The barriers imposed by the Honduran and Panamanian markets, coupled with the negative effect of the recent tax reform, force Nicaraguan cattle ranchers to predict a bleak future.
Figures from the National Livestock Commission of Nicaragua (Conagan) specify that between 2017 and 2018 meat exports from Nicaragua fell by 7.9%, from $587 million to $541 million, and in the case of dairy, the fall was 8.4%, going down from $177 million to $162 million.
The dairy sector in Nicaragua anticipates a decrease in exports of cheese and other dairy products to El Salvador, due to more stringent controls imposed recently in this country.
El Salvador is the main export destination for Nicaraguan cheese, and businessmen in the sector expect to feel a negative impact in the coming months due to new rules on importing cheeses and other dairy products which will come into effect in September in that country.See: "El Salvador tightens controls on dairy imports".
In the first four months of the year the volume of meat exported exceeded the figure for the same period in 2016 by 45% and generated income of $134 million.
The value exported was also higher than the one registered in the first quarter of last year, when $96 million was exported, according to Cetrex's figures.
Representatives of the sector attribute the better results to diversification of the markets for which Nicaraguan meat is destined.René Blandón, president of the Comisión Nacional Ganadera de Nicaragua (Conagan), commented to Elnuevodiario.com.ni: "The industries, which are responsible for placing the processed product, have got their finger out, so to speak, in searching for and conquering new markets for meat."
This year the union of beef exporters expects to sell abroad 113,000 tons of beef and offal products.
Directors of the Nicaraguan chamber of beef exporting plants estimate that sales this year will generate $480 million in revenue.They also announced they will be working on the implementation of improvements that will allow them to increase the value added of the final product, in order to enter more demanding markets, such as Europe.
In the difficult route to increase the sector's sales abroad, the country has so far managed to register 58% of the cattle herd.
The advanced comes after five years of efforts between the authorities and trade associations to have included in their records 22% of cattle farms in the country and 58% of cattle organizations, but industry representatives believe that there is still much to be done to meet the traceability requirements that are impeding the entry of Nicaraguan meat products into some markets, including the European Union (EU).
The livestock sector attributes the reduction in sales in the first nine months of the year, compared to the same period of 2013, to increased smuggling.
Some 39,800 cattle were exported up to the month of September, according to reports from the Central Bank of Nicaragua. This amount reflects a decline in sales compared to September 2013 when 56,000 heads were exported.
On June 23rd and 24th entrepreneurs will gather together to discuss issues such as modernization, breeding and feeding of the cattle herd.
With the expected participation of about 450 farmers from across the country and the aim of promoting new techniques and presenting successful experiences for development of efficient and competitive livestock, the V National Livestock Congress will be held from 23 to 24 June in the country, as a prelude to the XXI Central American EXPICA Fair to be held from 17 to 28 July this year.
Entrepreneurs in the meat industry believe that the increase in exports of live cattle will affect the future of the herd.
"The industry's concern is that Guatemala has already imported 3437 tonnes of cattle, where a large amount of the animals have not met the technical criteria set out in the Ministerial Decree number 027-2007, issued in September 2007 by the Ministry of Agriculture and Forestry (Magfor) and the Ministry of Development, Industry and Trade (Mific)", reported Laprensa.com.
The project entitled TRAZAR-nic will be integrated into the Bovine Traceability Program of the Government of Nicaragua in order to manage the processes of certification and traceability of cattle.
An article in Laprensa.com.ni reports that "This program will complement the technical regulations NTON 11-026-10, for the registration and identification of bovine animals, approved by the Ministry of Agriculture and Forestry (Magfor) in October 2011. '
The event allows sharing of technologies and successful experiences that promote the technological development of livestock and competitiveness with a focus on ecological agriculture.
The III National Cattle Congress, will take place in Managua and is being organized by the National Nicaraguan Cattlemens Association (CONAGAN) and the Institute of Agricultural Technology (INTA) and aims to disseminate technologies and successful experiences that promote the technological development of livestock and competition with an agro-ecological approach.
The country's livestock sector expects to have exported $500 million worth by the end of 2011, $100 million more than in 2010.
The increase would be driven by the export of meat, currently the country’s second largest export, cattle and cheese, are also among the top 20 selling products abroad.
René Brazier, president of the Nicaraguan National Livestock Commission (Conago in Spanish), explained that the main market for the commercial cuts is still the United States, while Puerto Rico, Venezuela and El Salvador are the largest recipients of select cuts.
After a year and a half of not exporting, Mexico has approved in principle the entry of Nicaraguan meat for six months.
During the month of May, Mexican animal health authorities, inspected slaughterhouses and industrial plants in order to determine the validity of the authorizations for exportations for the next two years.
According to an article in Laprensa.com.ni "René Blandon, the president of Conago said that since last year, Mexico has imposed barriers to meat exports, Nicaragua has failed to collect about 500 thousand dollars a month."
They argue that they must ensure there is enough cattle before building new slaughterhouses.
Representatives from the cattle industry responded to Albalinisa’s proposal of building two new slaughterhouses explaining that the focus must be first set on solving some of the issues which limit the sector’s productivity.
Specifically, they argue that even though they require additional slaughterhouses, they must first ensure there is enough cattle to supply them.
In November, beef exports generated $ 281.4 million, $ 69 million higher than the same period of 2009.
René Brazier, President of the National Cattlemen of Nicaragua (Conago), noted as reasons for the increase to better international meat prices and increased production in the country.
Elnuevodiario.com.ni points out, "that even today, some processing plants in the country have sent 12 containers of meat to the Russian market ...
The Nicaraguan Chamber of Meat Trade is looking to expand beef exports in 3,000 additional tons.
The president of the National Cattlemen Nicaragua (Conago), René Blandon stated that if successful, beef exports to that country would reach 22 tons per year.
"Conago also hopes to improve the livestock value. Blandon said that 'the price they are paying in Venezuela, which is $ 1.30 per kilo, is better than other markets including Central America and Puerto Rico. That makes it attractive and stimulates the small farmer," stressed Blandon, according to La Prensa.