As a result of a decline in demand from some trading partners, Guatemalan exports of processed food and beverages decreased by 10% during the first quarter of the year compared to the same period in 2018.
Figures from the Bank of Guatemala report that from January to March 2019, Guatemalan exports of processed food and beverages totaled $292 million, 10% less than the amount reported in the same period of 2018.
This cannel represents 42% of total spending by U.S. consumers on food outside the home, making it the sixth country in the world with the highest per capita spending on food in this type of channel.
The study "Characterization of the foodservice channel in the United States", by Procomer Costa Rica, indicates that 33% of what Costa Rica exports to the U.S.
Riko Brands will start operating in February 2019 a new industrial plant at kilometer 13 of the highway to Comalapa, which will produce broth, dressings, pasta and soups.
Samuel Quirós, president of Quality Grains, owner of the food plant, explained to Laprensagrafica.com that "... the investment for the new facilities exceeded $1 million, including the construction of the building and the purchase of the machinery.”
In Guatemala, food and beverage businessmen estimate that product smuggling during the end of 2018 will increase more than reported in previous years.
Complaints by Guatemalan businessmen regarding the illicit marketing of different types of products have been a constant in recent years. Long-standing calculations detail that of every ten products sold in the country, three are of illegal origin.
In the first quarter of the year, Honduras imported $24 million worth of baked goods, confectionery and biscuit products, and purchases made from companies in El Salvador grew by 11% compared to the same period in 2017.
Figures from the information system on the Market for Baked Goods, Pastry and Biscuit Products in Honduras, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In the first three months of the year, Central American countries imported $118 million worth of bakery, confectionery and biscuit products, and $49 million worth was purchased by companies in Guatemala and Honduras.
Figures from the information system on the Market for Baked Goods, Pastry and Biscuit Products in Central America, compiled by the Business Intelligence Unit at CentralAmericaData : [GRAFICA caption = "Click to interact with graph"]
Guatemalan business leaders say that the opportunities for the sector in the future lie in the change in trends in consumption patterns and market demand abroad.
According to representatives from the Guatemalan Chamber of Food and Beverages (CGAB), in the first six months of the year trade in the food sector has grown at a rate of between 10% and 12%, and the industry represents approximately 12% of the country's Gross Domestic Product.
From January to November 2017, Central American countries imported 19,000 tons of food supplies from Mexico, 10% more than the amount purchased in the same period in 2016.
Figures from the information system on the the Food Preparation Ingredients Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Truck robberies, high energy prices, excessive bureaucracy and the informal sector all took their toll on the growth of the Costa Rican food and beverage industry in 2017.
The Monthly Index of Manufacturing Activity of the food and beverages industry showed a slowdown in the domestic market and a negative average growth of -0.07% in the first nine months of the year.
Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet lemon cookies with chia, chocolate with blueberries and sweet cookies with sunflower seeds, sesame sticks, empanizer, banana cake, all made without gluten, without sugar, without soy and dairy-free, ingredients that are intolerant for this market segment.
In 2016 countries in the region bought $103 million worth of soups and their preparations, and 44% of the total came from the USA and Mexico.
Figures from the Information System on the Market for Soups and Preparations in CentralAmerica compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graphic"]
In Guatemala, companies say that the process to obtain a health permit to set up a food factory and register products can take several months.
Entrepreneurs in the sector say that the food industry is missing out on the possibility of attracting investments from foreign companies because of the cumbersome and slow processes that must be followed.Favorable factors for attracting investment in the food industry, such as the low price of sugar, do not make up for the high cost of bureaucracy faced when settling in the country.
In 2016 Central American countries imported $329 million worth of confectionary, chocolates and other preparations based on cacao, 7% more than in 2015.
Figures from the information system on theConfectionery and Chocolates Market in Central America, compiled by the Business Intelligence Unit atCentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
In 2016, the value of Central American imports of animal feed from the United States totaled $95 million, 9% more than in 2015.
Figures from the Information Systemon the Animal Feed Preparations Market in CentralAmerica complied by the Business Intelligence Unit at CentralAmericaData: [Figure caption = "Click to interact with the graphic"]
In 2016 countries in the region imported $36 million worth of sauces and ingredients for their preparations from Mexico, registering an increase of 8% compared to 2015.
Figures from the information system on the Central American Market for Sauces and ingredients for their preparation, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]