Palm oil industry in Ecuador. Good business for small farmers?
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Abstract
Ecuador is the second largest producer in Latin America of crude palm oil and is the seventh largest producer worldwide, but with yields per hectare still lower than Colombia and Costa Rica. Although producers with over 1 000 hectares have the leadership in the palm oil industry, 87% of producers produce with less than 50 hectares. Moreover, the deforestation rate in Ecuador is ranked by FAO as the ninth highest in the world and the highest in South America. The African palm plantations have been criticized for causing deforestation and worsening work conditions. However, government sectors see the oil palm companies as a source of employment and development for poor regions. This fieldwork shows that there is a difference in perception among small farmers. Farmers from Quinindé-La Concordia were satisfied with the income they earn and the rising prices of land planted with palm. Farmers in San Lorenzo, in contrast, are not happy since the survey shows that a disease devastated trees and as a result, land prices have fallen in San Lorenzo.
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