A bill has been submitted to the Assembly to create a compulsory system of classification of carcasses and nomenclature of beef cuts.
The bill, which was presented by the Minister of Agricultural Development (Mida), seeks to create beef cuts, in addition to protecting and guaranteeing information on beef cuts purchased by consumers, the Assembly reported.
In Panama, the dry season began in November last year and not in December as planned, threatening production because of the shortage of pasture for livestock.
Representatives of the National Cattlemen's Association (Anagan) reported that they were not notified in advance about the expected change in the cycle because of the Niño Phenomenon, which prevented them from preparing to face the lack of rain in better conditions.
The Panamanian government's decision to raise the tariff on meat imported from Nicaragua from 3% to 30% to allow local producers to compete has so far shown no clear results.
In September 2018, the Panamanian government decided to establish barriers to the entry of Nicaraguan beef by raising the import tariff from 3% to 30%. This has not had the expected effects, as the prices paid to local producers have not risen.
The measure initially defined as transitory, became permanent in Panama, since the beginning of the Varela administration has been extended nine times, leaving negative balances in some sectors.
Juan Carlos Varela will close his administration with a new extension of the controversial measure that regulates the prices of 22 products of the basic basket, affecting several sectors, including meat producers, who report economic losses.
The farmers' association reports that the annual per capita consumption of boneless beef has fallen from 13.6 kilos to 13.3 kilos.
The National Association of Cattle Ranchers (Anagan) states that the reduction, although slight, is due to a fall in local production and an increase in imports, which may have generated an imbalance in the local market.
Figures from the sector's union show that in the first quarter of 2018 the country bought 1,645 tons of meat from abroad, 10% more than was registered in the same period in 2017.
The National Association of Cattle Ranchers (Anagan) reported that between the first quarters of 2017 and 2018, meat imports in Panama increased by 150 tons, rising from 1,495 tons to 1,645 tons.
In Panama, the livestock sector is opposed to regulations which, from December 28, will require special insurance to be taken out for damages to third parties when transporting livestock overland.
The main complaint of livestock farmers is the cost overrun that this new insurance will imply, since according to estimates made by the union, once Law 51 enters into force, "...Moving 20 cattle from the province of Darién to Las Tablas would cost $400."
In January 2018, a delegation of businessmen from the livestock sector will be visiting the Asian country to develop new commercial alliances to increase exports of bovine meat.
Panamaamerica.com.pa reports that "...According to the president of the National Association of Cattle Ranchers (Anagan), Aquiles Acevedo, the aim of the visit is to look for new alternatives for exporting bovine meat.Acevedo explained that the Anagan will invest in livestock and raw materials, while the Chinese will provide the marketing, which is another way to export meat."
Nestlé's announcement that it will stop buying C-grade milk from producers from Veraguas reflects the growing loss of market share for local milk to imported products.
Growth in imports of milk and its substitutes continues to take away market share from Panamanian milk producers.In the case of Nestlé Panama, the company reported that"imports of milk substitutes by third parties has caused a decrease in the consumption of certain lines of their dairy products."For this reason, the company will stop buying 16 thousand liters of C milk per week from producers from Veraguas.
Between January and October the numbers of cattle slaughtered remained almost unchanged compared to the same period in 2014, while pork production recorded an increase of 5%.
The effects of climate influenced the results of beef production, mainly during the first half of the year. Representatives of the union of producers anticipate that next year they will be "...
Industrial and milk producers have denounced that there is a growing presence in the region of products which are described as dairy but which do not contain milk nor comply with health regulations.
Ranchers, farmers and representatives of industrial companies reported the matter to the Panamanian Food Safety Authority (Aupsa), arguing that "... in the local market food products such as ice cream and cheeses can be seen, which instead of having dairy components, are processed with other raw material and substitutes that are not permitted by Panamanian health and import regulations.
Price controls placed on some cuts of meat have altered the prices of other cuts not included in the measure, distorting the entire supply chain, from producer to consumer.
The intention to control the prices of some food products does not seem to show results in the meat sector, as final prices and production costs have been altered for several reasons, including the decision by producers to reduce their shipments of regulated cuts to supermarkets and increase exports to other markets, so as to not reduce their profits.
In a market where half of the demand for milk is met by local production, the lack of water in the Azuero region has reduced milk production by 50%.
Panama depends on an external supply of milk for 46% of its consumption, which is equivalent to approximately 130 million liters per year. 85% of local production is driven by small and medium producers, with current yields being less than 5 liters of milk per cow per day.
Farmers and industrialists are opposed to the possibility of including fluid milk in the list of products whose prices are controlled by the government.
Industry representatives argue that if the product is included in the list, "... small retailers will not want to handle our product," said Ricardo Sotelo, president of the Union of Industrialists of Panama to Panamaamerica.com.pa.
Climatic factors and issues related to pastures have forced ranchers to import in the first half of the year 1,753 head of cattle, which is 309% more than was imported in the same period in 2013.
Climatic factors and issues related to pastures have forced ranchers to import in the first half of the year 1,753 head of cattle, which is 309% more than was imported in the same period in 2013.