ECUADORIAN COCOA

Cedeño Juan Carlos.Garay Kevin

Gavilánez Jamileth.Lalangui Evelyn

Mata KarlaMedina Diana

September 7th, 2015

EXPORT ANALYSIS

Introduction

Ecuadorian cocoa is recognized around the world because of its diversity in flavor and aroma.

Production and variety in Ecuador

Cocoa production takes place mainly in the provinces of Esmeraldas, Manabí, Los Rios, Guayas, Pichincha, Napo and Sucumbíos.

The product has the following presentations:

presentationsCocoa beans

Cocoa paste

Cocoa powder

Cocoa cake

Cocoa butter

Chocolate

Additional Information

The cocoa is produced in the coastal region as well as in the highlands and the Amazon region.

Due to the geographical factors in Ecuador it is possible to grow a product with such unique characteristics at an international level.

cocoa producer countries of fine and good aroma

Statistical information

Ecuadorian Cocoa is

one of the most

important products in Ecuador.

Nowadays, over 70% of the world’s fine aroma

cocoa production belongs to Ecuador

making the country the

largest producer of fi ne aroma

cocoa.

The trade balance consists

of products exported to a

country to another

The Central Bank of Ecuador

ranks export products Oil and

non-oil.

Within the non-oil export

products are traditional products -

Banana, coffee, shrimp and

cocoa

the non-oil items FOB prices to

will be taken into account; to

establish the evolution of the trade balance of

Ecuador

General Analysis

General analysis

According to the Central Bank of Ecuador, for the first quarter of 2013, exports of cocoa were the

third most exported product, reaching a value of $ 131 million.

Its importance in the economy is that the cocoa, in 2010, was the fifth product more

exported by Ecuador, in non-oil exports

Cocoa is known in Ecuador as the "gold nugget" that dominated for centuries generating foreign

exchange for the country.

Reviewing the statistics, it is important to note that Main export destinations of cocoa, its elaborate and confectionery, were United States (26%), followed by the Netherlands (10%) and Malaysia (9%).

Evolution of exportsExports of cocoa

and its derivatives have

shown steady growth over the

period 2006-2010, reaching

an annual average growth rate (AAGR) of

25.45%

Ecuadorian exports of this product were $

423,211,000 and July 2011 and recorded USD 278 062

000.

In 2009 export volume

increased to 143.304 metric tons, while in

2010 the export quantity

decreased to 133.056

•cocoa beans, which is the most exported product in this category, with an AAGR for the period 2006-2010 of 25% and an export share of the whole sector in 2010 of 82.75%•Another representative product is cocoa paste, which has an AAGR of 32.2%•The product that generates added value is chocolate and other food preparations containing cocoa, which recorded a decrease in exports to the world during 2006-2010, especially in the year 2009, however, the 2010 grew by 19% compared to 2009

Ecuadorian imports industry

In 2010 was $ 21,966,440 and represented 99% of total imports of cocoa and elaborates of Ecuador to the world

in 2010 was $ 21,966,440 and represented 99% of total imports of cocoa and elaborate of Ecuador to the world

Ecuador has a deficit in relation to trade chocolate

and other food preparations containing cocoa

in 2010 Ecuador exported 4,280,430 and imported

USD 21,155,330, registering a trade deficit of USD -

16,874,900

2000-2003

Balance of Trade

Because the currency was devalued to export a greater volume at expense of the loss of purchasing power of people.

Dollarization

Balance of Trade in DEFICIT

Sucre

Balance of Trade in SURPLUS

Cocoa export destinations

• In 2000 Ecuador had a large reduction in its export volume due to the reduction in the quantity demanded by the United States.

• The second most important destination country in 2001 was Germany (10,260 tons ).

• Between Italy and France in 2001 covered 15% of total cocoa exports of Ecuador, becoming important markets for Ecuadorian cocoa.

Cocoa main markets (Tons)

COUNTRIES 1999 2000 % 2001 %

EEUU 33,120.38 12,194.42 24 20,270.77 37

GERMANY 4,171.11 7,653.75 15 10,260.85 19

NETHERLANDS 9, 753.59 7,246.56 15 5,256.33 10

ITALY 4,464.27 4,345.04 9 5,141.61 9

FRANCE 2,261.68 3,472.77 7 3,548.35 6

JAPAN 3,656.56 5,621.79 11 3,417.58 6

CANADA 2,728.12 2,511.99 5 3,075.32 6Source: BCE

Source: BCE

• Between 2001 and 2000, they decreased by 6.90% in tons and were up 11% in FOB thousand dollars. It was mainly for the cold snap that faced all the Ecuadorian coast affecting cocoa production.

Cocoa and processed exports

PRODUCTSIN THOUSAND DOLLARS-FOB %

Variation 2000-20011999 2000 2001

Cocoa beans 63,930.69 38,128.60 54,631.47 43.28

Processed cocoa 42,414.51 39,232.32 31,242.59 (20.37)

TOTAL 106,345.20 77,360.92 85,873.06 11.00

Non-oil products

Cocoa recovered from the damage, in 2000 with exports of $ 77,36 went to $ 170 in 2003.

