Historic, archived document Do not assume content reflects current scientific knowledge, policies, or practices. : OFFICE OF FOREIGN AGRICULTURAL RELATIONS U.S. DEPARTMENT OF AGRICULTURE WASHINGTON, D.C. THE CACAO INDUSTRY OF ECUADOR By # ROBERT L. FOWLER and | GUSTAVO H. LOPEZ R. FOREIGN AGRICULTURE REPORT No. 34 JULY 1949 A contribution from the Estacidn Experimental Aericola del Ecuador, a technical agricul- tural service organization for Ecuador, operated jointly by the Government of Ecuador and by the Office of Foreign Agricultural Relations, United States Department of Agriculture. This study was made possible by funds provided through the United States Interdepartmental Commit - tee on Scientific and Cultural Cooperation and funds from the Government of Ecuador. Mr. Fowler is Horticulturist, Office of Foreign Agricultural Relations, assigned to the Estacion Experimental Agricola del Ecuador. 0 ‘ . : . A Mr. Lopez is Assistant Agronomist in Cacao, Estacion Experimental Agricola del Ecuador. Acknowledgement The writers wish to express their appreciation to all who have contributed to this study, particularly to the cacao growers and exporters who furnished the information requested; to the Department of Investigaciones Economicas y Estadisticas, Banco Central del Ecuador, for production of statistics, to Senores Antonio Garcia S., Ernesto Molestina O., Miguel Aspiazu Carbo, Carlos Seminario B., Carlos Puig Verdaguer, and Federico I. von Buchwald for critically reading the original manuscript, and to the Cacao Inspectors, Anibal Ldpez R., Carlos A. Aray V., Carlos H. Montes, and Bolivar Minuche J., for carrying out the difficult job of making the field study. Special acknowledgement is made to Mr. Lee Hines, Director of the Estacion Experimental del Ecuador, for wise counsel and guidance and to members of the United States Department of Agriculture for valuable suggestions and other assistance. CONTENTS PAGE PAGE Siimnelavas go sepodocuonscroptodam ol Harvesting and market metronivercteiisgrane-aneenoreoood preparations--(Cont. ) Area and geographic setting Dreseuvscoodcooudccdceeccecn 25 Obj a SUGNEYrete s sieje nce fensl slereyey a eyelsresre BAEC OOdooDenoaconearon 2a Climate and SOi]S...sececneees Wena teshWaodoonddoodccaqnon Ze ieouminlllncagodcncvangoonoocer Transportationeseseesesese 21 Direction of movement of cacao 28 Cacao-production statistics... 28 (Hoenn ncopondooddscosas Ae) Cacao-growing regions..cecres PrOdUCE OM) COSiES\s = aiele a)sielareietalaramra Ealetrditecital ON Sieletelsieialeleieysiciatalslalsisl ele Classification and grading.... 33 Types and characteristics of Wealedoudcrcoutudocuoucondobos SS GACADBOrOW Niner eiale/alelelelclercieteisiis Hacienda operationS..sssseseess 38 Amazonian forasteroSeareres Managementeccenesnersseses 30 SrsinheaG VOSticin slaleiaielsinists| siete tema nhoondaugnoondadadacds stl Cenrolligr ad sbhdoh daseocaoac see Health, sanitation, and Other Speciesececescersssss Ld GECHE AL MOMs nic ciate ujelelelelsts(sieleietetsmeerG WAL@VUC Slepsterecacevovese tse ave rercya, sie cva.avevevermld Equipment on the plantation... 40 Cu eiWeeleMogagdsocadcenbacnoo Ad! 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Drying platformsssssusseae 40 Planting distancescacceenss LO Machineryesesvecnscenesese Al Weeding, pruning, and Animal Sidi Siete yin sierate eletelaterer eee Here taltlaioz iar Pict ie ovese alenereverereren altO Other crops cultivated..ess..s 42 SeCBeacco sade otooopoodonD onc alt FC Gleam el elieieleleielaieletelelelcieteiapetsieee2 Deal AQesvaialuleluteta alaiers/chelcyetelersieyayennleG Gore ele ay evelelclelutetetatelepetel afereteneneeee NACICEREKCigggadoognogedoonoooo it) Bananas «| elujefalels|sislefsfeistersisitemet DISCASESGANG (PESUSate le s'als cfeps sererlG Gof fee crcieiem wreiutecheruicsneeeneneeMe Temperaturessscccesececceee Relative humiditycesssccuce Sanlleségoocaucuoucccbo0coood Anon Nn —& Ww a NFO Watches —brooms ass =\s\s/sieaieie ss LG Cassavaecsnerecsnnsannunme 49 Monalitapod) TOtjalels/cisalsieletelste oO Other cropSecsennussnueeunl 44 Other vdwsease’siae ms siels (ein alatalaayl Timberlandsecssasnsenenneat 44 [nS CUMDESUS a n/a/uis aisle sieleini a ono Pasiture: Landlaja ss niuteinia sleteiwtats 2 ANtMade PESitSien y's vies alte siujainiuy Oe ENCUMDGANGESiaerninieaisfevelererniayesferenemeaee VaGdO SCECENONS same «sislelcetecnecs Suggestions received, for Harvesting and market preparations... 23 Cacao improvement. ..secceones 44 (ErviGeiitrncoeooaodreodcoda 2c QUE TOOK ss sie wc! cite a clelelecie o ucielc arene Rerment at VOM slslwls sts ate Siajetwy are) ee CONnClusiOnSet tin sie trawieeeeitn a tee! THE CACAO INDUSTRY OF ECUADOR SUMMARY This report is based on a survey of the cacao industry of Ecuador made by the Estacion Experimental Agricola del Ecuador while searching for cacao trees superior in yield, performance, and resistance to de- structive shoot and fruit diseases. Although approximately 400 haciendas were visited, sufficiently complete data were obtained from 288 hacien- das, which have a combined area in cacao of approximately 113,000 acres, or about 35 percent of the estimated total area now in cacao in Ecuador, excluding abandoned and semiabandoned plantations. The principal growing areas are located in the Coastal HKegion in the Provinces of Los Rios, Guayas, Manabi, and El Oro. From here come the following local types: Arriba, Balao and Naranjal, Bahia de Cara- quez, and Machala. A small quantity of cacao is also produced in the Province of Esmeraldas. Arriba makes up about 58 percent of cacao ex- portations, Machala about 18 percent, and the other types make up the remainder in about equal amounts. Although no legal provisions exist for official classification and grading of Ecuadorean cacao, several commercial and export grades, based on quality, region of origin, and season of harvest, are recognized. Among the most important of these are Superior hed Summer Arriba, the highest grade in the export trade, Cosecha Navidad or Christmas Harvest, and Cacao Epoca. The first grade is harvested from February to August, the second from Lecember through February, and the third grade is harvested during any month of the year. Cacao destined for the European market is usual- ly graded more carefully as to size and shape of beans, and a premium of several dollars per hundred pounds is paid for these choice grades. Climatic and soil conditions are well suited to the cultivation of cacao in the principal growing regions, and substantial expansion of the industry is possible. Several varieties and species of cacao grow in Ecuador, but only Theobroma cacao L., represented by cacao nacional and several introduced types, collectively called locally cacao venezuela - both red and yellow pod-color types - are planted commercially. Cacao nacional is the more abundant and judged to produce the highest quality beans. The white- seeded cacao grown in Esmeraldas is said to have excellent commercial possibility. Cacao nacional produces one crop, which is harvested principally from February to May, whereas cacao venezuela produces two. The main crop of cacao venezuela is harvested from July to Cctober, and a light one is harvested during April and May. The average production of dry cacao is about 82 pounds per acre, or about 0.29 pound per tree. There are on an average about 280 trees per acre. A De = The areas yielding the most dry beans per acre lie in the vicinity of Chone, Manabi, and Vinces, Los Rios, where the average production on the best haciendas approaches 250 pounds per acre. Cultivation practices consist of weeding the plantation once or twice each year. Pruning, spraying, and the use of fertilizers are not generally practiced. Trucks and tractors were reported on only 6 percent of the haciendas studied, and such agricultural machinery as plows, discs, and harrows is used on correspondingly few. The