During 2020, companies in the region bought corn abroad for $998 million, 5% more than what was reported in 2019, a variation that is explained by the increase in imports from Nicaragua, Guatemala, Honduras, Panama and Costa Rica.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
The increase in the international prices of corn and soybeans, inputs used to produce animal feed, threatens to put upward pressure on the production costs of meat, eggs and dairy products.
In recent months, the international price of a bushel (27 kilos) of soybeans increased by 28%, from $10.6 to $13.62, between November 1, 2020 and January 28, 2021.
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 yellow corn is imported from the United States at a price of $11 per quintal in Nicaragua and the cost of producing a quintal of sorghum locally is $12.5, competition for local producers is nearly impossible.
Nicaragua is part of the Dominican Republic-Central America-United States Free Trade Agreement, an agreement that allows yellow corn from the United States to enter the local market free of tariffs.
From January to June 2020, the region's companies bought corn abroad for $525 million, 20% more than reported for the same period in 2019, a variation that is explained by the increase in imports from all Central American markets.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graph"]
From January to September 2019, companies in the region bought corn abroad for $685 million, 12% more than reported for the same period in 2018, a rise that is explained by the behavior of imports in Nicaragua, El Salvador and Guatemala.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
During the first quarter of the year, corn imports from companies in the region reached $194 million, 15% more than reported in the same period of 2018.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAPHIC caption="Click to interact with graphic"]
Between January and September 2018, corn imports from countries in the region totaled $612 million, 13% more than what was purchased in the same period in 2017.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics]
Between January and June 2018, maize imports from countries in the region totaled $380 million, and 51% were bought by companies in Guatemala and Costa Rica.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Corn imports from the countries of the region reached $168 million between January and March of this year, 6% more than what was reported in the same period of 2017.
Figures from the information system of the Corn Market in Central America, from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]