Analysis of the challenges of the chocolate industry in Ecuador – La Nación

by times news cr

2024-09-12 11:21:38

Chocolate production in Ecuador faces significant obstacles that affect its competitiveness against imported products, especially those from Europe and the United States. This price disparity on supermarket shelves reflects a complex reality in the local industry.

Imported chocolates offer greater diversity and lower prices compared to local products, for example, an Ecuadorian milk chocolate bar with almonds sells for $2.47, while a similar product of Peruvian origin, on the same shelf, is priced at $1.47.

Although there are still cheaper local options, more and more products from other countries are entering the Ecuadorian market with added value and competitive prices. The volatility in the price of cocoa also affects the national chocolate industry.

In April, the price reached more than $12,000 per ton, falling to $7,000 in May and recently closing at $7,520 at the end of June. In addition, the low per capita consumption of chocolate in Ecuador, driven by the preference for substitutes with low percentages of cocoa, further complicates the outlook.

High production costs in Ecuador are another crucial factor. Ivan Ontaneda of Anecacao points out that labor, ingredients such as sugar and milk, are considerably more expensive compared to other countries, which makes local chocolate production more expensive, making imported products, even those with lower cocoa content, more competitive in price.

The price difference between imported and local chocolates in Ecuador is due to multiple factors: from favorable trade agreements for European products to high internal costs and low production efficiency. To improve competitiveness, it is crucial to explore strategies such as tariff reduction, improvements in labor and tax regulations, and concentration on high-quality and niche products. These measures could help strengthen the Ecuadorian chocolate industry and better position it in the global market.

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