machete is still the standard implement. Fermentation in tanks or boxes is not practiced in preparing the beans for market. Instead, they are spread on floors where they dry slowly and ferment. The most important diseases are witches’-broom, caused by Marasmius perniciousus, and Monilia pod rot, caused by Monilia roreri. These two diseases have contributed greatly to the 65-percent reduction in average annual production during the two decades ending in 1947. On old planta- tions, the decrease was probably as great as 80 percent. Witches’ -broom appears to be the more serious disease, destroying not only the fruits but also the foliage and flowers. Among the various types of cacao venezuela, there are some that are more resistant to disease than cacao nacional. The red-pod types are usually more susceptible than the yellow. The incidence of witches’-broom disease decreases and yield in- creases from the Province of Los Rios in the north to the Province of El Oro in the south, due probably to rainfall and sunlight. A total of 339 superior trees from all provinces were selected for study because of their disease resistance and high-yielding ability. Insects and animal pests, especially cacao beetles, various butter- fly larvae, thrips, and squirrels cause damage to the crop, particularly in piantations adjacent to abandoned or semiabandoned cacao. Management in most haciendas comes from the resident foreman, with infrequent visits and guidance from the nonresident owner. There is usually insufficient working capital utilized on the ha- ciendas to permit efficient production. Labor shortages and hand methods also seriously handicap proper operation of many haciendas. Resident labor provides most of the workers on large haciendas, while small ha- ciendas depend more upon nonresident and migratory help. Improvement in diet, sanitation, living conditions, and education facilities are needed in all cacao zones. Low prices and abnormally low production prompted growers to in- crease the cultivation of more profitable cash crops, such as rice, corn, and bananas. Diversification in agriculture is practiced on a few of the haciendas only, and most of them have little livestock. Growers emphasized the need for the maintenance of favorable prices and the establishment of agricultural credit facilities for long periods of time at reasonable rates of interest. Growers also desire technical service to develop and make available superior planting materials and cultivation practices. INTRODUCTION © Although the cultivation of.cacao in Ecuador long antedates the Spanish conquest, it was not until the eighteenth century that the in- dustry reached international importance. and Ecuador became the world’s leading source of excellent quality cacao beans. This position was held for nearly two centuries. Uuring this period, the area under the culti- vation of cacao was greatly expanded and exports increased from about 1,500 short tons in 1740 to approximately 49,600 tons in 1916. Since then the production has decreased to an average of about 16,500 short tons, or about 65 percent,.and Ecuador has dropped to approximately fifth in rank among exporting nations.. Among the principal reasons for the decrease in production were (1) the increasing incidence of pests and-diseases, (2) the nonreplacement of inefficient trees, (3) the increasing age of cacao trees, (4) the decreasing soil fertility, and (5) the low. prices, which reduced the at- tention given by the grower to cacao cultivation. With the establishment of the Tropical Agricultural Station at Ha- cienda Pichilingue, near the town of Quevedo, Los Rios, by the Ministerio de Economia del Ecuador in cooperation with the Office of Foreign Agri- cultural Relations, United States Department of Agriculture, a cacao im- provement program was organized and commenced. Because of the importance of superior stock to this program, a search was made in all major produc- ing regions for high yielding, disease resistant trees. At the same time, a study was made of existing ‘conditions in the industry and factors con- tributing to its decline. Data on approximately 113,000 acres, or about 35 percent of the estimated area now in actual production, were gathered for the study on 288 haciendas. These haciendas are distributed as follows: 188 in the Arriba Region, 24 in the Balao Region, 36 in the Bahia Region, and 40 in the Machala Region. These regions are indicated in figure 2. AREA AND GEOGRAPHIC SETTING OF SURVEY The Republic of Ecuador, rough- ly triangular in shape, straddles the Equator on the northwest coast of South America between Peru and Colombia, as is shown on figure l. It is about 435 miles in its longest dimension, north to south, by 406 miles, at its widest point, east to west, with total surface area of ap- proximately 116,000 square miles. FIGURE 1.--More than 18,500 short tons of cacao beans valued at $1,441,000 were exe : DIRECCION NACIONAL DE ESTADISTICA. ECUADOR ported in 1947, of this amount the United EN CIFRAS, 1938 a 1942. Quito, Ecuador. 1944. States imported about two-thirds. / NS Oe oe 2 x \\ ) | » OO Oe of reg no = mA 0 j s tbe The population is estimated at three million inhabitants of which ap- proximately one million live in the Littoral, or Coastal, Region. The Andes Mountains, traversing the country from north to south, divide the Republic into three distinct geographical regions. They are the Littoral, or Coastal, Region, which extends from the Pacific Ocean to the western foothills of the Andes, the Sierra, or Inter-Andean, Plateau, and the Oriente, or Amazonian, which is east of the Andes. Of these, only the Littoral is important in the cultivation of cacao, al- though less than 3 percent of the area is planted to this crop. There- fore, this study is concerned with that region since it is here that cacao production has reached commercial importance. The Littoral, comprising from north to south the Provinces of Esme- raldas, Manabi, Los Rios, Guayas, and El Cro, has a surface area of about 27,000 square miles. With the exception of a few disconnected scattered ranges of low hills near the coast, the region is low, rela- tively flat, and well drained for the most part. The most important river is the Guayas, with two large tributaries, Babahoyo and Vinces, whose drainage basin embraces most of the Province of Los Rios, the princiral producing region. Other important rivers of the Littoral are the Chone, Esmeral- das, Jubones, Balao, Gala, and Naranjal. eaire CLIMATE AND SOILS RegionI Climatic conditions a ee in the Littoral, although ree wore differing markedly in rainfall, temperature, humidity in the various “sections, are modified by the Humboldt Current. a aoe In the belt where cacao cee ae. 1s grown, conditions are it rather uniform, with high relative humidity, abundant rainfall during approximately six con- secutive months of the year, and warm with TYPES OF CACAO fairly even temperature EX Arribo Machola wea olga 2 ee Za Region I- 40-80 through the year. Region II- 80-120 Rag eM ATBO lana ots Gentle winds from the Naranjal E43) Esmeraldos 2 SERVICIO METEREOLOGICO DEL FIGURE 2.--Ecuador and its cacao-producing regions, showing ECUADOR. BOLETIN METEREOLOGICO the average yield in cut per acre. No. 2. Quito, Ecuador. 