Wheat To Decrease In Ecuador
22 February 2006 Wheat production in Ecuador continues to dwindle to the point where it is almost negligible, reports the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS). Production in 2005 has been revised to 6,000 metric tons (MT) and a projection of 3,000 MT for 2006.
Most farmers in the highland areas are replacing wheat with more profitable crops such as white corn, potatoes, and legumes. Most wheat produced in Ecuador grows in the central and northern highlands under adverse geographic and weather conditions. Rudimentary production techniques and lack of improved seeds result in yields averaging 0.6 MT per hectare. The final product is high in price, low in quality, and not suitable for milling.
Wheat imports for 2006 are forecast at 460,000 MT, a slight growth over the past year, due to increased consumption by the feed industry and the reduction in local production. Total imports in 2005 reached 456,000 MT, of which imports from the US accounted for 139,000 MT (30%). Canada continues to be the main supplier of wheat to Ecuador with 287,000 MT/year (63%) in 2005. However, Argentina made an important inroad of 30,380 MT in the Ecuadorian wheat market in 2005.
These exports took place during the period of April to September when the final duty on wheat was 10%. As a result of the Ecuador-Mercosur agreement, Argentine wheat paid a reduced ad-valorem of 9% during that period, a fact that may have motivated imports. Also, Ecuadorian millers have in the past used low-protein Argentine wheat to blend with high-protein American or Canadian wheat. The animal feed industry also uses a large portion of the Argentine wheat.
Maize production is estimated to remain without major changes in 2006/2007 at 365,000 MT on 118,000 Ha. Production of maize in Ecuador remains inefficient with yields averaging 2.7 to 3.0 MT per hectare. However, several private initiatives (especially by the poultry industry) currently provide improved seeds, technical assistance, and other inputs to some 10% of the planted area, which can reach production yields up to 5 MT per hectare.
Overall annual maize consumption is estimated to grow to 760,000 MT due to the rapid growth of the feed meal compound industry and a greater production of poultry, eggs, pork, and shrimp. Post forecasts maize imports of 430,000 MT in 2006.
Rice production is forecasted at 480,000 MT for 2006 on 215,000 Ha, a small decrease compared to 2005. The planting season started late this year due to dry conditions that caused losses and discouraged farmers. However, as rainfalls resumed in early January, the planting season is expected to be normal. Exports to Colombia resumed in 2005 with 21,000 MT. Exports for 2006 are estimated at 25,000 MT.
Get The Newsletter Today!
