In order to take advantage of the potential of the Nicaraguan livestock industry, it is essential that traceability systems be improved, a prerequisite for entering demanding markets such as Europe.
The growth in exports of meat and meat products from Nicaragua could be even greater if product monitoring and control systems were properly implemented throughout the production chain.The European market is one of the most demanding in this regard, and is one of the most profitable once the necessary traceability systems are implemented.
In Nicaragua domestic cattle producers are being paid better than those in other countries.
"... The plants are paying around US $3.22 per kilo for 'hot' beef while markets such as Brazil, the world's largest exporter, whose meat competes with Nicaragua’s, paid US $2.22 per kilo. That means that Nicaragua is paying about $220 more per head than in those markets, and 45% more per kilo of 'hot' beef relative to the leading exporter of beef in the world ", said Onel Perez, executive director of the Nicaraguan Chamber of Beef Exporting Plants (Canicarne), in an extensive interview with Elnuevodiario.com.ni.
In Nicaragua the slow pace of implementation of the system is preventing the livestock sector from make the most of the beef export quota established by the Agreement with the EU.
The 2083 tonnes of beef which the livestock sector in Nicaragua could sell to the European market is not being fully leveraged due to the fact that they do not have the required minimum records demanded by European law to allow the importation of products.
Producers and industrialists in the livestock sector have agreed to work together to reduce smuggling by optimizing controls on the movement of cattle.
The problem of cattle smuggling is an issue that has already been denounced on several occasions , and has now led to industry players coming together to make changes to processes and improve controls. The goal is to minimize smuggling so that industrialists have sufficient supply to give to slaughterhouse and producers get better yields.
The main factors are a herd of 5.8 million head of cattle, programs which give impetus to the activity, and the opportunities provided by the AA with the EU.
According to breeders and industry to date number of cattle could be higher than that amount recorded in the IV National Agricultural Census (4.2 million head). Onel Pérez, executive director of the Nicaraguan Chamber of Beef Exports (Canicarne) , currently estimated that the herd could be 5.8 million head.
The country has the conditions to export meat to Europe at the same prices as Brazil, the world's largest producer.
This was stated by Eduardo Cohen, from the Program for Quality Controls and Sanitary and Phytosanitary Measures in Central America, funded by the European Union.
According to him, once the country has dealt with the issue of traceability, prices could reach $7,000 a ton in the EU, similar to the average of $7,361 paid by the old continent to Brazil. That price would be far from the $13,322 average paid to Argentina, or the $10,020 paid to Uruguay, but above the $2,186 paid by the EU for U.S. beef
There is an urgent need to improve livestock production methods in order for Central American to face the impending competition from North American livestock farming.
The possible entry of U.S. beef into Central America is worrying Nicaraguan meat exporters who continue to produce in the same way as they did 200 years ago.
"It is important to introduce livestock, we are producing in almost the same way as we did 200 years ago, this is happening because of the loss of competitiveness of Central America in meat exports," said Juan Sebastian Chamorro, president of the Nicaraguan Chamber of Beef Exporters (Canicarne).
The Nicaraguan meat industry is still not clear on what they need to obtain the certifications required by the European market.
In order for Nicaraguan products to reach the European market they must comply with health and quality certifications, not only on behalf of the farmers but also the agricultural authorities. Exporters hope that this will be resolved in less than a year and a half, meaning that the benefits of the agreement could be taken advantage of in 2015.
Nicaragua will need a minimum of a year to implement an adequate traceability system which will allow it to export meat to Europe.
"First certification must come from Europe, which says that they accept our system of traceability, and we must be prepared (to export) when the time comes," said the president of the Nicaraguan Chamber of Beef Exports (Canicarne) Juan Sebastián Chamorro.
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. '
Central American businessmen agreed to adjudicate the meat quota assigned by the European Union to the country that first complies with the required food safety and traceability requirements.
The region had to decide how to distribute a quota of 9.500 yearly tons of meat that can be shipped to Europe without paying tariffs.
The proposal to divide up the 9,500 ton EU allocation equally is rejected by Nicaragua.
Onel Pérez, president of CANICARNE (Nicaraguan association of beef producers), commented that 70% of meat exported from Central America comes from Nicaragua.
Pérez and Ronald Blandón, director of Nicaraguan cattle farming association, CONAGAN, will travel to Honduras to discuss the distribution of the quota with other Central American businessmen.