1945. south or southwest prevail during the dry season and from the north during the wet season. Rainfall Marked changes in precipitation rate occur during the year, result- ing in definite wet and dry seasons. Usually the rainy season begins in December or January and ends in May. The average rainfall in the cacao- producing regions varies between about 60 and 100 inches. More than 80 percent of the annual rainfall occurs from January to April, with the heaviest precipitation, 20 to 30 inches, occurring in February. Much of the rain comes as heavy showers late in the afternoon or night. The regions of heaviest rainfall lie in the northern portion of the Littoral and near the western slope of the Andes. Cloudy or overcast weather occurs most of the time during the dry season, while during the wet season there is more sunshine. Temperature In general, a uniform monthly mean temperature of about 76° F, pre- vails throughout the year in the cacao-growing zones. During the rainy season, particularly in the month of April, temperatures often exceed 90° F. The lowest temperatures occur in the dry season, July through September. During these months, night temperatures may drop as low as 60° F. ‘Relative Humidity The relative humidity for the year averages approximately 87 per- cent, with the lowest average occurring during the rainy season and the highest during the dry season. The long periods of overcast and early- morning light misty rains during the dry months tend to prevent ex- cessive evaporation and to keep the relative humidity high. Soils The soils of the cacao-producing regions are usually fertile, deep, and moist. For the most part, they have good drainage and are slightly acidic. The lime content is usually adequate, whereas phosphorous is often low in clayey soils. These soils, according to Miller,? former Soils Technologist, United States Department of Agriculture, assigned to the Estacion Ex- perimental Agricola del Ecuador, are largely alluvial in origin as is shown in the following tabulation. 3 MrLLer, ErLir V- ECUADOREAN SOILS AND SOME OF THEIR FERTILITY PROPERTIES. 1948. /Unpub - lished thesis. Cornell University, Ithaca, New York.7 ———— 5 @ s Cacao-producing region Sotl parent material Major. soil group Arriba (Vinces northward) Recent volcanic ash _ Brown loams and gray and recent alluvial. noncalcic soils. Arriba (Vinces southward) Recent alluvial...«. Alluvial delta soils in the gray noncalcic zone. Biailia@ iat eier crate evetekeretevereseuevale Aillitavitiallycicjevecvoreversverc Predominately gray noncalcic with coastal strip of alluvial del- ta soils. Machiatliateiciclclelclele cleleleiclerclelete Predominately re- Gray noncalcic soil; cent coastal plain some alluvial delta sediments; some soils. metamorphic rocks. Basra trarcta Sieve ialele mere o.eve oes Tertiary sedi- Gray noncalcic soils. mentary rocks. In the upper Arriba Hegion the soils are brown loams that developed from wind-blown volcanic ash. The topsoil varies from 20 to 40 inches and rests on a heavy reddish clay subsoil. The organic content decreases from 8 percent in the upper 6-inch layer to an average of 3 percent in the 12- to 40-inch layer. Rapid chemical soil tests for plant nutrient elements made at the Tropical Agricultural Station in Pichilingue“* showed that the most important occurred in the following amounts: Pounds. per acre Pounds. per. acre Phosphorous (ices lt Potassium ..s-.e<- 430 Nitrogen (No. 3)... 20 Manganese .eeeesee 20 Calves oéoq0da0 ois UW Dronreicleterel ererererekeiere 2 Magnesium ..eeeee. 450 Alumanzum) IO = FIGURE 12.--Cacao plants developed from rooted terminal portion of a branch (left) and from a chupon or sucker (right). 8 feet. On some haciendas the growers have thinned their stands in ac- cordance with soil type, shade, and climate of the area. The range in spacing observed was from about 6 to 20 feet. Usually cacao nacional is more closely spaced than cacao venezuela. Several growers reported using a spacing of different widths in an attempt to control diseases. The average number of trees per acre for all regions was found to be 280, with a range from 255 in the Arriba Region to 336 in the Bahia Region. On individual haciendas the number varied from 125 to 500 trees per acre. Many of the planters are recommending a spacing of approxi- mately 13 by 13 feet for nacional. On rich soils the spacing of these two varieties may be increased by several feet. Weeding, Pruning, and Fertilizing Weeding of the plantations consists of cutting the weeds with ma- chetes and windrowing the debris between the rows of cacao trees. Suck- ers, epiphytes, and diseased pods and shoots, which are within easy reach of the worker, also may be removed at this time. An effort is made to finish weeding before the brief showers begin -- often early in October -- because this is said to influence the flowering period. APs In general, 47 percent of the plantations visited were cleaned once each year, just before harvest, while 42 percent of them were weeded twice each year, December through February and June through August, es- pecially when there were prospects of a good harvest. Only the better producing stands, however, were weeded twice. Rarely are the plantations weeded three or more times annually. Pruning was reported by a few growers as a common practice prior to the disease epidemics. It was effected on thin branches with cacao har- vesting knives and on large branches or suckers with the machete. Rare- ly were pruning saws used. Pruning was discontinued because the finan- cial returns received from the cacao crop did not justify the work. Now that the prices are favorable, however, growers are again giving at- tention to it. Occasionally the shade trees in the cacao groves were pruned or thinned. A few hacendados also sprayed their trees in an effort to control disease but discontinued it because effective control was not realized. The use of fertilizers and green manures is rarely if ever prac- ticed on cacao plantations. SHADE In Ecuador, high shade is considered necessary for mature cacao trees. Both native and introduced trees are commonly used to provide this shade. The favorite introduced trees for years were palo prieto (Erythrina glauca) and perhaps other species of Erythrina, despite its brittleness and susceptibility to certain diseases of cacao and citrus. As yet no suitable substitute has been found to replace this leguminous tree. Several native and introduced guavas (Inga sp.) are also commonly used. In forested areas, timber trees, such as fernan sanchez (7ripla- ris guayaguilensis), laurel (Cordia alliodora), roble (Tabebuia pen- taphylla), and cedro (Ocotea sp.), may provide shade, although they probably were left for their timber value. Frequently the best timber trees were removed at the time of clearing, leaving only the less desir- able ones. Following the good market for balsa wood during the recent war, balsa (Ochroma lagopus) was also permitted to grow in the cacao plantations. Other species that have been used are: Maranon (Anacar- dium excelsum), majagua (Poulsenia armata), pechiche (Vitex gigantea), saman (Samanea saman), and guachapeli (Pseudosamanea guachapele). Al- though several kinds of matapalos (Ficus spp.) provide shade in old cacao plantations, they never were planted but appeared as epiphytes on other shade trees. Fruit trees are also occasionally used. In the Balao Region, cana fistula (Cassia fistula) was tried but was found to be unsatisfactory. A spacing of the permanent trees between 50 and 80 feet is said to provide medium shade, while a spacing less than about 40 feet is consid- ered dense. Approximately 74 percent of the hacendados reported that they were using a medium shade, while 6 percent were using dense shade. The rest of them reported that shade conditions were not uniform throughout the cacao plantations. Sls Approximately two-thirds of the growers stated that they had never made an effort to control: the shade of their cacao plantations. Temporary shade is usually provided where the land is completely cleared. The most commonly used species is plantain (Musa paradisiaca). Cassava, rice, corn, and other food plants are planted as cash crops and not necessarily as temporary shade. Temporary shade is usually estab- lished about 9 months before planting cacao. Provision for permanent shade is frequently made at the same time but may be delayed until the third year. DRAINAGE ’ The problems of drainage are receiving less attention now than formerly. In certain sections, particularly in the southern portion of the Arriba Region, the rivers periodically inundate the land, and the roots of the trees may be in water-logged soil for several months during the rainy season. IRRiGATION Several smal] plantings of cacao under irrigation were observed near Portoviejo in the Bahfa Region. The trees were about 2 years old, well developed and free from disease. DISEASES AND PESTS The two most important fungal diseases reported are witches’ -broom (Marasmius perniciosus) and Monilia pod rot (Monilia:roreri). Other diseases reported are, Sphaeronema pod rot (Sphaeronema sp.), Phy- tophthora pod rot (Phy- tophthora palmivora), anthracnose (Colleto- trichum sp.), and die- back (Diplodia theobro- mae Norvell). Several unidentified root dis- eases occur but are ap- parently of minor im- portance. ~ Witches’ -broom This disease was reported in Ecuador in 1921 in the Balao Region and by 1926 was observed in all producing areas. FIGURE 13.