The "War" Between Farmers and the Meat Industry

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

Wednesday, January 18, 2017

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. reports that as part of the defense being prepared by companies in the meat industry, they will  "... use the process to demonstrate that due to the number of operators involved in the meat market, it is not possible to 'monopolize' the pricing mechanism for meat."

José Daniel Núñez, general manager of Nuevo Carnic and manager of Canicarne, explained that   "... 'Let's take this opportunity to clarify once and for all that the market for buying and selling cattle in Nicaragua is rather broad and free. In addition to the four slaughterhouses that are members of Canicarne (Nicaraguan Chamber of Exporters of Beef) there are three others: Sukarne, the Condega and PROINCASA and likewise every week at auctions in Managua, Chontales and other places large quantities of cattle of all sizes are traded, therefore it is not possible to have a monopoly on the purchase price because we are many traders who participate [in the trade]'."

"... According to the Federation of Livestock Associations of Nicaragua (Faganic), a study carried out between 2015 and 2016 confirms that when the international price of meat fell by 15 percent, slaughterhouses applied a reduction of 32 percent to the price they paid to the producer per kilo of meat in hot weight."

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