Betting on the latest technology projects, agriculture 4.0 and seeking alternative products derived from sugarcane so as not to depend on international prices, are some of the lines of action on which the Guatemalan sugar sector will focus in the coming years.
Although sugar prices in the international market have improved between October 2020 and April 2021, in previous years there was a downward trend that pressured mills to explore new market opportunities for sugarcane-derived products.
From January to September 2020, companies in the region bought corn abroad for $753 million, 10% more than what was reported in the same period of 2019, a variation that is explained by the rise in imports from Nicaragua, Guatemala, Honduras and Panama.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
An agricultural production complex was inaugurated in Costa Rica, which has six modules for protected environments and will be used to validate vegetable crop production techniques.
The project, promoted by the National Institute for Innovation and Transfer of Agricultural Technology (INTA) and the Ministry of Agriculture and Livestock, aims to validate horticultural crop production techniques in protected environments for the agro-environmental conditions of the Huetar Caribbean Region, Costa Rican authorities reported.
The lack of incentives, the disorder to apply the legislation and the complexity of producing in areas that are surrounded by traditional crops, are some of the factors that hinder the development of organic agriculture in Costa Rica.
In the last decade, the area planted to organic agriculture has fallen. Data from the program of Accreditation and Registration in Agriculture (ARAO) specify that in 2010 the area amounted to 11,115 hectares and in 2019 fell to 8,832 hectares, equivalent to a decrease of 21%.
Whether as a fresh or dry product, there are multiple trading opportunities in markets such as the US, UK, Germany and Japan, which are the main importers of this plant globally.
When sold as a food ingredient, raw material or cosmetic, in the medium and long term there are greater opportunities for internationalization to greater added value can be given to the product, highlights a report prepared by the Promotora de Comercio Exterior de Costa Rica (Procomer).
In Costa Rica, the deadline for employers to regularize the immigration status of workers who come to the country to work in agricultural activities was extended until October 22.
The International Regional Organization for Agricultural Health alerted the region's ministries of agriculture to outbreaks of the devastating Central American locust.
The Central American authorities were informed of the alert in a note issued by the Regional International Organization for Agricultural Health (OIRSA) during the first stage of rains that ended in September.
A guideline was issued prohibiting the planting of pineapple, banana, rice, grasses, oil palm and other monocultures in forest reserves, buffer zones, national parks, biological reserves, national wildlife refuges, wetlands and natural monuments.
According to Directive No. 0006-2020 of June 26 issued by the Ministry of Environment and Energy (Minae), it exempts forestry plantations from the prohibitions contained in the document.
Arguing that the unusual growth in sugar imports is harming local production, the Alvarado administration decided to raise the tariff on products entering Costa Rica from 45% to 73% for a three-year period.
The Ministry of Economy, Industry and Commerce (MEIC) concluded the investigation requested by the Agricultural Industrial League of Sugar Cane (LAICA) and 4 mills, on the safeguard measure against imports of solid state, granulated sugar, known as white sugar, used for domestic and industrial consumption, justifying a deterioration in the main economic indicators of the National Production Branch (RPN), details an official statement dated June 15.
The government announced that it is planning to increase the area planted with avocado from 2,000 to 4,500 hectares, in order to meet the demand for the fruit on the local market.
The Ministry of Agriculture and Livestock (MAG) reported that the National Avocado Plan will serve as an instrument to guide the management of agricultural sector institutions towards strengthening the cultivation of this fruit.
In Costa Rica, legislative initiatives are being prepared to restructure the credit portfolios of small and medium agricultural producers affected by climate phenomena.
One of the initiatives includes the purchase of the credit portfolio to readjust the debts of producers affected by climatic phenomena and who are unable to pay. The credits that would be applied in this case would be those of $35,000 or less.
To the denouncements made in recent months by businessmen from Guatemala and Nicaragua, is added that of a Honduran union, which denounces the invasion of 3,400 manzanas of productive land.
From January to September 2019, sales of the agricultural sector abroad totaled $2,080 million, 7% less than in the same period in 2018, mainly because of the performance of banana, pineapple and coffee exports.
Figures from the Foreign Trade Promoter (Procomer) detail that between the first nine months of 2018 and the same period of 2019, exports registered a slight increase, going from $8,490 million to $8,629 million.
In some cantons of Guanacaste, Puntarenas, Alajuela, Cartago and San José, the government declared a state of emergency because of the hydric deficit in the country, a consequence of the abnormal behavior of rainfall.
Rainfall behavior is an effect of the Southern Oscillation, El Niño (ENSO). The situation has affected human consumption of liquid, productive activities of agricultural vocation and the environment, informed the Ministry of Agriculture and Livestock.
In the last two years, non-performing loans to the agricultural sector increased from 2.4% to 5.9% between April 2017 and the same month in 2019.
Figures from the General Superintendence of Financial Entities (Sugef) indicate that the increase reported in the arrears of agricultural loans includes operations with delays of more than 90 days, as well as operations that are in judicial collection.