Revista Científica Interdisciplinaria Investigación y Saberes
2022, Vol. 12, No. 1 e-ISSN: 1390-8146
Published by: Luis Vargas Torres Technical University
How to cite this article (APA
): Quiñonez, B., Custode, J., López, P., Moran, E. (2022) Cocoa
marketing in the Malimpia parish of Quinindé canton: Analysis of the macro and microenvironment,
Revista Científica Interdisciplinaria Investigación y Saberes, 12(1) 79-94
Cocoa marketing in the Malimpia parish of Quinindé canton: Analysis of
the macro and microenvironment
Comercialización de cacao de la parroquia Malimpia del cantón Quinindé: Análisis del
macro y microentorno
Betty Maribel Quiñonez Cabeza
Master in Business Administration (MBA, Universidad Técnica Luis Vargas Torres de Esmeraldas, Ecuador.
betty.quinonez@utelvt.edu.ec. ORCID: 0000-0002-3964-2153
Johanna Alejandra Custode Quiñónez
Master in Foreign Trade Management and Internationalization of Companies, Universidad Técnica Luis Vargas Torres de Esmeraldas,
Ecuador, johanna.custode.quinonez@utelvt.edu.ec. ORCID: 0000-0002-0891-9359
Patricio Javier López Pérez
Magister en Dirección y Asesoramiento Financiero, Universidad Técnica Luis Vargas Torres de Esmeraldas, Ecuador.
patricio.javier.lopez@utelvt.edu.ec. ORCID: 0000-0002-7840-0595
Edwin Daniel Moran Villamarin
Master in Banking and Financial Markets, Universidad Técnica Luis Vargas Torres de Esmeraldas, Ecuador.
edwin.moran.villamarin@utelvt.edu.ec. ORCID: 0000-0003-2136-9600
Cocoa marketing in Ecuador represents one of the main economic
activities that generate employment. The objective was to analyze the
macro and micro-environmental factors that influence cocoa
marketing in the Malimpia parish of Quinindé canton. For this
purpose, a descriptive and exploratory research was carried out. The
information was collected through interviews and documentary
review. The results showed opportunities that favor the
commercialization of the bean. The analysis of the microenvironment
revealed high rivalry among marketing companies, low bargaining
power of suppliers, and medium bargaining power of buyers. In
addition, threats from new entrants and exit barriers were identified
and it was found that there are no substitutes for cocoa beans. It was
concluded that among the final proposals is the participation in
Abstract
Received 2021-04-02
Revised 2021-07-11
Accepted 2021-11- 21
Published 2022-01-04
Corresponding Author
Betty Maribel Quiñonez
Cabeza
betty.quinonez@utelvt.edu.ec
Pages: 79-94
https://creativecommons.or
g/licenses/by-nc-sa/4.0/
Distributed under
Copyright: © The Author(s)
Cocoa marketing in the Malimpia parish of Quinindé canton: Analysis of the macro and microenvironment
Revista Científica Interdisciplinaria Investigación y Saberes , /2022 / , Vol. 12, No. 1
80
working groups that transcend the borders of cocoa marketing in the
canton and the Malimpiay Parish and even the province, to benefit
through the evaluation of management plans that are carried out in
other areas and measure the possibility of replicating or contributing
to producers of the same agronomic species through a research and
development network to enhance the economy and strengthen the
bonds of strategic alliances.
Keywords:
Cocoa marketing, Macro-environmental analysis, Micro-
environmental analysis
Resumen
La comercialización de cacao en Ecuador representa una de las
principales actividades económicas generadoras de empleo. El
objetivo fue analizar los factores del macro y microentorno que
influyen en la comercialización de cacao de la parroquia Malimpia del
cantón Quinindé. Para ello se realizó una investigación descriptiva y
exploratoria. La información se recolectó a través de entrevistas y
revisión documental. Los resultados evidenciaron oportunidades que
favorecen la comercialización del grano. El análisis del microentorno
evidenció rivalidad alta entre las de las empresas comercializadoras,
bajo poder de negociación de los proveedores, un nivel medio del
poder de negociación de los compradores. Además, se determinaron
amenazas de nuevos entrantes y barreras de salida y se encontró que
no hay productos sustitutos para el grano de cacao. Se concluyó que
entre las propuestas finales se estima la participación en mesas de
trabajo que trasciendan más allá de las fronteras de comercialización
de cacao del cantón y de la propia Parroquia Malimpiay e incluso de
la provincia, para beneficio mediante la evaluación de los planes de
manejo que en otras zonas se llevan a cabo y medir la posibilidad de
replicar o aportar a productores de la misma especie agronómica para
a través de una red investigación y desarrollo se potencie la economía
y se afiancen los lazos de alianzas estratégicas.
