After two years of non-operation, El Salvador's government and business associations agreed to reactivate the institution dedicated to decision-making on customs matters and trade agreements.
The private sector was represented by the Presidents and Executive Directors of the guilds ASI, COEXPORT, CAMARASAL, CAMAGRO, AMCHAM, CAMTEX and ADES, which are part of the Inter-union Commission for Trade Facilitation (CIFACIL) and participate with voice and vote within the Committee, informed the Salvadoran government.
Salvadoran business owners point out that the main causes of the country's poor economic performance is still growing insecurity and a lack of a clear political course.
The Salvadoran business chambers agree that the beginning of the year has not been the best, since the obstacles that for several months have made it difficult to operate and grow private sector activities still remain.
The union of producers estimates a 5% increase in activity during 2016, with total production of 1,300 million eggs and 300 million pounds of chicken meat.
The Association of Poultry Farmers of El Salvador (AVES) reported that an almost 3% increase in egg production was achieved in 2016 at the national level, while production of chicken meat, may have topped 300 million pounds.
Businessmen have complained to the Executive office about the slowness and inefficiency of customs inspections of the country, where containers are retained for up to 15 days.
The truckers blockade which paralyzed customs offices in Jutiapa for a week, has made entrepreneurs question the efficiency of border posts in the country because of the time invested in land transport.
Agricultural production in Mexico is favored by the devaluation of the peso, which has encouraged smuggling to Guatemala of pork products, coffee, poultry and eggs.
The union of entrepreneurs in the agricultural and livestock sector is claiming that it is now not only pork which is being traded illegally on the border, but other products such as coffee, eggs and poultry.
The government intends to develop, using public-private partnership model, a distribution center for agricultural products.
The central government has presented the initiative to representatives of the Chamber of Agriculture and Agribusiness (Camargo), and estimated that the work would require an investment of between $80 million and $100 million.
In Nicaragua, the largest producer in Central America, the price of a metric ton increased from $602 in May 2013 to $1676 in May this year.
Of the 'seda' variety of red beans, the countries with the largest price increases are El Salvador and Nicaragua, with increases of 80% and 178%, respectively. Guatemala reports a 130% increase in the 'rojo tinto' variety of red beans, according to the Agricultural Council (CAC).
Salvadoran agrifood businesses have expressed their concern that the announced investments are part of a political project.
An article in Laprensagrafica.com that "Alba Foods, another productive programs, along with Alba Petróleos- tied to the political strategy of the FMLN, has invested $30 million this year and among the basic grain harvest 2012 and 2013, expects to complete $60 million to expand its geographical presence.
Despite the signing of the FTA, the Central American poultry sector has not seen increased imports into the U.S.
The U.S.A’s phytosanitary requirements and quality standards are proving the main obstacles to increasing exports.
During the last regional "American Poultry Industry" forum, held in Guatemala, representatives of the industry, "... agreed that it is necessary to renegotiate the FTA agreement and relax some aspects that are now hindering growth of the sector.", noted an article by Karen Molina in El Salvador.
The early onset of the rainy season and the delay in the delivery of improved seed is threatening production.
The agricultural sector may face significant economic losses in grain production if this years rains are particularly intense.
Industry representatives are worried that the late delivery of seed for planting (which was estimated to arrive May 30 instead of April 15) may significantly affect future harvests.
In El Salvador the small size of lots conspires against productivity and profitability in the agricultural sector.
Only sugarcane crops and coffee meet the demand within the country, having to import corn, beans, rice, fruits and vegetables in order to supply the needs of the population.
To overcome the problem, Oscar Albanés and Agustin Martinez, directors of the Agricultural Suppliers Association (APA) and the Chamber of Agriculture and Agro Industries (Camagro) indicate that, among other measures, "production chains should be developed and strengthened as well as coordinate collection systems allowing you to store crops so that farmers can gradually take their produce into market and negotiate good prices with wholesalers and the industry, maintaining and increasing production for the benefit of consumers, the country and their own.
Facing a potential shortage of beans, the government will ask companies to import the product directly.
The Ministry of Agriculture and Farming (MAG for its acronyms in Spanish) doesn't have enough resources to import beans itself.
This shortage of shortage has been driving up the cost of the grain: "Silk Beans oscillate between $85 and $90 per quintal. A pound is paid $1,00 in the domestic market and it could reach $1.23."
Lack of rains could affect corn and bean harvests, explained Salvadoran farmers.
The rainy season has started one month later, and the official estimation is that rains will be 30% below the usual. This will take its toll over the country’s production, reported the Agriculture Ministry.
“All in all, Salvadoran agricultural production could shrink around 2.4 million quintals, mostly due to lack of rain, caused by the El Niño phenomena.
Local and international businessmen will participate in Agroexpo 2010, from March 19th to 28th.
Exhibitors from Argentina, Canada, Colombia, Spain, Guatemala, Mexico, Nicaragua and Dominican Republic will participate in the event.
“Event organizers announced parallel activities such as rodeos, dog shows, fishing, showcasing agricultural technology, livestock shows, among others”, reported El Salvador.com.
Businessmen from both countries met to explore joint investment opportunities.
The event saw the participation of presidents Lula da Silva and Mauricio Funes, as well as several business chambers. The chambers remarked Brazil’s willingness of providing credit for productive projects.
“Brazil’s proposals are encouraging: 1) Increasing the credit line offered by Brazilian BNDS bank for productive projects, 2) promoting new investment in the country, and 3) Lula’s intention of balancing the trade deficit between both countries”, reported Laprensagrafica.com.
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