Rising cocoa prices bring booming profits, violence to Ecuador
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00:00Here in central Ecuador, Julia's cocoa business is seeing historic profits after global cocoa
00:06prices skyrocketed following a poor harvest in West Africa.
00:10Before the boom, 100 kilos of cocoa beans would sell for around $60, but recently she
00:16sold the same amount for $420, seven times the original price.
00:22The rise in price and high demand for chocolate have benefited us as small farmers. We'll
00:26have better conditions and be able to take care of our plants with even more dedication
00:31because now it is truly the golden seed.
00:34But the golden seed hasn't gone unnoticed, with Julia's colleagues even being kidnapped
00:39and companies seeing trucks stolen regularly.
00:42With a murder rate of 111 per 100,000 inhabitants, the province is one of Ecuador's most violent
00:48in a country racked by organised crime.
00:51Cocoa exporters are now forking out millions in extra security for their safety.
00:56There have been many theft incidents, which also means increased costs because all shipments
01:01require private security and all movements to the port have double custody.
01:07Experts warn that the boom could quickly come to an end, as the soaring prices could force
01:11people to cut back on their sweet tooth.
01:15The variable we can control as producers is the yield. The price variable is a commodity
01:19that due to its volatility we cannot control. Instead, we're looking for strategies that
01:23allow us to sustain them in the medium and in the long term.
01:28Last year, Cocoa brought in $1.3 billion to Ecuador, with the first four months of this
01:33year seeing sales of $774 million worth, according to the central bank.