In order to take advantage of the potential of the Nicaraguan livestock industry, it is essential that traceability systems be improved, a prerequisite for entering demanding markets such as Europe.
The growth in exports of meat and meat products from Nicaragua could be even greater if product monitoring and control systems were properly implemented throughout the production chain.The European market is one of the most demanding in this regard, and is one of the most profitable once the necessary traceability systems are implemented.
In 2016, the countries in the region sold 29 thousand tons of sausages, registering a 6% increase over 2015.
Figures from the information system on the Central American Market for Milk and Dairy Products, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
Projections for 2017-2018 are to plant an area of 1.7 million manzanas (a unit equivalent to 1.72 acres), in the cattle sector 865 thousand head of cattle are expected to be slaughtered and, in the dairy industry the expected projections are of 280 million gallons.
The Plan for Production, Consumption and Trade in the 2017-2018 Cycle includes details of the Nicaraguan government's projections for agricultural, livestock, poultry, aquaculture and forestry sectors for the current year and the next.
As in March, the values of all products in the FAO food index fell in April, with the exception of meat prices.
From a statement issued by the World Food Organization:
» The FAO Food Price Index* (FFPI) averaged 168.0 points in April 2017, down 3.1 points (1.8 percent) from March, but still 15.2 points (10 percent) higher than in April 2016.
In the first four months of the year the volume of meat exported exceeded the figure for the same period in 2016 by 45% and generated income of $134 million.
The value exported was also higher than the one registered in the first quarter of last year, when $96 million was exported, according to Cetrex's figures.
Representatives of the sector attribute the better results to diversification of the markets for which Nicaraguan meat is destined.René Blandón, president of the Comisión Nacional Ganadera de Nicaragua (Conagan), commented to Elnuevodiario.com.ni: "The industries, which are responsible for placing the processed product, have got their finger out, so to speak, in searching for and conquering new markets for meat."
In the first quarter of the year exports of coffee, beef and sugar cane generated $388 million, 54% more than in the same period in 2016.
Between January and March this year 45 million kilos ofgreen coffeewere exported,generating revenues of $159 million, which is 35% greater than the value of exports in the first quarter of 2016.
Except meat, in March rates went down for all other commodities in the FAO food index, especially sugar and vegetable oils.
From a statement issued by the World Food Organization:
The FAO Food Price Index* (FFPI) averaged nearly 171 points in March 2017, down almost 5 points (2.8 percent) from February, but still 20 points (13.4 percent) above its level a year earlier.
With the exception of vegetable oils, in February rates of all commodities that make up the FAO price index increased, especially cereals.
From the FAO Food Price Index:
The FAO Food Price Index* (FFPI) averaged 175.5 points in February 2017, up 0.9 points (0.5 percent) from a slightly revised January value. At this level, the FFPI is as much as 26 points, or 17.2 percent, higher than its level in the corresponding month last year and at its highest value since February 2015. With the exception of vegetable oils, the indices of all other commodities used in the calculation of the FFPI increased in February, especially of cereals.
This year the union of beef exporters expects to sell abroad 113,000 tons of beef and offal products.
Directors of the Nicaraguan chamber of beef exporting plants estimate that sales this year will generate $480 million in revenue.They also announced they will be working on the implementation of improvements that will allow them to increase the value added of the final product, in order to enter more demanding markets, such as Europe.
Between January and September 2016, Central American countries together imported $74 million in sausages and similar meat products, at an average price of between $2.37 and $2.85 per kilo.
Figures from a reporton Imports of Processed Meat in Central American, by the Business Intelligence Unit at CentralAmericaData: [Figure caption = "Click to interact with graphics"]
In Nicaragua industrialists are preparing to defend against the denouncement by farmers over discrepancies between the prices paid by local abattoirs and international prices.
In the difficult route to increase the sector's sales abroad, the country has so far managed to register 58% of the cattle herd.
The advanced comes after five years of efforts between the authorities and trade associations to have included in their records 22% of cattle farms in the country and 58% of cattle organizations, but industry representatives believe that there is still much to be done to meet the traceability requirements that are impeding the entry of Nicaraguan meat products into some markets, including the European Union (EU).
In 2015 the region as a whole imported $96 million worth of processed meat, led by El Salvador, which imported $25 million, followed by Guatemala with $22 million, and Honduras, with $16 million.
Figures onForeign Trade in Sausages Meat and Similar Products in Central America,analyzed by the Business Intelligence Unit at CentralAmericaData.com show that in 2015 the countries of Central America imported 33,528 tons of processed meat, equivalent to $96 million.
Milk and meat producers have reported discrepancies between the prices paid by slaughterhouses and international market prices.
The Federation of Livestock in Nicaragua (Faganic), the National Union of Agricultural Producers in Nicaragua (UPANIC), and the Nicaraguan Chamber of the Milk Sector (CANISLAC) have reported that four slaughterhouses are distorting the local market by allegedly paying prices that are lower than international prices.
A study by Funides details the numbers for the sector and points to factors impeding further development such as low productivity due to lack of genetic development and mechanization, in addition to excessive dependence on climate.
According to the Nicaraguan Foundation for Social Development (Funides), the main challenges facing the livestock sector are low productivity, high dependence on climate, lack of genetic development, little mechanization, higher demands from international markets, sanitary barriers and those of neighboring countries, lack of public services and infrastructure and low industrialization.