During the first four months of 2021, companies operating in Costa Rica sold $22 million worth of beef to China, this figure represents 54% of the total exported by the Central American country.
Data from the Foreign Trade Promotion Agency (Procomer) show that from January to April of this year, Costa Rican beef exports to China totaled $22 million, to the U.S. $8 million and to Puerto Rico $5 million.
Despite warnings in Costa Rica that there was a deficit in the budget of Senasa, the institution in charge of applying tests to exported and imported meats, the authorities assure that the execution of these tests will not be interrupted.
A few days ago, the livestock sector had warned that the entity could be forced to suspend the tests applied to meat products, a situation that could affect the health of consumers.
From January to September 2020, the countries of the region exported $527 million for beef, 16% more than what was registered in the same period of 2019, a rise that is explained by the behavior of Honduran, Panamanian, Costa Rican and Nicaraguan sales.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
Given the blockade that has been in place since July 2020 to the entry of animal products from Costa Rica into the Panamanian market, the Panamanian guild of poultry farmers supports the actions taken by the Cortizo administration.
At the beginning of the second semester of 2020 the commercial conflict between both countries began, since Panama informed the National Animal Health Service (SENASA), an agency of the Ministry of Agriculture and Livestock of Costa Rica (MAG), about the decision not to extend the authorization for export to a list of Costa Rican establishments previously authorized and that have been commercializing in the Panamanian market for many years.
In the last five years, pork consumption in Central America increased 42%, from 197,000 tons in 2014 to nearly 279,000 tons in 2019, growth that was boosted by the Salvadoran and Honduran markets.
Figures from the "Pork Market Snapshot" prepared by the Trade Intelligence Unit of CentralAmericaData, detail that in the last two years’ regional consumption of pork registered a 3% increase, since between 2018 and 2019 it is estimated that demand in Central America rose from 270 thousand metric tons to 279 thousand tons.
During the first quarter of the year in Costa Rica 99,662 cattle were slaughtered, 4% more than reported in the same period in 2019, which is largely explained by shipments to the market in China.
Although the spread of covid-19 has negatively impacted most economic sectors worldwide, data from the Livestock Corporation (Corfoga) detail that between January and March 2019 and the same period of 2020, the number of cattle slaughtered increased by 3981, from 95681 to 99662.
When the economies of Central America begin to relax the restrictions that have been taken to prevent the spread of covid-19, it is expected that in the area of processed meats, sales of pork ham will be among the most contracted.
Using a demand/income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, it is possible to project the variations that household demand for different goods and services will undergo as the most critical phases of the spread of covid-19 are overcome and the measures restricting mobility in the countries of the region are lifted.
In the last five years, beef consumption in Central America increased 4%, from 335,000 tons in 2014 to about 347,000 tons in 2019, growth that was boosted by the Salvadoran and Honduran markets.
Figures from the "Beef Market Snapshot" prepared by the Trade Intelligence Unit of CentralAmericaData, detail that in the last two years’ regional consumption of beef registered a slight increase, since between 2018 and 2019 it is estimated that demand in Central America rose from 341 thousand metric tons to 347 thousand tons.
After the sanitary protocol to sell meat to China came into effect and the industrial plants in Costa Rica were certified, the Central American country's sales to the Asian giant doubled between 2018 and 2019.
Figures from the Foreign Trade Promotion Agency (Procomer) show that in 2018 beef sales to China reached $22 million, while in 2019 they doubled to $57 million.
As part of the FTA signed between the two countries, since January 1, 2020 beef and pork from the U.S. do not pay tariffs or taxes on entry into Costa Rica.
According to the Free Trade Agreement signed, the relief of beef and pork will be valid for 15 years, while the so-called black parts of the chicken, such as thighs and others, will be released until January 1, 2022, in this case for the term of 17 years.
Due to the fact that preference for "vegetable" or plant-based meat is growing quickly in major global markets, food industry business groups have begun to make investments to meet this novel and growing market niche.
Foods that were once considered the exclusive consumption of vegans or vegetarians are now becoming popular, and in the case of the United States, in supermarkets it is increasingly normal to see meat products made from plants.
The absence of toxic waste laboratories in the processing plants is one of the obstacles that are preventing Panamanian meat from entering the Costa Rican market.
Representatives of the Panamanian Exporters Association (Apex) explained that Costa Rican regulations require at least 14 toxic waste tests and Panamanian laboratories perform only 8.
From January to September 2018, countries in the region reported $422 million in beef sales abroad, and exports to the United States grew 16% over the same period in 2017.
Data from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics]
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.
During the last year, 70% of imports of poultry for fattening, poultry for breeding and processed meat were made by companies in Guatemala, Panama and Nicaragua.
From the "Poultry Market in Central America" report, developed by the Trade Intelligence Department of CentralAmericaData:
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