Palabras clave:
Comercialización del cacao, Análisis de
macroentorno, Análisis de microentorno
Cocoa marketing in the Malimpia parish of Quinindé canton: Analysis of the macro and microenvironment
Revista Científica Interdisciplinaria Investigación y Saberes , /2022 / , Vol. 12, No. 1
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Introduction
Commercial activity is crucial to the functioning of a country's economic
system, since it generates profits and jobs. In addition, it provides services
and goods that buyers require. In this way, the needs of the population are
mitigated (Guevara and González, 2020, p. 62). Therefore, economic
growth resulting from trade provides the resources to improve human
development and maintain the prosperity of the population in the context
where it takes place.
Currently, organizations operate in an environment characterized by
volatility, uncertainty, complexity and ambiguity. In that sense, it is
necessary to understand and interpret these elements when formulating
and implementing strategic decisions; to achieve this, according to Ruíz,
Criado and Merino (2014)According to Ruíz, Criado and Merino, this
requires an analysis of the macro- and micro-environment. These authors
focus on the analysis of the macro-environment as the characterization of
the environment surrounding the organization, from the external point of
view to develop plans that direct the company to achieve its long-term
objectives, having a knowledge of the market behavior and its projections.
In this way preventing and anticipating possible threats and opportunities
that may arise. Macro-environmental factors include: political, economic,
social, technological, ecological and legal factors. (Soria, 2017). The
microenvironment analysis focuses on analyzing the situation of the
business in relation to its market. For this reason, it is necessary to obtain
information about the business or company, the products offered in the
market, customers, suppliers and competition. (IICA, 2018).
On the other hand, according to Ullauri (2015)According to Ullauri, cocoa
marketing has been carried out under three systems: the marketing board,
the stabilization fund and the free market. Of these, the most widespread
is the free market. In the first, once the cocoa is purchased, the marketing
board manages it at all stages of the marketing chain. Under this system,
international price fluctuations are not detrimental to the producer, since
the price is fixed for the entire period. With respect to the stabilization fund,
the author explains that this system is similar to the first, but with less
intervention by the State. The physical handling of cocoa from the producer
to the export points is conducted by private agents. This system set
guaranteed prices for producers and export reference prices for each stage
of the chain.
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On the other hand, in the free market system, private agents participate
without direct government intervention, both in internal and external
commercialization. In this system, prices are determined in accordance with
international prices.
Specifically in Ecuador, cocoa marketing represents one of the main
economic activities and generators of employment. Currently, the
Ecuadorian cocoa sector is growing due to the increase in international
demand for organic, semi-finished and processed cocoa products such as
chocolate and cocoa liquor.
The cocoa activity in Ecuador is a representative agricultural activity due to
its climatic conditions and rich soil properties that make it prosperous for
planting and cultivation of quality beans. (ANECACAO, 2018). This fact has
allowed Ecuador to be the main exporter of cocoa beans in Latin America.
Globally, it ranks third behind Ivory Coast and Ghana. (The universe, 2020).
In addition, for 2019 it was the leader in the production of fine aroma cocoa
(Alcívar et al., (2021).
Two varieties of cocoa beans are grown in Ecuador: CCN-51 (Castro
Nacional Collection) or also called current. This is the most produced
worldwide and nationally due to its high yield and resistance. The second
variety corresponds to Cacao Fino de Aroma or Nacional, which is highly
demanded by European and U.S. industries for the manufacture of
premium quality chocolate. (Redagrícola, 2017). Due to its organoleptic
properties of taste and smell, qualities of origin, quality and history.
Particularly in rural areas of the country, cocoa production is one of the
main sources of employment for families, through which direct employment
is created for more than 120 thousand families. With a harvested area of
more than 450 thousand hectares, production of more than 300 thousand
hectares and a national yield of 0.63 t/ha (See Table 1). Of the total number
of producers, 90% are small and medium-sized, producing less than half a
ton per hectare, but around 30% are part of associations. (Telegraph, 2017).
Table 1.
