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IMPORTANCE OF THE AGRIBUSINESS SYSTEM Ecuador has traditionally been one of the largest high quality and scent cacao producing countries, and its culturing has an important history in the national economy; it is also known as the "nugget" (golden seed), and during many decades it produced foreign currencies for Ecuador, were first Ecuadorian capitals and development of important sectors borned such as banking, industry and trade. Originally, the cacao culturing had its acme in Vinces, province of Los Rios.
The Ecuadorian cacao production is estimated at 100,000 tons per annum, but its volume varies specially on a climatic basis. During 1998, for instance, due to El Niño Phenomenon, the cacao production got reduced to 40,000 tons, and in 2002 it was estimated in 90,000 tons. One of the most important problems is its low yield, estimated at 5-6 qq/ha per annum, the lowest, if we compare it with other producing countries, caused by lack of trainning, technology transfer, no access to loans, absence of union organization and strengthen, among other factors. About 90% of cacao producing area is managed under the traditional system. Coffee grain
exports have changed the same according to volume produced in each annual period;
therefore, during the 1997-1998 period 42,148 tons and 12,766 tons were exported
respectively; in 1999 about 63,000 tons were exported, substantially recovering
the production from last year. During the year 2000, about 38,159 tons
were exported, and 50,091 tons in 2001, 40% higher from last year.
Moreover, according to the Central Bank of Ecuador (BCE), in 2002, exported
volume surpassed the 53,000 tons of coffee grain. During the 1998-2001
period, cacao international prices remained low, basically due to a worldwide
oversupply; thereon, they got recovered due to expectations of a possible world
deficit during the cacao year 2001/2002 and political problems in Ivory Coast,
larger cacao producer (45% of world total
production). In the year 2002, higher volumes from last year were
exported, but foreign currency incomes for this concept is higher than 60%,
reaching the amount of 80 million dollars. On the other hand, elaborated
cacao exports have been decreased, having the following sequence: 32,557 tons
in 1997; 12,270 tons in 1998 due to production crisis; 26,726 tons in
1999; 25,757 tons in 2000 and 18,253 tons in 2001; while during the year 2002,
exports volume is estimated at 15,000 tons. Contribution of cacao and
cacao processed products exports to total exports had decreased during last
decade; thus, contributions per year were as follows: 2.41% in 1992; 2.65% in 1994,
3.04% in 1995, 3.36% in 1996, and during coming years its contribution was
lower that 2%. There are 96,828 cacao farms, both sole cropping and intercropping, for what estimations shows that there are about 97,000 families linked to the cacao activity. On the other hand, if we take into account that each producing unit (farm) has 5 members per family at least, the number of people linked to this area is estimated at 500,000. Some other elements shall be added to this activity: traders, industrialists, staff of processing plants and exproters. According to this calculations, the cacao working population is estimated at 12% from the ag. working population and 4% of the whole country working population. In 2002, the cacao production contributed to the agricultural GDP with about 6%, and the total GDP was at 0.6%.
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