After a quarantine was decreed in El Salvador because of the spread of covid-19, there is uncertainty among Nicaraguan producers because the borders may be closed for their products.
Since March 11, Salvadoran President Nayib Bukele has decreed a nationwide quarantine, arguing that there is a risk of spreading the coronavirus to neighboring countries, where there are already several confirmed cases.
Businessmen in the sector say that for the last two years the theft of livestock and illegal slaughtering of animals has been on the rise.
Representatives of the Federation of Livestock Associations of Nicaragua (Faganic) reported that another situation that affects them is the shortage of credit for producers.
In the government's review of Nicaragua's tax reform that has been in place since February, businessmen consider that no tax cuts will be made, even though production costs in the country have risen considerably.
After the approval on February 27, 2019 of the amendment to the Tax Concertation Law, which consists of raising from 1% to 2% the income tax for medium sized companies with higher income, and for large taxpayers from 1% to 3%, the productive sector has reported increases in its production costs.
Despite the new import requirements imposed by the Salvadoran government, in 2017 the Nicaraguan dairy industry managed to maintain the level of its exports to its neighboring country.
Data from a report by Cetrex shows that 2017 will have closed with growth of just 3% in exports of dairy products to El Salvador, which is positive for entrepreneurs in the sector, who in the middle of the year anticipated less favorable figures, due to the entry into force of themore restrictive import controls.
Livestock farmers claim that in some areas of the border with Honduras the authorities are demanding requirements that complicate the free passage of livestock to the North of Central America.
Figures from the Center of Exports (Cetrex) show that between January and September 30 this year 17,222 head of cattle were exported, 3,852 cattle less than in the same period in 2016.According to the breeders, this decrease is due to"obstacles imposed by the government to favor slaughterhouses."
In the difficult route to increase the sector's sales abroad, the country has so far managed to register 58% of the cattle herd.
The advanced comes after five years of efforts between the authorities and trade associations to have included in their records 22% of cattle farms in the country and 58% of cattle organizations, but industry representatives believe that there is still much to be done to meet the traceability requirements that are impeding the entry of Nicaraguan meat products into some markets, including the European Union (EU).
Arguing the imposition of non-tariff barriers, Centrolac has filed with the Central American Court of Justice a claim against Honduras because it prevented Nicaraguan milk from entering the country.
Although the Honduran government insists that restricting the entry of milk from Nicaragua is strictly in adherence to sanitary measures, Nicaraguan producers and exporters maintain their position and are demanding that the government take retaliatory measures against Honduras. Therefore, the company Centrolac presented on May 10 a lawsuit with the Central American Court of Justice, denouncing the closure of borders and accusing the country "... of contravening Community law".
The Livestock union has agreed with the government flexibilities in terms of deadlines, prices, and free export of descarded male and female livestock.
From a statement issued by the Federation of Livestock Associations of Nicaragua (FAGANIC):
Ranchers are complaining that the increase of $0.20 per kilogram of cattle exported as leather is eroding their competitiveness.
The DGI published in La Gaceta on 4 February that "... In every act of exporting live cattle made by natural persons, it will be mandatory to submit to the Center for Exports (CETREX ) and the Directorate General of Customs Services the taxable receipt in original format which supports retention payments for its verification. "
As a measure to discourage smuggling, the taxable limit for withholding income tax on the export of live cattle has been reduced.
The Federation of Livestock Associations of Nicaragua (Faganic) welcomed the decision to reduce the limit for incurring income tax, believing that it will be an incentive to reduce smuggling of cattle and allowing more to be exported through the formal market.
Over 300 producers in the country and commercial houses who offer machinery will participate in the Hatofer 2014 Fair.
From 20 to 23 March the 2014 Hatofer Fair will be held the in Camoapa, Boaco Township. The event which is being organized by the Federation of Ranchers of Nicaragua will bring together over 300 producers in the country as well as commercial houses that sell agricultural machinery.
Guatemala and El Salvador continue to offer better prices to Nicaraguan producers than those offered by local slaughterhouses.
Livestock farmers and industrialists have yet to reach an agreement on the purchase prices of cattle for slaughter, which has meant that producers prefer to export live cattle to other countries where better prices are offered, in particular, Guatemala and El Salvador.
The increase in exports of live cattle was not enough to compensate for the freezing of meat prices and lower demand from the international market.
The increase in exports of live cattle, on which $20 million to $40 million was spent for 2013 "was not enough to offset the price freeze on meat and the reduction in volume demanded by the foreign market," noted an article in Laprensa.com.ni.
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