--A typical succulent green witches’-broom. The firisit< rie pomt of ee Ney HS eee witches’-broom came from Surinam, but it is probably indigenous to the Amazon Valley. How it got to Ecuador is not known. The disease manifests itself in three forms: Hypertrophied vegeta- tive shoots, commonly called witches’-brooms or simply brooms; hyper- trophied flower cushions, commonly called starbrooms; and malformed fruits. As yet, an alternate host has not been reported. The months of heaviest infection are February, March, and April, but a few green brooms may be found throughout the year. Observations indicate that the disease appears first on the outside terminal shoots; later the infection moves inside the crown as the season progresses, producing starbrooms and small undeveloped indurated fruits. This con- dition is more commonly observed in cacao venezuela, particularly the red-pod type, than in cacao nacional. It is generally reported, how- ever, that once the fruit of cacao nacional has reached a length of sev- eral inches its chances of this type of manifestation of witches’ -broom disease decrease. One grower explained that this apparent increase in resistance was due to the development of the cuticle on the fruit. The survey indicates a decrease in disease intensity from approxi- mately 48 percent in the upper Arriba Region in the north to approxi- mately 20 percent in the Machala Region in the south. Locally the sever- ity of witches’ -broom disease varies from 15 to 90 percent. No relation- ship appears to exist between disease intensity and areas of haciendas. Significant among the factors reported to be responsible for this wide differential are rainfall, cacao type, age of trees, shade conditions, altitude, and maintenance of trees. Regarding disease susceptibility of the two principal cacao popula- tions, cacao nacional trees appear to be more resistant and uniform in reactions to the disease; cacao venezuela, being more genetically unsta- ble, segregates into a wide range of types with different degrees of susceptibility. These offer a greater possibility for obtaining resist- ance than do the more normal nacional population. This is evidenced by there being a few lightly infected trees in the midst of a stand of heavily infected ones. The incidence of witches’-broom on cacao nacio- nal was estimated at 30 percent and on cacao venezuela at 35 percent. These estimates were based on an average percentage of total shoots infected. Observations indi- cate that isolated trees often escape the dis- ease. As cacao venezue- la produces more growth flushes each year, it has a greater opportunity to become infected since the fungus enters the growing point. Some of the red-pod types of venezuela seem to be very susceptible _ fygure 14.--Diseased immature fruits of cacao infected by to shoot infection. In witches’-broom. FIGURE 15.--Interior branch of a cacao tree of the red-pod type of venezuela, showing diseased flower cushions and indurated fruits caused by witches’-broom. Infected flowers, called starbrooms, may remain attached even after they are dead. the Machala Region, for example, an average of approximately 40 per- cent of the shoots of the red type were in- fected, as compared with only about 15 per- cent of the yellowtype. In general the lower quality types, calabacillo, appear to possess more resistance than the higher quality. One in particular called Blanco Calabacillo, be- cause of its whiteness in fruit color, was reported to be rela- tively resistant to witches’-broom. Al- though this type was observed in the Balao Region, the seeds came from the upper Arriba Region near the town of Ventanas. Frequently these selections, called refractories, are actual- ly not immune but appear to be escape and sooner or later become in- fected. One notable example was the wide distribution, principally in the Arriba Region, of seeds from supposedly resistant selections made by several haciendas shortly after the appearance of witches’ -broom. Observations of thou- sands of these trees during this study indi- cate that they possessed little if any resistance to witches’ -broom. A relationship between age and reaction to witches’ -broom was also reported for the different varieties. Young cacao nacional plants appear to be more susceptible to the disease than young cacao venezuela, but the reverse was re- ported for adult trees of the two varieties. Monilia Pod Rot This disease was FIGURE 16.--Seedlings of cacao nacional. Plants at left are first observed about infected with witches’-broom disease. elo a i914 in the upper Arriba Region near the town of Quevedo, and in $933 it was identified as Monilia roreri by Ciferri and Parodi.’ Beiore its identity was established, it was called Quevedo disease and watery dis- ease. Pod losses throughout all growing regions are high, with the heaviest being reported from haciendas in the more humid parts of Arriba and Machala Regions. The average loss for all Regions was estimated at 40 percent. There appears to be no relationship between incidence of Monilia pod rot and total area of the plantation. One of the areas of least infection occurs in the Arriba Region along the Puebloviejo and Caracol Rivers. The principal season of infection is from March to May in the Arri- ba Region and from March to July in the Machala Region. During these months, fruit losses, particularly of cacao venezuela, may reach 98 per- cent some years. December is the month of least infection. It is not known exactly when infection occurs during the develop- ment of the fruit. One grower who is a close observer thought that it occurred after the pods were about a month old. Gradually the disease spreads internally throughout the fruit and changes the pulp and seeds into a watery mass. The introduced varieties appear to possess less tolerance to Monilia pod rot than cacao nacional. The yellow-pod types of cacao venezuela are believed to be more resistant to Monili1a than the red-pod types. Humid weather or damp environments seem to favor heavier infection. No effort is being made by hacendados to control Monilia pod rot. Heavily infected pods are left on the trees and lightly infected ones are harvested. Several growers attempted unsuccessfully to control Mo- nilia pod rot for several years by collecting all diseased pods at regu- lar intervals and burying them in pits with lime. Only one grower re- ported making selections of cacao trees that ap- peared to be resistant, but later he abandoned the project. Other Diseases Of the other dis- eases reported, Sphae- ronema pod rot is the most important. In the more humid regions, certain growers re- ported upwards of 30 percent damage. This disease becomes evident 7 CrrerrRI, R. E. Parovt, E. DESCRIZIONE DEL CHE CAUSA LA ae Sos Nes Be -- "MONILIASI" DEL CACAO. Phy- FIGURE 17.--Monilia pod rot is one of the most serious fruit topathologische Zeitschrift. diseases of cacao. 6:539-542. 