Betting on the latest technology projects, agriculture 4.0 and seeking alternative products derived from sugarcane so as not to depend on international prices, are some of the lines of action on which the Guatemalan sugar sector will focus in the coming years.
Although sugar prices in the international market have improved between October 2020 and April 2021, in previous years there was a downward trend that pressured mills to explore new market opportunities for sugarcane-derived products.
From January to September 2020, companies in the region bought corn abroad for $753 million, 10% more than what was reported in the same period of 2019, a variation that is explained by the rise in imports from Nicaragua, Guatemala, Honduras and Panama.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
Whether as a fresh or dry product, there are multiple trading opportunities in markets such as the US, UK, Germany and Japan, which are the main importers of this plant globally.
When sold as a food ingredient, raw material or cosmetic, in the medium and long term there are greater opportunities for internationalization to greater added value can be given to the product, highlights a report prepared by the Promotora de Comercio Exterior de Costa Rica (Procomer).
The International Regional Organization for Agricultural Health alerted the region's ministries of agriculture to outbreaks of the devastating Central American locust.
The Central American authorities were informed of the alert in a note issued by the Regional International Organization for Agricultural Health (OIRSA) during the first stage of rains that ended in September.
Arguing that the unusual growth in sugar imports is harming local production, the Alvarado administration decided to raise the tariff on products entering Costa Rica from 45% to 73% for a three-year period.
The Ministry of Economy, Industry and Commerce (MEIC) concluded the investigation requested by the Agricultural Industrial League of Sugar Cane (LAICA) and 4 mills, on the safeguard measure against imports of solid state, granulated sugar, known as white sugar, used for domestic and industrial consumption, justifying a deterioration in the main economic indicators of the National Production Branch (RPN), details an official statement dated June 15.
In Guatemala, approximately 75% of agricultural enterprises have reported liquidity problems in the context of the crisis generated by covid-19.
A study conducted by the Chamber of Agriculture (Camagro) states that during May, agricultural companies recorded income losses, a situation that can be explained by the quarantine decreed and the social isolation measures.
For the 2018-2019 agricultural cycle, the cultivated area in the country was 925,101 hectares, 14% less than the 1.07 million reported for the 2017-2018 cycle.
Data from the National Agricultural Survey (ENA), prepared by the National Institute of Statistics (INE), show that in the last agricultural cycle about 149,000 hectares were not cultivated with corn.
To the denouncements made in recent months by businessmen from Guatemala and Nicaragua, is added that of a Honduran union, which denounces the invasion of 3,400 manzanas of productive land.
The Guatemalan exporters' guild calls on local companies in the agricultural sector to participate in the PMA Fresh Summit, to be held from October 17 to 19 in Anaheim, California.
Those interested in participating in the PMA Fresh Summit can request more information by calling 2422-3618 or emailing ruth.estrada@agexport.org.gt, informed the Guatemalan Exporters Association.
The quintal of white corn has become 10% more expensive in the last two weeks in Guatemala, a rise that is explained by the decrease in supply that derives from last year's low harvests.
The Price Report of the Planning Directorate of the Ministry of Agriculture, Livestock and Food (Maga) states that between June 6 and 19, the price of a quintal of white corn went from $19.35 to $20.45.
From 5 to 10 October, Guatemalan businessmen from the agricultural sector will travel to Madrid to make several business appointments with potential Spanish buyers, and also know the trends in the supermarket sector.
Spain is a market with an interest in export products such as mango, avocado, roasted and green coffee, fresh vegetables and exotic fruits, some of the products most demanded by Spanish buyers, reported Agexport.
The unsatisfied demand for vegetables in the Salvadoran market opens opportunities for businessmen in the region to place their products in the coming years.
A diagnosis by the Foundation for Investment and Development of Exports of Honduras (Fide), estimates that by 2021 in El Salvador the unsatisfied demand for white onion, carrot and potato, together will total about 30 million tons.
Guatemalan Foragro, manufacturer of insecticides, fungicides and herbicides, opened a branch in Panama and aims in the short term to position 50 products in the local market.
The company reported that for the opening of its branch in the Panamanian market invested $300,000 and that this would have a presence in all Central American countries, as they already operate in El Salvador, Honduras, Nicaragua and Costa Rica.
In Guatemala, onion crops were attacked by a virus transmitted by the pest Trip Tabaci, and it is estimated that between 50% and 70% of the crops that supply the local market have been lost.
Representatives of the Federation of Agricultural Associations of Guatemala (Fasagua) said that the problem was registered in production areas of the departments of Santa Rosa, Jalapa and Jutiapa, which supply the country in the season from December to May.