $3,533 COP. With the rate reaching $3,099 on September 15, a single hectare with an average production of 2,300 boxes per year could face an annual EBITDA loss of nearly $7.8 million pesos. While producers receive income in dollars, many operational costs, such as labor and supplies, are paid in pesos, meaning costs do not decrease proportionally with a strengthening peso.

In addition to economic pressures, the region has been hit by four recent windstorms that have affected more than 1,000 hectares of crops, particularly in Guacamayal, Orihueca, and Río Frío. The association is calling on the national government to implement measures to protect the continuity of the sector, which supports thousands of jobs in the region.