The Honduran dairy industry is requesting the government to file an antidumping petition to milk powder imported by a Mexican corporation.
“A ton is priced at $4.200, but Mexican company Nestlé is bringing it at $2.920. This is dumping, as they are selling it $1.100 dollars below price”, argued Edgardo Leiva, executive director of Fenagh, the Honduran Association of Farmers and Breeders.
Agatha tropical storm passed through the country; it left 10.000 hectares of maize, beans, rice and sorghum completely flooded.
The most affected areas are the Lepaguare valley, Guayape and Olancho, explained Edgardo Leiva, executive director of the Honduran Farmers Federation (Fenagh).
According to Leiva, ‘the government must directly support the sector’, because ‘in these emergency decrees, the State’s sole concern is rebuilding infrastructure, but the agricultural sector is severely affected and there is no production incentive planned for this year’.
The drop is caused by agreements between Honduran breeders, supermarket chains and the Government.
According to data from the Agriculture Secretary, the country used to import 4.7 million pounds of beef meat each month.
Leopoldo Durán, President of the Honduran Breeder’s Federation (Fenagh), told Latribuna.hn that “our meetings with the various members of the meat chain are paying off; supermarkets bought more from us, helping breeders reduce their excessive stock”.
Honduras is joining other Central American countries in blocking the entrance of Nicaraguan meat.
Honduras imposed a 30 to 45 day period for Nicaraguan breeders to increase their sanitation controls. With this action they join Guatemala, which has blocked Nicaraguan meat since November 2009.
“There is also a problem with Panama regarding the quota system, which is assigned via auctions”.
The Executive, Congress and delegates from the private enterprise are analyzing a possible tax amnesty.
They are also considering various initiatives to make the country climb out of the economic crisis.
Congressman Toribio Aguilera explained that this tax amnesty would benefit “those taxpayers who have been unable to pay due to the crisis, and now accumulate too many fines and charges”.
All products are flowing freely across the border since last night, with the exception of eggs, which will be analyzed next week.
Both nations agreed to immediately enable the free flow of any kind of merchandise, and accorded to waive a number of trade restrictions imposed in the past weeks.
"With regards to Salvadoran eggs bound for Honduras, a technical delegation from the Agriculture and Economy Ministry of El Salvador will meet with their Honduran counterparts to find a solution to the problem", reported Elsalvador.com.
Restrictions imposed upon certain products by both countries are causing daily losses in the $1.6 million range.
Protesting the situation and the lack of agreement between both governments, Honduran dairy producers have stormed the customs office at El Amatillo, and are now impending the free flow of goods.
Santiago Ruiz, president of the Honduras Agriculture and Breeding Federation, told Laprensahn.com that "from his poing of view, Salvadoran authorities are reluctant to negotiate a solution with their Honduran counterparts. He understands this attitude as driven by political factors".
The Honduran government announced its intention to eliminate Nicaraguan dairy imports, in order to protect its national industry.
Wilmer Fernández, president of the Nicaraguan Dairy Chamber (Canislan), told newspaper La Prensa that they haven't received any official communication on this topic.
"But he added that, if Honduras blocks Nicaraguan dairy exports, 'it would be violating Central American free trade regulations'".
When expressing their support, private enterprises proposed an additional 10% income tax.
Leaders of the Honduran Council of Private Enterprises, the Chamber of Commerce and Industry of Cortés, the Chamber of Commerce and Industry of Tegucigalpa, the Honduran Federation of Agriculture and Livestock Breeders, among others, expressed their support for Roberto Micheletti's government.
Due to the high competitiveness of the sector, the country could become the first exporter of the product at a global level.
The sector exports about four containers of jalapeño peppers daily, which generates about 1,500 jobs and 100 producers per hectare.
The president of the National Federation of Cattle Breeders of Honduras (FENAGH), Santiago Ruiz, told Hondudiario.com: "Honduras could be the king of jalapeño pepper production in America and the world due to the competitiveness we have."
Cuban buyers, through the embassy, have requested to explore cattle purchasing possibilities in Honduras.
Tiempo.hn publishes: "The Government reported yesterday that they have already initiated contacts with the Cuban government regarding the export of cattle as Honduran producers have requested aid in finding new markets because the local price has been lowered due to competitive offers."
Fenagh proposes strengthening fruit production such as mango, papaya, and others for which there is a huge demand on the international market.
The executive director of the National Federation of Livestock Farmers of Honduras (Fenagh) Marco Polo Micheletti, proposes that the Government adopt policies to stimulate and "drive mass production of tropical fruits for which there is demand in European countries and in the United States, where they cannot be grown due to climatic conditions."
Farmers in Honduras are preparing a court challenge to an attempt by the government's National Agrarian Institute to expropriate their land.
Farmers' leaders said they would ask the Supreme Court to declare the measure a breach of the Constitution. They claim they were never consulted and the expropriation amounts to a "license to squatters" who have invaded idle land.