Nicaragua: Sorgo vs U.S. Corn

High production costs, coupled with the progressive reduction in the tariff paid on yellow corn from the United States, are keeping sorghum producers in the country in a state of check.

Tuesday, June 16, 2015

With the gradual elimination of import yellow corn from the United States, established in DR-CAFTA, a 0% tariff will be reached in 2020, a rate which currently stands at 10.1%. At the moment the cost of producing a hundredweight of sorghum is $9.28, while the price of yellow corn including tax is $11.55 per hundredweight.

Michael Healy, president of the Union of Agricultural Producers (UPANIC) told Elnuevodiario.com.ni that "... the projected planting of sorghum this year is some 3,000 hectares more than in 2014. Last year, the Union of Agricultural Producers of Nicaragua (UPANIC) estimated that between 22,000 and 25,000 hecatres will be sown apples with industrial sorghum ... ".

For his part, Francisco Vargas, executive director of the National Sorghum Producers Association (Anprosor) noted that "... the government hopes that producers will develop more, so that they can produce at lower cost, employing more technology to be able to increase their yields ... then what the producers will do is implement a set of strategies that will lead to that outcome... ".

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Imported Corn Vs. Local Sorghum

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Because yellow corn is imported from the United States at a price of $11 per quintal in Nicaragua and the cost of producing a quintal of sorghum locally is $12.5, competition for local producers is nearly impossible.

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