1933. } on matured pods as a dark spot, and, as the fungus develops, the content of the fruit is converted into a hard dry brown ball from which it is difficult to extract the seeds. If the fruits are al- lowed to remain on the tree when ripe, the losses from Sphaeronema pod rot increase. Off- season fruits are fre- quently attacked by this disease. Sphaero- nema also causes a bark rot, gaining en- trance through insect damages and cuts, par- ; : __, ticularly those made by rib 18 ~- frost: section of ise aied tua igmene ls mecheecen en ene Note the droplet of excess liquid:below the fruit. Right, common name,-."mache te Sphaeronema pod rot. dkecnee. © Epiphytes, such as aroids, ferns, mosses, and many kinds of climbers, are common on neglected trees, particularly in the humid regions. These plants do little serious damage in well-kept plantations where they are controlled. Among the parasitic plants occurring on cacao, bird vine or mistletoe (Loranthaceae), is the most important. When fully developed, it produces a dying-back effect of the branches. Insect Pests Insects cause damage each year, chiefly through destroying the fo- liage and twigs by eating the leaf blades or boring into the twigs or stems. Unshaded trees seem to be more affected. Of the various kinds of insect pests that attack cacao, lepidopterous larvae are the most destructive. Bark beetles, leaf-cutting ants, leaf hoppers, and thrips also cause damage, which may facilitate the entry of diseases. One of the worst pests is a long-horned beetle called cacao beetle (Steirastoma depressum). The larvae of this species tunnel into the young branches, and the adults feed on the bark, causing serious local injury and oc- casionally complete ringing of the branch. In the Machala Region a chinch bug (Monalonian atratum and M. dis— simulatum) occasionally is a serious cacao pest, attacking fruits of all Sizes. Animal Pests Among the animal pests of cacao, squirrels (Sciurus sp.) are the most destructive. In some old plantings it is estimated that they destroy SD Sire 40 percent of the pods. The usual control meas- ure, practiced with some degree of success, con- SNS ESA VOI) Oss @ie sing a bounty ot several cents for thie: (taal. ote weaeh dead squirrel. Other pests such as rats and the kin- kajou (Potos sp.), also destroy a large number of pods annually. These arboreal animals, as wre lol aisha siqu ay rerieslasie breed in abandoned or partially abandoned plantations. FIGURE 19.--Squirrels often destroy a large number of fruits. Birds, particular- ly parrots and wood- peckers, cause some direct damage by picking holes in the pods. Birds are also responsible for the dissemination of seeds of many epiphytes occurring on cacao trees. CACAO SELECTIONS During the survey more than 500 trees were located for study. From this group, 339 were finally selected and, by means of budding and root- ing of cuttings, were established at the Tropical Agricultural Station. These selections are the basis of the cacao-improvement program. Of these selections, 265 were made in the Arriba Region, 36 in the Balao, 20 in the Bahia, and 18 in the Machala Region. These trees were chosen for one or more of the following characteristics: High yield and resistance or tolerance to Monilia- pod rot and witches’-broom. For each selection, reference data re- lating to tree description, pro- duction, and location on hacienda were obtained. HARVESTING AND MARKET PREPARATION There are two well-defined harvest seasons for cacao, February- May and July-November. Cacao na- cional produces one crop each year, which is harvested principally from February Eo May. Cacao venezuela, FIGURE 20.--Special propagating bins are used however, produces two, with the for rooting cuttings of cacao. main harvest in August and September and a light one during April and May. The variations in harvesting seasons in the several re- gions are indicated by fig- ure 22, which shows the monthly proportion of each type of cacao entered on the Guayaquil market. Such fluctuations are due prima- rily to the climate and the predominate types of cacao grown in the various regions. Approximately 58 per- cent of the total exports of cacao are produced in the Arriba Region. Machala is now second with about 18 percent, and Balao, Bahia, and Naranjal each contribute a total of about 8 percent, as shown in figure 22. In 1916, peak year of production, the proportion of the exports contributed by Arriba, Balao, Machala, FIGURE 21.--Cacao cuttings require from 30 to 45 days a) RANA 680900 7 d to develop a root system. To stimulate faster root a anta Were , » #, an development the cuttings are treated with a root en- 6 pew ceniw. respectively. duci chemical. 3 Beg! ex whe Balao has sustained the heaviest loss in production, while Machala has made the greatest gain. Harvesting The method of harvesting cacao is relatively simple. A cacao picker cuts the pods from the trees with a flat, triangular-shaped knife attached to the tip of a long bamboo pole, so that the cutting edge, about 2 inches long, is uppermost and perpendicular to the axis of the handle. A boy retrieves the telled pods. These pods are then taken to a desig- mated place where women or children crack them and remove the beans. The beans are then transported in canvas bags by mule or burro to the drying platform. Fermentation In Ecuador, cacao beans are never fermented in tanks or boxes. When tlie beans are brought in from the field, they are covered and left in small heaps for one or more days to permit fermentation and to allow the mucilage to liquify and drain off. Then the beans are ready for drying on the platforms. a Aoln es: Exporting firms PERCENT OF SHORT TONS report Ghnalti. of the ANNUAL CACAO TYPES tai several grades, Superior Ce Meats Ss AIRE Ne aa kr grades, Superior Red Visrenrel Summer Arriba is best Mae prepared, with approxi- mately 75 to 85 per- cent of the beans well cured or fermented (table 3). About 20 percent of the beans have regular fermenta- tion, and from 6 to 9 percent have little or JAN. FEB. MAR. APR MAY JUNE JULY AUG. SEPT. OCT. f i none ~ L ess t h an 1 : percent of the beans ; Tie are moldy, weevily, FIGURE 22.--Monthly proportion and amount of each cacao type entered annually on the Guayaquil market, 1941-47, slaty, flat, ao broken. Cosecha Navidad, or Christmas Harvest, is second best in preparation, having from 40 to 65 percent of the beans well fermented, about 20 percent of them with average fermentation, and about 14 percent with little fermentation. The percentage of bad beans, however, is less than 1]. Cacao Epoca has a lower percentage of well-fermented beans and a higher percentage with regular fermentation. The proportion of bad beans may reach 5 percent. Drying Drying consists in spreading the beans out on platforms in the sun each day for a period of about a week. To in- sure even drying, the beans are continually turned over. Diseased and bad beans are hand- separated from the good. A few growers clean and polish the beans when they become moldy by heaping them in small piles, adding a small amount of water, and then stirring them rapidly. Bagging When dry, the beans are weighed into bags holding 150 to 175 “FIGURE 23.--Cacao beans drying in the sun. Workers turn the pounds. Owing to the beans over with their feet to insure uniform drying. o A = prevailing humid at- mosphere and the danger of the beans absorbing moisture and spoiling, growers as a rule do not store the bags long before shipping them to Guayaquil. If the ex- porter is obliged to redry and rebag the beans owing to exces- sive moisture content, the grower is penalized a certain percentage of the weight of the cacao. For the privilege of using the streets of Guayaquil as drying platforms, the exporter FIGURE 24.