THE 10 MAIN RAW MATERIALS PRODUCED IN ECUADOR - CULTURE VOCABULARY - 2024

The most prominent raw materials produced in Ecuador are oil and various food products such as bananas, crustaceans or caviar. This results in Ecuador's economy being the eighth largest in Latin America and occupying 69th place worldwide.

In addition to oil, a leading export product, the South American country stands out for the production of various agricultural products such as bananas, coffee, cocoa, rice, potatoes, tapioca, sugar cane, cattle, sheep, pigs, meat, dairy products, woods, fish and shrimp.

Other types of industries such as textiles, food processing, wood or various chemical products also have a prominent place.

Most produced raw materials in Ecuador

One of the indicators that allow us to know which are the raw materials that are mainly produced in Ecuador are their exports. Here we see the 10 raw materials that this country produces and exports the most with figures from 2015:

1- Crude oil: $ 6.4 trillion

Ecuador is the smallest producer member of OPEC (Organization of Petroleum Exporting Countries), but it does not stop being the main source of income in this country.

To expand its production capacity, Ecuador has had international loans from China. It produces 29.1 million tons of oil per year.

2- Bananas: $ 2.8 billion dollars

In general, the agriculture sector in Ecuador is responsible for 14% of GDP and employs 30% of all workers in the country (1.25 million workers).

Its largest product is bananas of various types and species. Although it is an industry that has not stopped, its main problem is the low international price of bananas and therefore a reduced profit margin.

3- Crustaceans (including lobster): $ 2.3 billion dollars

The main crustacean that Ecuador exports is shrimp, being the second largest exporter worldwide, which represents 2% of the country's GDP. Technology has impacted the way shrimp are obtained from natural fishing to farm production methods.

4- Fish, caviar (canned and prepared): $ 921.3 million dollars

Prepared or preserved fish, caviar, and caviar substitutes are prepared from the fish's eggs. Ecuador is one of the important exporters of this product to countries such as the United States, Japan, Italy, the United Kingdom and France.

Distribution of the raw material produced in Ecuador

5- Fresh or dried flowers (for bouquets or decoration): $ 819.9 million dollars

Ecuador is the third largest exporter of cut flowers worldwide, of which 73% are roses. It is an industry that employs more than 100,000 people. The great advantage of the country is the natural light which it enjoys all year round and which is perfect for growing flowers.

6- Cocoa beans: $ 705.4 million dollars

At one time, coffee production was one of the most important areas of the Ecuadorian economy, but it has been declining due to a global recession. Now it is the production of cocoa beans that has taken an important role because it is not only exported, but also consumed locally.

7- Raw gold: $ 681.8 million dollars

Ecuador has deposits of gold, silver, lead and zinc, being a great potential in mining and being considered as an emerging market since it still has much to take advantage of.

8- Processed petroleum oils: $ 294.2 million dollars

These are other oil derivatives taking advantage of the large reserves that Ecuador has.

9- Palm oil: $ 225.4 million dollars

Palm oil is incredibly versatile as it is found in products as diverse as soap, ice cream, and even chocolate. It comes from the palm oil tree that is native to West Africa, but has been planted throughout the tropics as it is in high demand for food, personal care products and more.

Ecuador has 140 thousand hectares in 2011, but has doubled its production since 2006.

10- Sawn lumber: $ 152.2 million

Ecuador is a country with great potential for the sale of wood, since it has 3.6 million spaces available for reforestation. This industry has a high technological level to produce derivatives of wood.

Due to its geographic location and diversity of climates, Ecuador is a forest paradise serving markets such as the United States and Japan. Ecuador produces an average of 421,000 tons of a variety of fine wood, common, construction wood, pallets and others.

Challenges of the Ecuadorian economy

Quito, Ecuador

Ecuador faced many difficulties during the global crisis of 2009, and since 2012 it has maintained a fairly stable growth of around 4.7%. This growth led to a decrease in poverty and a general improvement of services and infrastructure in the country.

However, since 2014, this growth has been threatened by a slowdown associated with lower oil prices and a stronger US dollar.

In this difficult period, Ecuador faces the challenge of being able to adapt its economic structure to the new international context in order to continue growing and protect the progress made in social matters during the oil boom.

At this time, the challenge for Ecuador is to maintain its economic stability and continue to grow.

References

1. The World Bank. 10/03/2016. "Ecuador": worldbank.org.
2. Ecuador review. 12/22 / 2015. “Economy: A Difficult End To 2015 And Scenarios For 2016”.
3. Nations Encyclopedia. Accessed March 23, 2017. “Ecuador”: nationsencyclopedia.com.
4. World's Top Exports. Accessed March 23, 2017. Daniel Workman, "20 Most Valuable Ecuadorian Export Products": worldstopexports.com.
5. World Energy Resources 2016. Accessed March 23, 2017. “Ecuador oil”: worldenergy.org.
6. OCEC: The Observatory of Economic Complexity. Accessed March 23, 2017. “Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs. ”: atlas.media.mit.edu.
7. Financial Times. 04/10/2015. Mick Conefrey, "Roses with altitude: why Ecuador's flower industry stands out." Recovered from ft.com.
8. Ensia Media. Accessed March 23, 2017. Duncan GromKo, “Can Latin America do palm oil right”: ensia.com.