Agricultural diversification transforms sector
CARVING OUT A SUBSTANTIAL MARKET SHARE IN THE COMPETITIVE BANANA, SHRIMP, AND FLOWER SECTORS IS NO MEAN FEAT AND IS TESTAMENT TO THE QUALITY OF ECUADOR'S AGRICULTURAL INDUSTRY

PICK OF THE BUNCH Ecuador’s is the world’s leading exporter of bananas, mainly to the United States.

Thanks to Ecuador’s enviable climate and geographical location, agriculture is the second most important industry in the country after oil, accounting for 32% of all exports. After dropping 9.3% in 2000 it increased by 5.8% in the first half of 2001. Recovery had been delayed by high lending costs, low worldwide commodity prices and loss of competitiveness due to dollar-based wage increases.
Ecuador is the world’s number one exporter of bananas, which represent 18% of the country’s total exports and feed 12% of the population, even though production dropped 30% in 2001 due to low international prices. Its main export destination is the U.S. where sales have been steadily increasing.
Shrimp account for 7% of all exports, a value of $285 million. The U.S. is again the main recipient, importing 60% of Ecuador’s total shrimp exports. The 1999 ‘White Spot’ virus scare has now been resolved, quality has improved and, after an inevitable fall, production is rising again.

Ecuador is also one of the world’s biggest flower producers, especially roses, and their quality and variety are rich. The flower sector produces 4% of total exports and the States once again are the leading recipients. Finally, cacao, at 100,000 tons a year, represents 1% of all exports.
As general food production of dairy produce, beef and seafood has dropped, there has been a need to diversify into non-traditional sectors. A family-run business called Confiteca is leading the way. Originally established in 1964 as a small consumer-oriented chewing gum company, Confiteca eventually expanded into the production of candies, sweets, chocolates, lollipops, toffees and nougat and became the leader in the country’s confectionery market.

GONZALO CHIRIBOGA CHAVES Director General of Confiteca

Investment in assets and technology in the 80s established Confiteca’s reputation for dynamism and efficiency and today it owns several manufacturing confectionery companies as well as having a notable presence in 29 countries. Its main target area is Central and Latin America, especially Colombia and Peru where it plans to set up a strong network. “At present we have 380 people in Peru, 200 purely in sales, and 20 small offices and 200 employees in Colombia, all devoted to selling,” says Director General Gonzalo Chiriboga. “We want to show that it is possible for a small company like ours to expand. In our business there aren’t so many players. On the Latin American level, we have staff who are closely involved with the business. Our products are very well received.”
Mr. Chiriboga wants to form alliances with suppliers willing to share the same interest in his product. “To have a good strategic ally, you need to create credibility,” he says. “Our company does well as we never ask for favors from the state. At the same time we try to win the customer’s confidence.” Confiteca also works very hard to maintain its leadership, develop a brand and obtain recognition from its clients. “Investing in publicity is as important as investing in machines,” says Mr. Chiriboga.

In order to make timely decisions in each market, Confiteca is gradually decentralizing. Its sales force is capable of store-to-door distribution of consumer goods in Ecuador and only highly qualified staff are employed. “All overseas sales supervisors must speak other languages and have a university education. We contract staff not just as representatives in a country but as people who can fit into the role of director there. We like to install staff overseas who are capable of seeing our products made there and continue to develop and grow. And we are always trying to find new ways of doing things well,” explains Mr. Chiriboga.