In Nicaragua domestic cattle producers are being paid better than those in other countries.
"... The plants are paying around US $3.22 per kilo for 'hot' beef while markets such as Brazil, the world's largest exporter, whose meat competes with Nicaragua’s, paid US $2.22 per kilo. That means that Nicaragua is paying about $220 more per head than in those markets, and 45% more per kilo of 'hot' beef relative to the leading exporter of beef in the world ", said Onel Perez, executive director of the Nicaraguan Chamber of Beef Exporting Plants (Canicarne), in an extensive interview with Elnuevodiario.com.ni.
An announcement has been made that negotiations are taking place with Chinese investors to build a slaughterhouse to process and export beef from La Chorrera.
The project, valued at $8 million, is seeking foreign capital investment and from representatives from the Municipality of La Chorrera, in order to create a joint venture to develop the plant and then allocate production to the local market, China and the United States.
The government is negotiating with health authorities in the US the vetting of new abattoirs in order to adapt to the regulations required in the North American country.
The negotiations between the Panamanian government and the Office of Agricultural Affairs of the United States could boost exports of beef, which in the first six months of the year fell by 7.3% compared to the same period in 2013, according to figures from the Comptroller General of the Republic.
Negotiations have started for the sale of 300 cattle per week to supply the Chinese colonies established in the region.
The company China National Fisheries has shown interest in acquiring Panamanian meat which will be destined for consumption in Chinese colonies residing in Central America and South America, better known as overseas Chinese.
The first negotiations were held in the Asian nation when a Panamanian delegation made up of producers and the Ministry of Agricultural Development (MIDA) and the National Environmental Authority (ANAM) went to visit the country. On December 14 another meeting will be held in Panama, where the Chinese representatives will negotiate the commissioning of the project in February.
The main factors are a herd of 5.8 million head of cattle, programs which give impetus to the activity, and the opportunities provided by the AA with the EU.
According to breeders and industry to date number of cattle could be higher than that amount recorded in the IV National Agricultural Census (4.2 million head). Onel Pérez, executive director of the Nicaraguan Chamber of Beef Exports (Canicarne) , currently estimated that the herd could be 5.8 million head.
Chicken meat imports in Costa Rica had a growth of 57% in 2012 over the previous year, while beef only grew 46%.
From the report:
In 2012 the country imported $48.3 million worth, an increase of 28% compared to the previous year.
Imports of frozen bovine meat recorded the highest increase in monetary terms, with imports in 2012 having increased by more than $4.4 million compared with the previous year, going from $9.6 million in 2011 to approximately $14 million in 2012.
Canicarne is demanding the repeal of the decree which establishes a fixed price of $250 for cattle weighing between 250 and 350 kilos, which favors the export of live cattle.
According to the Nicaraguan Chamber of Beef Exports (Canicarne), slaughterhouses are working at half capacity and demanding the repeal of the interministerial Mific-Magfor Decree 027-2007, believing that it encourages tax evasion in live cattle exports.
They warn that if domestic prices are not adjusted and there is no guarantee to maintain the value of the local currency, they will not sell their cattle to local slaughterhouses.
Alvaro Fiallos, president of the National Union of Farmers and Ranchers (UNAG), is demanding that slaughterhouses adjust the price which has been kept frozen since late May last year at $2.97 per kilo in hot weight, and that they recognize the maintenance of the value of the cordoba.
In recent years, farmers and industrialists have accumulated investments in order to increase the quantity and quality of production.
On the side of the producers, work has been done in the area of genetics to produce more meat and milk, while slaughterhouses have been resized and modernized.
An article in Laprensa.com.ni outlines that "Investments made by the meat industry in recent years have turned local slaughterhouses into the largest and most modern in Central America, which in turn has ensured increased exports meat, offal and meat byproducts. Three of the largest slaughterhouses in the region are in Nicaragua: Nuevo Carnic, San Martin and MACESA. "
The cattle farming union of Nicaragua is to issue shares of a corporation that will build a slaughterhouse and has customers in Taiwan, Canada and the United States.
The slaughterhouse, whose construction is valued at about $15 million, will have the capacity to process about 500 cattle per shift per day, in an area of about twenty hectares.
According to the president of the Federation of Livestock of Nicaragua (FAGANIC), Solon Guerrero, the slaughterhouse will be the fifth building in Nicaragua authorized to export meat, and will join San Martín or Nandaime, MACESA or Central, Nuevo Carnic and Novaterra .
They argue that they must ensure there is enough cattle before building new slaughterhouses.
Representatives from the cattle industry responded to Albalinisa’s proposal of building two new slaughterhouses explaining that the focus must be first set on solving some of the issues which limit the sector’s productivity.
Specifically, they argue that even though they require additional slaughterhouses, they must first ensure there is enough cattle to supply them.
Meat processing plants foresee slaughtering 250,000 more cattle by 2014, a 38% increase.
Onel Pérez, president of the Nicaraguan Chamber of Beef Exporters (Canicarne), noted that they expect to slaughter 650,000 animals in 2010, out of a maximum capacity of 1.1 million in the country's 4 processing plants.
Pérez remarked that 'certified slaughterhouses have made considerable investments to handle the expected increase'.
The Nicaraguan livestock sector is beginning to feel limited by the lack of industrial processing plants.
Although the industry has had a remarkable boom, with earnings for all sectors involved and a projected growth of 10% for 2011, competition between producers, manufacturers and exporters is worsening.
While beef production has increased steadily in recent years, meat processing capabilities have not done so in the same proportion.