A quintal of the grain has gone from $43 to $26 in traditional areas of production, and Nicaraguan growers fear they will not be able to recover investment costs.
The restrictions imposed by the government on the export of beans has led to a fall in the price of grain of up to 40 percent in production areas in northern Nicaragua, going from a price of between C $900 and C $1,000 córdobas to C$600 cordobas ($39 to $43 per quintal to only $26), reports ElNuevoDiario.com.ni.
The National Bean Commision of the Association of Manufacturers and Exporters of Nicaragua (APEN) has requested the government of Nicaragua to lift the barriers imposed two weeks ago on the export of beans, which have brought losses to producers.
According to Félix Miranda, chairman of the committee, the "delay" has caused economic losses because the quality of the product decreases day by day, which reduces the price.
The Mexican Ministry of Economy has announced the extension of the validity of the import quota of 100,000 tons of beans during the year 2012.
A press release from the Ministry of Economy reads:
This decision is due to the availability of beans being affected by drought in the north and will contribute to stabilizing the price of this product, which has been experiencing increases in recent weeks, according to information from the National Market Information System (SNIIM in Spanish).
A partnership between producers and the government is being analyzed so that the Honduran government can maintain a strategic reserve with set prices.
Through the partnership, basic grain producers are looking to store corn and beans on the premises of the National Institute of Agricultural Marketing (IHMA) in exchange for negotiated prices with the government of Honduras.
A decree authorized the duty-free import of basic grains, maize and beans, to ensure supply for the population.
By means of Decree 907, the MAG has been empowered to buy and sell seed and grain, bean and maize and materials for their production, in order to guarantee the price of the product and transfer it at a reasonable cost to the public.
A press release from the Ministry of Agriculture and Livestock in El Salvador states:
Contrary to expectations, the bad weather that affected the harvest has not negatively impacted the production of beans.
Bean production in the period September-November grew by 30% compared to the previous reporting period May-September.
Increased production has enabled producers to increase exports, which amounted to 120 thousand quintals in the aforementioned period, according to the Association of Producers and Exporters of Nicaragua, APEN.
The Ministry of Agriculture will provide $11 million to compensate for losses caused by the excessive rains.
Hugo Flores, deputy minister, explained that the money will go towards replanting, renovating at-risk areas, and supporting the aquaculture sector, among other schemes.
The measure seeks to prevent a shortage of basic grains in 2012, and will be complemented by the duty-free import of 50,000 tons of white maize and 25,000 of red beans.
The National Assembly has approved the Ministry of Agriculture’s budget increase for the purchase of seeds for planting beans and corn.
With 71 votes, the Legislature approved the favorable vote of the Treasury and Budget Commission, to empower the Ministry of Agriculture and Livestock with the special temporary provisions to ensure an adequate supply of seeds for beans and corn, as well as the materials required for their production.
Decrees awaiting approval by Congress would authorize the government and private buyers to purchase corn and beans duty free.
Minister of Agriculture and Livestock, Guillermo Lopez, asked Congress to act promptly in passing ordinances that will allow the duty-free purchase by the government of up to $5 million worth of white corn and red or black beans, and by individuals of up to 50 thousand tons of corn and 25 thousand metric tons of red or black beans.
The country's bean growers say that the closure of borders by the government has affected sales.
Leading producers and exporters of red beans, one of Nicaragua's most important export products, estimate that total sales this year will be approximately $30 million, half of the volume exported in 2010.
One of the main reasons for the drop, they explain, is the trade barrier imposed by the government for more than seven months, thereby restricting the sale of the beans abroad.
Damages to crops caused by recent rains will force the region to import beans again this year, just as in 2009 and 2010.
Nicaragua, Central America's main red bean exporter has stated that it will struggle to export beans to the rest of the region due to the climatic conditions that have affected its crops. Approximately 560,000 'manzanas' (40,000 hectares) have been lost.
In order to ensure domestic supply and prevent price hikes, the government has announced it will import beans and corn.
Guillermo López Suárez, minister of agriculture and livestock indicated that importing beans "is necessary" to prevent shortages. The beans will be bought from China, South Africa and Ethiopia and the maize will be imported from Mexico and South America.
Productive organizations have formed an alliance in order to promote the use of organic fertilizers in the cultivation of beans.
By using these inoculants, growers expect to gain an increase of between 30% and 40% in productivity.
About 3,500 small farmers in the departments of Esteli, Matagalpa, Jinotega, Nueva Segovia, Chinandega, Carazo, Masaya, Boaco, the RAAN and RAAS, are taking part in the program.
The government has given authorization for bean exports, which had been suspended since September 2010, for the next three months.
The information was confirmed by Jose Adan Aguirre, president of the Superior Council of Private Enterprise, COSEP, after a meeting with the head of the Ministry of Development, Industry and Commerce (Mific), Orlando Solórzano.
Despite forecasts by the Ministry of Agriculture, the union has warned that the harvest scheduled for later this year will be insufficient.
Oscar Albanez, president of the Agricultural Suppliers Association (APA), told the press that "the Ministry of Agriculture and Livestock (MAG) has said that bean production will amount to 2.6 million quintals and our forecast is around 1.9 million."