Paraguayan banana producers and exporters have issued an alert about a severe crisis threatening the sector, which supports the livelihoods of over 20,000 families in the departments of Caaguazú, San Pedro, Cordillera, Alto Paraná, Canindeyú, and Concepción.
The primary concern is the depreciation of the US dollar against the guaraní, which has created an unfavorable exchange rate gap of more than 1,446 points compared to the 2025 average. This appreciation of the local currency is harming the competitiveness of exports, primarily to Argentina, the main destination market, and also to Uruguay.
While competitors like Ecuador, which has a dollarized economy, are less affected by the Argentine exchange rate distortion, Paraguayan producers are facing stagnant prices. If this trend continues until the end of the season, direct revenue losses could reach 37.7 billion guaranís, based on an export target similar to the 26 million dollars achieved last year.
In addition to the exchange rate problem, the sector is suffering from a widespread increase in operational costs. Producers cite rising international freight charges and higher prices for petroleum-based inputs such as fertilizers, protective plastics, and fruit packaging, which is drastically reducing farm profitability.