Businessmen have complained to the Executive office about the slowness and inefficiency of customs inspections of the country, where containers are retained for up to 15 days.
The truckers blockade which paralyzed customs offices in Jutiapa for a week, has made entrepreneurs question the efficiency of border posts in the country because of the time invested in land transport. They claim the process is slow and makes products more expensive as well as harming the competitiveness of the country.
Agricultural production in Mexico is favored by the devaluation of the peso, which has encouraged smuggling to Guatemala of pork products, coffee, poultry and eggs.
The union of entrepreneurs in the agricultural and livestock sector is claiming that it is now not only pork which is being traded illegally on the border, but other products such as coffee, eggs and poultry.
The central government has presented the initiative to representatives of the Chamber of Agriculture and Agribusiness (Camargo), and estimated that the work would require an investment of between $80 million and $100 million.
In Nicaragua, the largest producer in Central America, the price of a metric ton increased from $602 in May 2013 to $1676 in May this year.
Of the 'seda' variety of red beans, the countries with the largest price increases are El Salvador and Nicaragua, with increases of 80% and 178%, respectively. Guatemala reports a 130% increase in the 'rojo tinto' variety of red beans, according to the Agricultural Council (CAC).
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.
Businessmen from both countries met to explore joint investment opportunities.
The event saw the participation of presidents Lula da Silva and Mauricio Funes, as well as several business chambers. The chambers remarked Brazil’s willingness of providing credit for productive projects.
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.
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.
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.
METAGRO is a Guatemalan based manufacturer that provides high end solutions of agricultural transport equipment, we are focused on helping customers be more productive as they help to improve the quality of life for people around the world.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (502) 2383 2720 - (502) 5595 9953