The regulations aligned to Green Deal promoted by the European Union (EU) represent challenges for Ecuador’s production and export chain. The block recognizes that the change of model towards a more sustainable one implies a great effort, above all, for the producers and the entire food chain.
In this sense, it is emphasized that the new rules or regulations do not only apply or will apply to Ecuadorian products that are exported to the bloc, but also to all products that enter the EU without discrimination by origin.
For example, from about two years ago in the country and gradually regulations have been used to control the Maximum Residue Limits (MRL). In fact, banana exporters cite this factor as one of those that influenced the drop in shipments in 2021. The elimination of chlorpyrifos, which is used so that insects do not damage the bunch, generated an increase in fruit loss and higher costs for the banana activity.
But to this issue are added new guidelines that are already being applied and are about to be applied regarding circular bioeconomy, transport and use of renewable energy, construction materials that are saving and friendlier to the environment, and even promote the generation of a largest area for organic production in the country.
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However, although the European bloc has highlighted the support that will be given until 2027 to facilitate Ecuador’s transition towards a model of sustainable, green and inclusive agricultural production, exporters point out that there are some obstacles that can slow down this process.
The Ecuadorian Federation of Exporters (Fedexpor) considers that the new regulations proposed by the Green Pact generate greater efforts in terms of sustainability in production processes.
Xavier Roseroexecutive vice president of the union, points out that for the export sector and, particularly, for medium and small companies, compliance with these regulations it will imply higher costs to couple more efficient technologies. “Joint cooperation schemes will be essential to integrate smaller-scale companies that require technical assistance and infrastructure to achieve the new standards in traceability and environmental sustainability,” he points out.
The sector cocoa farmer and palm growerfor example, are two of the sectors that have reservations about the new legislative proposal to tackle the deforestation. The EU wants to promote deforestation-free global supply chains, boost the consumption of sustainably produced commodities and prevent commodities and products that may be associated with deforestation and forest degradation from being traded or exported from the European bloc.
About this theme, Francis Mirandaformer president of the National Association of Cocoa and Industrialized Exporters of Ecuador (Anecacao)although he applauds the initiative because he considers that Ecuador can raise the flag of zero deforestation, he points out that there are international certifiers that do not differentiate costs according to the extension of the farm.
“This will become complex, and perhaps delayed, because small cocoa producers of two or three hectares will not be able to access these documents that are above $1,000,” Miranda said.
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One option, he points out, would be to achieve a public-private alliance to achieve local certification in a simple way and thus be able to align with the objectives required by the European market. According to Miranda, for the cocoa sector It will be easy to document that production is managed under a strict and harsh regulatory framework against deforestation. “It is a great opportunity for the cocoa and chocolate chain, because African competitors will not be able to do the checks that Ecuador can.”
The CEO of propalma, Óscar Calahorrano agrees with Miranda on the issue of costs to access certifications, but adds that, in general, there is no clarity about the regulations that apply to the different export sectors and if they are standardized. “On the issue of deforestation, accelerated roadmaps are shown that will cost and impact the production chain.”
Calahorrano said that it will be fundamental that the ministries of farming and Production line up to provide tools, training and help change practices to small producers, especially. On a national scale, Propalma records that of the total production of palm fruit, 70% comes from palm growers of less than 75 hectares. In other words, that percentage is the one that would require more attention.
The EU clarified that use a wide range of instrumentssuch as development aid, trade agreements and trade facilitation instruments, to ensure that trade flows can continue and that forest protection goes hand in hand with sustainable livelihoods for farmers and foresters around the world.
The European bloc is one of the main destinations of the country’s non-oil supply. In 2021, Ecuador exported $3,443 million worth of bananas, shrimp, cocoa beans, canned tuna, and flowers. (I)
Source: Eluniverso
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