Cocoa Area, Production and Yield
Harvested
area (ha)
Production
(t)
Yield
CCN51
(t/ha)
National
Fine Aroma
Yield (t/ha)
National
Yield (t/ha)
498.794
313.284
0,75
0,45
0,63
Source: SIPA (2020)
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On the other hand, in the cocoa commercial chain, elements such as the
cocoa bean producer, intermediaries, the semi-processed industry,
processed industries and exporters of cocoa beans and processed
products are evident. In this regard, Morales et al. (2018) identify in cocoa
production a linkage to the external and internal market. As for the former,
it is carried out when the two varieties of beans Sabor Arriba and Colección
Castro Naranjal CCN51 are exported. Likewise, semi-finished products
(liquor, butter, cake, powder) and processed products (bars, tablets,
chocolates, toppings, powder, fillings, baths, among others) are exported
abroad. (ANECACAO, 2018). Regarding domestic marketing, sales are
made to rural stockpilers in the area, who expect to collect large lots to
offer it to wholesalers who then sell to exporters.
Another type of internal marketing is evidenced when the producer travels
to closer population centers to sell his product to intermediaries, who
stockpile cocoa in large quantities to offer it to the exporter. Another type
of circuit is when the farmer sells his product directly to the exporter (Morán
and Villavicencio, 2008, cited in Morales et al., 2018.
Specifically in the province of Esmeraldas, cocoa plantations cover an area
of 5 hectares, making it the fourth province with the largest area planted,
behind Los Ríos, Manabí and Guayas. Cocoa production is around 525,000
quintals of cocoa, making it an agricultural activity that generates sources
of employment for approximately 15,000 families who work in the planting
and cultivation of cocoa. (El Universo, 2019). In the Malimpia Parish of the
Quinindé Canton, farmers dedicated to cocoa cultivation see their income
diminished due to aspects such as: location of collection centers,
accessibility to cooperatives for transporting goods and people, road
conditions, and traceability of the cocoa chain. This translates into the sale
of their products to intermediaries at below fair prices. However, the lack
of detailed knowledge of the state of cocoa marketing in terms of internal
situations (weaknesses and strengths) and external situations
(environmental and market factors) does not allow the opportunities and
threats of the environment and the market for cocoa marketing to be
pinpointed (Mendoza, 2014).
The preceding approach shows descriptors of the problem of cocoa
marketing in the parish of Malimpia. Due to this problem, the objective is
to analyze the factors of the macro and micro environment that influence
the commercialization of cocoa in Malimpia parish, Quinindé canton,
Esmeraldas Province.
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Consequently, from the above analysis, the macro and microenvironment
factors affect directly or indirectly, positively or negatively the marketing of
a good or a company in general. For the context of this research, no
research was found on the analysis of the macro and micro environment of
cocoa marketing in the Malimpia parish. The cocoa activity is important for
this parish, so it is important to analyze the macro and microenvironment
factors that affect its commercialization.
Materials and methods
The research was descriptive and exploratory, which allowed an
analysis of the cocoa market and sector to detail the factors of
the macro and micro environment that affect the marketing of
cocoa in the Malimpia parish. The techniques used for data
collection were documentary review and interview. Through the
documentary review, information was collected from primary
and secondary sources that allowed an analysis of the macro-
environment and the sector. The interviews with cocoa
producers and traders revealed aspects of marketing. For the
macro-environment analysis, the PESTEL model was used, while
for the micro-environment analysis, the factors were described
by analyzing aspects of Porter's five forces. (Guevara, Pérez, &
Quint, 2014)..
Results
It is important to point out that in any strategic management process
it is important to propose possible scenarios supported by a diagnosis
of the organization's external and internal environment. For the Inter-
American Institute for Cooperation on Agriculture (IICA) (2018)this
guides the use of strengths to take advantage of opportunities and
confront threats. Specifically, the analysis of the macro-environment
is essential because it can provide guidance on what to do about
situations that affect the company's productivity and competitiveness,
Cocoa marketing in the Malimpia parish of Quinindé canton: Analysis of the macro and microenvironment
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address critical points and take advantage of opportunities that can
improve the company's situation (Philip, 2012).
For the analysis of the microenvironment, IICA (2018) considers that
the analysis of the situation in which the company finds itself in
relation to innovation, efficiency, quality and capacity to satisfy the
consumer, would allow progress to be made in building competitive
advantage. In this regard, the capabilities and resources that
represent its competitive advantages, the characteristics of its
products and/or services and its marketing and organizational
processes or methods should be reviewed. Therefore, the core
capabilities that generate innovation, quality, efficiency and capacity
to satisfy the customer in the functional areas of the company should
be made visible. In order to subsequently through differentiation or
lower costs of products and / or services concrete value for target
consumers and increased profitability, forging a competitive
advantage for the organization. (IICA, 2018).
