RDG analyzed the legal feasibility of operating Agrifood Chain Organizations in Ecuador

21/04/2023

The event was attended by authorities of the Ministry of Agriculture and Livestock (MAG), representatives of producers’ associations, the private sector, international cooperation and legal consultants from the law firm Oyarte & Quintana, who presented the progress of the study being carried out for the design and implementation of the OCAs.

The dialogue began with a contextualization of the situation of agrifood chains in Ecuador. Consultant Christian Marlin explained that despite the existence of various diagnoses on the reality of the chains, sustainable work plans for their development have been minimal and with little implementation. For this reason, he said that “agricultural production chains show weak governance, which affects their capacity for development”.

He believes that this problem can be solved with the construction and implementation of projects with medium and long-term scopes, which guarantee continuous and secure sources of financing. Another challenge facing these systems is the lack of associativity on the part of producers, an aspect that was pointed out by Óscar Torres, undersecretary of Marketing of MAG.

The presentation by the law firm of Oyarte & Quintana began with a comparison of governance mechanisms, based on the experiences of agricultural chains in Colombia and France.

Although the legal and political reality of Ecuador is different from that of the examples analyzed, this vision made it possible to learn about the application of the Organization of Production Chains (OCP) in the Colombian case and the Interprofessional Organizations (OI) in the French case.

Aspects such as the conditions for the recognition of these mechanisms, the representativeness of the organizations, the types of agreements that can be signed, the resolution of disputes and the forms of financing, are some of the aspects of both systems that were presented and compared during this part of the presentation.

Subsequently, the feasibility of implementing OCAs in Ecuador was discussed. Starting from the fact that the Ecuadorian Constitution recognizes the freedom of association and the right to freely develop one’s personality, to assemble and express oneself freely and voluntarily (Constitution of the Republic of Ecuador – CRE, Art. 66, number 13). And that, associativity is perceived as an instrument of participation coming from the agreement of wills. Also, food sovereignty (Article 281, of the CRE) is a strategic objective and an obligation of the State to ensure that individuals, communities, peoples and nationalities achieve self-sufficiency in healthy and culturally appropriate food on a permanent basis, individually, with similar interests and the same purpose.

This would lead to a proposed definition of ACOs as a “grouping of legally constituted organizations, formed on their own initiative at the national level, representative of economic activities linked to primary agricultural, livestock and forestry production and at least one of the following stages of the supply chain: transformation, processing, marketing or distribution of products in one or more sectors. They may cover one product or a group of products and are private in nature”.

The final recommendation of this first part of the analysis concluded that food sovereignty as a strategic element of the State is a concept from which OCAs can be promoted. The supervision of the management of their funds, actions, structure, etc. through the creation of a specific regulatory body, is recommended.

Finally, Carol Chehab, Director of Rimisp in Ecuador, closed this first workshop in which the progress of the study carried out by the legal consultants was presented, explaining that a new day will be held soon with the presentation of the second part of the legal assessment, as well as an exchange of knowledge with representatives of ACOs from different countries, who will visit Ecuador next June.

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