Last year, 2.3 million tons of bagasse were used to generate energy, and production is expected to be even higher this year.
The National Committee of Sugar Producers (CNPA) expects that the generation of energy using cane bagasse will be maintained in the medium term, since they predict good results for the production of cane. Last year, 2.3 million tons of bagasse were produced, which were used to generate energy, and this year they expect production to be even higher.
The guild foresees closing the 2017/18 cycle with a production of more than 17 million hundredweight of sugar, which would represent a 10% increase compared to the previous cycle.
If expectations by employers in the sugar guild are met, production from the 2017/18 cycle would be the best achieved yet.Favorable climate conditions and the expected expansion of sowing areas, from 105 thousand to 109 thousand manzanas, are the reasons for the guild's expectations for the cycle that begins next month.
Paper and machinery are some of the goods that nicaraguan businessmen plan to import in large amounts with the upcoming elimination of the "patriotic" tax of 35% on colombian products.
The decision by Ortega government toabolish the 35% tax on imports of Colombian products, which has been in place since 1999, has been welcomed by the Nicaraguan private sector, which plans to increase imports of products such as machinery, paper and raw materials. The upcoming elimination of the tax, which must be approved by the Assembly, opens the door to new business opportunities between the two countries.
Producers are negotiating the conditions of the free trade agreement with Taiwan in order to double the volume of sugar exported to the island to re-export to other Asian markets.
The Chamber of Industries of Nicaragua reported that representatives are exploring options with the Taiwanese government in order to increase sugar exports from 30,000 to 60,000 tonnes.
Projections for the 2014 harvest are that it will be 64 thousand tons more than the last one, reaching a record of 782 thousand tons.
The growth is attributed to the investments that are being made in the sector, which together amounted to $400 million in 2012-2016.
The CEO of the National Committee of Sugar Producers (CNPA) of Nicaragua, Mario Amador, said " ... weekly production in sugar mills is 600,000 quintals (27,600 tons) of sugar. "
Employers argue that the high costs of energy, transportation and social contributions are affecting performance of the sector.
The high costs of transportation, electricity and the new increase in employer social security contributions is threatening the industrial sector, despite the fact that in 2013 it grew by 4.6%. These factors, according to Rodrigo Caldera, president of the Chamber of Industries (Cadin), are preventing further growth of the sector.
Over 160 thousand tons have been sold, but at lower prices than in the previous harvest.
During the 2012-13 harvest, the sugar industry exported 400 thousand tons of grain, 160 thousand tons more than in the previous one. However, the value of sales did not behave the same as the volume exported, because revenues were between $210 million and $220 million, similar to the amount in the last harvest.
Nicaraguan sugar producers are confident that the harvest which was recently started will bring in more than the 15.6 million quintals of sugar produced in the last cycle, reaching 17 million.
This was explained Mario Amador, general manager of the National Committee of Sugar Producers (CNPA). This would mean an increase of 8.9% compared to the 2012-13 harvest.
The auction to place 17,000 tons with 35 European buyers was annulled because of an inability to meet deadlines.
The information was confirmed by Mario Amador, general manager of the National Committee of Sugar Producers (CNPA). "... The auction in which Nicaragua and Honduras intended to sell about 17 thousand tons to 35 European buyers from 10 business houses set up in different countries, could not be completed because of non compliance with certain technical conditions ...", reported Elnuevodiario.com.ni.
The country won't cede its sugar quota to Nicaragua and Honduras, and it opposes to Guatemala, El Salvador and Panama conceding theirs.
For Costa Rica, Guatemala and El Salvador the Association Agreement with the European Union has not yet entered into force, so they are prevented from offering their sugar in an auction where 35 buyers bid to bring it to market in the old continent.
The Nicaraguan sugar industry expects that the entry into force of the Association Agreement will allow it export to the EU about 25 thousand tons of raw sugar, from the 60,000 quota for the entire region.
For the moment the quota allocated to country is 21,600 tons per year, with the possibility of growing 550 tons per year, but the sugar industry expects that with the advantage of being one of the first countries to ratify the agreement it will be allowed to increase its quota for the first year of the Association Agreement (AA).
Productivity has been increased through a continuous production system and added to the production of sugar are alcohols, ethanol, molasses and electricity.
While India and Mexico (largest sugar producers in the world), have opted to reduce consumption areas for sugarcane cultivation due to a fall in prices, Nicaragua is to establish a new record to produce up to 15.5 million quintals in the 2012-2013 harvest which ends in the coming weeks.
The agribusiness sector drove growth in production, with sugar, dairy and rice as the leaders.
According to an article in Laprensa.com.ni, "The performance of the industrial sector at the end of the year is very positive. Six percent growth has been achieved due to the dynamic combination of various activities that make up the industry."
Most noteworthy were the activities of producers of sugar mills who led production and increased investments in clean energy generation.
Revenues from sugar exports during the first six months of 2012 totaled $145 million, almost 30% more than in the same period last year.
In terms of volume, export growth was 36.5%. In the first half of 2011 201,000 tons were exported, while in the same half of 2012 the export volume was 275,000 tons.
In an article in Elnuevodiario.com.ni Mario Amador, Executive Director of the National Committee of Sugar Producers, CNPA, said industry expectations are optimistic: "We believe this year we will export nearly eight million quintals of sugar, equivalent to $180 million, only in sugar. If we add to that molasses, honey, alcohol, it will be about $220 million. "
Nicaraguan industrialists have asked the Government to reduce the red tape involved in the establishment and operation of a business.
Mario Amador, president of the Chamber of Industry of Nicaragua (Cadin) believes that although there have been advances, such as the creation of the One Stop Investment Center for Exports (Cetrex), much remains be done.
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