Macro and micro-environmental factors of cocoa marketing in the
Malimpia parish.
With respect to the analysis of the macro-environment, the political,
economic, social, technological, ecological and legal factors that
affect the cocoa sector in Malimpia parish were determined. Likewise,
the forces of the sector were determined, pointing out the following
fundamental aspects in the dynamics of the research:
1. In terms of political factors, a positive scenario was determined for
the cocoa production sector, despite the uncertainty caused by
economic, fiscal and labor measures. In fact, there are policies for the
promotion and reactivation of the agricultural and productive sectors
to strengthen micro, small and medium-sized enterprises. Among
these, the Coffee and Fine Flavored National Cocoa Reactivation
Project and the Plan for Competitive Improvement of Cocoa and its
Derivatives stand out. The first seeks to increase production,
developing training for different stakeholders, in addition to providing
seeds and inputs and economic credits. (MAGAP, 2019). The second
initiative is aimed at increasing the production and export of cocoa
Cocoa marketing in the Malimpia parish of Quinindé canton: Analysis of the macro and microenvironment
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and its derivatives. The agroindustrial chain of cocoa and its
derivatives was declared a priority to achieve the 2030 Sustainable
Development Goals.
2. With regard to economic factors, despite the economic situation
and the stoppage of activities due to the sanitary crisis, the production
sector presents a positive scenario. The Plan for the Competitive
Improvement of Cocoa and its Derivatives was approved as public
policy, with a public and private investment of US$600 million over
the next 10 years. The program is expected to increase the number
of hectares of cocoa planted and increase exports of cocoa and its
derivatives, as well as generate 12,000 jobs and maintain the 120,000
jobs currently generated. (Ministry of Production, Foreign Trade,
Investment and Fisheries, 2019)..
3. With respect to social factors, there are measures such as the
generation of discussion spaces, visits to sectors with similar
characteristics and technical and educational guidance to the
inhabitants of the sector, to maintain employment and access to food,
basic and social services to ensure the welfare of families.
4. With respect to technological factors, the Plan for Competitive
Improvement of Cocoa and its Derivatives has promoted investments
in agricultural research, development and innovation, as well as in
cultivation and harvesting technology. This represents an opportunity
for the cocoa sector of the Malimpia parish, to be able to count on
training in technification during the traceability of cocoa. In addition
to knowing and having access to inputs, materials and machinery to
improve productivity, as well as innovate in the development of new
products.
5. In attention to ecological factors, efforts for the production of
organic and quality cocoa are evident. Proof of this is the project
"Cacao Bioandino" together with Colombia and Peru, aimed at
sustainable development, fair trade and the promotion of quality
organic fine aroma cocoa. (Diario Expreso, 2019).
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6. Regarding legal factors, a broad legal framework was found that
defines the competencies of all the institutions that regulate the
activities of the cocoa sector. These include: the Organic Agricultural
Health Law, Organic Health Law, Resolution No. 266, Procedures
Manual for the Registration of Operators of AGROCALIDAD,
Technical Resolution No. 183, AGROCALIDAD, Good Agricultural
Practices Guide for Cocoa and NTE INEN Standard 176 "Cocoa
beans. Requirements" and other related laws.
In relation to the analysis of the microenvironment, the analysis of
Porter's five external forces yielded the findings highlighted below.
With respect to rivalry among existing competitors, there was
evidence of high rivalry among cocoa marketing companies.
The bargaining power of suppliers is low because the price of beans
is determined by the New York Stock Exchange. While the bargaining
power of buyers is medium, although the price of cocoa is already
determined, they negotiate the purchase price in relation to the
quality of the cocoa.
On the other hand, the threat of new entrants and exit barriers are
low, so low restrictions on cocoa marketing allow new companies to
market cocoa beans. Likewise, it is not difficult for companies to exit
the market and stop trading. For the threat of substitute products or
services, it was found that there are no substitute products for the
cocoa bean. However, there is a risk of crop change in the plantations.
This leads to a decrease in supply. On the other hand, there are
studies and improvements in varieties, but there is no threat of
substitute products.
