Commodity chain : COCOA-ECUADOR

Background history of the project

The cocoa channel was created in 2002 and is one of the first Organic Fair Trade commodity chains.

Local Partners

18 coops, grouped as the National Cocoa Producer Union of Ecuador, UNOCACE.

Geographical location of UNOCACE

Context

The Andes, with a summit at 20,710 feet (Mount Chimborazo), cut the country in half with agricultural lands reaching the coast of the Pacific Ocean.

The geographical specifics of Ecuador make the country hardly industrial. Family and agrarian structures have been kept, in spite of large migrations towards the cities over the last thirty years. The production of cocoa is way below that of bananas, shrimps or flowers but it includes some black gold : the "Cacao Naçional" variety, which only exists in Ecuador. KAOKA was able to trace the original quality of these cocoa beans and launched a major campaign to increase the density of plantations with stumps selected for their production capacity and aromatic qualities.

Stakes

Cocoa is quoted on the international stock markets, mainly London and New York, and the quotation is based on supply and demand. Fair Trade allows to differentiate a production and to receive a good price for cocoa and for its by-products. However, the guarantee of a Minimum Price and the stabilization of prices does not always allow to guarantee a minimum revenue to the producers. For this type of channel with an international dimension, long term contractual agreements between buyers and organizations of producers is essential.

ORGANIC FAIR TRADE urges importers to avoid fair trade behaviours which hop from one production country to the next.

Program Description

With the technical and financial assistance of Kaoka, supported by the guarantee of a minimum price, the support of technical infrastructures and contractual agreements over five years which include plans for the development of partnerships, the global approach allows producers to secure the durability of their agricultural activities while safeguarding working conditions respectful of the environment and of humankind.

Companies being engaged in this commodity chain

KAOKA, CEMOI, NATURE ET ALIMENTS