During the period from May to June this year, rainfall in the region is forecast to be below normal, leading to increased crop pests and a shortage of animal feed.
The International Regional Organization for Agricultural Health (OIRSA) reported that because of the lack of rain is predicted a greater presence of pests in crops of corn, beans and sorghum, due to projected low rainfall from May to July 2019, compared to the historical average.
In Panama, the dry season began in November last year and not in December as planned, threatening production because of the shortage of pasture for livestock.
Representatives of the National Cattlemen's Association (Anagan) reported that they were not notified in advance about the expected change in the cycle because of the Niño Phenomenon, which prevented them from preparing to face the lack of rain in better conditions.
The downward trend in international prices and the climate impact are part of the challenges facing producers in the region for the next harvest.
According to data from CentralAmericaData, the average price per kilo of sugar exported by countries in the region fell 38% between May 2012 and June 2017, from $1.13 to $0.70.
Because of the drought that is affecting several areas in Central America, in El Salvador, agricultural producers estimate that at least 6.3 million hundredweight of corn, valued at $39 million, have been lost.
Representatives from the Salvadoran Chamber of Small and Medium Agricultural Producers (Campo) said that due to the drought, which lasted up to 40 days in some areas of the country, they have lost more than 6 million hundredweight of corn, valued at $38.6 million.
As part of the Drought Plan, $2.5 million has been allocated for the purchase of feed for cattle, drilling wells and building water reservoirs in the province of Herrera.
The Ministry of Agriculture has announced that it will be hiring companies in the province to carry out the drilling of wells and building reservoirs as part of a plan to mitigate the effects of drought in the area.
The procedure for selecting a contractor has been declared urgent and state institutions have authorized exceptional recruitment procedures for emergency services.
As immediate measures, the Executive Order is prohibiting the watering of gardens and public areas using drinking water and the granting of permits for prescribed burning of plant mass is suspended throughout the country.
The drought that affected in 2014 has worsened this year, threatening shortages of basic foodstuffs.
An article on Nacion.com reports that the director of Agricultural Extension of the Ministry of Agriculture of Costa Rica, Felipe Arguedas said "... We are very concerned because two years of drought are joined together; we believe that 2015 will be worse than 1997, which was the driest year recorded so far."
Private coffee producers accounted for 15.2 million sacks on March 31st, the highest number in the last seven years.
The increase in inventories is the result of the grain harvest collected by farmers after the severe drought that hit the country in recent months, raising concerns about the supply of coffee from the world's largest producer.
"...Private producers in Brazil had 15.2 million bags of coffee in inventories as of March 31, up 9.2% from the 13.9 million bags in the same period last year, the government agency Conab said in a report published online this week. "
Projections are that Guatemala, Honduras, El Salvador and Nicaragua will register the largest deficit of rainfall in the region between August and October.
From a statement issued by the Regional Committee for Water Resources of the Central American Integration System:
XLII Central America Climate Forum
The rain deficit will continue to hit the Central American region in the next three months (August, September and October), concluded yesterday climatologists and meteorologists at the Climate Forum which took place in our country.
The future price fell to $169 from $215, the maximum price reached in April, after it was proven that the damage to crops caused by drought in Brazil was not as severe as anticipated.
Contrary to what was estimated a few months ago, the damage done to the coffee plantations in Brazil was not so serious as tol drastically affect the final production of the 2013-2014 harvest.
Volcafé, one of the largest traders in the world, has announced that its production will be 10% lower than the previous season, due to the effects of drought in Brazil.
After fluctuating for 4 weeks, the price of contracts with terms of one month for the arabica variety rose to $215 on April 23rd.
Bloomberg reports that "the global harvest, including the variety of robusta beans, will be 11 million bags short of meeting global demand, estimates Volcafe. That means a global deficit which is equivalent to the production of Colombia, the second largest supplier of arabica in the world. ".
The droughts effect on grain crops has made food prices more expensive around the world, and is affecting the economies of Central American countries.
According to an article in Americaeconomia.com there is an increasing threat of low crop yields in major U.S. agricultural states affected by drought and high temperatures recorded during the month of July.
In the Azuero region, the most affected by the lack of rain, milk production has fallen by 80%.
Under normal conditions, the region produces an average of 25,000 liters per day, but currently it is only making 5,000.
According to a report in Prensa.com, in some areas such as Corozal and El Cedro, 90% of water sources have dried up.
Meanwhile, staff from the National Civil Protection System are taking an inventory of hectares affected, and as yet "it is unknown how much funding would need to be allocated to farmers affected by the drought."