Honduran Beans Funded in El Salvador

The competition to secure supplies of beans has led Salvadoran importers to buy in advance Honduras’ harvest.

Friday, August 5, 2011

An article in the Honduran news portal El Heraldo reports statements by Luis Donaire, from the agricultural union PROGRANO, "Producers have turned again to El Salvador for funding. Some have planted by their own efforts, but between 25% and 30% have used Salvadoran funds"

"Apparently, the lack of internal support for credit funds has motivated nationals to help with their neighbour’s harvest.

Two business representatives polled by La Prensa Grafica reported that they are unaware of how much has been purchased or financed. Because of the technical positions that they hold in their companies they prefer to remain anonymous.

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More on this topic

Bean Supply in C.A.

November 2011

Damages to crops caused by recent rains will force the region to import beans again this year, just as in 2009 and 2010.

Nicaragua, Central America's main red bean exporter has stated that it will struggle to export beans to the rest of the region due to the climatic conditions that have affected its crops. Approximately 560,000 'manzanas' (40,000 hectares) have been lost.

Salvadorans Financed Honduran Bean Harvest

August 2011

Up to 30% of the first harvest of beans in Honduras was funded in El Salvador.

Luis Donaire, president of PROGRANO, commented that the producers are returning to get financing from El Salvador, a situation attributed to lack of funding from the Honduran government institutions such as the National Bank for Agricultural Development.

El Salvador: Grain Import Continues

April 2011

Reduction of the national harvest means that the private sector must buy grain abroad.

Heavy rains in 2010 hit much of the country and affected grain production so heavily that the current national harvest is not sufficient to supply the domestic market.

Owing to this situation, the private sector has had to import beans from outside markets, and then subject them to various quality and safety tests before distributing them in the country.

The Red Bean Market in Honduras

December 2010

Price increases caused by demand from Nicaragua and El Salvador, together with the government mandated price freeze, have caused bean shortages in the domestic market.

The retail price cap as stipulated in a decree issued by the government, $ 3.70 for 5 lbs, prevents traders from profiting from their sale, so they just do not buy it or offer it.

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