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"]
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).
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.
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 National Congress of Honduras approved a decree to allow local agricultural producers with credits in arrears in Banadesa to manage the readjustment for a further six months.
On January 23, 2020, deputies approved a draft decree to give producers who have debts with the National Agricultural Development Bank (Banadesa) an additional six-month extension for the readjustment of their obligations, reported the institution.
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.
Palm oil producers and traders in Honduras can apply for refinancing or readjustment of loans they have with supervised financial institutions in the country until December 31 of this year.
In order to obtain these benefits, producers and/or traders in the African palm sector must benefit from these mechanisms by 31 December 2019, according to an official source.
Because of a drop in the price of the grain, during the first eight months of the 2018-2019 harvest Honduran coffee sales abroad totaled $673 million, 14% less than what was reported in the same period of the 2017-2018 cycle.
According to figures from the Honduran Coffee Institute (Ihcafe) between the first eight months of the 2017-2018 harvest, which runs from October 2017 to May 2018, and the same period of the 2018-2019 season, sales and exported volume decreased from $786 million to $673 million, and from 6.4 million to 6.3 million, respectively.
The unsatisfied demand for vegetables in the Salvadoran market opens opportunities for businessmen in the region to place their products in the coming years.
A diagnosis by the Foundation for Investment and Development of Exports of Honduras (Fide), estimates that by 2021 in El Salvador the unsatisfied demand for white onion, carrot and potato, together will total about 30 million tons.
Between February 2016 and March 2017, the average price of palm oil exports from Central America increased from $0.54 to $0.74 per kilo, however, in September 2018 the kilo of the product was resold at $0.54.
Figures from the Trade Intelligence Unit at CentralAmericaData: GRAFICA caption="Click to interact with graphic"]
Because of the decline in the international price of sugar in recent years, agricultural businessmen in Guatemala have decided to migrate to more profitable crops, such as bananas and African palm.
Last year, Guatemalan banana exports totaled $815 million, 4% more than the $782 million reported in 2017, a rise that is partly caused by the increase in the cultivated area in the country.
In December 2018, it was reported that the international price of a pound of coffee fell to $1, which is equivalent to a 12% drop compared to the same month in 2017.
Data from the International Coffee Organization (ICO) detail that in the last two months of last year also reported a decline in the price of the pound of coffee globally, in this case was 8% as it declined from $1.09 to $1.
Because of the foreign sales of companies in Guatemala and Honduras, during the first six months of 2018 regional exports totaled $100 million, 19% more than in the same period in 2017.
Figures from the Business Intelligence Unit at CentralamericaData: [GRAFICA caption="Click to interact with graphic"]
From March 21st to 23rd in Antigua, Guatemala, more than 150 international buyers will participate in business rounds with agricultural producers in the region.
From the Agexport press release:
The AGRITRADE Platform of AGEXPORT invites Guatemalan companies of vegetables, fruits, differentiated products, ornamental plants, flowers and foliage, logistics, inputs and agro-industry to promote their exportable offer in the 19th.