Ecuador highlights inequality in cocoa prices

Ecuadornews:

The participation of the Minister of Agriculture, Rubén Flores, was to emphasize that only 6% of the chain remains in the producing countries.

In Berlin, on April 25, the Fourth World Cocoa Conference concluded. On behalf of Ecuador, the Minister of Agriculture and Livestock, Rubén Flores, attended. One of the drawbacks for the global players of this chain is the price.

In this sense, Flores stressed that 72% of the business stays in consumer countries, while only about % is for producers. “Something is malfunctioning in the structuring of the margins,” he said, adding that the price of chocolate is 7.3 times greater than that of cocoa to the producer, a gap that was most evident in 2017, when the price of cocoa fell, but the value of chocolate increased.

Flores said that behind the production of cocoa are more than five million people in the world, to generate approximately $ 120 billion. During his stay at the Fourth World Cocoa Conference, Flores holds bilateral meetings with authorities from other countries.

With the Deputy Minister of Foreign Affairs of Côte d’Ivoire, Leon Kacou Adom, they discussed the possibility of Ecuador having a regional office of the ICCO and being able to host a panel on fine cocoa.

This conference was established by the International Cocoa Organization (ICCO) and involves around 1,500 representatives from 64 countries, government agencies, chocolate manufacturers, commercial companies, cocoa processors, companies involved in commercial logistics, finance and insurance, as well as suppliers of agricultural inputs and processing technology.

The specialist in Agriculture and Climate Change of IICA, Daniela Medina, explained that “this bridge between science and politics is fundamental to improve the capacity of countries in the design and implementation of robust sectoral policies that lead the agricultural sector towards sustainability and resilience.” One of the countries that showed its achievements in organic cocoa was Venezuela.

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Production of Ecuador

In Ecuador, 150,337 producers grow cocoa in 560 387 hectares, according to the Ministry’s data. From there they export 269,152 tons of the product in grain, which represents around $ 552 million annually.

65 countries sent their delegates to participate in the global event that brings together the main actors.

In the international context

The World Cacao Conference 2018, held in Berlin, acknowledged and reached the conclusion about the importance of Ecuador as the fourth relevant producer of the grain in the whole world. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/ecuador-inequidad-precios-cacao