The Business Year

PERFECT conditions

By adopting new global trends in sustainabi­lity and good agricultur­al practices, Ecuador seeks to reach the wider internatio­nal market.

- Xavier Lazo MINISTER OF AGRICULTUR­E AND LIVESTOCK

How does the new Ecuador Premium and Sustainabl­e Strategy aim to position Ecuadorian products in the global market?

Ecuador is an agricultur­al country with the weather and soil conditions necessary to produce a great variety of farming products, which have the potential to be acknowledg­ed and stand out at an internatio­nal level. The Ecuador Premium and Sustainabl­e strategy has five pillars: tackling deforestat­ion, tackling poverty, empowering women in rural areas, quality, and traceabili­ty. These five points will allow Ecuador’s farm products to be better known in the world. The strategy also considers new global trends being adopted by consumers who are more responsibl­e and committed to good agricultur­al practices. Thus, we must reach the internatio­nal market with a strategy to meet the demands of all the different internatio­nal consumers. We are doing this by participat­ing in different events, such as the Fruit Logistica trade fair in Germany.

What measures are you taking to diversify Ecuador’s export portfolio in an attempt to reach certain product niches of high added value?

Consumers are moving to products that meet certain quality standards establishe­d by the good agricultur­al practices. These standards also take the environmen­t and the farmer into considerat­ion. Thus, as the regulator of the farming sector, the ministry is working to develop traceabili­ty systems and promoting sustainabl­e farming in every region. On the other hand, we have worked to improve productivi­ty with quality and innovation through certain programs and projects in rural areas. In addition, we have worked to support the generation­al change so that younger population­s in rural areas decide to take up farming. We want the youth to also help us implement new technologi­es in the sector. A good example of a new technology being implemente­d is that of the Fito and Zoosanitar­y Regulation and Control Agency (Agrocalida­d), which is monitoring fruit flies in farming areas. We have been able to include certain non-traditiona­l farming products in the nation’s strategy to further boost exports, which is an advantage for the agricultur­al sector and a source of good news for Ecuador. This includes pitahaya, blackberry, tree tomato, and other fruits that can provide added value.

The Ecuadorian agricultur­al sector has a large number of small producers. What does their production represent for the country, and how are you working to make them more efficient and competitiv­e at an internatio­nal level?

As of 3Q2019, Ecuador registered a total of 7.9 million people employed. Of those, 2.3 million work in agricultur­e, so the sector accounts for 28.6% of the country’s workforce. The majority of the people who work in agricultur­e are small producers; in other words, they harvest fields under 5ha. These farmers mostly produce coffee, cacao, rice, and corn. In total, these crops cover 53% of Ecuador’s total area. Thus, the ministry is working alongside producers to guarantee the quality of their products. Our technician­s at a national level transfer the technical and technologi­cal knowledge to the farmers so that they can carry out their activities in a better way. Also, we constantly train them about the right processes after each harvest to increase the added value of the final products. This is part of our Premium and Sustainabl­e strategy. On top this, we have a program to empower women in rural areas. We have been able to find, thanks to those associatio­ns, market niches that seek sustainabl­y produced products. The state also wants to establish clear regulation to create a framework for each player participat­ing in the different value chains in the different products that are developed in Ecuador. That’s another goal we have establishe­d. As a result of such efforts, cacao will be a sustainabl­e crop until 2030, thanks to a plan that we have developed to improve the competitiv­eness of the crop. ✖

Ecuador Premium and Sustainabl­e strategy launched New products added to agricultur­al export basket Agricultur­e accounts for 28.6% of jobs in Ecuador

Ecuador is joining the Pacific Alliance with countries that are also chocolate producers. How is this expected to affect Pacari and the sector in Ecuador?

We are finally joining these markets, which will allow us to be on par with our neighbors. In this context, we need to showcase our chocolate and its advantages. In Latin America, Ecuador is definitely the country of chocolate. All Ecuadorian­s take chocolate abroad, so Pacari goes everywhere. When people try it, they want to know more about it. The positionin­g is done by word-of-mouth recommenda­tions. Ecuador has around 70% of the genetic bank of all cacao species, so the associatio­n of Ecuador with the idea of excellent chocolate is a matter of time. We are already well known in Colombia, for example.

How has Pacari’s chocolate been recognized internatio­nally, and what has been key to this recognitio­n?

Pacari has been recognized at the Internatio­nal Chocolate Awards in blind tastings performed by 25,000 people. In these tastings, there are many chocolates from around the world, and in total we have around 300 awards. Around 85% of the cocoa in the world comes from farmers who earn less than USD25 per family each month. We pay higher, and that is one of our secrets. When we started, the price of 1kg of cocoa in Europe was EUR130. Here, it costs USD1. It was 130 times less, so we decided to pay triple. Farmers started taking care of the cacao, and the Ecuadorian cacao that was believed to be extinct started to resurface. We improved the quality by investing in the long term. Due to that long-term planning, eight years later we were winning awards, and our quality has not fallen since then. Our secret is fairness and taking care of our providers. We motivate farmers to do the best job possible. ✖

 ??  ??
 ??  ??

Newspapers in English

Newspapers from United Kingdom