The drought caused a decline of 18% in the 2015/16 harvest, and exporters project a reduction of $40 million in foreign sales.
Sugar producers are backing a plan to improve productivity per hectare in the next harvest in order to try to recover some of what was lost in the 2015/16 harvest.In the current harvest the climate phenomenon reduced total production to 2010 levels, falling from 790 thousand tons in the period 2014/15 to 650 thousand tons in 2015/16.
Salvadoran coffee exports could be reduced by $15 million compared to last year.
An article on Elsalvador.com reports that "...Low production in the 2015-2016 coffeeharvest will cause the industry to lose out on about $15 million in exports of the aromatic, according to recent statements made by the Minister of Agriculture and Livestock, Orestes Ortez, in a state television interview. However, this figure could fall short with reality and the situation could be much more serious if the production target for this crop is not reached, as representatives of the the productive sector have stated. "
Estimates for the 2014/2015 harvest are that production will be less than the 120 million hundredweight of beans demanded per year in the country.
Compared with the previous crop year there will be a deficit of 6,698 hundredweight, as 359 hectares less have been cultivated than last year, according to the National Directorate of Agriculture. The industry expects that the 2014-2015 harvest will end with 85,000 hundredweight of beans collected, meaning that about 35 million pounds will have to be imported.
Between 2013 and 2014 coffee yields decreased from 11.9 hundredweight produced per acre to 11.8, rice fell from 89.7 to 71.4 hundredweight, and beans fell from 12.8 to 11.8.
Reports from the Central Bank of Nicaragua show that also yields of sesame also decreased, going from 11.5 hundredweight per acre in 2013 to 8 hundredweight per hectare in 2014. With regard to coffee, Nicaragua is one of the countries with the lowest yield per hectare planted "... surpassed by El Salvador, but below Honduras, Costa Rica and Guatemala."
After a difficult year because of the impact of the Thrips pest and declining international prices, at the end of 2014 $240 million were generated in export earnings.
With the annual increase of 10% in production, Guatemala maintains its global market lead in cardamom sales. According to the Guatemalan Exporters Association (Agexport), since 2005 they have increased their sales by up to 241%. However, industry representatives argue hey that face significant challenges such as reducing the incidence of pests and improving grain quality.
With a yield of 12.2 tons per hectare, the industry produced 2.8 million metric tons in the 2013/2014 harvest, generating $1.13 billion for the production of sugar, alcohol and molasses.
During the 2013/2014 harvest a total of 1.9 million metric tons (MT) of sugar was exported, of which 162,000 were sent to Ghana and Tunisia and 45,000 to China. Guatemala currently ranks third in sugar yield, competing with Colombia and Swaziland, which are in first place with 14.6 and 13.9 tons per hectare, respectively.
The Ministry of Agriculture is projecting that local production of potatoes and onions will not be enough to meet domestic demand, and in the months of January and February 2015 imports will need to be made.
According to estimates arising from the latest survey conducted by the Ministry of Agricultural Development (MIDA) production of potatoes and onions in the early months of 2015 will not be sufficient to meet demand therefore analysis is being undertaken on how much will need to be imported.
To compensate for the reduction in local production, the government plans to allocate $8.8 million for the purchase of 39,000 hundredweight of beans and 230,000 hundredweight of corn.
In the period from January to August 2014, the government imported maize from the United States and Mexico, and in the case of beans, 60% was purchased from the US, 20.3% from Canada, 11.4% from China, 6.7% from Nicaragua and the rest 1.5% from Argentina.
The International Coffee Organization estimates that global demand will reach 175 million sacks of 60 kilos in 2020, driven by the markets of China, South Korea and Russia.
The sophistication of consumers and a growing preference for coffee in markets such as South Korea, China and Russia will be part of the main factors driving the increase in demand for the grain in the coming years.
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.
XAGRO S.A. Announced that they have signed a purchase agreement with Jam LLC to buy 5,000 MT of red beans from China that will be sold to importers throughout Central America to help ease market pressure and lower the high prices caused by recent shortages.