Ecuadorian cocoa export analysis

TITULO

Cedeño Juan Carlos. Garay Kevin Gavilánez Jamileth. Lalangui Evelyn Mata Karla Medina Diana September 7th, 2015

Introduction Ecuadorian cocoa is recognized around the orld !ecause o" its diversity in #avor and aroma.

Production and variety in Ecuador

Cocoa production takes place mainly in the provinces of Esmeraldas, Manabí, Los Rios, Guayas, Pichincha, Napo and ucumbíos!

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

Cocoa %oder

Cocoa ca'e

Cocoa %aste

Cocoa !eans

Cocoa !utter

%resentatio ns

Chocola te

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

Statistical information

No#ad ays, over $%& of the #orld's fine aroma cocoa product ion belon" s to Ecuado r 

Ecuad orian Cocoa is one of the most import ant produ cts in Ecuad or!

makin " the countr  y the lar"est produc er of fi ne aroma

(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 Ecuador 

General Analysis

General analysis Cocoa is 'non in Ecuador as the 5gold nugget5 that dominated "or centuries generating "oreign e2change "or the country.

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

(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.

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:; e2%ort volume increased to [email protected]/@ metric tons, hile in /0/ the e2%ort )uantity decreased to 011./?:

•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 %re%arations containing cocoa, hich recorded a decrease in e2%orts to

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

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@,>//

2000-200

+alance o" $rade Dollarization

Sucre

+alance o" $rade in

+alance o" $rade in

"E#I$IT

SU%PLUS

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

Cocoa e2%ort destinations 0

In /// Ecuador had a large Cocoa main mar'ets reduction in its e2%ort 9$ons< volume due to the reduction /// ; //0 ; in the )uantity demanded !y C7=$6IE8 0>>> 11,0/.1 0,0>@.@ /,A/.A the 7nited 8tates. EE77

0  $he second most im%ortant

destination country in //0 as Germany 90/,:/ tons ,:@0.?/ dollars 30>,/?:.:/

 3AA,1:/.>?

///

3B:,:0/.@1

//0

//

//1

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

20(2-20()

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

COCOA EXPORT VOLUME

The largest buyers of cocoa Ecuadora! bea!s "ere# 0 1nited tates #ith 2$,345!36 (M

/01

/0

0 Netherlands #ith 55,77%!8% (M 0 Me)ico #ith 5%,9%$!2% (M

AA,:11.0> $M

>?,>A0./> $M

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

EXPORTS IN VALUE

/0

78D 0BA,1:1.01/

0 *el"ium #ith9,679!56 (M!

/01

78D ?/,>@0,??/

0 0 0 0 0 0 0

Lack of technical assistance in crop mana"ement, :i"h cost of labor, Lo# market prices, 1nfavorable #eather, lack of roads, Lack of financin", poor product demand and :i"h interest rates! Presence of diseases and pests!

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; Lack of roads communication =52&> 1nfavorable climate =5%&>  Lack of fundin" =9&> horta"e of labor =$&> :i"h interest rates =2&>! ;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@!

5Trade A.reement /eteen Ecuador and t'e European Union1 0 Ecuador 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

.

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

Conclusion

Conclusi on