Price Conflicts Between Farmers and Abattoirs

The boom in beef exports from Nicaragua is being threatened by a price war between producers and exporters.

Monday, May 21, 2012

Slaughterhouses have declared that they are unable to pay higher prices to beef ranchers, who demanded them.

They cite two reasons: a reduction in U.S. demand, the second largest export market for beef, and the position of Venezuela of not raise the price of a ton of meat by 10% (Venezuela is the main export market).

The Federation of Livestock Associations of Nicaragua (FAGANIC) gave a week's notice for the industrial plants to provide a "satisfactory answer" regarding the price, or the cattle ranchers will not deliver their animals. Enrique Moncada, director of the board of Nuevo Carnic, recognizes that if farmers keep the cattle as leverage, meat exports would cease.

Moncada said the "investments in the millions" in the expansion of the plants have not been offset because of declining markets, not having established a good margin with Venezuela, and the "brutal" increase in operating costs related to electricity, reported Elnuevodiario.com.ni.



More on this topic

More Meat Sales, Fewer Live Cattle

February 2021

In recent years, Nicaraguan beef exports have been on the rise due to the improved quality of the product, but foreign sales of live cattle have been declining due to the deterioration of trade relations with Venezuela.

Official figures specify that between 2019 and 2020 Nicaraguan beef exports increased by 4%, going from $522 million to $542 million.

The "War" Between Farmers and the Meat Industry

January 2017

In Nicaragua industrialists are preparing to defend against the denouncement by farmers over discrepancies between the prices paid by local abattoirs and international prices.

In the law suit filed with Pro Competition authority in October 2016, farmers argued that four slaughterhouses are distorting the local market by allegedly paying prices that are lower than international ones.

Cattle Farmers Negotiate Prices with Venezuela

September 2012

In order to renew a trade agreement that expires at the end of September, Nicaraguan farmers are asking for a 20% increase in the price of meat exported to Venezuela.

The price of beef exported by Nicaragua to Venezuela under the current agreement is $4,300 a tonne, a figure that farmers want raised to $5,160, a 20% increase.

Cattle Farmers Encourage Construction of Slaughterhouse in Nicaragua

April 2011

An initial capital injection of $4 million by cattle farming associations is hoped to be enough to enable work to begin immediately.

Nicaraguan businesses are seriously considering investing in the project that will be capable of receiving 450 beef carcasses every day, to reduce pressure on existing slaughter houses.

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