In 2016 foreign sales of palm oil grew by 13% in value and 21% in volume comapred to the previous year.
Central Bank figures report that the volume of palm oil sold abroad in 2016 was 51.8 million kilos, 21% more than the volume exported in 2015. In value terms, sales in 2016 generated $33 million, 12% more than the $29 million generated in 2015.
The subsector that recorded the most significant increase in exports was that of edible oils and fats, which generated $438 million in foreign exchange, an increase of 21%, followed by preparations based on cereals, with $202 million and an increase of 4% sauces, condiments and seasonings, with $52 million and an increase of 16%.Exports of cereal flour generated $17 million and were up 16% compared to the previous year.
Aceitera Real has started operating a plant generating energy from waste in order to supply themselves and sell the surplus to the national grid.
The company also opened a fractionation palm oil plant, also in Chinandega.The renewable energy generation plant has the capacity to generate 7.5 kwh, of which the company will consume 6.4 KwH, explained the CEO of the company, Horacio Rappacciolli, to Elnuevodiario.com.ni.
Investment made by Guatemalan companies in Nicaragua almost tripled between 2014 and 2015, with money mainly going into energy, sugar, palm oil and tourism.
In the past eight years Guatemalan companies have invested $246 million in Nicaragua, according to ProNicaragua.In 2013 the highest amount in the last five years was recorded, with $46 million being invested in the country.In 2014 the amount of investment was only $6 million, while in 2015 it amounted to $16.7 million.
A cooperative and a private company are negotiating a $500 million finance deal to cultivate 120 hectares of coyol and install five oil processing plants to produce biofuel.
The plan was devised by the cooperative Coopeciagro RL, and according to its CEO, Luis Fernando Escalante, they already have identified 60,000 hectares in the north and another 60 thousand in Guanacaste."...The plan requires an estimated $500 million in financing, which will be raised from European pension and investment funds and the signing of which only depends on an initial guarantee $600,000, according those promoting the project."
Palm oil, butter and other basic products would be able to enter free from tax on entry into into the Cuban market.
Capital.com.pa reports that "...Panama also achieved a reduction of 80% and30% for other commodities such as doors, windows and their frames and thresholds, cotton shirts and synthetic fiber, toilet paper and metal packaging. "
Producers in Chiriqui intend to expand production, increase productivity, and build their own refinery.
An article on Laestrella.com.pa reports that "...Palm oil producers in the province of Chiriqui, grouped into different cooperatives operating in the district of Baru, are aiming to increase productivity and also have their own refinery, in order to be more competitive. "
African palm, coffee, pineapple, bamboo, cocoa and forestry are the categories that the Nicaraguan government is promoting as investment opportunities in the Caribbean coast.
Noting that deforested areas are those that could house African palm plantations, Alvaro Baltodano, presidential delegate for investment and exports, noted that African palm is now being planted in 10 thousand acres of the Nicaraguan Caribbean, as part of a project that aims to plant 20 thousand acres.
The rise in the international price could raise export earnings in 2016 by 35%.
In 2015 the fall in export earnings from palm oil was 21%, because of the dip in price, which this year seems to be reversing, and if prices remain at the current level, sales abroad could reach $400 million.
In the last week the price of a metric ton of palm oil went from $560 to $710, due to increased demand for the product to be used as biofuel and the fall in production in Asia.
The rise in biofuels and the fall in production of palm oil in Asia, the world's leading supplier, has benefited the price of oil derived from these plantations worldwide, rising from $560 to $710 in the last week of March. The reference data comes from the Rotterdam Stock Exchange, provided to Latribuna.hn by Hector Castro, leader of palm producers in Honduras.
Drought in Southeast Asia is creating opportunities to export more palm oil to Europe, where the entry of the product is duty free because of the Association Agreement with Central America.
The fall of up to 45% in the production of palm oil in Southeast Asia (the world's leading producer) due to El Niño has opened up an opportunity for Central American countries to export the product to markets such as Europe. This is a relief for the industry, hard hit by reduced demand for biofuels because of the fall in oil prices.
As with other forms of alternative energy, high oil prices in the past boosted investment in oil palm plantations as a basis for the manufacture of biodiesel.
In Central America there are a lot of people who turned towards a highly promising sector, promising even more performance than any other crop. Palm expanded not only where there are good conditions to grow it, but it was also substituted for other crops or herds areas offering lower yields.
A decline in international prices and lower productivity of Honduran agribusinesses compared to Asian ones explain the 26% drop in foreign sales to June 2015.
According to local oil palm producers the main reason is the lack of competitiveness of the local palm oil compared to that produced in Asia. They argue that "... 'In Honduras it is difficult for palm agribusiness companies to diversify their products and turn them into finished products'. "
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.
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