Due to the high geographic concentration of global production, Central America has increased its imports, but at the same time has become more vulnerable to crop losses, rising international prices and possible disruptions in supply chains.
The importance of the market for this type of food is that rice, wheat, corn, beans and soybeans are basic foods on which the world's population largely depends, since it is estimated that almost half of the calories consumed by people come from these foods.
Because of the scarcity of rain in the region known as the Dry Corridor, producers in the country estimate that in the first cycle of the year has lost about 30% of corn crops and 35% of beans.
Directors of the Union of Agricultural Producers of Nicaragua (Upanic) explained that for the so-called "first production", Estelí lost 50% of the bean crop, and in Nueva Segovia fell between 40% and 50%.
As part of a long-term plan to increase grain sales to the North American country, a group of Nicaraguan producers will start with a first shipment of 40,000 hundredweight.
The group of producers leading the initiative explained that the sale will be made jointly with Honduran producers.In the case of Nicaragua, it is expected that about $2 million will be generated from the export of 40 thousand hundredweight.
The opening of three processing plants for beans, plantains, cassava and avocado, in León, Rivas and Nueva Guinea is expected for 2018, with an estimated investment of $8 million.
Representatives from the Union of Agricultural Producers in Nicaragua (Upanic) detailed that the plant to be constructed in Leon will be dedicated to the processing of green and ripe plantains, and those from New Guinea to processing roots and tubers.
Taking into account the projected demand, it is expected that in the 2016/17 cycle the region will have sufficient but below average maize supplies and a slightly above average surplus of beans.
From the report "Regional Supply And Market Outlook Central America", by the Famine Early Warnings Systems Network:
This report summarizes the supply and market outlook for white maize grain, dry beans, and rice in the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua for the 2016/17 marketing year. Production and marketing in Mexico, an important source of dry beans and maize, are also discussed. Regional production for the 2016/17 marketing year (through July 2017) is expected to be average (Figure 1). Taking projected demand into account, the region is expected to have belowaverage, but sufficient maize supplies and a slightly above-average bean surplus. The region will maintain deficit in rice (Figure 2).
2016-2017 forecast: 1.6 million hectares in cropland, cattle slaughter at 795,000 head and milk production raging between 275 million and 300 million gallons.
The Plan for Production, Consumption and Trade in the 2016-2017 Cycle includes details of the Nicaraguan government's projections for the agricultural, livestock, poultry, aquaculture and forestry sectors for the current year and the next.
The Colombian government has reduced tariffs to 0 on imports of lentils, beans and garlic, and suspended the price band for crude and refined oils.
From a statement issued by the President of Colombia:
The National Government has approved a reduction to 0% on tariffs on the import of lentils, beans and garlic, and has temporarily suspended the price band for crude and refined oils, which will ease the cost of the food basket for Colombians during the first half of 2016.
Producers in Costa Rica must further improve their productivity if they want to compete with the low prices offered for the same product internationally.
Currently a quintal of the grain sells in Costa Rica for around $40, whereas inside the Costa Rican market producers are trying to sell their harvest for $60, arguing that industrialists are offering them at lower prices in order to buy their production. This is not the first time that this difference in price has arisen, and this time, the government has said it will buy part of the local crop from producers in the south "... at a price that is double the price from abroad".
The drought that affected in 2014 has worsened this year, threatening shortages of basic foodstuffs.
An article on Nacion.com reports that the director of Agricultural Extension of the Ministry of Agriculture of Costa Rica, Felipe Arguedas said "... We are very concerned because two years of drought are joined together; we believe that 2015 will be worse than 1997, which was the driest year recorded so far."
Between 2013 and 2014 coffee yields decreased from 11.9 hundredweight produced per acre to 11.8, rice fell from 89.7 to 71.4 hundredweight, and beans fell from 12.8 to 11.8.
Reports from the Central Bank of Nicaragua show that also yields of sesame also decreased, going from 11.5 hundredweight per acre in 2013 to 8 hundredweight per hectare in 2014. With regard to coffee, Nicaragua is one of the countries with the lowest yield per hectare planted "... surpassed by El Salvador, but below Honduras, Costa Rica and Guatemala."
Nicaraguan producers are complain that phytosanitary controls applied by the government of Costa Rica have increased the illegal entry of Nicaraguan beans, estimated at $4 million a year.
On average over 160 containers holding 480 pounds of beans each are smuggled to Costa Rica, amounting to approximately $26,000, as "...
Up to August 31, 2014 the total amount exported was $1.859 million, 8.04% more than the $1.721 million generated in the same month in 2013.
Regarding the volume of exports, up to August 2014, the Center for Exports (CETREX) reported 1.36 million metric tons, 12.9% more than the 1.20 million metric tons sold in the same month in 2013.
Due to a reduction of local production because of drought, the government has authorized, for the second half of the year, an increase in tax-free imports of red beans, rice and corn.
In the case of red beans, an additional 10,000 tons has been approved on top of the 20,000 authorized in June, while for rice the quantities will be defined in the coming days.
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