The quintal of white corn has become 10% more expensive in the last two weeks in Guatemala, a rise that is explained by the decrease in supply that derives from last year's low harvests.
The Price Report of the Planning Directorate of the Ministry of Agriculture, Livestock and Food (Maga) states that between June 6 and 19, the price of a quintal of white corn went from $19.35 to $20.45.
It has been projected that the international price, which is trading above $3,200 a metric ton, will maintain its upward trend, favoring Nicaraguan producers.
Demand for chocolate is pushing up grain prices, which is complemented by a decline in cocoa production in other countries engaged in farming.
Manfred Günkell, general manager of Ritter Sport in Nicaragua, told Elnuevodiario.com.ni that "...
Guatemala's government is negotiating with the productive sectors to stabilize commodity prices and control any increases.
The government announced that it is preparing a strategic plan to discuss with the private sector in order to prevent further increases in prices of basic food products. The purpose of the strategy is to prevent situations such as roadblocks and smuggling directly affecting production costs and then prices.
The drought in Brazil, the country which exports almost half of the world's sugar, caused prices of the grain on the international market to rise to $444 a ton.
The drought in Brazil led to an increase in the international price of sugar. The South American country exports almost half of the grain in the world.
The lack of rain also caused an increase in the international price of coffee.
The decline in the U.S. supply caused by the effects of a pest in plantations in Florida, creates opportunities for Central American producers.
An attack of the yellow dragon disease in plantations in the state of Florida, the second largest supplier of orange juice, caused a decrease in supply resulting in a price increase. While last December the product was trading on the U.S stock market for $1.35 per pound of solids up until last Monday was the price stood at $1.47.
It is estimated that in 2014 it will rise by another 14% due to growth in global demand, specifically generated in Asia.
An article by Bloomberg.com reports that "global cocoa stocks are on route to having the most prolonged deficit in more than 50 years as demand for chocolate soars in Asia."
Projections are that use of the grain will surpass production by about 70 thousand tons for 12 months from 1 October, and the deficit will remain until 2018. This is the longest period since records began in 1960, said the director of statistics from the International Cocoa Organization (ICCO) in London, Laurent Pipitone.
A quintal of white maize increased by $0.64 compared to March, while for black beans the increase is $0.39 per quintal.
According to the United Nations Food and Agriculture Organization (FAO), because the harvest of white corn has ended, the grain is trading at $15 per quintal, while black beans are $48 per quintal.
According to the explanation of Patricia Lopez, a farmer in Coban, Alta Verapaz, "for the moment supply is being maintained in the markets."
The prices of products derived from these grains have gone up, with supply having been severely affected by the worst drought in the U.S. in the last 25 years.
An article in Nacion.com reports on the rapid changes that the international price of soybeans, corn and wheat have suffered in the last month:
"Corn went from $572.88 per metric ton, on 24 June, to $814.30 a ton at the close of yesterday on the U.S.
Black bean prices have increased 11% since January, reaching $ 67.6 per quintal, the highest price over the last five years.
Compared with February 2008, the price increase is 83%.
"The main factor pushing the price upward is the shortage of local inventories in many regions since December 2010," reported Diario de Centro America.
The increases are also attributed to variability in rainfall, associated with the effects of climate change.
Corn shortage is adding to the already existing shortage of bean. Escalating international prices are threatening millions of poor Central Americans.
January global data shows that food prices continue to rise and are already surpassing the 2008 prices.
And while the Central American economies are benefiting in part by the increase, for example by increasing revenues from coffee and sugar exports, they have not secured supply of basic traditional consumer products such as wheat, corn and beans; the basic foods of poor population. The already high prices are worsened by poor harvests due to bad weather.
In times of low cotton production, the Latin American textile industry protests against restrictions imposed on exports from India.
The price of cotton has risen more than 70% so far this year, as a result of lower production, a situation that profoundly affects the textile industry.
India, a major producer of cotton and textile products, imposed in April restrictions on cotton exports, which contributed to increase the price for textile producers from other countries.
The climate phenomenon known as "La Niña" has caused up to 40% losses in some cultivations.
Virgilio Saldaña, president of Panama's Highland Region Growers' Association; indicated that to make matters worse production costs have soared, in some cases by as much as 50%.
"The situation is deeply concerning for producers, particularly of onions, lettuces, carrots, peppers and potatoes, which have not grown sufficiently due to the low temperatures," reports P-digital.com.pa.
The climate phenomenon known as "La Niña" has led to losses of vegetable crops and sharp price rises of up to 100%.
Between 5 June and 21 August, the price of tomatoes, for example, have gone from $1.08 per kilo to over $2 while peppers are up from $0.22 to $0.43, according to Costa Rica's National Production Council.
The issue centers around the region of Cartago where up to five times more rain has fallen than normal, leading to up to 35% of crops being lost.