The results are in line with those obtained by Pila (2016)regarding
sustainability in the commercialization system evidenced through the
analysis of the macro-environment. Pila found that such sustainability
leads to improvements for the quality of life in the region and
therefore in the producers of the communities. This offers
opportunities to the cocoa producing and marketing organizations,
giving the opportunity to improve the form of marketing and allowing
to expand the market, access to these marketing opportunities as it is
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based on the knowledge of all the factors that affect the productivity
and competitiveness of the marketing activity. This will make it
possible to mitigate the critical nodes and take advantage of the
opportunities that arise.
In this sense, the analysis of the macro-environment shows a positive
and supportive scenario that benefits the commercialization of cocoa
in the Malimpia parish, by being able to receive advice and support
in the process of cocoa processing at the national level. According to
CESLA (2019)According to CESLA, this political panorama represents
an opportunity for the commercialization of cocoa, by being able to
access economic credits with payment facilities promoted by the
state. This is the result of the government's political strategy to benefit
the agricultural sector and promote cocoa as a potential product.
Initiative to turn Ecuador into a world reference in the production and
export of cocoa and its derivatives.
In economic terms, the public and private investment policy
represents an opportunity for cocoa marketing, aiming to focus
resources on smaller companies and productive sectors. By
prioritizing the sector's activities and maintaining jobs. This is
established in the Development and Land Use Plan of the Malimpia
parish, which states that the aforementioned plan will be
implemented in the area. (2014)The aforementioned prioritization
generates an assurance of the well-being of families. In this regard,
the Ministry of Production, Foreign Trade, Investment and Fishing
agrees with the Ministry of Production, Foreign Trade, Investments
and Fisheries (2019) which states that this aspect favors the cocoa
commercialization chain, ensuring that producers and other actors do
not paralyze their activities due to lack of resources and support.
The results referred to the support in Research, Development and
Innovation make it possible to carry out the process of technification
during the traceability of cocoa. In addition, to know and obtain
inputs, materials and machinery to improve productivity. The current
legal framework for the traceability of the cocoa chain would ensure
quality in each of the processes, which adds value in marketing.
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In this sense, all the aspects mentioned above: agricultural, economic,
environmental, social welfare, research, development and innovation,
food security, as well as foreign trade, technological implementations
in agriculture, sustainable development policies, laws and quality
standards represent an opportunity, while the political instability of
the government, the health emergency due to COVID 16, and the
economic situation are a threat to cocoa marketing.
Regarding the internal analysis of the microenvironment of the cocoa
sector, the research conducted by Bone (2015)on the improvement
plan for the association of cocoa producers of Atacames. It highlights
the advantages of the organization of having a very good quality
cocoa and that it has all the necessary elements to grow as a
marketing organization. By improving sustainability, the organization
has sufficient collateral and can obtain economic resources more
easily. As for the need to devise strategies to promote cocoa
marketing. (Soria, 2017) to promote the commercialization of cocoa.
Conclusions
This study was driven by the analysis of the macro and micro
environment of cocoa marketing in the Malimpia Parish, Quinindé
Canton of the Province of Esmeraldas-Ecuador, which despite being
a cocoa area does not have an analysis of the environment of internal
and external factors to implement actions based on these factors, This
not only generates a lack of knowledge of fundamental aspects for
local development, but also neglects concrete situations that allow
commercial and financial exchange within and outside the zone under
fair conditions that add value to the productive sector in general.
In this way, achieving the necessary momentum to consolidate
processes, energize production actions, generate in the community
the culture of local development and project their products beyond
the established value chain, will be some of the goals that are
proposed so that the change is not only superficial, but transversal
that influences and leaves a mark on each of those involved in the
business proposals. This raises the need to benefit the producers of
the parish by contributing to increase their income by accessing fair
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prices, as well as the creation of sources of employment for all actors
in the cocoa chain of the Malimpia parish.
In this order of ideas, participation in working groups that transcend
the borders of the canton and the province is of great benefit to
evaluate the management plans that are carried out in other areas
and measure the possibility of replicating or contributing to producers
of the same agronomic species to strengthen the economy through a
research and development network and to strengthen the ties of
strategic alliances. It is imperative to establish alliances between
cocoa producers through associations. All this in order to sensitize
and raise awareness among cocoa growers in Malimpia and its area
of influence about the importance of improving the marketing of the
bean, carrying out a process of technification throughout the chain
that adds value and ends with better quality beans that are paid at
the price determined by the market.
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