Because of the scarcity of rain in the region known as the Dry Corridor, producers in the country estimate that in the first cycle of the year has lost about 30% of corn crops and 35% of beans.
Directors of the Union of Agricultural Producers of Nicaragua (Upanic) explained that for the so-called "first production", Estelí lost 50% of the bean crop, and in Nueva Segovia fell between 40% and 50%.
Between 2013 and 2014 coffee yields decreased from 11.9 hundredweight produced per acre to 11.8, rice fell from 89.7 to 71.4 hundredweight, and beans fell from 12.8 to 11.8.
Reports from the Central Bank of Nicaragua show that also yields of sesame also decreased, going from 11.5 hundredweight per acre in 2013 to 8 hundredweight per hectare in 2014. With regard to coffee, Nicaragua is one of the countries with the lowest yield per hectare planted "... surpassed by El Salvador, but below Honduras, Costa Rica and Guatemala."
Little knowledge on the subject and difficulties in properly measuring the risks are some of the causes of the limited supply of this type of coverage.
Currently only one company, out of the 5 operating in the country, provides insurance for the agricultural sector. At the end of 2014, written premiums for this sector where only 0.05% of the total, ie $ 2.4 million.
The Ministry of Agriculture is projecting that local production of potatoes and onions will not be enough to meet domestic demand, and in the months of January and February 2015 imports will need to be made.
According to estimates arising from the latest survey conducted by the Ministry of Agricultural Development (MIDA) production of potatoes and onions in the early months of 2015 will not be sufficient to meet demand therefore analysis is being undertaken on how much will need to be imported.
The International Coffee Organization estimates that global demand will reach 175 million sacks of 60 kilos in 2020, driven by the markets of China, South Korea and Russia.
The sophistication of consumers and a growing preference for coffee in markets such as South Korea, China and Russia will be part of the main factors driving the increase in demand for the grain in the coming years.
Price rises are estimated due to the 25% reduction in exports from Brazil and the decline of 28% in the orange crops in the United States.
From a statement issued by the Foreign Trade Promotion Office of Costa Rica (Procomer):
In the first half of 2014, exports of Brazilian orange juice showed a significant drop. Up until May, exports totaled 375,000 tons, down 25% compared to the same period in 2013.
The list of chemicals whose importation was banned in March includes some identified as the most appropriate for their cost-effectiveness and to address the effects of El Niño on crops.
Reiterating that the prohibitory rule was established unilaterally, the Nicaraguan Association of Formulators and Distributors of Agrochemicals, ANIFODA requested space with the government to demonstrate the impact that the lack of these products will have on farming and specifically on the 2014 - 2015 harvest . In particular they asked for "... experts to be allowed to come and speak on the cost-benefit of the seven agrochemicals that have been banned in the country, and from this decide whether or not to prevent their distribution."
The fall in international prices and overproduction is negatively impacting sales of the seed harvested in Nicaragua.
In the U.S. market a quintal of chia is trading at $170 whereas it previously traded for $280. During the 2013-2014 cycle Nicaraguan growers harvested about 180,000 quintals, however, much of this crop had no advance purchase contracts and contractual undertakings from exporters are full.
In the period 2014/2015 demand for coffee will exceed supply due to lower levels of grain production in Brazil.
The next coffee crop cycle will be the first since 2009/2010 in which a deficiency will be registered in the market as an overall deficit of 612,000 bags of coffee is foreseen. "2014/2015 will see the lowest level of production since 2011/2012 and the largest annual percentage decrease since 2009/2010."
Nicaraguan sugar producers are confident that the harvest which was recently started will bring in more than the 15.6 million quintals of sugar produced in the last cycle, reaching 17 million.
This was explained Mario Amador, general manager of the National Committee of Sugar Producers (CNPA). This would mean an increase of 8.9% compared to the 2012-13 harvest.
In Nicaragua, expectations are that the harvest of white corn in the 2013-2014 cycle will reach 12 million quintals, which will be enough to supply national consumption.
However in order for that to happen, small and medium farmers must achieve a higher return on their crops and increase production.
Laprensa.com.ni reports: "Through the Corn for All program, which is being run in Nicaragua, El Salvador, Honduras and Guatemala, the idea is to increase productivity of staple grain crops in the varieties that are planted in each country ". This program is being developed in partnership with Disagro and Helps International.
Of the 2.72 million hectares with potential for growing cacao only 16,000 hectares are devoted to the crop which is currently highly profitable.
Laprensa.com.ni reports: " ... at the moment in various parts of the country there are projects , including one that will be run over the next three years by VECO Mesoamerica and Heifer International which will benefit some 1,500 small producers in three cooperatives: la Campesina de Matiguás (Matagalpa) Cacaonica de Waslala (North Atlantic Autonomous Region) and Fenacoop , New Guinea (South Atlantic Autonomous Region)" .
Low production costs make sesame production a highly profitable option for small farmers in Nicaragua.
Added to this is the growing trend of consumers worldwide who prefer healthy foods that are nutritious and have curative qualities such as sesame which can be used for oil extraction and as a food.
"Sesame cultivation does not demand large amounts of pesticides and nutrients, which makes it one of the cheapest in terms of investment costs and makes it accessible to small producers. It requires an investment of $400 per acre ", reported Laprensa.com.ni.
Although cotton is currently going through a good time, the National Plan for Production, Consumption and Trade does not include this seed for the crop season 2013-14.
Despite this situation, farmers are reluctant to stop planting because they owe about $2 million to Alba-Caruna and because in terms of demand and prices, cotton is currently going through a good time.
Cucumber, zucchini and lemons have been grown inside transparent molds forming shapes such as hearts or stars.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The Spanish company Zayintec displayed cucumbers in the form of hearts and stars during a tasting, at the stand of the Diputación Provincial de Almería.
Cucumbers with heart and star shapes, grown in Almería with biological control techniques, are not only attractive because of their original appearance, but also because of their unique agronomic and organoleptic characteristics. For the development of this new line of cucurbits, Zayintec has implemented a process of innovation and improvement on a variety of the Persian cucumber, from the Middle East.