Ecuador agriculture is important because Yesterday’s Wall Street Journal included an article that began: “Prices of farm goods are climbing – in part because of demand for crop-based fuels – pushing up food prices around the world and creating a new source of inflationary pressure. The rise in food prices is already causing distress among consumers in some parts of the world — especially relatively poor nations like India and China. If the trend gathers momentum, it could contribute to slower global growth by forcing consumers to spend less on other items or spurring central banks to fight inflation by raising interest rates.”
This is one of the wonderful benefits of Ecuador agriculture, the extreme supply of excellent but low cost food.
Ecuador is a Garden of Eden and here is a fact you probably did not know. The inhabitants of this region developed more than half the agricultural products that the world eats today. Among these are more than many varieties of corn and potato. There foods also include squash, beans, peppers, peanuts, popcorn, yucca and quinoa.
They even learned to use freezing night temperatures and warm days to freeze dry potatoes and create potato flour.
Here is the market, three blocks from our hotel where we shop. Open air restaurants in the front of the market offer excellent meals, vegetarian, or chicken, steak, fish or pork for about $1.
Ecuador Agriculture Photo # 1
There are enumerable fresh picked vegetables.
Ecuador Agriculture Photo # 2
Offered by happy friendly people.
Ecuador Agriculture Photo # 3
And every type of fruit you can imagine, from pineapple to coconut, papaya, mango, apples, pears, bananas, berries and numerous other tropical fruits all at bargains prices by Western standards and ripe all year round.
Ecuador Agriculture Photo # 4
Many exotic spices at a 1/20th the cost in the US or Canada. I bought a huge bag of Star Anise (bottom right) probably a pound yesterday for $1.
Ecuador Agriculture Photo # 5
This makes life especially wonderful and inexpensive.
This creates opportunity as well.
Ecuador’s geographical location gives it a distinct advantage in agro production. Its exports include asparagus, bananas, broccoli, cocoa, coffee, flowers, hearts of palm, lentils, papaya, passion fruit, pineapple, plantain, mango, red beans, and tomatoes. Ecuador has mainly an agricultural economy, though oil is its largest source of revenue, and industry has expanded. Agriculture employs 32 percent of the workforce. 6.4 million acres is used in agriculture . Permanent pasture covers 17 percent of the total area and forests nearly 43 percent. In the highlands subsistence agriculture and the production of staples for the urban areas are predominant (corn, wheat, barley, potatoes, pulses, and various vegetables). In the coastal lowlands tropical crops are grown to export. Ecuador is the largest exporter of bananas in the world and among the largest exporters of shrimp and roses.
There is extra Ecuador agricultural opportunity now due to the falling US dollar. We looked at this somewhat yesterday at Emerging Currencies Protect Wealth – Power of the Dollar Revaluation
We will see more on emerging currencies tomorrow.
Until then, good investing!
Join an Ecuador Agricultural Tour. See details here.