Sugar: Production Endangered by Crisis and Drought

Businesses in the sector foresee a decline during the 2018-2019 harvest, attributed to the drought and the illegal invasion of lands resulting from the political crisis that Nicaragua is experiencing.

Monday, August 6, 2018

According to statistics from the National Committee of Sugar Producers (CNPA), during the last two harvests the country reported a sustained increase in its sugar production. Figures for the 2017-2018 harvest show there was production of 1.8 million tons which represents an increase of 12% compared to the previous cycle.

However, industry executives expect that this upward trajectory of the crop will see a considerable reduction in the next harvest, because the political crisis that has been going on for more than three months has led to at least 1,276 manzanas of land cultivated with sugar plantations being illegally invaded in the western zone and in Rivas, and on top of this is the drought affecting some areas of the region. See "Drought threatens sugar production"

Talking on this issue, general manager of the CPNA Mario Amador Rivas, told that " ... for this year the harvest will be reduced by about 30,000 to 40,000 tons of sugar. 'We are going to extract about 700,000 hundredweight less sugar than last year, and we will have a reduction of areas of about 3,000 manzanas due to the climate and land invasions.'"

See also: "Sugar in 2017: Region exported $1.24 billion"

Regarding the insecurity that the country is experiencing due to the crisis, Rivas added that " ... 'The legal security that is needed does not exist, therefore the millers are waiting to see what will happen to the Government to see if they will be able to continue investing.'"

According to figures from CentralAmericaData, in 2017 Nicaragua was the third country in Central America that registered the highest sugar export, selling $111 million worth abroad.

More on this topic

Nicaragua: Exports Will Not Rebound in 2019

January 2019

The exporters' guild estimates that the new year will be difficult for the country's economy, since there are multiple factors that threaten the growth of foreign sales.

The Association of Producers and Exporters of Nicaragua (APEN) reported that the expectation of year-on-year increase in export revenue for 2018 ranged between 6% and 10%, however, there was a 1% decrease.

Drought Continues to Cause Losses

August 2018

Because of the drought that is affecting several areas in Central America, in El Salvador, agricultural producers estimate that at least 6.3 million hundredweight of corn, valued at $39 million, have been lost.

Representatives from the Salvadoran Chamber of Small and Medium Agricultural Producers (Campo) said that due to the drought, which lasted up to 40 days in some areas of the country, they have lost more than 6 million hundredweight of corn, valued at $38.6 million.

Drought Threatens Sugar Production

July 2018

In El Salvador, businesses in the sector estimate that sugarcane production will fall due to the drought that is affecting different areas of the country and which has now been ongoing for 35 consecutive days.

Without agreeing on the estimated losses that the sugar sector will face, representatives from different business associations reported that the damage caused by the drought will be reflected in a reduction in production.

Nicaragua: Productive Land Invaded

June 2018

The union of agricultural producers reports that at least ten private farms in Rivas, Matagalpa, Chinandega and Managua have been taken over by criminals.

In a statement, the Union of Agricultural Producers of Nicaragua denounced that it is registering an "... unchecked increase of invasions of farms" belonging to its members, in different zones in the country.

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