Once Panama blocked the entry of animal products from Costa Rica, discussions at the technical level progressed, but when the issue was brought to the political arena, the process to solve the trade conflict stalled.
In early July of this year, Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), about the decision not to extend the authorization for export to a list of Costa Rican establishments previously authorized and that have been commercializing in the Panamanian market for many years.
In 2016, regional maize imports totaled $763 million, 26% of which was imported by six companies in Costa Rica, El Salvador and Panama.
Figures from the information system on the the Corn Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with the chart"]
There still remains tasks to be completed in the process of preparing to compete with milk and dairy products, which in 2025 will start to enter the country duty-free under the CAFTA.
In regards to how to prepare for the next market opening, José Antonio Madriz, President of the National Chamber of Milk Producers, told Nacion.com that there still remains work to be done, and that they"... have approached the Ministry of Agriculture and Livestock (MAG) several times, as lead agency, to establish joint plans between the private sector, government, universities and other research centers, but the result is insufficient."
Betting on new products and greater presence through smaller outlets, ice cream shops are looking to grow in an increasingly competitive market.
The recent incursion of Dos Pinos into the ice cream market is a reflection of the opportunities in this sector, where participants are betting on good service and innovation in order to compete.In recent years the market has changed with the inclusion of new product lines, different styles of ice cream parlors and new forms of customer service.
Health authorities in Costa Rica have given their endorsement to two plants belonging to Grupo Lala in Nicaragua so that they can once again market their products.
The authorization for Grupo Lala comes at about the same time as the authorization granted by Nicaragua to theentry of products from the Costa Rican company Dos Pinos, ending a conflict which for several months affected the performance of the sector in both countries.
The Mexican company has acquired a dairy production plant in Alajuela and through an agreement with Florida Bebidas will produce and market its products in the country.
The announcement comes days after Nicaraguan authorities blocked entry of Costa Rican dairy products, after Costa Rica denied a permit to the firm Lala to export products from Nicaragua.
Nicaraguan health authorities have restricted access to products elaborated by the Costa Rican company Dos Pinos and two other companies for failing to obtain health certification for their processing plants.
In a circular apparently issued by the company Dos Pinos, the entity may have indicated to its customers that due to non-renewal of health certificates for the industrializing plant they may not be able to continue expending their products until the situation has been resolved.This is the version stated by Laprensa.com.ni, who also explained that the Country manager at Dos Pinos in Nicaragua, Oswaldo Gonzalez Quijano said in the document"... The measure taken by the Government of Nicaragua 'has no technical basis'."
Five brands dominate this increasingly competitive segment of the dairy market, which has doubled its sales in the last five years.
Sales of single portion ice creams in supermarkets, grew by 88% between 2009 and 2014. Ice cream based on milk and water reported higher sales, achieving $50 million last year. The companies that dominate this market are Dos Pinos, Coronado, Pops, Monteverde and Sarita, and joining them are foreign brands which are venturing into this area.
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