Sustainability and Rural Development Through the Production of Organic Cocoa in Calceta – Ecuador: Economic Analysis and Assessment of the Implications on the Living Standards of Farmers

Abstract

According to development theory, in the 20th century, the concept of sustainability emerged with three important variables, stability, resilience and adaptability; giving them an economic approach based on productivity, efficiency and effectiveness without neglecting the perceptions of equality and common welfare. Sustainable organic agriculture is a production system that largely avoids or excludes the use of synthetically compounded fertilizers, pesticides, growth regulators, and food additives. Cocoa (Theobroma cacao) is a small sector of all agricultural production in the world. In Latin America, between 70% and 100% of cocoa exports correspond to fine or aroma cocoa, making this region the first producer of this variety at an international level according to the International Cocoa Organization. This paper looks for evaluating the economic sustainability of cocoa production, both in organic and conventional agriculture. An economic analysis was carried out based on a mathematical programming model that projected the maximizations of production and income in Fortaleza del Valle Corporation in Calceta Ecuador. The results show a greater economic sustainability of organic farming compared to conventional agriculture. The higher profitability of organic agriculture was due to the lower requirement of labor and a greater appreciation of the market for organic products that awarded a price higher than conventional prices. Furthermore, the higher profitability of organic agriculture and the use of environmentally friendly inputs in the production process make the farms competitive. Additionally, the environmental results in terms of reducing carbon emissions suggest that the organic system is more effective in mitigating climate change.