Cocoa Ecuador

Fair Trade Certified Chocolate Campaign

2017 Mission Street, #303 • San Francisco, CA 94110 • tel 415.255.7296 • fax 415.255.7498

fairtrade@globalexchange.org • www.globalexchange.org/cocoa

Cocoa Farming in Ecuador

Though small farmers are the foundation of the world

economy, most do not participate directly in the marketing

process or know whether they are getting a fair price

for what they produce. This is because smallholders’

farms are typically located far from marketing centers

and they do not have the resources to transport their

crops themselves. These farmers have no choice but to

rely on middlemen who usually offer below-market prices

and charge exorbitant fees for their services. As a result,

small farmers receive just a fraction of already low

world export prices. In addition, small farmer communities

are generally located far from many essential social

and educational services and have difficulty accessing

them.

Jose Antonio Santos, commercial director of MCCH, explains:

“When farmers harvest the cocoa they have to

leave the village for a full

day to sell their produce

and buy basic products to

take back home. But when

they arrive to sell the cocoa,

after walking for eight or

nine hours, the traders tell

them that the price has

dropped. He’ll say: ‘I’ll pay

you half. If you don’t want

to sell, take the cocoa

away.’ The farmer has to

sell, or return home with

nothing for his family.”

Luckily, things are different

for cooperatives in the

Fair Trade system such as

Maquita Cushunchic Comercializando como Hermanos

(MCCH) in Ecuador. Fair Trade has offered these farmers

stability and self-sufficiency because it ensures a

minimum price of $.80/pound under long-term contracts,

access to credit, and prohibits abusive child labor and

forced labor. Fair Trade farmers are required to reserve

a portion of their revenues for social projects, ensuring

that community development and technical training for

farmers will always be possible. Fair Trade also promotes

environmentally sustainable practices such as

shade cultivation, composting, and minimization of

chemical inputs, ensuring that farmers use cultivation

techniques that are safe for the environment and public

health.

Fair Trade Cocoa Farmers in Ecuador: MCCH

The Beginnings of MCCH

MCCH was founded in 1984 and joined the Fair Trade

system in 1985. MCCH, which means “Let’s shake each

others’ hand and trade as brothers,” was started by church

communities who wanted to promote positive social

change for marginalized populations and provide producers

with a stable way to meet their basic needs. It encompasses

four project areas: social development, education

programs, building social and political influence to

promote structural change, and socially oriented businesses.

MCCH Principles and Organization

MCCH is based on the principles of fair trade, transparency,

honesty and participation. Its goals are to strengthen

small-scale producers through increased commercialization,

quality, [common cropping?], and direct exportation.

Members participate in decision making through a

monthly provincial assembly

and meetings that are based

in communities and buying

centers. The cooperative

also has a 6-person elected

board with two producer representatives.

MCCH holds

Annual Assemblies to inform

members of new developments

in the organization as

a whole.

MCCH’s membership includes

around 800 small cocoa

farmers whose cocoa is

marketed through MCCH’s

export company

Agroexportadora Maquita

(Maquita). Most of the farmers

also grow other crops for the local market and home

consumption.

MCCH has set up local farmer organizations for cocoa

commercialization in some areas and sent its own buyer

to purchase cocoa in other areas. In addition, MCCH announces

its prices and uses an open system of weighing

and grading the beans to ensure that farmers get a fair

price.

Cocoa Production in Maquita

Though cocoa is not Ecuador’s most important product,

many families in Maquita depend on its export revenues

and MCCH has become the second biggest coFair

Trade Certified Chocolate Campaign

2017 Mission Street, #303 • San Francisco, CA 94110 • tel 415.255.7296 • fax 415.255.7498

fairtrade@globalexchange.org • www.globalexchange.org/cocoa

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