Ecuadorian cocoa export analysis

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TITULO

Cedeño Juan Carlos.

Garay Kevin

Gavilánez Jamileth.

Lalangui Evelyn

Mata Karla

Medina Diana

September 7th, 2015 September 7th, 2015

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Introduction

Ecuadorian

cocoa is

recognized

around the

orld !ecause

o" its diversity

in #avor and

aroma.

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Production and variety in Ecuador Production and variety in Ecuador

Cocoa production takes place

mainly in the provinces of

Esmeraldas, Manabí, Los

Rios, Guayas, Pichincha,

Napo and ucumbíos!

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$he %roduct has the "olloing %resentations&

%resentatio ns

Cocoa

!eans

Cocoa

%aste

Cocoa

%oder

Cocoa

ca'e

Cocoa

!utter

Chocola

te

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Additional Information

$he cocoa is %roduced in the coastal region as

ell as in the highlands and the (mazon region.

Due to the geogra%hical "actors in Ecuador it is

%ossi!le to gro a %roduct ith such uni)ue

characteristics at an international level.

cocoa producer countries of fine and "ood aroma

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Statistical information Ecuad orian Cocoa is one of the most import ant produ cts in Ecuad or! No#ad ays, over $%& of the #orld's fine aroma cocoa product ion belon" s to Ecuado r makin " the countr y the lar"est produc er of fi ne aroma

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(he trade balance consists of products e)ported to a country to another (he Central *ank of Ecuador ranks e)port products +il and

nonoil!

-ithin the non oil e)port products are traditional products *anana, coffee, shrimp and cocoa

the nonoil items .+* prices to #ill be taken into

account/ to establish the evolution of the trade balance of

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General analysis

(ccording to the Central +an' o" Ecuador, "or the -rst )uarter o" /01,

e2%orts o" cocoa ere the third most e2%orted %roduct, reaching a value o" 3

010 million.

Its im%ortance in the economy is that the cocoa, in /0/, as the -"th %roduct

more

e2%orted !y Ecuador, in non4oil e2%orts Cocoa is 'non in Ecuador as the 5gold

nugget5 that dominated "or centuries generating "oreign e2change "or the

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6evieing the statistics, it is im%ortant to note that Main e2%ort destinations o" cocoa, its ela!orate and con"ectionery, ere 7nited 8tates 9:;<, "olloed !y the =etherlands 90/;< and Malaysia 9>;<.

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cocoa and its

derivatives

have shon

steady

groth over

the %eriod

//:4/0/,

reaching an

annual

average

groth rate

9((G6< o"

?.@?;

Ecuadorian

e2%orts o"

this %roduct

ere 3

@1,00,///

and July

/00 and

recorded

78D AB /:

///.

In //>

e2%ort

volume

increased to

[email protected]/@

metric tons,

hile in /0/

the e2%ort

)uantity

decreased to

011./?:

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•cocoa !eans, hich is the most e2%orted %roduct in this category, ith an ((G6 "or the %eriod //:4/0/ o" ?; and an e2%ort share o" the hole sector in /0/ o" B.A?;

•_{(nother re%resentative %roduct is cocoa %aste, hich has an ((G6 o"}

1.;

•_{$he %roduct that generates added value is chocolate and other "ood}

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Ecuadorian imports

industry

In /0/ as 3 0,>::,@@/ and re%resented >>; o"

total im%orts o" cocoa and ela!orates o" Ecuador

to the orld

in /0/ as 3 0,>::,@@/ and re%resented >>; o"

total im%orts o" cocoa and ela!orate o" Ecuador to

the orld

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Ecuador has a de-cit

in relation to trade

chocolate and other

"ood %re%arations

containing cocoa

in /0/ Ecuador

e2%orted @,B/,@1/

and im%orted 78D

0,0??,11/,

registering a trade

de-cit o" 78D 4

0:,BA@,>//

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+alance o" $rade

+ecause the

currency as

devalued to e2%ort a greater volume at e2%ense o" the loss o" %urchasing %oer o" %eo%le!

Dollarization

+alance o" $rade in

"E#I$IT

Sucre

+alance o" $rade in

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Cocoa e2%ort

destinations

0 In /// Ecuador had a large

reduction in its e2%ort volume due to the reduction in the )uantity demanded !y the 7nited 8tates.

0 $he second most im%ortant destination country in //0 as Germany 90/,:/ tons <.

0 +eteen Italy and rance in //0 covered 0?; o" total cocoa e2%orts o" Ecuador, !ecoming im%ortant mar'ets "or Ecuadorian cocoa.

Cocoa main mar'ets

9$ons<

C7=$6IE8 0>>> /// ; //0 ; EE77 11,0/.1 B 0,0>@.@  @ /,A/.A A 1A GE6M(= @,0A0.00 A,:?1.A? 0?

0/,:/.B ? 0> =E$FE6L( =D8 >, A?1.?> A,@:.?: 0? ?,?:.11 0/ I$(L @,@:@.A @,1@?./@ > ?,0@0.:0 > 6(=CE ,:0.:B 1,@A.AA A 1,[email protected]? : J((= 1,:?:.?: ?,:0.A> 00 1,@0A.?B : C(=(D( ,AB.0 ,?00.>> ? 1,/A?.1 : 8ource& +CE

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8ource& +CE

0 _{+eteen //0 and ///, they decreased !y}

:.>/; in tons and ere u% 00; in +

thousand dollars. It as mainly "or the cold

sna% that "aced all the Ecuadorian coast

aHecting cocoa %roduction.

