Dairy: Uncertainty Due to Border Restrictions

After a quarantine was decreed in El Salvador because of the spread of covid-19, there is uncertainty among Nicaraguan producers because the borders may be closed for their products.

Monday, March 16, 2020

Since March 11, Salvadoran President Nayib Bukele has decreed a nationwide quarantine, arguing that there is a risk of spreading the coronavirus to neighboring countries, where there are already several confirmed cases.

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Given this situation, Solón Guerrero, vice president of the Federation of Livestock Associations (Faganic), told Laprensa.com.ni that "... there is a lot of fear that the borders will be closed, the escape valve for the price of milk and cheese is El Salvador."

Guerrero added that if access to his products were prohibited, there would be an oversupply of dairy products in Nicaragua, which would push prices down.

CentralAmericaData reports that during the first nine months of 2019 the main exporter of milk and dairy products to Central American countries continues to be Nicaragua, with $104 million, followed by Costa Rica, with $94 million, Honduras, with $21 million, El Salvador, with $20 million, Panama with $5 million and Guatemala, with $1 million.

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Dairy in El Salvador: Sales in Red Numbers

March 2020

Because of the crisis generated by the covid-19, businessmen in the country estimate that due to the closure of shops, they are unable to sell an average of 200,000 bottles of milk per day.

According to the Association of Milk Producers of El Salvador (Proleche), national consumption has fallen in the last two weeks, a decline that can be explained by the home quarantine that has been decreed.

More Inspections of Imported Dairy Products Requested

February 2020

Arguing that quality and health standards are not being met, Salvadoran farmers are asking for greater controls on milk products entering from Nicaragua and Honduras.

CentralAmericaData reports that from January to September 2019 El Salvador was the main buyer of milk and dairy products from the other Central American countries, importing $106 million, of which $78 million was bought from Nicaragua, $14 million from Costa Rica and another $13 million from Honduras.

More Dairy Products from Nicaragua in El Salvador

January 2018

Despite the new import requirements imposed by the Salvadoran government, in 2017 the Nicaraguan dairy industry managed to maintain the level of its exports to its neighboring country.

Data from a report by Cetrex shows that 2017 will have closed with growth of just 3% in exports of dairy products to El Salvador, which is positive for entrepreneurs in the sector, who in the middle of the year anticipated less favorable figures, due to the entry into force of the more restrictive import controls.

Honduras - Nicaragua Dairy Conflict Worsens

May 2016

Arguing the imposition of non-tariff barriers, Centrolac has filed with the Central American Court of Justice a claim against Honduras because it prevented Nicaraguan milk from entering the country.

Although the Honduran government insists that restricting the entry of milk from Nicaragua is strictly in adherence to sanitary measures, Nicaraguan producers and exporters maintain their position and are demanding that the government take retaliatory measures against Honduras. Therefore, the company Centrolac presented on May 10 a lawsuit with the Central American Court of Justice, denouncing the closure of borders and accusing the country "... of contravening Community law".