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.
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.
The government announced that in the next few days it plans to make outstanding payments of $14 million to producers of basic grains and Grade C milk, and also that some $25 million will be invested in sector programs.
In rice, $9.7 million will be disbursed to 143 producers, in grade C milk more than 2,000 producers will receive $1.2 million, in corn some 194 producers will receive $1.8 million, and in soft loans 2.6 million balboas will be paid to 136 producers of corn, beans, palm, fishing, watermelon, melon and rice, informed the Ministry of Agricultural Development.
In Panama, the subsidy to producers of $7.50 per quintal of rice that expired on June 30, 2019, was extended again by the government, this time until June 30, 2020.
The signing of a resolution to support national rice producers took place on July 18 at a meeting held by President Laurentino Cortizo Cohen with the Minister of Agricultural Development, Augusto Valderrama, and directors of public agricultural sector institutions, the government said.
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.
Guatemalan Foragro, manufacturer of insecticides, fungicides and herbicides, opened a branch in Panama and aims in the short term to position 50 products in the local market.
The company reported that for the opening of its branch in the Panamanian market invested $300,000 and that this would have a presence in all Central American countries, as they already operate in El Salvador, Honduras, Nicaragua and Costa Rica.
Developing strategic crops to ensure food security and bringing together agricultural agents to focus on foreign market niches is part of the challenge for the coming years.
One of the great challenges faced by businessmen in Panama is to take advantage of the country's logistical opportunities to position the Panamanian economy as an agro-exporter and also as a re-exporter of food.
For 2018-2019, the government decided to approve the payment of $3 for each quintal harvested by corn producers, associations and cooperatives.
Some of the fundamental requirements to be met by producers who apply for the benefit are: to have a supplier code, to use the weights authorized by the National Direction of Agriculture (DNA), to present a summary table of the sale of corn, original invoices, photostatic ballots and shipping guide, to fill out the certificate of certification of the corn sold, peace and safety of the DGI, copy of the DGI and note with which the file is presented to DNA, informed the Ministry of Agricultural Development (MIDA).
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.