During 2020, companies in the region bought corn abroad for $998 million, 5% more than what was reported in 2019, a variation that is explained by the increase in imports from Nicaragua, Guatemala, Honduras, Panama and Costa Rica.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
In order to supply the deficiency of the local market, the Ministry of Economy authorized the import of 75 thousand metric tons of white corn, which will be subject to a zero tariff.
The May 21 edition of the Diario de Centroamerica published Ministerial Agreement 232-2021, by means of which the Ministry of Economy authorizes the import of white corn, tariff code 1005.90.30.00.
From January to September 2020, companies in the region bought corn abroad for $753 million, 10% more than what was reported in the same period of 2019, a variation that is explained by the rise in imports from Nicaragua, Guatemala, Honduras and Panama.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
The increase in the international prices of corn and soybeans, inputs used to produce animal feed, threatens to put upward pressure on the production costs of meat, eggs and dairy products.
In recent months, the international price of a bushel (27 kilos) of soybeans increased by 28%, from $10.6 to $13.62, between November 1, 2020 and January 28, 2021.
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.
From January to June 2020, the region's companies bought corn abroad for $525 million, 20% more than reported for the same period in 2019, a variation that is explained by the increase in imports from all Central American markets.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graph"]
From January to September 2019, companies in the region bought corn abroad for $685 million, 12% more than reported for the same period in 2018, a rise that is explained by the behavior of imports in Nicaragua, El Salvador and Guatemala.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
For the 2018-2019 agricultural cycle, the cultivated area in the country was 925,101 hectares, 14% less than the 1.07 million reported for the 2017-2018 cycle.
Data from the National Agricultural Survey (ENA), prepared by the National Institute of Statistics (INE), show that in the last agricultural cycle about 149,000 hectares were not cultivated with corn.
Agricultural producers report that the smuggling of corn from Mexico has increased in recent years, and it is estimated that currently the consumption of grain entering illegally accounts for 25% of total demand.
According to farmers, smuggled corn competes unfairly with local production, since in Mexico producers enjoy tax exemptions and state subsidies.
During the first quarter of the year, corn imports from companies in the region reached $194 million, 15% more than reported in the same period of 2018.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAPHIC caption="Click to interact with graphic"]
The quintal of white corn has become 10% more expensive in the last two weeks in Guatemala, a rise that is explained by the decrease in supply that derives from last year's low harvests.
The Price Report of the Planning Directorate of the Ministry of Agriculture, Livestock and Food (Maga) states that between June 6 and 19, the price of a quintal of white corn went from $19.35 to $20.45.
Between January and September 2018, corn imports from countries in the region totaled $612 million, 13% more than what was purchased in the same period in 2017.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics]
Between January and June 2018, maize imports from countries in the region totaled $380 million, and 51% were bought by companies in Guatemala and Costa Rica.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]