Cocoa Fair Trade in Ecuador

Fair trade is primarily focused on social benefits for small producers who have limited access to world markets and a weak bargaining position in relation to intermediate traders (middlemen). Fair trade aims to improve the position of the marginalized producers. It is more about the trading relationship than about the performance of the supplier. Key concepts of fair trade are direct trade at a fair price, the creation of a long term relationship and access to credit facilities.

Cocoa Fair Trade in Ecuador Esmeraldas, Ecuador Correspondent: A river of liquid chocolate about to be molded into luxury confectionary coined in the bloom days before the first Gulf War a Coco Bean is known locally as Pepa De Oro or bean of gold. These chocolate coins were made from Cocoa beans grown in the humid tropical forest one of the Ecuador’s biggest bean grain provinces. Esmeralda’s in the low lands of the pacific coast. Hands On follows a research carried out by the natural resources institutes ethical trade program and the department for international and development to see how the Cocoa produces of Esmeralda’s are getting a fair deal. Pepa De Oro Correspondent: Maquita Cushunchic or MCCH a nonprofit organization founded 15 years ago recently became Ecuador’s number one Cocoa exporter. It’s motto let us help each other through cooperative trading. It covers 800 small holder cocoa farmers. This farm is owned by Nelly Trujillo who has 3 hectares of cocoa she, husband Louis and their 3 children are harvesting the latest cocoa crops. In season for 8 months of the year it’s an important part of their livelihood. She’s been a member of the MCCH Cooperative for several years. Nelly Trujillo: The benefits to us producers are the elimination of the milddleman with MCCH our produce is actually weighed and we get a better price for our beans. It’s good work for women because it’s not strenuous. Correspondent: Regular workshops teach producers and their families have to prevent crops being attacked by fungus improve yields grow cocoa from seed and to use natural fertilizers. Spot checks are made on producers to ensure they’re not using chemicals. Juan Carlos Donoso (MCCH): We like to encourage whole families to come along. This way each member of the family multiplies the effort and that’s more efficient. We’re trying to recuperate the technology of our ancestors. Now they use to cultivate the lands and grow a wide variety of produce which was nutritious. We want to avoid using pesticides because they’re unhealthy for the products and they the environment and the consumer. Correspondent: Friday morning the New York commodities market has just announced the latest cocoa bean prices the Esmeralda’s MCCH Manager on the right causes head office in the Port of Guayaquil to off the current price. This week the going rate of 820,000 sucrose per sack that’s $32.5 U.S. he relates this to his agent who will then in keeping with company policy take Cocoa producers a fixed premium based on the price. Senior Jumbo a buyer for MCCH travels to a local weekend market armed with the latest New York Cocoa price. Producers link to the cooperative come here to sell their newly harvested beans. Most small holders live far away from the exporter’s yards if they’re not part of the cooperative they’re forced to use middlemen with inaccurate weighing instruments to offer rock bottom prices. Senior Jumbo adjust his prices according to the weight, humidity, quality and ripeness of the beans and whether they’ve been attacked by pest or fungus. Padre Graziano Mason (MCCH): People who produce for us and trade with us benefit from the best prices, thanks to accurate weight measurements. There’s good quality product, good relations between the producers and ourselves and a cooperative spirit. Correspondent: Due MCCH produce eco friendly beans. Padre Graziano Mason (MCCH): Absolutely clearly, MCCH lives ecology we are in the green province of Esmeraldas and we’re working and fighting in order to respect its’ greenness and the beauty of it.