Dairy producers in Nicaragua are facing a scenario of falling prices, a situation resulting from the oversupply of this type of food reported in the local market.
Executives of the National Livestock Commission of Nicaragua (Conagan) report that with the onset of winter, the country's trading partners are reducing dairy purchases to protect local production.
In Nicaragua, from January to July of this year, exports of livestock products totaled $449 million, 16% more than reported for the same period in 2019, mainly due to increased sales of beef.
Figures from the Export Processing Center (Cetrex) indicate that between January and July 2019 and the same period this year, foreign sales of livestock products increased from $388 million to $449 million.
In Nicaragua, ranchers claim that as a result of the tax reform and the inevitable increase in production costs, they have had to increase the slaughter of female cattle by 4%, putting at risk the growth of the cattle herd.
After the approval on February 27, 2019 of the amendment to the Tax Concertation Law, which consisted of raising income tax from 1% to 2% for medium sized companies with higher income, and for large taxpayers from 1% to 3%, the livestock sector has reported considerable increases in its production costs.
The barriers imposed by the Honduran and Panamanian markets, coupled with the negative effect of the recent tax reform, force Nicaraguan cattle ranchers to predict a bleak future.
Figures from the National Livestock Commission of Nicaragua (Conagan) specify that between 2017 and 2018 meat exports from Nicaragua fell by 7.9%, from $587 million to $541 million, and in the case of dairy, the fall was 8.4%, going down from $177 million to $162 million.
The event is open to technicians, livestock producers, and specialists and will be held from 16th to 17th of March in the Alfonso Nunez Training Center, in Boaco.
The National Cattlemen Association of Nicaragua (Conagan) extends its invitation to participate in the XI National Dairy Forum, to be held on 16th to 17th March in the Alfonso Nunez Training Center (Rancho Rojo) in Camoapa, Boaco.
The guild has stated that producers are accelerating the shipment of cattle to slaughterhouses in order to increase production and take advantage of the increase in the international price of meat.
Meat prices in the international market have seen increases of up to 3% and 4% in recent months, positioning exports of meat products in second place of total exports.
Meat sales abroad in the first half of the year amounted to $207.8 million, 14% more than in the same period in 2013.
Exports of milk in the period in question also showed a better performance despite the drought affecting some of the country's production areas, since they increased by 17% compared to the first half of 2013.
In the case of milk production, the vice president of the Nicaraguan Chamber of Dairy businesses (Canislan), Wilmer Fernández told Elnuevodiario.com.ni that "... '((The drought) itself is striking (producers) in the dry corridor, but in terms of overall production volumes have actually increased. This is reflected in exports (...) This is not to say there are no encumbrances, but overall, in terms of the industry, there are no concerns about supply to the domestic market and exports. '"
On June 23rd and 24th entrepreneurs will gather together to discuss issues such as modernization, breeding and feeding of the cattle herd.
With the expected participation of about 450 farmers from across the country and the aim of promoting new techniques and presenting successful experiences for development of efficient and competitive livestock, the V National Livestock Congress will be held from 23 to 24 June in the country, as a prelude to the XXI Central American EXPICA Fair to be held from 17 to 28 July this year.
The reopening of customs and health controls at the Mexican border of Ciudad Hidalgo reduces logistics costs for Nicaraguan exporters.
Nicaraguan exporters no longer have to send their goods by boat through Manzanillo port (south), now they can do so through the border at Ciudad Hidalgo (north), Mexican authorities announced.
According to Rodrigo Labardini, Mexico's ambassador in Managua, the Nicaraguan insistence on the importance of logistics to ease trade between the region and the country, allowed the Government to respond, for example, with the rehabilitation of border offices of the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food of Mexico (SAGARPA).
Producers and industry are hoping to reverse 2012's downward trend registered, which saw a drop of 8% in sales compared to 2011.
Total exports in 2012 were for $419 million, $21 million less than the $430 million in 2011. In terms of volume, according to data from the Center for Export Procedures (Cetrex) the decline was 8%.
The manager of the Nicaraguan National Cattlemen Committe (Conagan), Ronald Blandon said, "In 2011 there were historical slaughters, almost everything held in reserve was sent to slaughter and animals were sent that had not reached their ideal weight. In 2012 there was also significant amounts of slaughter but it did not match with those of the year before last. "
The event allows sharing of technologies and successful experiences that promote the technological development of livestock and competitiveness with a focus on ecological agriculture.
The III National Cattle Congress, will take place in Managua and is being organized by the National Nicaraguan Cattlemens Association (CONAGAN) and the Institute of Agricultural Technology (INTA) and aims to disseminate technologies and successful experiences that promote the technological development of livestock and competition with an agro-ecological approach.
The National Port Company has announced the commissioning of a ship with a capacity for 3,500 tons of cargo, to cover shipping routes connecting the countries of the Bolivarian Alliance.
The first ship by the Nicaraguan shipping company will be in service three months after repairs have been completed, at a cost of $1.5 million. A second freighter will join the first within one year.
Farmers are optimistic and estimate that in 2012, growth in the sector, which is Nicaragua’s main export, will be at least 8%.
The reasons for this optimism are the high international prices of meat and the decision by the United States and Argentina to dedicate land that was used for livestock to plant grain instead.
However, there are still complaints about a lack of adequate funding.
They claim they need more resources in order to sustain the current pace of industry growth and exports.
In the first half of the year livestock exports totaled $290 million, and it is estimated that the figure at the end of the year will be $576 million.
However, to achieve this goal, they need to maintain the current level of productivity, for which they require financing from the banks, which has reduced lending to the sector this year.
After a year and a half of not exporting, Mexico has approved in principle the entry of Nicaraguan meat for six months.
During the month of May, Mexican animal health authorities, inspected slaughterhouses and industrial plants in order to determine the validity of the authorizations for exportations for the next two years.
According to an article in Laprensa.com.ni "René Blandon, the president of Conago said that since last year, Mexico has imposed barriers to meat exports, Nicaragua has failed to collect about 500 thousand dollars a month."