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... ".



More on this topic

Imported Corn Vs. Local Sorghum

December 2020

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.

Nicaragua is part of the Dominican Republic-Central America-United States Free Trade Agreement, an agreement that allows yellow corn from the United States to enter the local market free of tariffs.

More Agro-Industrial Investment in Nicaragua

July 2017

The opening of three processing plants for beans, plantains, cassava and avocado, in León, Rivas and Nueva Guinea is expected for 2018, with an estimated investment of $8 million.

Representatives from the Union of Agricultural Producers in Nicaragua (Upanic) detailed that the plant to be constructed in Leon will be dedicated to the processing of green and ripe plantains, and those from New Guinea to processing roots and tubers.

Nicaragua: Optimism in the Rice Sector

March 2017

The union estimates that agricultural production cycle 2016-17 will be 5.5 million hundredweight, exceeding the 4.1 million hundredweight produced in the previous harvest.

The Union of Agricultural Producers of Nicaragua (UPANIC) based its forecast on the 68,000 acres of land to be cultivated during the different sub-cycles of production in the 2016/17 cycle.

Panama: Zero Tariffs for Maize Imports

April 2013

In return assurances have been given on the purchase from local producers of more than 500 million quintals of coffee.

The resolution was published in the Official Gazette and indicates that meat, eggs and milk are produced mainly from using feed based on corn, a grain whose cost is a little over 65% of the total cost of production of meat, especially chicken and pigs.