The company Alba Foods of Nicaragua will close down in September as a result of a significant decline in sales to Venezuela.
Friday, August 12, 2016
Since the economic crisis in Venezuela has got worse, sales of the company by Alba Alimentos de Nicaragua S.A. have not stopped falling and the decision to close the operations of the food processing company is due to this situation.
Nicaraguahoy.info reports that"...The visibility of Albalinisa and the export boom appeared in the books in 2009 when the Center for Export Procedures (CETREX) reported exports of $3.08 million in that year.In 2014 that number grew to a total of $154.15 million. "
"..In addition to meat and milk, Albalinisa's coffee sales grew by 271 percent in volume and 417 percent in value, in 2014.Suddenly, the company became the largest coffee exporter having accumulated and sent to Venezuela 41.2 percent of exports.However exports from Brazil and Colombia to the South American country provided a lot of competition for the Creole product. "
The two governments have formed the company "Grannacional de Alimentos", which will channel exports from Venezuela to Nicaragua.
Initially, the organization will handle exports of foods such as jam, banana, fruit juices, milk, tuna and cocoa powder.
Juan Carlos Jimenez, president of the Venezuelan Food Corporation, explained: "We have under agreement with Nicaragua imports of beef, long life milk, and coffee, among other things, and also we have established strategies to ensure other requirements of agricultural items for our country in the coming months . "
Exports to Venezuela by the conglomerate Albanisa exceeded $250 million in 2010.
Under the slogan "Fair Trade with Nicaragua," the conglomerate, Alba Alimentos de Nicaragua (Albalinisa), which is funded with Venezuelan capital, managed to export from Nicaragua to South American a variety of products, including meat, milk, soybean oil, among others, totalling $252 million exported in 2010.
In 2011, Nicaragua hopes to export 300.000 bushels to Venezuela, 50% more than in 2010.
Albalinisa representatives reported that Nicaragua exported coffee for the first time to Venezuela in 2009, amounting to 125.000 bushels, a figure which increased to 200.000 in 2010 and would reach 300.000 in 2011.
Albalinisa is a Venezuelan – Nicaraguan joint venture in the frame of the ALBA treaty, with growing food exports to Venezuela.
The creation of Alba Foods Nicaragua (Albalinisa) was funded by a $ 880 000 loan approved by the National Assembly of Venezuela in late 2008. The Nicaraguan press links Albalinisa and its directors to Albanisa, the company which manages the supply of Venezuelan oil to Nicaragua.
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