Salvadoran agrifood businesses have expressed their concern that the announced investments are part of a political project.
An article in Laprensagrafica.com that "Alba Foods, another productive programs, along with Alba Petróleos- tied to the political strategy of the FMLN, has invested $30 million this year and among the basic grain harvest 2012 and 2013, expects to complete $60 million to expand its geographical presence.
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.
Local and international businessmen will participate in Agroexpo 2010, from March 19th to 28th.
Exhibitors from Argentina, Canada, Colombia, Spain, Guatemala, Mexico, Nicaragua and Dominican Republic will participate in the event.
“Event organizers announced parallel activities such as rodeos, dog shows, fishing, showcasing agricultural technology, livestock shows, among others”, reported El Salvador.com.
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.