FUSADES published its economic situation report for January March 2010; it highlights crime as the main issue affecting economic recovery.
In its chapter on investment climate, the Foundation for Economic and Social Development of El Salvador (FUSADES), remarks that “businessmen feel that the country’s situation is still unfavorable for investing, a trend that has been sustained for the past two years.
GTZ, a German technical cooperation agency, will invest this amount over the next 6 years to rescue the region’s forests.
This program is dubbed “Redd” (Reduction of Emissions and Forest Degradation) and will be implemented in Guatemala, El Salvador, Honduras, Costa Rica, Panama and the Dominican Republic.
Newspaper Siglo XXI informed that the first phase of the project began on March 2010 and will last until September 2013.
Authorities will begin a consultation and dialogue process to define the basis of a forestry policy.
As a first step, the Agriculture Ministry (MAG) and Fomilenio hosted an international forum on forestry.
Minister Manuel Sevilla explained that “forests are in danger due to mismanagement. They are only used for wood and experience high contamination levels”.
A ton of refined sugar could cost as much as $600 in the next months, while unrefined sugar could be priced up to $0.23 per pound.
ISO, the International Sugar Organization, expects a shortage of 9.4 million tons for the 2009/10 cycle. This drop in production, triggered by climate change, has caused instability in the market, and this situation won't be solved in the short term.
A regional investigation is underway, triggered by suspicions of anticompetitive practices when commercializing fertilizers.
These anticompetitive practices would have started when importing companies started buying in group, supposedly to lower the price of fertilizers.
The investigation will be conducted by all the countries of Central America, via a consulting service hired by Conadeco, the Central American Council for Consumer Protection.
Local and international businessmen will participate in Agroexpo 2010, from March 19th to 28th.
Exhibitors from Argentina, Canada, Colombia, Spain, Guatemala, Mexico, Nicaragua and Dominican Republic will participate in the event.
“Event organizers announced parallel activities such as rodeos, dog shows, fishing, showcasing agricultural technology, livestock shows, among others”, reported El Salvador.com.
When you see your neighbor in trouble, make previsions and be prepared.
In 2009, Colombia’s coffee production was 32% lower than in 2008. Measured by sacks, production fell to 7.8 million from an average of 11.5 million, a reduction of $224 million in sales.
Maybe even worse than losing potential income, Colombia’s image before international buyers was hurt, as they had to turn to other markets to cover the lack of Colombian supply.
In 2009, authorities confiscated 1.7 million pounds of smuggled dairy products, worth $4.4 million.
Orlando Carranza is the President of Proleche, the Dairy Producers Association of El Salvador. He stated that smuggling is the industry's largest problem, and that the situation has worsened in the past year.
Elsalvador.com reported that "the situation affects national producers because illegal products, originated from Nicaragua and Hoduras, drag down prices, as there is excess supply".
BFA (Banco de Fomento Agropecuario), a state-owned bank fostering agriculture, is shopping for agricultural insurance, as risks in these activities have increased due to climate change.
Nora de López, president of the institution, explained they have held meetings with insurance companies, and are pondering whether to launch a public bidding process for hiring this insurance.
Latin American banana growing countries landed a tariff agreement with the European Union.
Under the terms of the new agreement, the tariff will be immediately reduced from 176 euros per ton to 148 euros. In the next 10 years it must be gradually reduced to 114 euros.
"It is not yet know what compensation will be paid by the European Union to Asian, Caribbean and Pacific countries, who had requested $250 million for losing their preferences", reported EPA.
El Salvador and Honduras formalized an agreement to prevent border closings for trade issues.
It was negotiated between technical staff from the Agriculture ministries of both countries, but must still be ratified at political level.
Manuel Sevilla, Salvadoran Agriculture Minister, told Laprensagrafica.com: "When political relations with Honduras return to normal, we are going to hold ministerial meetings, to formalize technical aspects and discuss alternatives for improving our commercial relationship".
The agreement between Europe and Latin America generated optimism, but ACP countries and the U.S. must still be pleased.
Latin America accepted an offer by the European Union to gradually reduce the tariff applied to banana imports from 176 euros per ton to 114 euros in 2017.
This reduction will negatively affect African, Caribbean and Pacific countries (ACP), to whom Europe will compensate with $280 million in development aid.
Farmers and growers have voiced their concern over the new taxes they will have to pay.
One of the most worrying topics, they argue, is the application of a 13% value added tax when importing capital goods. Although these amounts are deductible from income taxes, they have negative effects on the companies' cash flow. Additionally, value-added tax will also be applied to several export categories like coffee.
Seminar covering best practices in agricultural value chains and financing its components.
The seminar is being organized to take place in Costa Rica in the second half of November, 2009.
The target audience will be representatives of financial entities active in the agricultural sector, non-financial companies with a stake in the sector (producers, cooperatives, processors, exporters, marketers, input suppliers), Government authorities, business chambers, non-governmental organizations, international organizations and academic the use of agricultural value chains as a mechanism for offering financial services to all the stakeholders involved.
From the current coffee season, which spans from October 2009 to September 2010, 21% has already been sold.
350.000 quintals have already been traded at an average price of $145, ensuring exports for $50 million, reported the Salvadoran Coffee Council (CSC).
"Tomás Bonilla heads the Department of Exports of CSC. According to him, traded volume is still low, because growers might be awaiting better prices, even though the current market is favorable: for the 2008/09 harvest, the average future price per quintal was $132", reported Laprensagrafica.com.