2024-03-21 13:10:21
Agriculture employs 27% of women and 31% of men in the country; but continues to drift. It is not a priority either in the speeches or in the urgent economic laws.
In the last year the number of Ecuadorians with employment in the agricultural sector It went from 2,475,165 to 2,432,717. That is to sayIn 12 months, 42,488 jobs were lost; according to the latest annual Employment, Unemployment and Underemployment survey.
The agricultural sector is the one that has lost the most jobs, even surpassing industry (-40,527), commerce (-21,426), public administration (-19,194) and financial services (-5,299).
“The deterioration is evident in agriculture, which not only needs immediate investment; but also a 10-year plan to increase the productivity of crops, encourage associativity between small and micro producers, among other topics. Otherwise, a good percentage of the country’s internal and external migrants will continue to leave rural areas,” said Carlos Córdova, economist and small businessman in the countryside.
If the data from the Ministry of Labor is taken into account, From January 2020 to the first half of February 2024, 186,888 work contracts were signed in the agricultural sector, but 525,689 were terminated.
Thus, the net effect is a loss of 338,801 formal jobs in a little more than 4 years.
The priority should be in agriculture
Despite the crisis, 27.7% of women and 31.7% of men with employment are in agriculture. Furthermore, as the Minister of Production, Foreign Trade, Investments and Fisheries, Sonsoles García, recently highlighted, Exports of agricultural and agro-industrial products increased 13% in 2023.
The Ecuadorian countryside has enormous potential that remains untapped. A plan for at least 10 years is needed, where investment priorities are not only established in the poorest and most agricultural provinces, but also a plan on how to take advantage of the opportunities that open up with the trade agreements already ratified with China and Costa Rica, and to be ratified with South Korea.
For example, according to the Central Bank of Ecuador, exports to the Chinese market could increase by an annual average of 8.4% until 2030, with an additional 0.5% impact on economic growth.
Agricultural and agroindustrial products are those with the most growth potential in that market. Chilean and Peruvian exports increased between 20 and 11 times respectively, after concluding a trade agreement with China.
Ecuador It should have an offensive commercial strategy, so that new Ecuadorian products reach the Chinese marketand a defensive agenda, to protect interests and employment in sectors that may be sensitive.
Assistance and training programs must be promoted so that entrepreneurs, especially the smallest ones, learn basic topics. For example, how to register as a supplier or how to make and receive payments through alibaba.com.
Furthermore, as analyzed by LA HORA, access to financing is vital so that agricultural microenterprises can grow and export to markets where they can be paid more for their products. (J.S.)
Learn and replicate successful programs
The program Reactivation of the Agri-Food Ecuador (CREA), which is financed by the European Union (EU), It has already achieved important results with 38 MSMEs and 24 producer organizations.
Agricultural products have been positioned in Europe, with all quality standards. In addition, they have participated in fairs in Germany, the Netherlands, Belgium, Italy, among others.
Beyond the traditional exports of plantains, bananas, coffee and cocoa, significant growth potential has been identified in other products such as avocado, guanabana, guayusa, quinoa, among others.
This type of non-traditional offer is linked to areas with high informality and poverty such as the Amazon, and to Sierra provinces such as Chimborazo and Cotopaxi.
CREA will remain in operation until December 2025, and although it is focused on the European market, the accumulated knowledge and experiences They can be replicated to boost exports to the markets where new trade agreements are being concluded.
The idea is not only to sell primary production, but also to produce products with added value. This effort can also include everything that has been advanced in the Ecuadorian superfood ecosystem.
Eliminate intermediaries and substitute imports
From the little that is known about the goals of the current Minister of Agriculture, Danilo Palacios, is the plan (not yet explained) to connect agricultural producers directly with internal markets, which include industry and supermarkets.
Another key point is import substitution. So, for example, the idea is to join forces with bakers to see how replace imported flour with totally national production. Currently, 100% of the flour used by bread makers comes from abroad.
On the other hand, it has already been announced, with the help of Cervecería Nacional as an anchor company, that a plan will be launched to stop importing barley for the brewing industry in 2030.
For this, more than 20,000 hectares need to be planted with malting barley. This would generate 175,000 jobs in the field.
By: Diario la HORA