Lala in Nicaragua: Industrialists Complain, Farmers Celebrate

In what milk processing companies see as a threat, dairy producers are hailing as an opportunity to grow and to enjoy stable prices.

Tuesday, July 2, 2013

According to an article in Laprensa.com.ni, "the immediate concern of the companies, Centrolac, Parmalat and Eskimo is a lack of clarity over the benefits being offered by the Government to Grupo Corporativo Lala to encourage them to finally decide to invest in Nicaragua, after years of perseverance."

Speculations are that the company could enter into the free zone regime, in order to receive tax benefits, enabling it to enjoy benefits ranging from construction to commissioning of the two plants which they plan to set up. "If they are not the same (benefits) which Nicaraguan industries receive, we would view this as unpatriotic. We want a clear explanation and we will demand that we are given the same benefits because we are not happy about foreigners having what we do not have," said Alfredo Lacayo, an executive in Centrolac.

Meanwhile, Javier Chamorro, executive director of ProNicaragua, has denied that Grupo Lala have been offered the chance to operate under this regime, as it is designed exclusively for export processes, and this company, having plans to sell part of its production to the local market, does not fit into this category.



More on this topic

Lala Impacts Dairy Sector

May 2015

The start of operations by Lala will have a favorable impact on the conditions of production and quality of milk and stabilize the price of milk for producers.

The start of operations of a plant with capacity to process up to 300 thousand liters of milk per day will result in benefits not only for the production sector, which could sell most of the expressed milk, but also force an improvement in the regional dairy market conditions, infrastructure and production practices related to animal feed, sanitary measures, among other things.

Lala of Mexico to Invest $50 million in Nicaragua

July 2013

The Government has confirmed the arrival of Grupo Corporativo Lala, which will start operating this year with a plant for processing 200,000 liters of milk.

"We're talking about more than fifty million (dollars) in investment by Grupo Lala in the first stage," said Alvaro Baltodano, presidential delegate for investment promotion.

Nicaragua: Concern Over Mexican Investment in Dairy Products

July 2013

The arrival of the Grupo Corporativo Lala could increase demand for raw materials and push up prices.

"The heads of the three major dairy companies, Centrolac, Eskimo SA and Parmalat, have been reviewing the context under which Lala will operate in the country, but they are especially worried about the increased pressure on the milk collection chain and its effect in supplying Nicaragua's domestic and export markets" reports Laprensa.com.ni.

Milk: Agreement Between Producers and Industrialists

June 2012

Representatives from dairy farmers in Nicaragua and milk processors have agreed to increase collection to keep prices stable.

In order to gain more stability in prices, milk producers and processors have decided to increase the collection of milk from 10% to 20% in light of the crisis caused by low prices paid by informal plants.

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