Food sovereignty initiatives including price controls, water management and prohibition of agrochemicals are typical examples of a political will being disconnected from the productive reality.
The agricultural sector says that the three bills which are being discussed in the Legislature will have negative effects on the activity, distorting prices and causing costs to rise.One is the draft law on prohibition of agrochemicals, another that on food sovereignty and security and the third, the General Water Law.
Milk producers claim that the insecurity is affecting livestock farms and preventing the attraction of more investment to the sector.
The Association of Milk Producers of El Salvador (Proleche) states that insecurity in some regions has forced SMEs to close. Although exports to markets such as the United States have increased and "... the dynamics in the formal milk producing sector are positive, the difficulties faced by small farmers are great."
In 2009, authorities confiscated 1.7 million pounds of smuggled dairy products, worth $4.4 million.
Orlando Carranza is the President of Proleche, the Dairy Producers Association of El Salvador. He stated that smuggling is the industry's largest problem, and that the situation has worsened in the past year.
State banks will have more than $100 million in loans available for agricultural producers.
The Agricultural Development Bank expects to lend $95 million, while the Multisectoral Investment Bank said that it loaned $54 million to the sector last year. However, there is still no estimate on how much it will lend in 2009.
The poultry and dairy industries of Central America are seeking special or exclusive treatment for imported products in the trade agreement being negotiated with the European Union.
"Dairy companies have asked for special treatment, and are sticking with their position," said Rigoberto Monge, a member of Central America's negotiating team.
Livestock producers and industrialists of Central America are considering an exclusion since 2007, when they met in El Salvador to consider tariff issues.
Agro2 is committed to producing ethanol from cassava and food products for domestic consumption and export through the use of sustainable agriculture practices while serving as a model of agricultural production in the highly degraded Veraguas region of the Republic of Panama.
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