A leading analyst has told the International Banana Forum 2011 in Ecuador that European tariff quotas for Latin American bananas have led to price volatility, website Eluniverso.com reported.

Agricultural Research for Development Center (CIRAD) analyst Carolina Dawson, said while the system had increased the presence of Latin American bananas in the E.U. from 63% to 71%, it also meant non-market problems affected prices, the story reported.

Dawson highlighted natural disasters that hit Central America last year, leading to reduced output from Costa Rica and higher prices as a result. On the other hand, when banana supplies were high the prices dropped dramatically.

But Ecuador Banana Exporters Association (AEBE) director Eduardo Ledesma, told the conference the tariff system introduced in 2006 was positive as it was based on competitiveness.

He said tariff preference arrangements the E.U. had with Colombia and other Central American nations were dangerous for Ecuador's banana industry, the story reported.

Source: www.freshfruitportal.com