Ecuadorian Cocoa is advancing unstoppably!

Ecuador is the leader of the major Cocoa Leagues.

In a stunning move forward, Ecuador could overtake Ghana to become the world's second-largest cocoa producer within the next two years. Annual production is expected to reach 500,000 metric tons, according to Merlyn Casanova, executive director of the National Association of Cocoa Exporters of Ecuador (Anecacao).

Casanova revealed at the recent World Cocoa Conference in Brussels that the increase in global cocoa prices has motivated Ecuadorian farmers to invest more in their plantations. Cocoa prices have seen a tremendous increase in the last six months due to weather problems and diseases that affected the main producers, Ivory Coast and Ghana, which together account for around 60% of global production.

Ecuador, currently the third largest producer, is on track to reach production of 437,000 tons this 2024 season, a significant increase from last year's 413,000 tons. Ecuadorian producers, highlights Casanova, receive between 80% and 90% of the price of cocoa, a figure notably higher than that received by farmers in the Ivory Coast and Ghana, where profits are around 60% to 70%. .

Casanova stressed that with proper pruning and the use of fertilizers and pesticides, cocoa yields in Ecuador could increase considerably.

Ecuador and West Africa: A Contrast in Cocoa Production

In the dynamic world of cocoa production, the situation for farmers in Ecuador and West Africa presents a stark contrast that reflects differences in market policies, climatic challenges and agricultural techniques.

Ecuador: An Example of Free Market and Progress

In Ecuador, the outlook for cocoa farmers is remarkably positive. Thanks to a free market, increases in the international price of cocoa are directly benefiting rural producers. This flow of income is significantly improving living conditions in the cocoa growing areas of the country.

A key factor in this success is the CCN51 cocoa variety. This variety, developed by farmer Homero Castro several decades ago, is highly productive and resistant to pests and diseases. CCN51 has not only increased yields but has also ensured the stability of production in the face of phytosanitary challenges. Although Castro died in a tragic accident before seeing the impact of his innovation, his legacy lives on in the thousands of Ecuadorian farmers who now prosper thanks to this variety of cocoa.

West Africa: Challenges and Government Control

On the other hand, in the main cocoa producing countries, such as Ivory Coast and Ghana, the situation is much more complex and challenging. Here, governments control the price paid to farmers, limiting the benefits they can obtain from increases in international prices. This government control negatively impacts small cocoa farmers, who, for the most part, are elderly and face a series of challenges that make production difficult.

One of the most serious problems is rural exodus. Young people are leaving rural areas in search of better opportunities in cities, leaving older farmers with fewer hands to work the plantations. This labor migration not only reduces the available labor force, but also aggravates the production crisis and decreases farmers' incomes. In some cases, this labor shortage has led to the use of child labor, especially in Côte d'Ivoire, where minors work in slave-like conditions.

Additionally, swollen shoot disease is wreaking havoc on cocoa trees. Fighting this disease requires constant care and significant investment, increasing production costs and reducing profitability. Many small producers do not have the resources necessary to deal with this pest effectively, which can be devastating.

Climate change is another critical factor complicating the lives of cocoa farmers in West Africa. The drought and lack of rain have delayed harvests and reduced the growth of cocoa pods, reducing production and, consequently, farmers' income.

A Lesson in Contrasts

While Ecuador moves forward with increasing cocoa production, thanks to market freedom and innovations like the CCN51 variety, farmers in Côte d'Ivoire and Ghana struggle with a restrictive system and multiple agronomic and climatic challenges. This contrast underlines the importance of inclusive market policies and the need for investments in technology and sustainability to ensure the well-being of cocoa producers globally.

However, there is a challenge on the horizon. Casanova expressed concern about the ability of Ecuadorian producers to sell their cocoa in Europe next year due to a new European Union regulation. This regulation prohibits imports of commodities linked to deforestation, requiring importers to demonstrate that their products do not contribute to the destruction of forests, which involves tracing the cocoa back to its plot of origin.

Ecuador currently lacks a national mapping and traceability system for cocoa, although it is in the process of seeking funds to develop one. Time is a crucial factor, as the EU law will come into force at the end of 2024. Although some private companies in Ecuador already have tracking capabilities, coverage is insufficient, making the implementation of a national system urgent.

In summary, while Ecuador positions itself as an emerging giant in global cocoa production, it also faces regulatory challenges that could affect its access to the European market. Investment in traceability and sustainability will be key to ensuring the sustained growth and success of the Ecuadorian cocoa industry.

by Lourdes Paez, chocolate sommelier, writer and CEO of Lachó Cacao