--After the cacao beans are dried, they are sackea, Pays the city a rental weighed, and made ready for shipment to market. of approximately one- tenth of a cent per day per Square meter. Marketing When marketed, both cleaned and uncleaned cacao beans are frequent- ly mixed together. Approximately 80 percent of the beans are sold by planters directly to exporters. In several instances, however, companies TaBLE 3. - Analysis of the interior characters of commercial grades of cacao 1942-47 FERMENTATION DAMAGED BEANS RESIDUES LITTLE OR GOOD REGULAR NONE COMMERCIAL GRADES VIOLET VIOLET EXCESSIVE RED- BROWN DISEASE, GRAYISH-| OR BLUE |OR BLUE | MOISTURE, FLAT Ds BROWN | CHEESY | CHEESY INTERIOR | INTERIOR OR BROWN OR SLaTY|OR SLATY | WHITE YELLOW EMPTY Percent Percent | Percent Percent Selected Superior Red Summer Arribae . Superior Red Summer Arriba.e « « » Cosecha Navidad or 84 43 1-39 6.20 76-85 4.53 8.65 Christmas Harvest. . 65-40 10.32 13-66 CASAC) [BICR 6 5.0 6 6 55-10 18 - 33 11-04 SOAaSCMS co 50 9 50 0 6 54.10 24.10 Te40 Machala Corriente . - 46.90 22-00 14.22 SOGURIA TD 66 oo 6 6 52047 17-96 10-40 a who control a number of haciendas arrange for the sale and export of their product themselves. Several exporting firms have representatives in New York and other important marketing centers. Transportation Most roads in Ecuador are of dirt and passable only during the dry season. As the principal harvest of Arriba cacao is carried on during the rainy season, growers in the Guayas Valley must ship their cacao to TaBLe 4. - Average expenses involved in shipping cacao from an hacienda in Ecuador to the United States United States cents per hundredweight Ae EXPENSES OF GROWER: : le Transportation charges from hacienda to port of embarkation: (a) Arriba Region: Babahoyo-Guayaquil (about 50 miles )eccccccccccccecccesesssecsses Fle] Quevedo-Guayaqul! (about 171 Miles) cocccccccevvcssceercesecsess Z4e) (b) Machala Region: To Guayaquil (about 86 Miles )ecccccccceccccccccscsecosecseresees 4505 (ce) Bahia Region: Chone-Guayaquil (about 260 miles) coccecccceececccscceescsesesss 3603 (d) Balao Region: Balao-Guayaqul | eorceeecceseer eee ec esereesroeseeaeeseoeeooeseeeses eee 18.4 2e Handling charges at port of embarkation, Guayaquil: Pler CaX eecccevccescsesccecreecaecseeceeseereeeoeoeeoeeseeeteseeeees Service of exporters in weighing, sacking, etCe ceccececescccceene MuniclIpal tax: Tax cotlected for cacao originating or passing through municlpality: (1) Guayaquil cocccccccvsccccccccccccgecccsccccevccsccsccssccecs aoc ep ) 225 ) Portage eeeesereer ee cee eee eee eeeeeesesoeoeseeosseoeeeecereeecaseee ee 2-5 : 6.7 ) (2) ViINCeS coccccccencccccccccsccrerccecercseseccceseesecsscoece (3) Quevedo eeececereerceece eee oseeeeese er eeeseoneeeoeseeeseeceeLeseeees (4) Baba ceocccesesececcccceccerercececsevere setae eeseseceoeeee se eee (5) Pueblovie jo cececcccccccsesceccccecsscccceccccccccsereccsecns 6) Urdaneta eereeseereeceeseseeceeseeseeeeeeeeoneee ee eeee ee eee eee © DO OWWOWww Dw (7) Balzar Seeeeresceereceeeneeeeseooesoeoresrseeoeeeneseenseeeoeoose HPRPFEFN FEO Revenue staMpS ceccenccvecsccececsscecsecccecercescreserecrseccsenes Miscellaneous expenses: (1) Penalty deducted by exporter for excessive moisture, dirtiness, @tCe ceecceccvcsvceccccccccseseccress 3020 ((2iinSalllesi commiissillOMma ccisicieiele cicjaisie/e cleleielelelsieloisioclalcivies/s\clcleleleieieisleieie! (O00 (3) Agricultural Assoclation of the Provinces of Manabl’ eessesss 70 no ho ~~ Or more Be EXPENSES OF EXPORTER (GUAYAQUIL): le Cleantng, drying, classifying, sacking, etce: (a) Washing weeoecoeeeeooseogeeseecereeeserereeesateseeeeeoeesessoe00008 (b) Sun-drying eeoceeeeveerceoeseeeeeeereseeeeoseeseseeeeeeeeeseneeereeeeeeee (dj Pilling of beans for sacking ceeccecccercccccscccserseccsecesrcscce 1 2 vc} Classtflcatlon coccccccnccccccccccccsccccccveccecccesesasesesesce 2 0 (e}) Cost of empty SACKS eecccccccccerescsesceccccreserececesesscecsese 36 See foounote on page 28¢ 4, Wo - Taste 4. - Average expenses involved in shippitig cacao from an hacienda in Ecuador to the United States - continued United States cents per bundredueight Be EXPENSES OF EXPORTERS (Guayaquil): Continued 1. Cleaning, drying, classifying, sacking, etce3 Continued (f) SackIng SOSSCSCHHBOHCHOAHLHOHALHOHGHHOHHOHECOHEHAHOHOHREBEOHBHEOHLEOECHHEOEBESOOTEOLE 3-0 (g) Handling Of, (S'ACKS) (aleiclelelelalslelalciolololclsielslelelelalelelelelolelsialelsio/aloiclalcielsicielelaleial® 205 th) Twine for sewing sack @eeeeeeeeseeeeeeesesenoseseeeoveeeeececaseece 006 (ate? Sewing SaCk ceoccccccccccccccccceccccscecsescacascccessecccecneaces 0.6 0-6 (j) Marking sack CCOCHCCECHEECHBLOOHRHAOOHGESOBAHOHHLEHOBLEEELEEOASEBEOAEEED 2. Munictpal tax for use of street space for drying cacao, about 1 cent per I] square feet 360 MunictIpal pler £4} EICIOIOIOICIOIOIOIOIOIOICIOIOIOIOIOIOIOIOIOICICIOICIOIOIOIOIOICIOICIOCICICIOICIOIOICICICICICICICHCI SL ue Pler handling charges eecceeececeeseaeceeeeseneseeeesceeseoeeseseeeeeee 4 5e Loading charges on lighter eecvoceceececccenccesseceseeoseseooseereeeeene 3 6. Port charges collected by National Government” eccocccscesccccecccccces 6 Te Export taxess (a) Antituberculosis Society eoccccccvccccccccccesccececcccceccesesee 0 (b) Ecuadorean Cultural Institute ceocccccccccccccccccccccsccccccesccce 2 (ce) National Government cocccccccccacccccccccccccccccsecncccecsasccen 1 8. Charges of the Central Bank of Ecuador * (a) COMMISSION ceccccccccccccccccccncsccccensanasceneccensnesenessece Oe 0. (b? Bank tax eaeceeeseeoseeseneceeeeseseeeenseeeeeoeeeeeeevoeaenesaenenence 9e Ocean Frelghts (a) Guayaquil] to New York eC cccccc cc eececeavccesscacccccccccccescesesel lel (b) Guayaqut! to New Orleans ecccccccccccccccccccccscccccccccsccceceell5o0 (c) GuayaqulIl to San Francisco cececcccccnccccccccnccccccccccascsacenselile? o Calculated at Ue Se $380.00 per 100 pounds —- average price in 1947. market by river launches. Small coastwide boats also are frequently used to ship cacao from the Provinces of Manabi and El Oro to Guayaquil. The cost of shipping cacao in the river launches has not been fixed and is quite elastic, depending on competition and the level of the river. The average charge for shipping cacao to Guayaquil from the several pro- ducing regions is given in table 4. These figures also include railroad charges where involved. In the Bahfa Region and to a lesser extent in the Machala Region, railroads are used for transporting cacao to the ports of embarkation for shipment to Guayaquil. DIRECTION OF MOVEMENT OF CACAO Europe has long been the principal market for Ecuadorean cacao, with Germany, Holland, and France being the largest buyers. During World Wars I and II this market was closed, and the United States pur- chased about 80 percent of the cacao exported. The direction of move- ment of cacao and value in dollars for the years 1916-47 are given in table 5. Guayaquil is the principal port from which cacao is exported. A small amount of cacao is shipped directly to Peru from the Machala Region and to Colombia from Esmeraldas and BahYa. CACAO-PRODUCTION STATISTICS Production, based on export records, shows wide annual fluctuations. The trend nevertheless was upward, reaching a peak of approximately 50,000 short tons in 1916; then production declined to about 12,000 short tons in 1933, as shown in figure 25 and table 6. 5) PQ) & The average annual production for each region during the years 1941 to 1947 as indicated by Guayaquil export records are: Volume Value Percent (Short tons) (Dollars) Arribaiecees +, 10, 004. 