For Nicaraguan stockbreeders, the imposition of a 30% tariff on beef imports from Panama violates the conditions established in the trade agreement between the two countries.
In Panama, representatives of the Nicaraguan Chamber of Beef Export Plants (Canicarne), reported that the imposition of tariffs and other non-tariff measures for Nicaraguan meat have stockbreeders and industrialists concerned.
Representatives of the trade union announced that the country will receive the "insignificant risk" certificate next May, which will allow it to reach new markets and export cuts of bovine meat on the bone.
Local authorities reported that in relation to bovine spongiform encephalopathy disease, better known as "mad cows disease", the World Organization for Animal Health (OIE) will grant the country the status of "negligible risk", which is necessary to sell abroad cuts of bovine meat on the bone.
The union of exporters of bovine meat reports that since the end of September orders from the South American country have halted, falling practically to zero.
Business people in the Nicaraguan meat industry attribute the drop in meat sales to Venezuela to a sharp reduction in the volume of trade which the oil agreement between the South American country and the countries in the Alba contemplates.
In order to take advantage of the potential of the Nicaraguan livestock industry, it is essential that traceability systems be improved, a prerequisite for entering demanding markets such as Europe.
The growth in exports of meat and meat products from Nicaragua could be even greater if product monitoring and control systems were properly implemented throughout the production chain.The European market is one of the most demanding in this regard, and is one of the most profitable once the necessary traceability systems are implemented.
This year the union of beef exporters expects to sell abroad 113,000 tons of beef and offal products.
Directors of the Nicaraguan chamber of beef exporting plants estimate that sales this year will generate $480 million in revenue.They also announced they will be working on the implementation of improvements that will allow them to increase the value added of the final product, in order to enter more demanding markets, such as Europe.
In Nicaragua domestic cattle producers are being paid better than those in other countries.
"... The plants are paying around US $3.22 per kilo for 'hot' beef while markets such as Brazil, the world's largest exporter, whose meat competes with Nicaragua’s, paid US $2.22 per kilo. That means that Nicaragua is paying about $220 more per head than in those markets, and 45% more per kilo of 'hot' beef relative to the leading exporter of beef in the world ", said Onel Perez, executive director of the Nicaraguan Chamber of Beef Exporting Plants (Canicarne), in an extensive interview with Elnuevodiario.com.ni.
In Nicaragua the slow pace of implementation of the system is preventing the livestock sector from make the most of the beef export quota established by the Agreement with the EU.
The 2083 tonnes of beef which the livestock sector in Nicaragua could sell to the European market is not being fully leveraged due to the fact that they do not have the required minimum records demanded by European law to allow the importation of products.
Producers and industrialists in the livestock sector have agreed to work together to reduce smuggling by optimizing controls on the movement of cattle.
The problem of cattle smuggling is an issue that has already been denounced on several occasions , and has now led to industry players coming together to make changes to processes and improve controls. The goal is to minimize smuggling so that industrialists have sufficient supply to give to slaughterhouse and producers get better yields.
The main factors are a herd of 5.8 million head of cattle, programs which give impetus to the activity, and the opportunities provided by the AA with the EU.
According to breeders and industry to date number of cattle could be higher than that amount recorded in the IV National Agricultural Census (4.2 million head). Onel Pérez, executive director of the Nicaraguan Chamber of Beef Exports (Canicarne) , currently estimated that the herd could be 5.8 million head.
The country has the conditions to export meat to Europe at the same prices as Brazil, the world's largest producer.
This was stated by Eduardo Cohen, from the Program for Quality Controls and Sanitary and Phytosanitary Measures in Central America, funded by the European Union.
According to him, once the country has dealt with the issue of traceability, prices could reach $7,000 a ton in the EU, similar to the average of $7,361 paid by the old continent to Brazil. That price would be far from the $13,322 average paid to Argentina, or the $10,020 paid to Uruguay, but above the $2,186 paid by the EU for U.S. beef
There is an urgent need to improve livestock production methods in order for Central American to face the impending competition from North American livestock farming.
The possible entry of U.S. beef into Central America is worrying Nicaraguan meat exporters who continue to produce in the same way as they did 200 years ago.
"It is important to introduce livestock, we are producing in almost the same way as we did 200 years ago, this is happening because of the loss of competitiveness of Central America in meat exports," said Juan Sebastian Chamorro, president of the Nicaraguan Chamber of Beef Exporters (Canicarne).
The Nicaraguan meat industry is still not clear on what they need to obtain the certifications required by the European market.
In order for Nicaraguan products to reach the European market they must comply with health and quality certifications, not only on behalf of the farmers but also the agricultural authorities. Exporters hope that this will be resolved in less than a year and a half, meaning that the benefits of the agreement could be taken advantage of in 2015.
Nicaragua will need a minimum of a year to implement an adequate traceability system which will allow it to export meat to Europe.
"First certification must come from Europe, which says that they accept our system of traceability, and we must be prepared (to export) when the time comes," said the president of the Nicaraguan Chamber of Beef Exports (Canicarne) Juan Sebastián Chamorro.
The growth of food exports to Venezuela has got Nicaraguan producers excited, yet they are warning against backing this market excessively.
"Between January and May of this year, exports by volume from Nicaragua to Venezuela have grown by 209%, generating an exporter enthusiasm which has convinced all of the productive sectors, especially now that there are plans to halve red bean production over five years in order to plant more black beans", reported Laprensa.com.ni
In response to Government approval for the entry of Canadian beef, beef and pork producers have signaled their displeasure with the move.
Producers received the news via a statement released by the Canadian government and lamented that the Government had not listened to their requests on several occasions about not opening the market up to Canadian beef.