Protectionist measures that favor dominant firms in domestic markets only extend the inevitable process of globalization, making it more expensive for consumers.
Whether a milk is 'good' or not is decided by consumers themselves by evaluating its quality and cost.Milk has no nationality.It's just milk.
Oversupply generated by the closure of the borders of Honduras and Costa Rica and the excessive rainfall in the country has brought down the price of industrial milk by up to 37%.
According to the union of dairy farmers up until last week a gallon of milk sold for $1.4, whereas now it barely reaches $0.87.
Regarding the effects of the dairy conflict with Honduras and Costa Rica, the Nicaraguan Chamber of the Dairy Sector (CANISLAC) estimated losses generated in the first half of the year by the closure of the border of Honduras at $30 million.
The Mexican company has acquired a dairy production plant in Alajuela and through an agreement with Florida Bebidas will produce and market its products in the country.
The announcement comes days after Nicaraguan authorities blocked entry of Costa Rican dairy products, after Costa Rica denied a permit to the firm Lala to export products from Nicaragua.
The transaction, which was carried out in 2015, was not announced at the time in Costa Rica, where high production costs have prompted several companies to move their operations to Nicaragua.
In 2015 the Costa Rican dairy producer Dos Pinos bought the industrial plant La Completa for an undisclosed amount.Dos Pinos is a cooperative network made up of more than 2,000 associated producers and workers.
Health authorities in Costa Rica have confirmed that since May they have prevented the entry of products from two dairy plants belonging to the Mexican company Lala in Nicaragua.
After information was circulated about the alleged closure of the Nicaraguan market to dairy products from three companies in Costa Rica, the health authorities of this country have acknowledged that since May 2016 they have restricted the entry of Lala's dairy products , having detected".. . several examples of "non - compliance" in the production system of the two plants inspected. "
Nicaraguan health authorities have restricted access to products elaborated by the Costa Rican company Dos Pinos and two other companies for failing to obtain health certification for their processing plants.
In a circular apparently issued by the company Dos Pinos, the entity may have indicated to its customers that due to non-renewal of health certificates for the industrializing plant they may not be able to continue expending their products until the situation has been resolved.This is the version stated by Laprensa.com.ni, who also explained that the Country manager at Dos Pinos in Nicaragua, Oswaldo Gonzalez Quijano said in the document"... The measure taken by the Government of Nicaragua 'has no technical basis'."
The Mexican company Lala has announced that it is in the process of acquiring brands belonging to the company Laguna Dairy in the U.S., amounting to $246 million.
From a statement issued by Grupo Lala:
Mexico City, May 30, 2016 - Grupo LALA, SAB de CV (BMV: LALA B) ( "Grupo LALA"), a Mexican company focused on the health food industry, announces that it is in the process of acquisition of certain businesses assets related to the brands Laguna Dairy, S. de RL de CV ("Laguna Dairy"), in the United States (the "Business Brands") for an amount of US $246mm, in a transaction to be settled with its own equity.
2016-2017 forecast: 1.6 million hectares in cropland, cattle slaughter at 795,000 head and milk production raging between 275 million and 300 million gallons.
The Plan for Production, Consumption and Trade in the 2016-2017 Cycle includes details of the Nicaraguan government's projections for the agricultural, livestock, poultry, aquaculture and forestry sectors for the current year and the next.
Arguing the imposition of non-tariff barriers, Centrolac has filed with the Central American Court of Justice a claim against Honduras because it prevented Nicaraguan milk from entering the country.
Although the Honduran government insists that restricting the entry of milk from Nicaragua is strictly in adherence to sanitary measures, Nicaraguan producers and exporters maintain their position and are demanding that the government take retaliatory measures against Honduras. Therefore, the company Centrolac presented on May 10 a lawsuit with the Central American Court of Justice, denouncing the closure of borders and accusing the country "... of contravening Community law".
The FAO Food Price Index continues to show a slow upward trend for the third consecutive month.
From a statement issued by the Food and Agriculture Organization:
The FAO Food Price Index (FFPI) averaged 151.8 points in April 2016, up 1.1 points (0.7 percent) from March, but almost 10 percent below its April 2015 level. A relatively strong rise in vegetable oil quotations coupled with a more modest gain in international prices of cereals more than offset a decline in dairy and sugar prices. The small increase in April represented a third month of gradual rise in the value of the FFPI.
The dairy sector in Nicaragua has denounced the imposition of non-tariff barriers by Honduras, whose health authorities have delayed the renewal of certificates for nicaraguan plants.
It has been estimated that 750,000 liters of milk per month have ceased to be exported to Honduras since November 2015, because the National Agricultural Health Service has not renewed certification of dairy plants in Nicaragua.
The event is open to technicians, livestock producers, and specialists and will be held from 16th to 17th of March in the Alfonso Nunez Training Center, in Boaco.
The National Cattlemen Association of Nicaragua (Conagan) extends its invitation to participate in the XI National Dairy Forum, to be held on 16th to 17th March in the Alfonso Nunez Training Center (Rancho Rojo) in Camoapa, Boaco.
The FAO Food Price Index averaged 150.2 points in February 2016, nearly unchanged from January, but 14.5% below February 2015.
From a statement issued by the Food and Agriculture Organization:
The FAO Food Price Index* (FFPI) averaged 150.2 points in February 2016, nearly unchanged from January, but 25.6 points (14.5 percent) below February 2015. The most outstanding development last month was a surge in vegetable oil quotations, which, along with a small recovery in meat prices, more than offset declining cereal, sugar and dairy prices.
Lala Group intends to take advantage of the free transit of goods in Central America to produce and export milk from Nicaragua to the entire region.
The Mexican company Lala confirmed the positive performance of Nicaragua's economy, announcing its intention to turn the country into a production hub and to export dairy products to the rest of Central America.
The third edition of the International Agricultural Fair will be held in San Pedro Sula on 19 and 20 May 2016, at the Expocentro Convention Center.
From a statement issued by Agromercados 2016:
The event aims to act as a meeting point in Honduras between public and private actors representing the different links in the agricultural chain (producers, domestic and international buyers, agro-exporters, agribusiness, financial sector, raw material suppliers, packaging, services, public entities and cooperatives, etc.) in order to promote business deals. More than 1,000 visitors are expected.