Due to the high geographic concentration of global production, Central America has increased its imports, but at the same time has become more vulnerable to crop losses, rising international prices and possible disruptions in supply chains.
The importance of the market for this type of food is that rice, wheat, corn, beans and soybeans are basic foods on which the world's population largely depends, since it is estimated that almost half of the calories consumed by people come from these foods.
Because of the scarcity of rain in the region known as the Dry Corridor, producers in the country estimate that in the first cycle of the year has lost about 30% of corn crops and 35% of beans.
Directors of the Union of Agricultural Producers of Nicaragua (Upanic) explained that for the so-called "first production", Estelí lost 50% of the bean crop, and in Nueva Segovia fell between 40% and 50%.
The drought that affected in 2014 has worsened this year, threatening shortages of basic foodstuffs.
An article on Nacion.com reports that the director of Agricultural Extension of the Ministry of Agriculture of Costa Rica, Felipe Arguedas said "... We are very concerned because two years of drought are joined together; we believe that 2015 will be worse than 1997, which was the driest year recorded so far."
Due to a reduction of local production because of drought, the government has authorized, for the second half of the year, an increase in tax-free imports of red beans, rice and corn.
In the case of red beans, an additional 10,000 tons has been approved on top of the 20,000 authorized in June, while for rice the quantities will be defined in the coming days.
In the case of beans, the goal was to plant 110 thousand hectares, but 112,000 were planted. In corn, the number of hectares increased from 304,000 to 315,000.
From a press release from the Ministry of Agriculture and Forestry:
Production expectations in both beans and corn, are excellent assured the Minister of Agriculture and Forestry, Ariel Bucardo, during a meeting of the Bean Council, involving producers, exporters and government officials.
Weather and price conditions bode well for the current crop, which is scheduled for mid August.
Mid-August will see the start of corn and beans harvesting, which is expected to be very positive due to the favorable climate and production conditions.
These good conditions, coupled with the prices of grains, have allowed authorities to foresee very good results from the harvest of about 7.7 million quintals of white corn, 1.41 million quintals of beans and 1.91 million quintals of upland rice .
The Agriculture Ministry reported that recent droughts could have affected 30% of the second harvest of the year.
Ariel Bucardo Rocha, Agriculture Minister, reported that 37 municipalities of the country were severely affected.
Laprensa.com.ni published further comments by the minister: "We believe that in the hardest hit municipalities, production will fall, because some farmers did not seed, or because there was a lack of water.
Record output is expected for basic grains, as well as an increase in cattle products.
Ariel Bucardo Rocha is the Agricultural Ministry of Nicaragua, and he expects corn production to reach 6.900.000 quintals for the premium seeding period.
"Regarding premium bean production, the Ministry is expecting 1.3 million quintals, from 100.000 blocks. For rice, the institution is expecting 1.150.000 quintals, and sees possible, along the harvest, to increase output in over 500.000 additional quintals", reported newspaper "El Nuevo Diario".
The $7 million project looks to train and provide equipment to Central American bean and corn growers.
María Antonia Zelaya is a spokesperson for the Swiss Agency for Development and Cooperation in Central America. She informed that "the regional project (comprising from Panama to Belize), is divided into phases, the first one being training. This new phase aims to incorporate state of the art machinery, thus increasing corn and bean quality and output".
The Central American countries have defined strategies to confront the rise in prices and possible scarcity of food. In effect it's an emergency plan that will require an investment of about 560 million dollars. The plan and be concentrated on four products: rice, beans, corn and sorghum.
The Central American plan, aimed at encouraging production of basic grains, includes the creation of a regional network for seed production, joint importation of agriculture inputs, an increase in areas under cultivation, improvements in productivity, and financing for producers.