Packaging, wood planks, undenatured ethyl alcohol, sausages and plastic construction parts are some of the highest added value products the country could produce in order to diversify its export matrix.
The Nicaraguan Foundation for Economic and Social Development (Funides) set out to identify products and services that are close to current capacities and which could increase the diversification and complexity of exports.
Every year Switzerland sells about 50 thousand tons for which it receives $1.98 billion, earning a return on its coffee exports which is 5 times higher than in Germany.
An article on Msn.com reports on a not well known phenomenon practiced in Central America: the value of generating and accumulating knowledge and practicing innovation is much higher than owning and exploiting natural resources.
Although local cocoa farming has declined, artisanal chocolate producers are taking advantage of increased global demand and are exporting to markets such as Switzerland, Canada and the USA.
Companies producing handcrafted chocolate exported about $8.8 million in 2012 and this figure increased to 9 million in 2013, as a result of the opening of markets such as the U.S., which is the destination of 60% of total exports.
Lack of innovation and product differentiation prevents companies from exploiting the opportunities offered by the markets.
In an interview by Ricardo Guerrero from Elnuevodiario.com.ni with Antonio Esrawe, president and founder of Grupo Exporta, the U.S. official said there are business opportunities for SMEs in Nicaragua, however, to enter this market they must generate greater added value in their products.
Foreign sales of processed foods have grown 30% in the past five years and currently represent 15% of all exports.
According to Sofana Lopez, an International Markets Information analyst at the Center for Exports and Investment (CEI), coffee and beef products are the leading exports of food in general.
Elnuevodiario.com.ni reports: "... as for foods with higher degrees of processing, sugar for export stands out, accounting for approximately 30% of the total export value of processed food sector for the country in 2012 ". Shelled peanuts represented 17%, cheese 11%, soybean oil 8% , milk powder 6% and peanut oil 5% .