0/4 Paes SNS (qh Ao) 57.50 Bailiaonpiris ters, hl, 2olO4 404,641.75 7.90 Machialianie ce ci ho, 440.99 DAT Si Oramlad 18.50 Balhaatcictecee (bl 409068 389,275.61 7.60 Nammanijallvcieere co. pL, ol OL bs yay. Si7ic) a(0)s} 8.50 Total 18,544.16 D122, 047 744 100.00 CONSUMPTION Little cacao is prepared or consumed locally. Usually the best grades are exported. In 1938 the national consumption was estimated at 1.1 percent of production increasing to 15.2 in 1939 but decreasing to Seon, 1942ne Estimates for later years are not available. PRODUCTION COSTS Data concerning the cost of producing 100 pounds of dry cacao are difficult to obtain and not too reliable. In general, the cost varies from about $3.70 to $8.15, with the higher costs being reported from Balao and Arriba Regions. This wide range is the result of many factors, which include area of the hacienda, number of employees, wages, productive rate of trees, distance of cacao trees to drying platforms, days required for drying cacao, and cost of weeding. Drreccion NACIONAL DE EsTADISTICA. ECUADOR EN CIFRAS, 1938 a 1942. Quito, Ecuador. 1944. TABLE 5. - Percentage distribution of kcuadorean cacao exports to principal countries and value in dollars, 1946-47 CONTINUED COUNTRY See footnote at end of table. A-g9rs Tapue 8. - Percentage distribution of Ecuadorean cacao exports to principal countries and value in dollars, 1916-47 conTINUED 1919 1920 1921 COUNTRY United States ee England eeccececece France eseesesesn ‘Holland ecececce Spain eecseececcece Germany eoveccesse Panama eeeccese Other Countries United States .. England ecesecce France secsccese Holland ececssscee Germany eeececes Other Countries Total eccescce United States... England eeccescee Fra-ce esesecece Holland eececececs Spain eseoceeseee Germany ceescsece Other Countries Total @esccsecee United States oe England eecesces France eececess Holland esceceoe Spain e@ecesecesce Germany eenecsece Italy seececeeence Other Countries Belgium eveseses Denmark enceececs Austria seececee Sweden eeecceecve Total escccvce United States ee Holland eceesscee England sseccecoe Spain seescccos 36 2,505 ve = - 9 17 1,370 ll 14 1,080 is 6 470 8 u 1,282 774 Taste 5. - Percentage distribution of Ecuadorean cacao exports to principal countries and value in dollars, 1916-47 CONTINUED COUNTRY France cecaseseae Germanyecoescece Italy ecoceeecece Belgium secccccee Denmark cecovcene Austrta eoooeeece Sweden eocecoce Total eoveecven United States ee England eoaeveece France eesceecce Holland ececeoece Spatn ecaccoeecee Germanyseeseeecee Italy eoecceveece Belgium eeesveeen Denmark eoeecacee Austria eeeeceeece Sweden eesee00e00 Total svscecccae United States ee 46 England eeoeecoen 5 France cecscceces 3 HOllandecccccone 9 Germany ceeceece 16 Italy eoseesccce 3 Belgiumeccocecsce 9 Denmai keeecevcee u Austriaceeceeceeen - Sweden ceeseccece 2 Norway eeceeoece (1) Switzerland e*ee i, (1) Peru sececceccee o (1) | Chililicmmerercteicialelciaie > (1) Argentinacecocvese ea (1) | Uruguay eccececscce - (1) | Bolivia eecoooece — (1) Czechoslovakia . - (1) Finland eeococeosea oe: (1) | Poland ceccscacs = (1) Yugostavia eooee — (1) | Australia caccce = is] Palestine ecccce = (1) Panama ecoccceces — (1) New Zealand coos - (4) Total soccoece 100 | United States oo England eeeecove France eecssccecece Holland ceeccccce | Germany eecccecesn Italy eeeeeececea Belgium eoeceocce Sweden esneececeece Norway eeeeenece G00. 0 RU s0 See footnote at end of table. 1,081 i be i) =) I | te ied OHPFNUOP DEW OAWNHWUD =) nN ~ wo Rr Oo 5 {yo Taste 5. - Percentage distribution of Ecuadorean cacao exports to principal countries and value in dollars, 1916-47 conTINUED COUNTRY Switzerlandeccccce ] 1 WMexICO cccccccccece PerFuU cecccccccccce Colombia eceececcee Chile cevscccceacece Argentina eccecces Uruguay eeececacees Bolivia eecnececoe Australia seccoces Panama eecsecocescee United StateSccces Denmark cococsccccce NOrway eecessceccce Switzerland ecccee MexicO excecoccecece Colombiascccccccce P@rU ceccccceecece Chite eeeseeeeooeenaone Argentina cseccceee Uruguay sescecacce Bolivia eoeceeeene Panama coccaccccee Guatemala ceecvccee Franc@ cosceeccene Total ceccccsene United States ceoe Holland eoeecoeceen Italy ececacceeeece Belgium eoecoeeceee Denmark csecccececee Sweden ceeccceccece Norway ecocoeeenece Switzerland eeoceo MexICO cecccccccece Colombia ceacccccee Peru covceccccecvce Chile ceeocccccccces Argentina e@ecoescee Uruguay eeoeseoseoe Bolivia eoeeoosecece Finland scecceccece Australla scccescee Costa Rica eoocene China esceacccecce Cuba ceecsccccceesecs Egypt cceccesccccce Puerto RICO secceoe Palestine cessescee 1 Less than 0.5 percent. Less than $1,000. An itemized list of expenses involved in PRMDIATA producing 100 pounds of dry cacao in the Arriba Region onan hacienda with a calculated pro- diule tony raitiemno 1. 180)0 pounds per acre and a daily wage scale of 76 cents for men and 67 cents for women and children is given in table 7. + 32 bh [o) I 1 PRICE IN NEW YORK, PER CWT. 1 I w lo} ! I 24 I 2 PRICE IN GUAYAQUIL, PER CWT ——l nm fo) DOLLARS PER HUNDREDWEIGHT [o} 7) fa) z 4 o > °o =e = o 2 3° — b ing fo} >= 7) z 2 ° = ° > fa) ° ia a ° 1913 15 17 19 21 23 25 27 29 f 33 35 37 39 41 43 45 47 ° CLASSIFICATION AND GRADING FIGURE 25.--Annual production and average annual market price ‘ Prov 1s1on for of cacao "Superior Arriba" in New York and Guayaquil, classifying and grading 1913-47. Ecuadorean cacao has never been established by law. Yet, three commercial] superior grades are offered for sale by exporters. They are: (1) Superior Red Summer Arriba, (2) Cosecha Navidad, or Christmas Harvest, and (3) Cacao Epoca, cacao corriente,or seasons arriba. Each of these grades may be separated into American and European qualities on the basis of the size and shape of the beans. The American market will accept a mixture of plump and flat beans, while the European market prefers plump ones of uniform size and will pay a bonus of from $2.50 to %3.00 per hundredweight. Even though sets of grades for cacao have not been officially de- vised, cacao exporters have developed classification methods over a period of many years that enable them to maintain their quality standards within a margin of about 5 percent from one shipment to another or from one year to another. One export company of Guayaquil, in standardizing its commercial grades, estimated that during a period of 28 years, approximately 90,000 bags of cacao were samples. Summaries of exterior and interior characteristics of cacao as well as bean measurements obtained in this important study are given in tables 3, 8, and 9, respectively. Each cacao grade exported from the country has its own characteristics, which are based largely on adequacy of curing, region of origin, quality, time of year harvested, climatical conditions of the producing region, and the kind of cacao S : . : : 26.--Dried cacao beans of the tree producing it. Certain regions, being eatin er Ss HodenalSumer dor ae more favorable than others for the culti- Summer Arriba. - 34 TaBLE 6. - Cacao exports from the port of Guayaquil, Ecuador, 1840-1947 | YEARS AMOUNT | YEARS YEARS AMOUNT AMOUNT Short tons Short tons Short tons UEOsRGGd6, Wiss TOTO ooac 11,049 I9WO) o.2 He 36,446 NOOSE ooac06 5,706 MOT Sood 10, 266 OTS For avere 42,954 IIA Gooooc 35354 1878 .... 5, 165 TOTS. 46 , 106 1843 eeeses Vol 32 1879 sece 15,767 1915 esece 37,337 TOWUS lleva crete 4,287 1880 .... 16,940 ROG Saoee 49,002 WMG cooacc 4, 864 1881 woe. 11,062 NOM Sadao 44,402 TSMC eralatstalere 5 606 1882 ese- 10, 189 1918 wcece 38,014 TSU sTrayete avers 6,037 1883 .... 7,503 1919 waeee 37,523 NIE. aooo0a 10,504 1884 ..6. 8,847 NGI) 65000 37,723 WRG). o60b00 Tole 1885 ..0e 12,037 1 PG Ae 41,352 1850 seeeee 5,534 1886 esse 19,318 WEA Sa000 41,639 1851 ceccee 4,784 1887 «oe 16,711 UGH} acoac 30,326 1852 cceccee 6,983 1888 .... 13,850 AS Sabo 30,863 1853 secre 6,622 1889 .... 12, 325 EQ25 i Nersieve 33,090 1854 ceeeee 5496 1890 ...6 18,127 ICS Gagcd 20,471 1855 ceeeee 7,545 UO, soo6 10,539 OA ago 21,458 1856 seeeee 6,637 NIN Sd06 16,744 1928 ce-srave 20,975 V5 sess 7,383 1893 2.0. 20,257 1929) etelelale 16,753 1858 °cces 9,910 1894 ..0. 19,565 NOE) G5006 19,096 TING) POOOGO 6,809 LB95i. ce 18,056 193 Yee 14,159 1860) s\*\2/=i 8,381 1896 w20e 12,164 2 BGoo5 15,065 NGOS, G6oodc 9,339 IO Sade 16,565 11D)5 5) Gooo0 11,961 WAS goood 8,013 1898 woe- 21,120 1934 200. 