por What is Ecuador’s cocoa boom?
He cocoa boom del Ecuador refers to a time when the high demand for cocoa made Ecuador the first cocoa exporter in the world. This period occurred between the end of the 19th century and the beginning of the 20th. During this period the Ecuadorian export economy experienced significant growth.
Since 1870, cocoa production in the coastal and highland area began to increase very rapidly. This produced a surplus that began to be exported and generated a profit surplus never before seen by local farmers.
The cocoa boom in Ecuador
Cocoa is almost automatically associated with chocolate, but although it is one of its main uses, it is also useful in the production of butter, hygiene and beauty products, as well as other varieties of food and chocolate drinks.
The soil of the coastal regions of Ecuador is incredibly fertile, and added to a very constant climate (where there are no 4 seasons), the Ecuadorian lands allow the cultivation of cocoa and other agricultural products throughout the year.
Thus, in the last part of the 19th century, the good climatic conditions of the Ecuadorian coast and highlands began to be exploited to obtain cocoa.
Small farmers quickly realized that they could easily harvest the product for excellent profit margins.
With the beginning of the 20th century, Ecuador became the largest cocoa producer in the world, exporting its product mainly to Europe, Japan and the United States. The cocoa grown in the mountains was destined for local consumption, while that obtained in the coastal zone was exported.
Causes of the cocoa boom in Ecuador
The causes of the cocoa boom in Ecuador can be summarized as follows:
Wide availability of agricultural land and very fertile. A favorable climate for planting and harvesting cocoa. The second industrial revolution fueled a great demand for cocoa. Adequate infrastructure for the harvest and storage of cocoa, in view of its export. Labor available. Low tariffs, which encouraged cocoa production.
Benefits of the cocoa boom
Noticing the great work done by small farmers and peasants, the Ecuadorian government decided to further promote the cocoa industry by granting numerous low-interest loans and lowering taxes for exports.
The infrastructure of the cities where cocoa was produced and exported improved remarkably, as did their economy. The generation of jobs began to attract more and more producers, eager to enter the cocoa business.
Negative consequences
However, Ecuador’s cocoa boom also brought some negative consequences.
Seeing the potential of the land for cultivation, landowners arose who controlled vast amounts of land, making the small farmer disappear, who had no choice but to become a worker.
While the workers were exploited, the big producers amassed huge amounts of money that were never reinvested in Ecuador, but destined for investments in foreign countries.
The arrival of the First World War in 1914 greatly reduced the demand for cocoa in Europe. In addition, several British colonies in Africa began to produce cocoa at a very low price, which ended up bankrupting Ecuadorian producers.
Current situation
Despite having suffered severe falls in production, the demand for cocoa finally rose again.
Once again, small farmers began to grow the product in a more organized way, under the protection of a project called «From the tree to the bar», of the Ecuadorian company Pacari. Currently, Ecuador is the largest producer of fine aroma cocoa in the world.
References
1. Cocoa Boom. Recovered from augecacaotero.com.
2. Elía Arcas. Uses and properties of cocoa. Recovered from enbuenasmanos.com.