Crisis Affects Agricultural Logistics

Although businessmen in the sector claim to have enough supplies to meet demand in the agricultural cycle, the crisis in Nicaragua is causing problems in the transportation of goods.

Monday, May 21, 2018

Distributors of agrochemicals report that due to the political crisis and the multiple closures and demonstrations on roads in the country, the main challenge they face is the transporting products to different areas of the country. 

See "Cargo Transport Paralyzed in Nicaragua"

The executive director of the Nicaraguan Association of Formulators and Distributors of Agrochemicals, Flor de María Rivas, explained to that "...All of our companies have enough products (raw materials) for the current agricultural cycle, since all the necessary imports were made months ago. Due to the current crisis, the challenge that companies are facing is in logistics of being able to distribute products to different areas of the country at the right time, and that is where the greatest effort is being focused."

See also "Crisis in Nicaragua: No Solution in Sight"

Talking on the subject, Mario Hanon, general manager of the company Formunica, explained that " ...There are enough materials, both in the fertilizer industry and in the agrochemical industry. The problem is distribution. The crisis has already affected distribution of products, because it has been difficult to move them from warehouses to the different most important points in the country."

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More on this topic

Agrochemicals: Nicaraguan Market Decreases

February 2020

Because fertilizers became more expensive due to the tax reform implemented last year, for the 2019-2020 agricultural cycle the volume demanded in the country fell by approximately 220,000 quintals.

Distributors in the country estimate that with the Tax Concentration Law approved at the end of February 2019, fertilizer prices increased up to 17% and agrochemicals between 20% and 30%.

Agrochemicals: Sales in Nicaragua Keep Falling

July 2019

Between the first semester of 2018 and the same period of 2019, the volume sold of fertilizers and agrochemicals fell by 13%, a decrease explained by the political crisis reported since April last year.

Figures estimated by the Association of Formulators and Distributors of Agrochemicals (Anifoda), specify that this is the second year that decreases in sales are reported, because between the first half of 2017 and the same period of 2018, the volume of fertilizer sold fell by 5%, falling from 110 thousand tons to 104 thousand tons.

Downturn in Agrochemicals Business

September 2018

In Nicaragua, a decrease in the amount of cultivated land and a decrease in fertilization spending have caused a fall of between 25% and 30% in the sales projected by entrepreneurs in the sector.

According to figures from the Central Bank of Nicaragua, between the first half of 2017 and the same period in 2018, imports of fertilizers and agrochemicals in the country reported a reduction of 14%, falling from $102 million to $88 million.

Nicaragua: Import of Agrochemicals Allowed

May 2015

Authorization has been given to the sale of four of the seven products whose import was banned in June 2014.

Given the lack of agrochemicals necessary to counteract the effects of El Niño on crops, the National Commission for Registration and Control of Toxic Substances has authorized the marketing of chlorpyrifos, endosulfan and two other products based on terbufos and Furadan.These four products are part of the so-called red products, meaning that they are highly toxic.

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