17,546 EOS) Guoodc 8, 200 1899 woes 25,972 IC S)-on000 18,380 WAL cocoons 5,725 1900 eeee 19,179 1936... 18,624 TAAG. codec 7,134 190 - 24,447 193) aan 22,500 1866 ecoece 11,253 1902 eevee 235374 1938 peees 18,374 RES ooo006 9,863 LOO Rese 22,801 TORO rs 14,468 WO. Gooond 5,617 1904 .... 29,694 TOV. Oa ee 11,663 IEXIC)| Gonaac 8,675 905) sicree 20,161 sO oanoe 14,397 N30) Gooood 12,156 1906 .... 23,014 emo gsac 14,738 Taye creicisrse 8,621 UO Tacs 19,919 OWS etererate 19,695 I) Oooo 9,362 1908 wee 31,597 L944 ..ee5 14,726 1873 seeece 12,298 1909 wees 31, 033 1945 ws00e 20,119 1874 seeoee 12,374 UO WON ree 37,638 1946 ...0. 15,127 187 eeseee 8 176 1911 wece 40,321 1947 wceae 19,143 vation of this crop, produce a higher quality of cacao that is more highly esteemed by the cacao manufacturer. The first grade of cacao, Superior Red Summer Arriba, consists al- most exclusively of beans of cacao nacional from the Arriba Region in the vicinities of Vinces, Puebloviejo, Baba, Catarama, Quevedo, and Balzar, where the oldest plantations of cacao nacional exist. This grade is usually separated by exporters into two commercial subgrades: Selected Red Summer Arriba and Superior Red Summer Arriba. The beans of the former are larger, heavier, and have less wall tissue than the latter. In,fact, the beans are larger than those of all three export grades, as is seen in table 9. As already indicated, the Arriba Region is the most important producing area in Ecuador as far as quantity and cuality are concerned. The second grade, Cosecha Navidad, generally limited in amount, also contains beans of cacao nacional. It is harvested usually from December through January, but the season may extend into February. A third grade, Cacao Epoca, contains cacao harvested throughout the year primarily in regions other than those producing the first or second grades. This grade exhibits a wide variation in shape, size, and inte- eos Gyan rior as well as exterior color of the beans and consists mostly of cacao venezuela. In addition to the above three grades, there may be others, such as Machala Superior, Machala Corriente, Bahia de Cardquez, and Segunda. The inferior grade, Segunda, may be consumed locally or exported to countries with no rigid entrance requirements. Before cacao may be exported, the law reauires that the lot be inspected by the Office of Control of Exportation as provided in article 6 of Executive Decree No. 1285, October 31, 1941. This inspection con- sists of checking the weights of bags and determining whether the lots meet the conditions specified by the exporter in the transaction. The Department of Sanidad Vegetal may also inspect the lots of cacao, but this is not necessary. PRICE The f.0.b. Guayaquil market price of the several grades of Ecuado- rean cacao is determined largely by the New York spot price and is several cents lower than the New York quotation, as shown in figure 25, The price received by the grower for his cacao, however, may be lower owing to penalities imposed by the buyers because of dirtiness, excessive dampness, defectiveness, lack of quality, or improper preparation. Cacao is subjected also to a number of national, provincial, and municipal taxes, a part of which the grower absorbs. A list of the principal expenses and taxes incurred by the producer and exporter are given in table 4, “Middlemen buy small lots of cacao at prices considerably below market price, then mix and sell them to the exporters. This cacao is . Tapie 7. - fstimated cost of weeding and harvesting an acre of cacao on plantations, assuming an average production of 100 pounds per acre Dollars WEEDING: Twice per year (9 WOFKErs) eecceccccacveccccccccccceecvecesecceeresecescescs 355 HARVESTING: TWO PICKE Sac mcceccccnnccesenscs sever erences eesersscceeeeressesescesceece 1.14 TWO aSSIStANtSeccccesccecccccrecrer cn eccar cece sccs cee esseeoeseseeseeeceeee 1.00 TRANSPORTATION OF FRESH CACAO TO DRYING PLATFORM: One boy lincluding rental of mule)ecsccceccccsececccaccsvcerscevccessceces 039 DRYING OF CACAO (including cleaning and sorting): One attendant (6 days required for 1,000 pounds) coeccecccccesscescccccces 48 WAREHOUSE EXPENSES: (10 workers required to handfe 10,000 pounds) Weighing, sacking, marking, and Shippingesscoccsccecenccesccccccccccecece - 06 Sacks and string for 100 poundSececececcsaencscrcsscsessecescccesesencnes 39 Miscellaneous expenses (tools, etCe)ecceecceescescncccsecescerccescccoece 207 Totialllme;xiplelnisieiSiever~ lao /alelaialelele/cls-»/s\s\e/elajieie/slalejelsietaielereie I SINis00 NOTE: Wages calculated as follows: Menuyaitetsteretareletersiclelare eiolereisieielefeisiisislsioisieleleilevioieiereia-10 Osu) OMpelmrdaly, Women and Chilidinen atececccecsiccscecccccscsceses ef] per day On 00°00T 00°O0T 00°00T 00°OOT 00°00T 00°00T 00°00T quaosad TV LOL G9° 80° €€° 64° go° L0°0 ZG°0 00°0 quaoLad| quaoLad| 4uaoL1ad 9-8 40 STIVA NI GaLIna SNVaa qa Hsnuo NA WOU 00°0 quaoLad aLIHM ‘LHOIAM LHOIT SNV3J8 GJOVWVO YO AVE ovopo {0 sappig 1o19L9WWOD [0 SuaZ>DIDYO 1DULa4XA aya fO SSK] DUP -°3 ATAV] GT° 90° 00°0 00°0 quaoLad quadLad ‘THOIGA | GALVNIAUAD Th-9261 €£0°€z LE°LT 09°8T G9°8T 26°2S TO°LT 02 °E£T quad1ad ¥0109 00°Gh Lo°ns 00°T9 89°TS 82°72 Gh°0G 06°0h quaoLed *SNV30 TVWYON seeveseees BNUNDOS @}Ue{ 4409 BL eYyoRK ceeeeerees Suosees seese"2e90d3 oF0e) 7 FSOASEH SewIS{ 4JYyd 40 PepjAenN BYDeSo9 errrsegiyssy sowwns pey sojuedns eq,44y sowwns pey 4o1aedng pazIajac NOSVa8 LSHANVH Sadvud TV ISWAAROD i; = one = then cleaned by the exporter and the good quality beans are taken and added to the superior grades, while the others, including detective beans, are sold as Segundo grade. Defective cacao includes moldy, flat, slaty, and germinated beans. Frequently, producers in the Province of Manabi will accept a lower price for their cacao to compensate for the expenses and troubles that would be incurred in making shipment to Guayaquil. Since the replacement of Arriba by Accra, and African cacao, as the indicator of the statistic position of cacao in 1918, the price of Arri- ba on the world market has been at a disadvantage. The availability of large quantities of ordinary grades of cacao on the world market has forced Ecuadorean planters in the past to sell at prices frequently not remunerative. The mixing of the beans from the two varieties as well as the deterioration of quality through hybridization of cacao nacional with low quality introduced types is said also to be a factor partly responsible for depressing the price of Arriba. Beginning in 1927 and continuing into 1935, the general trend in price was downward as is shown by figure 25. In table 10, the average monthly price of cacao beans for selected years is also given. The recovery in prices during the later years, due to improvement in the world economic situation, has continued to the present time. Wartime ceiling prices established by the United States Government in 1943, how- ever, acted as a check on price advances. With the removal of ceiling prices late in 1946, the price of cacao skyrocketed and has remained high. The minimum price paid per hundredweight for superior Arriba f.- o.b. Guayaquil in 1947 by one Guayaquil exporter was $25.90 and the maximum was $46.90 per hundredweight. The differential between the price of cacao in New York and Guaya- quil has decreased by about three cents during the past three decades as TaBLE 9. - Weight and volume statistics of cacao veans of several commercial grades AVERAGE WEIGHT OF WALL OF 100] AVERAGE VOLUME BEANS AVERAGE WEIGHT OF 100 BEANS COMMERCIAL GRADES DRY BEANS Percent Cubic inches No. per pound Selected Superior Red Summer Arriba csesscerecce 329 925 Superior Red Summer Nrateil Oldtsistatielelioleteiolele/cl/eje\eielaie/eiaie\e 351 Cosecha Navidad or Christmas Harvest scvccevrcees 329 Cacao Epoca sececnccreecccece Zi SGASOMNE GoosooGCooD CUCU UDCOUOD 3} Tal MachaillaGonmilenite <.