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For sugarcane producers, court ruling sets bad precedent if minimum support prices are not respected | Economy | news

For sugarcane producers, court ruling sets bad precedent if minimum support prices are not respected | Economy | news

Defensive action could return Guadalupe Llori to the Presidency of the National Assembly; Likewise, another similar resource stopped the tenure of the Bank CEO appointed by the Legislature, Raúl González; here to mention two of the most recent cases where this type of resources were the main elements in the political and financial field.

Now the agro-industrial sector has been added, which succeeded by reversing the same way on an agreement by the Ministry of Agriculture and Livestock that raised the price of a ton of cane from $35.05 to the previous price, $31.70.

The judicial unit cancels the increase in the price of the tonne of sugar which would return to $31.70, the value frozen for seven years

Ministerial Agreement 047, issued last June 26, did not comply with the agricultural businesses, the rest of the sector, the sugarcane growers, who last June with the new price believed that the seven years during which that value was frozen, they were. completed and they would see more profitability in their work.

Now they are simple spectators to the legal battle between the mills and the MAG, who appealed the ruling, although there is no time or date yet to present those arguments.

“That is a legal effort between the industry, its lawyers and its representatives with the Ministry of Agriculture, headed by the Minister, its lawyers and its representatives; we have nothing to do with the matter, as APCAM or as sugar cane growers,” said Alberto López, president of the Association of Sugar Cane Producers in the Milagro Canton (APCAM), who rejected the resolution of the Multidisciplinary Judicial Unit of the canton of Yaguachi. ..

For López, the ruling of the court creates a negative precedent for the entire agricultural sector, since it confirmed that from now on the minimum support prices for agricultural products set by MAG will no longer be respected, which increases the crisis in the sector.

“We will meet with the producer associations to define our position and take our measures,” warned López, who declared that the appeal presented by the MAG is “fair and necessary” to protect farmers.

For their part, the agricultural businesses made up of five mills: Valdez, San Carlos, Monterrey Azukarera Lojana, Agroazúcar and Del Norte operated the calculators. Once the ministerial agreement was issued, they projected additional spending of $9.5 million; and a month and a half later the projection of the impact exceeded $12 million, according to the National Confederation of Sugar Producers in Ecuador (Fenazúcar), which represents the mills.

Agriculture Minister calls for price control from sugar industry over alleged failure to pay $35.05 per tonne

Fenazúcar also expresses the protection of thousands of jobs that depend on this activity, bearing in mind that the Isabel María and Miguel Ángel mills closed their operations in view of the crisis and complexity of the business since 2016; and they don’t want that to be the fate of their five member mills.

What do these five mills stand for and what areas do they operate for their production?

The Noboa Corporation bought Ingenio Valdez in 1992 and from 1996 the Nobis Consortium takes over its administration. Photo: Taken from https://www.azuleravaldez.com/

Ingenio Valdez

Rafael Valdez Cervantes founded the Ingenio Valdez in 1884 in the city of Milagro today, in 1922 it is composed in the city of Guayaquil, Compañía Azucarera Valdez S.A. In 1992 it was acquired by the Noboa Corporation and has been since 1996. The Nobis Consortium takes over its administration.

They are dedicated to the cultivation of sugar cane, production and marketing of sugar (white, special white, brown, white light, turf light, raw, turbinado) and panela. They also diversify their business towards alternative sweeteners like coconut sugar, stevia and others.

According to its sustainability report, during 2020, it presented losses in its balance sheets, due to the reduction in sales revenue due to the pandemic, and due to high production costs.

Sales revenue was $114,990,000, and operating expenses were quantified at $132,128,000, resulting in a loss of $17,138,000.

During 2020, they had the participation of 348 cane growers (27 large, 108 medium and 213 small) who cultivated 10,691 hectares and harvested 867,875 tons of cane.