Cocoa and %rocessed

e2%orts

6D7C$8 I= $F78(=D DLL(684+ ; ariation ///4 //0 0>>> /// //0 Cocoa !eans :1,>1/.: > 1B,0B.:/ ?@,:10.@ A @1.B rocessed cocoa @,@0@.? 0 1>,1.1 10,@.? > 9/.1A< $$(L 0/:,1@?. / AA,1:/.> B?,BA1./ : 00.//

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=on4oil %roducts

Cocoa recovered "rom the damage, in /// ith

e2%orts o" 3 AA,1: ent to 3 0A/ in //1.

_{ith these increase cocoa}

sector e2%erienced a rise in %rices o" e2%ort )uintals

!ecause the cacao seed as genetically im%roved,

Ecuador !eing the !est )uality cocoa "or its aroma and #avor!

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/// //0 // //1

3AA,1:/.>? 3B:,:0/.@1

30>,/?:.:/

30:>,:@0.?/

$ocoa e&ports in t'ousand dollars

Cocoa e2%ort has !een increasing constantly, ith a %ic' in //1. During this years cocoa e2%ort earnings ere !oosted !y the

recovery o" the international %rice. (ccording to (, the

e2%ectations o" a smaller harvest !y leading %roducers o" cocoa, including Ivory Coast, Ghana and Indonesia, made international

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ro uc on an

E&ports of $ocoa

20(2-20(

0 _{Cocoa %roduction in /01 gre "or the "ourth}

consecutive year.

0 $his result is due to the im%lementation o" the Cocoa 6eha!ilitation roect, hich as launched !y += and

0 _{roduction volume gre !y A;.}

0 In the second hal" o" /01, the volume o" cocoa e2%orts have a groth o" 1.:; com%ared ith e2%orts in the second hal" o" /0

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/0

COCOA EXPORT VOLUME

AA,:11.0> $M /01 >?,>A0./> $M EXPORTS IN VALUE /0 78D 0BA,1:1.01/ /01 78D ?/,>@0,??/

The largest buyers of cocoa Ecuadora! bea!s "ere#

0 1nited tates #ith 2$,345!36 (M 0 Netherlands #ith 55,77%!8% (M 0 Me)ico #ith 5%,9%$!2% (M 0 *el"ium #ith9,679!56 (M!

Regard!g the $roble%s that ha&e crossed the cocoa $roducers I! '()' "as #

0 Lack of technical assistance in crop mana"ement, 0 :i"h cost of labor,

0 Lo# market prices,

0 1nfavorable #eather, lack of roads,

0 Lack of financin", poor product demand and 0 :i"h interest rates!

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Production and E&ports

of $ocoa 20(-20()

0 Cocoa %roduction in /0@, continues its groth trend, !ecause the %lantations received maintenance and reha!ilitation, alloing higher yields.

0 the volume o" %roduction gre !y 00;, "our %oints %ercentage a!ove hat the varia!le gre last year 9A;<.

0 In the second hal" o" /0@, the volume o" cocoa e2%orts sa a groth o" 0@.@; com%ared ith e2%orts in the second hal" o" /01

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/01

E*PO%TA$IO+ES E+ ,OLUE+ "E $A$AO

>?,B:0.? $M

/0@ 0/>,?0.1/ $M

LAS EXPORTACIONES EN VALOR

/01

78D ?0,0BA,00/

/0@

78D 111,1B@,B//

Los %ayores co%$radores de cacao ecuatora!o e! gra!o fuero!#

0 1nited tates #ith 89,48$!59 (M 0 Netherlands #ith 55,928!29 (M 0 Me)ico #ith 55,$97!33 (M

0 ;ndonesia #ith 3,264!58 (M 0 Colombia #ith 8,475!59 (M 0 Canad< #ith 2,473!66 (M

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Regard!g the $roble%s that ha&e crossed cocoa $roducers* %e!to!ed#

0 (he lack of technical assistance =65&> 0 Lo# price of the product =53&>

0 :i"h costs of labor =57&>

0 Lack of roads communication =52&> 0 1nfavorable climate =5%&>

0 Lack of fundin" =9&> 0 horta"e of labor =$&> 0 :i"h interest rates =2&>!

0 ;n the canton anta Rosa, #ater ?uality is still a problem for cocoa production due to minin" takin" place in this sector, since it is pollutin" #ater resources =#ater> #hich facilitates the presence of pests like @Monilla@!

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5Trade A.reement

/eteen Ecuador and

t'e European Union1

0Ecuador closed 6%58 #ith one of the "reatest benefits for lar"e, medium and small companies #ho direct their products to the European market!

0;t is based on the strate"y of international tradin" kno#n as @#in#in@, they made sure the ne"otiated a"reement is of mutual benefit to both sides, obviously defendin" the interests as a country, but at the same time takin" into account the European 1nion !

0(he a"reement #ill take effect in 6%53 and #ill allo# Ecuadorian products to enter dutyfree to a market of over 7%% million consumers, #hich undoubtedly created in the medium and A or lon" termB

5! ;ncreased competition for Ecuadorian products 6! ;ncreased e)ports to the E1

2! +ne of the beneficiaries are Cocoa products

(he e)port sector could consider creatin" a differentiatin" factor that allo#s them to "enerate added value in their products and therefore sell at better prices

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,A%IATIO+S I+ E*PO%TS 20( main non-oil products in 3anuary 20( compared it' 3anuary 20() e&ports!

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