During 2020 in the Salvadoran market, bean imports increased by 122% and rice imports by 51%, a rise that is reported in the context of the health and economic crisis generated by the outbreak of covid-19.
Figures from the Central Reserve Bank specify that between 2019 and 2020, foreign purchases of beans increased from $33 million to $60 million, and those of rice increased from $30 million to $45 million.
Due to the high geographic concentration of global production, Central America has increased its imports, but at the same time has become more vulnerable to crop losses, rising international prices and possible disruptions in supply chains.
The importance of the market for this type of food is that rice, wheat, corn, beans and soybeans are basic foods on which the world's population largely depends, since it is estimated that almost half of the calories consumed by people come from these foods.
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%.
The government is preparing a decree of a shortage in order to authorize the duty free import of 25,000 tons of beans, for the period between June 2018 and May of next year.
As happens every year, the National Production Commission (CNP) must authorize the duty free import of the grain, to cover the annual demand of 48,000 metric tons that can not be met with local production.
The sector's union has estimated that for the 2017-2018 harvest 2.4 million hundredweight of beans will could have been produced, but due to climate effects, only 1.9 million hundredweight will be collected.
According to the Salvadoran Chamber of Small and Medium Agricultural Producers (Field), with the 500 thousand hundredweight of beans that will not be collected in the period 2017-2018, $25 million will be lost, as each hundredweight is valued at $50.
Between 2014 and 2017 in the Dominican Republic, the areas dedicated to the cultivation of agricultural products of high local consumption such as red beans and cassava, went down by 43% and 17%, respectively.
According to figures from the Ministry of Agriculture, as of November 2017 registrations for red bean plantings numbered 188 thousand tareas (one tarea is approximately 600 square meters), a figure that is 43% lower than the 332 thousand tareas reported at the end of 2014.As a result, the volume produced fell from 476 thousand hundredweight in 2014 to 412 thousand reported in the period from January to November 2017.
Authorization has been given for 2018 to importy duty free a maximum of 5 thousand MT of black beans, 150 thousand MT of yellow corn, 50 thousand MT of white corn and 26 thousand MT of paddy rice.
The approved quotas were: Black beans, a maximum of 5 thousand metric tons -MT-, equivalent to 110 thousand hundredweight; yellow corn, 150 thousand -MT-, equivalent to 3.3 million hundredweight; white corn, 50 thousand -MT-, 110 thousand hundredweight and unhusked rice, 26 thousand MT, 572 thousand hundredweight.
As part of a long-term plan to increase grain sales to the North American country, a group of Nicaraguan producers will start with a first shipment of 40,000 hundredweight.
The group of producers leading the initiative explained that the sale will be made jointly with Honduran producers.In the case of Nicaragua, it is expected that about $2 million will be generated from the export of 40 thousand hundredweight.
The productivity goals set by the Solis administration for production of maize, rice, potato and beans in Costa Rica, will stay only on paper.
The the current government's proposion on assuming power in 2014 was to raise agricultural productivity, mainly from the cultivation of grains such as rice, maize and beans, but everything seems to indicate that it will be an almost impossible task.And although the government blames the climate, which may have had an effect, the reality of recent years shows that lack of agricultural productivity in Costa Rica is more linked to structural factors, such as production costs, than to other factors, such as the weather.
Maize production declined from 20.4 million hundredweight in the 2012/13 harvest to 15.6 million in the 2015/16 cycle, and yield per cultivated hectare has also declined.
In the case of beans, figures from the Ministry of Agriculture and Livestock (MAG) show greater variability, depending on the bean and crop variety, as some have reported better results.However, bean productivity has deteriorated in recent harvests. Laprensagrafica.com reports that"... performance went from 15.1 hundredweight per hectare on average in the 2014/15 season, to 13.1 in the 2015/16 cycle."
Due to the effects of El Niño, a drop of 38% has been forecast in the 2016-17 harvest and 5,450 tonnes will need to be imported to meet domestic demand.
The 5,450 extra tons more that Costa Rica will import this year as recommended by the National Production Council (CNP) will be added tothe 9,432 tons that have already been approvedby a decree for the period July 2016 to June 30, 2017.
Behavior and price trends in production of white corn, black and red beans, wheat and rice in Mesoamerica and the Caribbean in June 2016.
From the Regional report on the Basic Grains Market in June 2016:
In Mesoamerica and the Caribbean in May 2016 white maize prices showed stable trends compared to April 2016, despite declining regional supply due to the completion of harvests and reduced inventories from 2015, but these were offset by world imports.In beans, stable prices were observed, not greatly affected by the losses in Apante and with a slight reduction in prices in Costa Rica and Mexico.In general, black bean prices have been favored by imports, and the use of substitute products as in the case in Haiti. Rice prices have remained stable in most countries, except Haiti where there was an increase due to the depreciation of Haitian local currency.
The country needs to buy 10,000 metric tons of the grain in order to meet domestic demand from July this year to June 30, 2017.
The National Production Council has recommended that the Ministries of Agriculture and Foreign Trade prepare a decree declaring a bean shortage in the country and authorize its importation.
2016-2017 forecast: 1.6 million hectares in cropland, cattle slaughter at 795,000 head and milk production raging between 275 million and 300 million gallons.
The Plan for Production, Consumption and Trade in the 2016-2017 Cycle includes details of the Nicaraguan government's projections for the agricultural, livestock, poultry, aquaculture and forestry sectors for the current year and the next.
Producers in Costa Rica must further improve their productivity if they want to compete with the low prices offered for the same product internationally.
Currently a quintal of the grain sells in Costa Rica for around $40, whereas inside the Costa Rican market producers are trying to sell their harvest for $60, arguing that industrialists are offering them at lower prices in order to buy their production.
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