The company has been listed on the stock market for 25 years, there are several shareholders that exceed 10%. Currently, the Company’s Capital Stock is $33,000,000 and is distributed to 981 shareholders, according to figures from its latest sustainability report for the year 2021. Photo: Taken from @AzucarSanCarlos

San Carlos Sugar Mill

It is located in the province of Guayas. Its industrial complex is in the canton of Marcelino Maridueña, and the agricultural area is located between the cantons of Marcelino Maridueña, Naranjito, El Triunfo, Yaguachi and Babahoyo with an area of ​​19,359.27 hectares. In addition, they have storage and distribution centers in the towns of Durán and Marcelino Maridueña.

The company has been listed on the stock market for 25 years, there are several shareholders that exceed 10%. Currently, the Company’s Capital Stock is $133,000,000 and is distributed to 981 shareholders, according to figures from its latest sustainability report, from 2021.

In that year they produced 3,342,723 sacks of sugar, that is. 135,274 bags of 50 kg more than the previous harvest, due to the milling of more than 2,384,457 tons of cane, the highest number in the last ten years, an amount obtained according to the good agricultural result achieved at the 85 tons of cane per hectare (considered the best performance since 2016) and an improvement in the pol content in the cane.

The Ingenio Monterrey y Azucarera Lojana is located in the canton of Catamayo, in the province of Loja, dedicated to the production and refining of cane sugar, cane sugar syrup and cane molasses. Photo: Taken from https://www.malca.ec/

Ingenio Monterrey Azucera Lojana

It is a company for more than 50 years, located in the canton of Catamayo, province of Loja, dedicated to the production and refining of cane sugar, cane sugar syrup and cane molasses.

It currently has a subscribed capital of $7.2 million, according to information from the Companies, Securities and Insurance Supervision. In 2021, he paid $5,696.66 of income tax made and $14,006.82 of tax on foreign currency outflows, according to information from the Internal Revenue Service (SRI) portal.

The company has 23,262 net hectares of cane from the mill and third parties. Its grinding reaches 1,700,000 tons of cane. Photo: Tomado de @MAATE_Zonal6

Agrosugar (La Troncal)

The mill is located in the province of Cañar, it was born in 1963 from the union of the Franco-Ecuadorian capitals, but only four years later it started its first harvest, with a production of two million bags per year.

In those days it was considered the most modern sugar mill in all of South America, according to the company’s website.

In the seventies it was nationalized and in 1994 it returned to private hands, when it was acquired by an Ecuadorian group. In mid-2008, the State of Ecuador seized the mill. After three years of state administration and two auctions, in October 2011 it was acquired by the Gloria (Peru) and Peña y Jarrín (Ecuador) groups, businessmen with experience in the fields of industry, agriculture, service and transport.

The company has 23,262 net hectares of cane from the mill and third parties. Its grinding reaches 1,700,000 tons of cane.

El Ingenio is the most important Agroindustrial company in Imbabura and Carchi, with suppliers and cultivation programs for 4,600 hectares of sugar cane. Photo: Taken from @rcifuentesf

North Sugar Mill

The company Ingenio Azucarero Del Norte – Iancem Mixed Economy Company – is located in the province of Imbabura. The company, founded in 1986, is dedicated to the production and refining of cane sugar, cane sugar syrup and cane molasses.

The origin of the mill dates back to 1964 when the Social Welfare Funds decided to install a Sugar Mill in the area, and hired the companies Fives Lille Cail and Granda Centeno for it. When the work was completed in 1966, the Ingenio was sold to the company Taina, with whom the company was seized in 1977, in view of the inability to fulfill the commitments received with the Social Security Institute of Ecuador (IESS) and the company. to the hands of the judicial depositors.

In 1985, the Ingenio Azucarero del Norte Mixed Economy Company was established, made up with the contribution of IESS, sugar cane growers from Imbabura and Carchi, private shareholders and company workers.

The mill is the most important agro-industrial company in Imbabura and Carchi, with suppliers and cultivation programs for 4,600 hectares of sugar cane. (YO)

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