In El Salvador, the union of sugarcane growers estimates that for the 2019-2020 harvest will be produced about 17 million quintals, a volume that would be 15% higher than that recorded in the previous cycle.
The Sugar Association of El Salvador projects that between the 2018-2019 and 2019-2020 harvests, 2.2 million more quintals will be harvested, going from 14.8 million to 17 million quintals.
The downward trend in international prices and the climate impact are part of the challenges facing producers in the region for the next harvest.
According to data from CentralAmericaData, the average price per kilo of sugar exported by countries in the region fell 38% between May 2012 and June 2017, from $1.13 to $0.70.
In the first nine months of 2017, countries in the region exported $1.166 billion worth of sugar, 41% more than was sold during the same period in 2016.
Figures from the information system on the Raw Sugar Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Between 2012 and 2016, exports to Canada almost doubled, raising from $55 million to $101 million, making it the main destination for Guatemalan sugar.
Figures from the information system on the the Sugar Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
The guild foresees closing the 2017/18 cycle with a production of more than 17 million hundredweight of sugar, which would represent a 10% increase compared to the previous cycle.
If expectations by employers in the sugar guild are met, production from the 2017/18 cycle would be the best achieved yet.Favorable climate conditions and the expected expansion of sowing areas, from 105 thousand to 109 thousand manzanas, are the reasons for the guild's expectations for the cycle that begins next month.
From August 22 to 25, companies from the sector will be gathering together in San Pedro Sula to participate in business roundtables and discuss topics relevant to the sector.
The Congress of Sugar Technicians of Central America will be held at the Copantl Hotel Convention Center in San Pedro Sula. Business roundtables will be held and international experts will be giving talks on topics of interest to the sector, such as the effect of climate change on sugar production, use of technology, production costs, among other things.
In the first four months of the year the volume exported was 256 million kilos, 84% more than in the same period in 2016.
Growth in the cultivated area and productivity improvements explain the better performance of the sugar industry in Nicaragua.In the first quarter of the year, not only did the exported volume go up, but so did exported value, going from $50 million generated in the same period in 2016 to $118 million this year.
In 2016 the value of raw sugar exported from Central America amounted to $1,019 million, equivalent to 2.6 million tons, 21% less than than what was sold in 2015.
Figures from the information system on the the Raw Sugar Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
The sugarcane 2016/2017 harvest promises to reach 16.7 million hundredweight, growing by 15% compared to the previous one, which was seriously affected by the drought.
An article on Elmundo.sv outlines the optimism of representatives of the Sugar Association who projected better results for this harvest compared to the last one, although it will not compete with the record results like that of the 2014/2015 harvest.
The problem encountered by the imposition of additional tariffs on imported sugar from Brazil could follow its course in court.
Detractors and defenders of the measure that has been imposed, without any technical basis, by the Ministry of Economy (FEMIP) aim to bring the case to the courts.
The group Consumers of Costa Rica submitted a resolution from the MEIC to the Contentious and Administrative Tribunal court, while the virtually monopolistic Agricultural Sugarcane League told Nacion.com that"... they are taking to court the exporting and packing company La Maquila Lama, as they claim that 'they have told a lot of lies' that is offensive to the national sugar industry."
A change of minister in Costa Rica will aid in increasing the cost of sugar via an import tariff hike, harming consumers and the food industry, and increasing protection for the powerful sugar lobby.
EDITORIAL
The decision taken by the new chief of the Ministry of Economy reflects a clear interest in meddling in a process that should be resolved at a technical and non-political level.The decision to declare whether or not dumping occured in a particular market and what measures should be taken in response, corresponds to the office of Trade Defense, and should be free from any possible political bias.
In 2015 Guatemala led the export of raw sugar with $848 million, followed by El Salvador with $178 million and Nicaragua with $114 million.
Foreign Trade figures for Raw sugar in Central America, analyzed by the Business Intelligence unit at CentralAmericaData report that in 2015 the countries in Central America exported a combined total of 3 million 292 thousand tons of raw sugar equivalent to $1.289 billion.
In October 2017 production limits and the "out of -quota" production concept will eliminate for the manufacture of biofuel and industrial non-food products.
The current production quota for sugar according to the European Common Agricultural Policy (CAP), which applies to the 28 countries in the bloc, is 13.5 million tons per year.The production capacity of sugar producers in the European bloc is higher than the quota, therefore eliminating production limits will lead to a lowering of prices due to excess supply, similar to what has already happened in the milk market following the elimination of production quotas.
The Commission to Promote Competition in Costa Rica has launched an investigation against Liga Agrícola de la Caña after a complaint was made by Maquila Lama.
The Commission to Promote Competition has ordered a process to be opened to determine whether Liga Agrícola de la Caña (Laica) committed anticompetitive practices, as claimed by Maquila Lama in June this year, noting that "...
Increased acreage did not offset the effects of drought which caused a 11% drop in production in 2015/16.
In the 2015/16 season productivity fell by 16% compared to the previous harvest, going from 1,524 hundredweight per hectare in the previous harvest to 1,273 hundredweight per hectare in the current one.
Aside from these results, the Nicaraguan sugar industry estimates that the results of the next harvest will be better because of the projected increase in rainfall over the coming months.