In Nicaragua industrialists are preparing to defend against the denouncement by farmers over discrepancies between the prices paid by local abattoirs and international prices.
A pilot project aims to provide funding and technical assistance to a group of food producers in order to improve their livestock and increase quality.
The purpose of the project, still in its test phase, is for farmers to use the same milk extracted from cows to feed calves instead of selling it at low prices in the local market. The plan includes providing technical assistance to implement traceability plans and in this way increase the possibility of exporting meat to EU markets.
The commissioning of the plant belonging to the Mexican SuKarne has once again brought to the fore the problem of smuggling of live cattle both to Costa Rica and to Honduras.
An article in Elnuevodiario.com.ni reports that "... Canicarne's executive director, Onel Perez, insisted that the problem of livestock [smuggling] not only affects meat processing plants, but will also have effects on employment in newly set up processing plants, the price of meat for consumers, and livestock taken as a whole. "
The main factors are a herd of 5.8 million head of cattle, programs which give impetus to the activity, and the opportunities provided by the AA with the EU.
According to breeders and industry to date number of cattle could be higher than that amount recorded in the IV National Agricultural Census (4.2 million head). Onel Pérez, executive director of the Nicaraguan Chamber of Beef Exports (Canicarne) , currently estimated that the herd could be 5.8 million head.
Canicarne is demanding the repeal of the decree which establishes a fixed price of $250 for cattle weighing between 250 and 350 kilos, which favors the export of live cattle.
According to the Nicaraguan Chamber of Beef Exports (Canicarne), slaughterhouses are working at half capacity and demanding the repeal of the interministerial Mific-Magfor Decree 027-2007, believing that it encourages tax evasion in live cattle exports.
The Nicaraguan Chamber of Meat Trade is looking to expand beef exports in 3,000 additional tons.
The president of the National Cattlemen Nicaragua (Conago), René Blandon stated that if successful, beef exports to that country would reach 22 tons per year.
"Conago also hopes to improve the livestock value. Blandon said that 'the price they are paying in Venezuela, which is $ 1.30 per kilo, is better than other markets including Central America and Puerto Rico. That makes it attractive and stimulates the small farmer," stressed Blandon, according to La Prensa.
Authorities have agreed with their Panamanian counterparts to seek ways to make it easier for Nicaraguan meat to gain access to Panama's market.
Nicaraguan cattle farmers believe that the current auction system discriminates against them and fails to reflect market conditions.
"The president of the Nicaraguan Chamber of Meat Producers (Canicarne), Onel Pérez, claims that the auction mechanism is inappropriate and lacks transparency as well as not suiting Nicaragua, which produces around 25 different cuts with varying customs tariffs," reports Elnuevodiario.com.
Next week, Nicaragua and Guatemala could resolve their differences, allowing the former to resume shipping meat and dairy products to the latter.
Onel Pérez, president of the Nicaraguan Meat Chamber (CANICARNE), explained that the trip to Guatemala undertaken by Nicaragua’s commerce minister Orlando Solórzano will be key for solving this conflict.
“In turn, Wilmer Fernández, president of the Nicaraguan Dairy Chamber (CANISLAC), casts doubts over the resolution of the conflict. He argued that the same happened months ago, the sides promised to solve the situation, but the barriers for Nicaraguan production were put back in place shortly afterward”, reported Elnuevodiario.com.