

Sorting hats at the old Ortega factory in Cuenca

One of the largest exporters in Cuenca today is Serrano Hat. They say they are the same company that was started by Don Bartolome Serrano and are, therefore, the oldest hat company in Ecuador. Their competitors say they are not the same company, not the same Serranos, and not the oldest. As noted in the section Grades of Quality of Panama Hats the exporters in Cuenca do not agree on how to grade a Panama hat either. Nor will they work together for their mutual benefit, to protect and expand the Panama hat market overall. I have tried on several occasions to persuade the three largest exporters to unite around a common goal. No luck at all. Interestingly, each company claims to fully support the goal while assuring me that the other two will not support it. So, if they all support the goal, why will no one work to achieve it? My biggest problem with the Cuenca dealers is that they routinely sell Cuenca hats as “Montecristi” hats. The largest, K. Dorfzaun, agrees that the practice is wrong. But they all have to yield to European and US customer demands that they label the hats as “Montecristi” hats. If they do not do as asked, they will lose the order to a neighboring competitor who will. Even an exporter who wants to end the practice cannot. All of them are struggling to stay profitable. No one can risk losing business.