Arguing the imposition of non-tariff barriers, Centrolac has filed with the Central American Court of Justice a claim against Honduras because it prevented Nicaraguan milk from entering the country.
Although the Honduran government insists that restricting the entry of milk from Nicaragua is strictly in adherence to sanitary measures, Nicaraguan producers and exporters maintain their position and are demanding that the government take retaliatory measures against Honduras. Therefore, the company Centrolac presented on May 10 a lawsuit with the Central American Court of Justice, denouncing the closure of borders and accusing the country "... of contravening Community law".
The dairy sector in Nicaragua has denounced the imposition of non-tariff barriers by Honduras, whose health authorities have delayed the renewal of certificates for nicaraguan plants.
It has been estimated that 750,000 liters of milk per month have ceased to be exported to Honduras since November 2015, because the National Agricultural Health Service has not renewed certification of dairy plants in Nicaragua.
Improved productivity and increased industry inventory due to fears of the drought affecting production have led to an oversupply which processing plants are finding difficult to cope with.
Although the dairy sector had thought the start of operations by the Mexican company Lala would be sufficient to meet the supply milk, increased inventories resulting from an increase of at least "....
Producers are demanding a halt to imports of the product arguing that industrialists are taking advantage of the low prices of milk powder to use them as a substitute for fresh milk.
In January this year, imports of milk powder reported $3.89 million, while in the same month last year $3.41 billion was recorded. The price per ton showed a decrease of $10, since during 2014 it was trading at $820 and went down to $810 this year, according to statistics from the Center for Exports.
In what milk processing companies see as a threat, dairy producers are hailing as an opportunity to grow and to enjoy stable prices.
According to an article in Laprensa.com.ni, "the immediate concern of the companies, Centrolac, Parmalat and Eskimo is a lack of clarity over the benefits being offered by the Government to Grupo Corporativo Lala to encourage them to finally decide to invest in Nicaragua, after years of perseverance."
In 2013, the dairy sector is expected to keep the same pace of growth it has reported since in the year 2000.
Industry representatives indicated that for this year they expect an increase in the collection of milk by processing plants and cooperatives.
Laprensa.com.ni consulted Centrolac’s executive director, Alfredo Lacayo who said "that one of the company's plans is to increase collection by between 8 and 12 percent.
Representatives from dairy farmers in Nicaragua and milk processors have agreed to increase collection to keep prices stable.
In order to gain more stability in prices, milk producers and processors have decided to increase the collection of milk from 10% to 20% in light of the crisis caused by low prices paid by informal plants.
The agreement was taken at a meeting of representatives from the companies Centrolac, Nilac, Parmalat, Eskimo and PROLACSA, farmers and authorities.