Plant diseases such as rust in coffee plantations, added to an oversupply of sugar worldwide, explain some of the moderate expectations that entrepreneurs have for some of the most important agricultural products in the region.
Representatives of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif) of Guatemala believe that the deceleration that has been registered in international prices of some raw materials and agro-industrial products suggest a decline in local production.
Due to the climatic conditions predicted for the months of July and August, an increase is expected in the presence of the disease in coffee plantations in Costa Rica.
During July there is a typical decrease in rainfall known as "la canícula", a period in which Rust progresses slowly and the emergence of new lesions is less.However, at the same time there is a greater presence of spores in the lesiones favored by the warmer temperature and by weaker and less frequent rains.This situation will promote a largeincrease in the disease in the majority of the Costa Rican coffee plantations when more abundant rains return starting in August, reported the Coffee Institute of Costa Rica (Icafé).
Last year countries in the region bought $103 million worth of soups and their preparations, and 61% were imported by companies in Honduras, El Salvador and Nicaragua.
Figures from the information system on the Market for Soups and Soup Preparations in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
The lot that this year was best quoted in the international electronic auction reached $30 thousand per hundredweight, and the grain comes from the canton of Dota, Los Santos zone, Costa Rica.
The high quality coffee that received the best quote in the international electronic auction in the Cup of Excellence contest is from the Don Cayito farm, with a price of $30,009 per hundredweight.
In 2017, countries in the region imported $458 million worth of animal feed preparations, 17% more than in the previous year, and the value imported from Mexico increased by 22%.
Figures from the information system on the Animal Feed Preparation Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Due to the effect of climatic phenomena at the beginning of the year, in the first five months of 2018, banana sales abroad amounted to $410 million, 9% less than was reported in the same period in 2017.
According to data from the Foreign Trade Promotion Office (Procomer), a comparison between the period between January and May 2017 and the same in 2018 shows that the value of banana sales abroad fell by 9%, going from $448 million to $410 million.
According to the sector's union, in 2017 consumption of milk and its derivatives reached 212 liters per capita, 33% above the level recommended by international health agencies.
According to the National Chamber of Milk Producers (Caprole), growth in milk production recorded in the country in recent years, is explained by an increase in domestic demand and a rise in exports to Central America and the Caribbean.
In 2017, Central American countries imported $900 million worth of food preparation ingredients, 2% more than in 2017, reaffirming the upward trend seen in the last five years.
Figures from the information system on the Market for Food Preparation Ingredients in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Costa Rican entrepreneurs are concerned about the impact of the crisis in the neighboring country on food exports, which between 2015 and 2017 grew at an average annual rate of 4%.
According to figures from the Promotora del Comercio Exterior (Procomer), last year Costa Rica's food industryexports amounted to $1.618 billion, which is equivalent to an increase of 4.7% compared to the amount reported in 2016.
Factors such as the international price and a reduction in productivity, explain the 60% drop in production of this grain in Costa Rica 's Central Valley over the last 17 years, ceding the land space to real estate development.
Areas in the Central Valley that had previously been considered the best for coffee growing, have been giving way in recent years to new constructions, both residential and commercial, mainly east of San José. The drop in productivity, the effects of pests on plantations, and the drop in international prices have affected coffee production in this area.
From July 30 to August 1, a business meeting will take place between business leaders in the region and Chilean companies from the forestry, agriculture, manufacturing and seafood sectors.
Last year countries in the region exported $68 million worth of watermelons, the highest value in the last six years, registering an increase of 58% compared to 2016.
Figures from the information system on the Fresh Watermelon Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In Guatemala, a workshop to train professionals from the Central American region on the use of the Regional Integration System for Health Registries is being organized for June 18.
From a statement issued by the Sieca:
The Center for Studies for Economic Integration (CEIE) at the Central American Economic Integration Secretariat (SIECA) is organizing a workshop to train professionals from the Central American region on the use of the Regional Integration System for Health Registries (SIRRS).The objective is to promote the use of the IT platform and train personnel in the private sector in its use and exploitation.
In Costa Rica, the decree that authorizes the cultivation of coffee of the robusta variety in low altitude areas is now in force.
The decree was published on May 16 in the newspaper La Gaceta, and will be controlled by the Coffee Institute of Costa Rica (Icafé), to "... avoid a mixture of crops in the areas, avoid the joint processing of the two varieties and determine through tests which types of Robusta are best adapted to the country."
The FAO food price index grew 1.9% year-on-year, due to the increase in prices of dairy products and cereals.
From the monthly report on the FAO food price index:
The FAO Food Price Index* (FFPI) averaged 176.2 points in May 2018, up 2.2 points (1.2 percent) from April level and hitting its highest level since October 2017.
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