Subsistence Economy: The Precarious Marketing of Kichwa Chakra Products in the Tena Canton, Ecuador

Across Latin America, numerous traditional agroecological systems face increasing challenges in integrating into formal markets. This issue is also evident in the Chakra Kichwa, an ancestral agroecological production system primarily managed by Indigenous women. Despite its cultural, environmental, and nutritional significance, its integration into the formal market is hindered by structural limitations that keep producers in conditions of subsistence and marginalization. This study analyzes the economic benefits derived from the commercialization of agricultural products by 642 producers, intermediaries, and vendors who belong to 20 associations based in the rural parishes of Tena canton (Napo Province) and who market their products in urban areas. A total of 234 surveys were conducted, with a 95% confidence level and a 5.2% margin of error. Findings indicate that the sale of Chakra products generates an average monthly net income of $211.06, provided the value of family labor is not accounted for. However, when imputing the monthly cost of this unpaid labor, the system shows losses of $409.48. Additionally, four scenarios are simulated: the first three assess the profitability of the commercial circuit under alternative transportation logistics; the fourth explores potential gains from increased selling prices associated with improvements in infrastructure, inputs, and transportation. In all cases, sales labor is replaced with hired personnel. The results indicate that these scenarios could increase net income by between 28.45% and 92.23%. Nevertheless, when accounting for family labor costs, all scenarios continue to reflect losses. Consequently, the model indicates that achieving economic breakeven would require quadrupling the current productivity of the Chakra system.