In Costa Rica, since July 2020 the producer price index for the manufacturing sector started to report increases, a situation that could lead to a rise in sales prices and simultaneously to a fall in the quantity of products traded.
Between December 2019 and June 2020, the producer price index for the manufacturing sector (IPP-MAN) reported negative year-on-year variations.
High social charges, excessive regulations for businesses and the high price of labor are factors that prevent Costa Rica's economy from reaching its growth potential.
In Costa Rica, establishing a personally owned company without employees is up to three times more expensive than what it can cost in a country that belongs to the Organization for Economic Cooperation and Development (OECD).
Due to the imbalance in world trade flows, shipping lines have changed their routes and prefer to move empty containers to Asia, a situation that generates shortages and causes increases in freight rates and raw material prices.
In this scenario of new commercial reality, the operating costs of maritime freight have been impacted, since due to the restrictions imposed in several countries around the world, containers have been stranded.
After Grupo Lala decided to close the operations of its dairy production plant in Costa Rica, a debate began over whether Dos Pinos' dominance in the local market was due to protectionist policies or to the brand positioning, quality and price of its products.
The business sector in Guatemala is anticipating an increase in the prices of food and medicines, due to the government's decision to raise the cost of procedures such as the issuance of licenses and health registrations, required to market these products.
By means of Government Agreement 179-2020, which entered into force on December 1, 2020, new fees were imposed for the services of procedures for licenses, registrations and other processes for medicines, laboratories, pharmaceuticals, food products and others.
Scheduling medical checkups for the staff, preparing the housing modules to maintain social distance and adapting the logistics of transporting people are challenges that the sugar mills will face during the 2020-2021 harvest.
The sugar cane harvest that is about to begin represents a source of employment for thousands of people in the region and in this context of the propagation of covid-19, the companies will have to face multiple challenges to get the harvest going.
A few days before the expiration of the crane service contract in Guatemala's Port of Santo Tomas de Castilla, local exporters expect a possible scenario of rising costs and slower operations.
The crane service contract was in force for 10 years and will expire on September 6. So far, businessmen do not know clearly what is the status of the tender, which the National Port Company Santo Tomas de Castilla (Empornac), must make to award the contract..
In Costa Rica, a bill to give the Ministry of Economy, Industry and Commerce the power to determine the maximum commissions and amounts that may be charged by digital platforms such as UberEats, Glovo, Rappi and Hugo was presented.
With the boom in demand for food delivery, Costa Rican restaurant owners claim that their companies have given up part of the profits to assume the costs of making alliances with delivery applications.
Since last March, when the first cases of covid-19 were reported in Costa Rica, consumers have been subjected to severe restrictions on mobility, which has led to transformations in the forms of marketing.
Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.
As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.
Discounts and offers, increase in the price level generally and the rise in operating costs due to new health and safety protocols are the main threats to the profitability of companies in this new commercial reality.
Given this context of economic and health crisis, which derives from the outbreak of covid-19 at the global level, Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains what are the main threats that could affect the profitability levels of companies, and details some strategies that could be applied to mitigate the adverse effects.
In a context of health emergencies and falling oil prices, Nicaraguan businessmen are asking the government to take advantage of market conditions and reduce electricity rates by 15 to 20%.
For the Superior Council of Private Enterprise (Cosep), the advantage of buying and storing oil derivatives for electricity generation as soon as possible should be evaluated, and thus taking advantage of the historical lows in the prices of these products.
As a result of the crisis generated by the spread of the covid-19, during the following three months companies in Guatemala will be able to defer payments to Social Security, Irtra and Intecap.
The boards of directors of the Guatemalan Social Security Institute, the Workers' Recreation Institute (Irtra) and the Technical Institute for Training and Productivity (Intecap), reported that the payments of employer's contributions for March, April and May were suspended, to be deferred in the second half of the year.
Identifying critical business needs and setting up plans on how to maintain supplies and operations, as well as establishing communication channels with suppliers to be informed in case of any eventuality, are part of the advice for companies.
The coronavirus has already affected the world economy, and its effects do not seem to stop. With countries in quarantine, financial markets in the black and international trade diminished, the economic outlook is not very encouraging, explains a document from the Guatemalan exporters' union.
One day after the suspension of work in the private sector, authorities reported that all companies complying with the health and safety protocol will be allowed to continue operating.
On the night of March 16, public and private sector work was reportedly suspended, and shopping centers, bars, and discotheques were ordered to close, while public transportation was prohibited, in an effort to contain the spread of covid-19.
Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market. It serves soft drink bottlers, brewers, bottled water...
español
6966