With these increase cocoa sector experienced a rise in prices of export quintals because the cacao seed was genetically improved, Ecuador being the best quality cocoa for its aroma and flavor.

2000 2001 2002 2003

$77,360.95 $86,610.43

$129,056.60

$169,641.50 Cocoa exports in thousand dollars

Cocoa export has been increasing constantly, with a pick in 2003. During this years cocoa export earnings were boosted by the recovery of the international price. According to FAO, the expectations of a smaller harvest by leading producers of cocoa, including Ivory Coast, Ghana and Indonesia, made international cocoa prices to rise.

2012-2014

Production and Exports of Cocoa 2012-2013

• Cocoa production in 2013 grew for the fourth consecutive year. • This result is due to the implementation of the Cocoa Rehabilitation

Project, which was launched by BNF and• Production volume grew by 7%. • In the second half of 2013, the volume of cocoa exports have a

growth of 23.62% compared with exports in the second half of 2012

2012

COCOA EXPORT VOLUME

77,633.19 TM

2013

95,971.09 TM

EXPORTS IN VALUE

2012

USD 187,363.130

2013

USD 250,941,550

The largest buyers of cocoa Ecuadorian beans were:

• United States with 37,691.62 TM

• Netherlands with 11,550.40 TM

• Mexico with 10,807.30 TM

• Belgium with8,258.12 TM.

Regarding the problems that have crossed the cocoa producers In 2012 was :

• Lack of technical assistance in crop management, • High cost of labor, • Low market prices, • Unfavorable weather, lack of roads, • Lack of financing, poor product demand and • High interest rates. • Presence of diseases and pests.

Production and Exports of Cocoa 2013-2014

• Cocoa production in 2014, continues its growth trend, because the plantations received maintenance and rehabilitation, allowing higher yields.

• the volume of production grew by 11%, four points percentage above what the variable grew last year (7%).

• In the second half of 2014, the volume of cocoa exports saw a growth of 14.24% compared with exports in the second half of 2013

2013

EXPORTACIONES EN VOLUMEN DE CACAO

95,861.25 TM

2014

109,512.30 TM

LAS EXPORTACIONES EN VALOR

2013

USD 251,187,110

2014

USD 333,384,800

Los mayores compradores de cacao ecuatoriano en grano fueron:

• United States with 48,947.18 TM

• Netherlands with 11,834.38 TM

• Mexico with 11,785.66 TM

• Indonesia with 6,329.14 TM

• Colombia with 4,951.18 TM

• Canadá with 3,956.22 TM

Regarding the problems that have crossed cocoa producers, mentioned:

• The lack of technical assistance (21%)• Low price of the product (16%)• High costs of labor (15%)• Lack of roads communication (13%)• Unfavorable climate (10%)• Lack of funding (8%)• Shortage of labor (7%)• High interest rates (3%). • In the canton Santa Rosa, water quality is still a

problem for cocoa production due to mining taking place in this sector, since it is polluting water resources (water) which facilitates the presence of pests like "Monilla".

"Trade Agreement between Ecuador and the European

Union"• Ecuador closed 2014 with one of the greatest benefits for large, medium and

small companies who direct their products to the European market. • It is based on the strategy of international trading known as "win-win", they

made sure the negotiated agreement is of mutual benefit to both sides, obviously defending the interests as a country, but at the same time taking into account the European Union .

• The agreement will take effect in 2016 and will allow Ecuadorian products to enter duty-free to a market of over 500 million consumers, which undoubtedly created in the medium and / or long term:

1. Increased competition for Ecuadorian products

2. Increased exports to the EU

3. One of the beneficiaries are Cocoa products

The export sector could consider creating a differentiating factor that allows them to generate added value in their products and therefore sell at better prices

.

VARIATIONS IN EXPORTS 2015 main non-oil products in January 2015 compared with January 2014 exports.

ConclusionEcuador calls itself the most competitive country in Latin America in the cocoa sector, followed by Venezuela, Panama and Mexico.

according to the rate of participation in global markets. The measure of competitiveness is based on each segment of the cocoa value chain.

important source of employment for inhabitants of rural and urban sectors involved in production processes, post-harvesting, storage, processing, export and chain services.

Conclusion

The commercialization of a commodity such as

cocoa

should carry the promotion of their country,

its traditions, its customs, its history,

which gives added value to the Ecuadorian cocoa

differentiating it from the rest, in order to

win more prizes

pacari which won 16 recognitions for selling certified organic cocoa,

completely free of chemicals and fertilizers.

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AS2011-CACAO.pdf• http://www.telegrafo.com.ec/noticias/informacion-general/item/exportaciones-de-

cacao-y-cafe-mejoran-en-ecuador.html• http://contenido.bce.fin.ec/documentos/PublicacionesNotas/Catalogo/Encuestas/

Coyuntura/Integradas/etc201304.pdf• http://www.proecuador.gob.ec/wp-content/uploads/2015/01/BoletinDiciembre14-

final.pdf• http://contenido.bce.fin.ec/documentos/PublicacionesNotas/Catalogo/Encuestas/

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