In El Salvador the small size of lots conspires against productivity and profitability in the agricultural sector.
Only sugarcane crops and coffee meet the demand within the country, having to import corn, beans, rice, fruits and vegetables in order to supply the needs of the population.
To overcome the problem, Oscar Albanés and Agustin Martinez, directors of the Agricultural Suppliers Association (APA) and the Chamber of Agriculture and Agro Industries (Camagro) indicate that, among other measures, "production chains should be developed and strengthened as well as coordinate collection systems allowing you to store crops so that farmers can gradually take their produce into market and negotiate good prices with wholesalers and the industry, maintaining and increasing production for the benefit of consumers, the country and their own.
Farmers and growers have voiced their concern over the new taxes they will have to pay.
One of the most worrying topics, they argue, is the application of a 13% value added tax when importing capital goods. Although these amounts are deductible from income taxes, they have negative effects on the companies' cash flow. Additionally, value-added tax will also be applied to several export categories like coffee.
XAGRO S.A. Announced that they have signed a purchase agreement with Jam LLC to buy 5,000 MT of red beans from China that will be sold to importers throughout Central America to help ease market pressure and lower the high prices caused by recent shortages.