Businessmen and importers of agricultural machinery argue that the payment of sales tax increases costs and reduces competitiveness of their production.
Imports of capital goods in the agriculture sector dropped from $57 to $54 million between 2014 and 2015, according to central bank data published by Laprensa.hn. The union of importers and the agricultural producers themselves say the cost has risen since the Law on Organising Public Finance, Control of Exemptions and Anti-Evasion Measures came into effect, a law which eliminated tax exemptions which had been granted to the agricultural sector for years.
Fewer construction projects for public works, large private works and low demand in the agricultural sector, are forcing companies to try to diversify markets.
Although it is expected that with the public infrastructure projects recently announced by the government the construction sector will start to recover, suppliers of agricultural and construction machinery predict a decrease due to production problems and declining projects.
A Colombian company has obtained a patent on two machines that reduce water consumption in oil palm plantations, and has plans to install a plant in Guatemala.
The Colombian company Inal has obtained a first patent and it is expected that before the end of 2014 it will set up a pilot plant capable of processing ten tons of palm per hour.
The general manager of the company, Angel Acuna told portafolio.co that "...
In the event held by the Panamanian Chamber of Construction companies from the sector struck deals on home sales, farm and construction equipment worth $145 million.
Carlos Allen, chairman of the Committee on Trade at the Panamanian Chamber of Construction (CAPAC), told Panamaamerica.com.pa that "... factors such as low interest rates, the exhibition of agricultural and construction equipment, 'Do It Yourself' workshops, the Business Roundtable and Security Camp are some of the causes of the event surpassing expectations. "
The Monte Rosa mill will invest $100 million in a new boiler to increase the amount of power generated from bagasse from 32 to 55 MW .
The mill plans to increase the amount of energy generated based on sugar cane waste by investing in a new boiler. With this extra power, the company aims to supply about 10% of domestic demand.
"That will require an additional investment of about a hundred million dollars to install a new boiler that will allow us to grow from 6.3 million to 7.3 quintals of sugar per harvest. But the most important thing is not more sugar, but to generate more energy. We want to deliver 55 megawatt hours of clean renewable energy and have the ability to generate all year round, not just during the harvest ", said Bernardo Chamorro, general manager of Monte Rosa in an article on Laprensa.com.ni .
Lack of modernization processes and machinery accounts for the low competitiveness of agricultural production.
In order to increase production and eliminate the need to import grains when there is a shortfall in production and the needs of the local market cannot be met, industry representatives are suggesting the use of machinery that could triple crop yields.
Banco Industrial (BI) will auction the farms and assets owned by the Chabil Utzaj mill.
The auction will be held on 27 August and a base price will be set at $30.2 million.
The Guatemalan bank BI is the trustee for the mill, which owns 37 farms about 100 miles north of the country's capital, as well as milling machinary at two sites, according to Elperiodico.com.gt.