Scheduling medical checkups for the staff, preparing the housing modules to maintain social distance and adapting the logistics of transporting people are challenges that the sugar mills will face during the 2020-2021 harvest.
The sugar cane harvest that is about to begin represents a source of employment for thousands of people in the region and in this context of the propagation of covid-19, the companies will have to face multiple challenges to get the harvest going.
In a context of falling international prices, increasing production and improving efficiency are the main objectives of Guatemalan sugar producers for the 2019-2020 harvest.
Official figures detail that during the 2018-2019 harvest the production of sugar in Guatemala reached 2.9 million metric tons, and for the current harvest that has just begun the harvest of a similar volume is projected.
Both countries agreed to increase from 60,000 to 125,000 tons the export quota of Guatemalan sugar that enters the Asian nation free of tariffs.
In the framework of the Second Meeting of the Administrative Commission of the Free Trade Agreement between Guatemala and the Republic of Taiwan, held in Taipei, Taiwan on July 8 and 9, both parties agreed to eliminate tariffs for the entry of certain products, informed the Ministry of Economy of Guatemala.
Peruvian producers are against the import quotas that were approved in the trade agreement between the two countries, arguing that sugar production in Guatemala is subsidized.
The dispute goes back several years, since the imposition of tariffs on Guatemalan sugar is the reason why the entry into force of the trade agreement was postponed, which had been signed by both countries in December 2011.
Guatemalan producers estimate that for the 2018-2019 harvest production will reach 752,575 metric tons of sugar, a volume that would be slightly higher than that recorded in the 2017-2018 cycle.
The Asociación de Azucareros de Guatemala (Asazgua) projects a slightly higher growth than the previous year because of climate factors, which will be confirmed when they have the final figures for closing production.
Guatemala asked the WTO to review domestic support measures and alleged export subsidies granted to sugar cane and sugar producers, which are carried out in the Asian country.
Luis Miguel Paiz, manager of Asociación de Azucareros de Guatemala (Asazgua), explained to Prensalibre.com that "... Guatemalan producers are concerned about the impact of Indian subsidies on sugar production, transport, storage and export."
The fall in international grain prices in recent years has increasingly affected producers in the region, who at current prices do not even reach the production costs.
Since years ago, international sugar prices have reported a clear downward trend, and in the last twelve months the quintal price registered a fall of 23%.
According to Guatemalan sugar producers, Africa and New Zealand are two of the markets that in recent years have generated growth opportunities for exports of the sector.
According to figures from the Bank of Guatemala, sugarexports to New Zealand increased from $11 million from January to August 2017 to $33 million for the same period this year.
Production from the 2016-2017 cycle amounted to 2.7 million metric tons, 4% less than the previous cycle, but the next is projected to reach 2.9 million metric tons.
Figures from Banco de Guatemala show that in the first semester the exported volume of sugar fell 8%, and $561 million were generated.
With a yield of 12.2 tons per hectare, the industry produced 2.8 million metric tons in the 2013/2014 harvest, generating $1.13 billion for the production of sugar, alcohol and molasses.
During the 2013/2014 harvest a total of 1.9 million metric tons (MT) of sugar was exported, of which 162,000 were sent to Ghana and Tunisia and 45,000 to China. Guatemala currently ranks third in sugar yield, competing with Colombia and Swaziland, which are in first place with 14.6 and 13.9 tons per hectare, respectively.
Guatemala has reported a productivity of 101.68 tons of sugarcane per hectare, followed by Honduras and El Salvador, reaching levels of 93.47 and 89.94, respectively.
During the harvest from November 2012 - June 2013, Guatemala achieved a productivity of 10.57 tonnes of sugar per hectare (TSH), higher than that achieved by producers neighbors El Salvador and Honduras which achieved TSH of 10.55 and 10,03, respectively.
Angola and South Africa are among the countries in the export plan for the 62 million quintals of sugar from the harvest projected for 2013/14.
The African market for sugar produced in Guatemala is being expanded with allocation from the 2013-14 harvest of 31,000 metric tons (MT) for Angola and 27,500 MT for South Africa, making the number of countries in the continent importing Guatemalan sugar now total 5.
The volume purchased by China in the recent harvest is equivalent to that acquired between 2005 and 2011.
In the 2012-13 harvest, three Asian countries purchased 673,843 metric tons (MT) of sugar, equivalent to 35% of the country's total export crop. China bought 341,218 MT giving it h a 20% share, which is equivalent to the amount it acquired from 2005 to 2011, which was 311,073 MT.
Nicaragua and Honduras are allowed to sell 65,000 more metric tons duty-free to the European Union.
The country has given approval for both Nicaragua and Honduras to receive this benefit temporarily, until the trade agreement becomes effective for Guatemala.
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