Drought Threatens Sugar Production

In El Salvador, businesses in the sector estimate that sugarcane production will fall due to the drought that is affecting different areas of the country and which has now been ongoing for 35 consecutive days.

Thursday, July 26, 2018

Without agreeing on the estimated losses that the sugar sector will face, representatives from different business associations reported that the damage caused by the drought will be reflected in a reduction in production.

Carlos Morales, president of the Association of Sugar Technicians of El Salvador (Atasal), told Elmundo.sv that " ... in August they usually evaluate crop performance, but what has been observed so far allows them to affirm that 'yes there is going to be a decrease in cane and sugar.'"

See also: "Sugar in 2017: Region exported $1.24 billion"

Regarding estimates of the damages, Mario Salaverría, president of the Sugar Association of El Salvador, indicated that " ... in September there could be greater certainty regarding the impact, but he warned that the income of 27,000 cane cutters could be affected."

For his part, the president of the Sugar Cane Producers Association (Asprocaña), Luis Betagglio, estimated that "... the drought has affected between 37,000 and 40,000 manzanas of cane and 20% of these could be lost, which would be equivalent to about one million hundredweight of sugar."

According to reports by CentralAmericaData, in 2017 the main exporter of raw sugar in Central America was Guatemala, with $759 million, followed by El Salvador, with $187 million, Nicaragua, with $111 million, Costa Rica with $104 million, Honduras, with $57 million and Panama with $23 million.

More on this topic

Sugar Sector Challenges

October 2018

The downward trend in international prices and the climate impact are part of the challenges facing producers in the region for the next harvest.

According to data from CentralAmericaData, the average price per kilo of sugar exported by countries in the region fell 38% between May 2012 and June 2017, from $1.13 to $0.70.

Drought Continues to Cause Losses

August 2018

Because of the drought that is affecting several areas in Central America, in El Salvador, agricultural producers estimate that at least 6.3 million hundredweight of corn, valued at $39 million, have been lost.

Representatives from the Salvadoran Chamber of Small and Medium Agricultural Producers (Campo) said that due to the drought, which lasted up to 40 days in some areas of the country, they have lost more than 6 million hundredweight of corn, valued at $38.6 million.

El Salvador: 15% Less Sugar

August 2015

Because of the drought a reduction of between 12% and 15% has been estimated in the 2015/16 harvest, which could be partly offset if a better industrial performance is achieved.

Producers believe that in addition to a better industrial performance, another factor that would help to offset the decline in production is the provision that banks have to provide refinancing options or "...

El Salvador: Less Sugar Exports Projected

October 2014

Sugarcane growers estimate that exports from the 2013/2014 crop will be reduced by 10% due to the negative effects of climate and oversupply in the global market.

In recent months, a decrease in the price of sugar has been more evident, "... a hundredweight went from being quoted at $24 two years ago, to $19 in March 2013 and now to $15 ... therefore producers have lost between 5% and 10% of their income. "

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