Businessmen of the sector estimate that annually they export near $9 million in bovine meat, below the $10 million reported in imports.
For the National Federation of Farmers and Cattlemen of Honduras (Fenagh) it is contradictory that the trade balance is unfavorable, since the annual production of meat is 60 thousand tons, and in spite of having surpluses it is resorted to the import.
Businessmen and importers of agricultural machinery argue that the payment of sales tax increases costs and reduces competitiveness of their production.
Imports of capital goods in the agriculture sector dropped from $57 to $54 million between 2014 and 2015, according to central bank data published by Laprensa.hn. The union of importers and the agricultural producers themselves say the cost has risen since the Law on Organising Public Finance, Control of Exemptions and Anti-Evasion Measures came into effect, a law which eliminated tax exemptions which had been granted to the agricultural sector for years.
The third edition of the International Agricultural Fair will be held in San Pedro Sula on 19 and 20 May 2016, at the Expocentro Convention Center.
From a statement issued by Agromercados 2016:
The event aims to act as a meeting point in Honduras between public and private actors representing the different links in the agricultural chain (producers, domestic and international buyers, agro-exporters, agribusiness, financial sector, raw material suppliers, packaging, services, public entities and cooperatives, etc.) in order to promote business deals. More than 1,000 visitors are expected.
Due to the effects of climate, the dairy producers union estimates a reduction of between 700,000 and 800,000 liters a day.
Anabel Gallardo, president of the Honduran Chamber of Milk Producers, estimated that daily production will decrease from 2.2 million to about 1.3 million liters. Gallardo and other representatives of the Honduran agricultural sector are insisting that the government declare an emergency in some municipalities.
The government has announced the creation of a $19 million trust fund, to be used for lending to stimulate production and improving the herd.
From a statement issued by the Government of Honduras:
President Juan Orlando Hernandez officiated at the company Agribusiness El Corral in Siguatepeque, the creation of a trust that will allow for the provision of $19 million in loans to stimulate production and improve the national cattle herd inventory.
The government is looking for alternatives to resolve the conflict between producers and traders, which has generated shortages and led to a rise in prices.
In recent weeks the shortage of meat in the country has caused an increase in prices in the market, despite being one of the products in a list whose prices are controlled. A pound of meat has risen to $2.75. This shortage is attributed to illegal smuggling of cattle to Guatemala.
Under the framework of the Petrocaribe initiative, Honduran producers plan to sell palm oil, milk powder, UHT milk and chicken meat.
According to the president of the National Federation of Farmers and Ranchers (Fenagh), Leopoldo Durán, the Venezuelan government has shown interest in Honduras for the provision of palm oil, milk powder, UHT milk and chicken meat.
With the implementation of the decree in Honduras suspending tax exemptions for 60 days, exporters will have losses of $9 million.
With the implementation of the legislative decree suspending tax benefits for 60 days, exporters of melons, watermelons and cucumbers covered by the Temporary Import Regime (RIT) could record initial losses of $9 million.
Honduran poultry producers are complaining about not receiving help from the authorities to lift the phytosanitary barriers for chicken exports to the U.S.
The Honduran chicken is still unable to be exported to the U.S. because of phytosanitary measures imposed by the presence of Newcastle disease, but despite progress to ensure animals are free from the it, producers are complaining of lack of government support.
Nicaragua has lifted the measures that kept its border closed to the Honduran citrus fruit since early September.
Leopoldo Duran, president of the National Federation of Farmers and Ranchers of Honduras, reported the resolution, adding that fortunately there were no large losses by producers during the border’s closure.
"Duran said that monthly exports of the fruit to Nicaragua amount to five million lempiras ($ 270 thousand), especially from the Sonaguera sector, Colon, where the biggest processing plant in the country is located.
In a month and a half the award of the contract to supply milk to schools is expected to be awarded.
The president of the Honduran Federation of Farmers and Breeders (Fenagh), Leopoldo Durán, told Laprensa.hn that, "the draft bid documents are being reviewed currently, then follow the criteria and we want these approved within two weeks so that in a month we can receive offers and see who wins the process".
Honduran cattle farmers hope an agreement between authorities in El Salvador and Honduras will solve the trade conflict on dairy products.
The president of the Honduran National Federation of Farmers and Breeders (Fenagh), Leopoldo Durán, commented that there is desire on behalf of the Salvadoran authorities to find a permanent solution to the conflict that is preventing the entry of dairy products into El Salvador from Honduras.
A Honduran delegation will meet with the Salvadoran Agricultural minister next week to find a definitive solution to the problem.
Jacobo Regalado Weinzemblut, Honduras’ Agriculture minister, remarked that they will do all they can to solve the problem via bilateral talks, but warned that if these fail, they will take legal action against El Salvador at the Central American Court of Justice.
Honduran authorities announced they will file a complaint against El Salvador at the Central American Integration Secretary.
They allege that El Salvador is blocking Honduran dairy exports without any logic reason.
Jacobo Regalado Weinzemblut, Agriculture and Livestock minister, remarked that even though they are analyzing the steps required to continue, but they still hope for a dialogued solution.
Salvadoran authorities keep on restringing Honduran dairy products from entering the country.
This was denounced by Edgardo Leiva, executive director of the National Federation of Livestock Breeders of Honduras (FENAGH), who added that the sector is losing over $500.000 because of this.
“At the same time, he noted that container controls imposed by Salvadoran authorities at the border are ‘imposing restrictions outside the laws of commerce’, generating delays”, reported Proceso.hn.
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