Colombia banana sector falls below break-even point

The Colombian banana export sector has fallen below its break-even point due to the appreciation of the Colombian peso against the U.S. dollar. The Association of Banana Growers from Magdalena and La Guajira (ASBAMA) submitted a technical report to the Ministry of Agriculture warning that the current exchange rate has severely impacted profitability.

According to ASBAMA, the average producer is losing approximately 7.8 million Colombian pesos per hectare annually, resulting in an estimated EBITDA margin of -12.7%. The association has set the break-even exchange rate at 3,533 pesos per dollar; however, recent rates have dropped as low as 3,099 pesos.

ASBAMA Executive President José Francisco Zúñiga Cotes highlighted a structural imbalance: while revenues are tied to the dollar, roughly 70% of production costs are denominated in pesos and remain fixed regardless of currency fluctuations. To mitigate these pressures, the association has proposed measures to the government, including debt restructuring and grace periods.