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.
In El Salvador, the union of sugarcane growers estimates that for the 2019-2020 harvest will be produced about 17 million quintals, a volume that would be 15% higher than that recorded in the previous cycle.
The Sugar Association of El Salvador projects that between the 2018-2019 and 2019-2020 harvests, 2.2 million more quintals will be harvested, going from 14.8 million to 17 million quintals.
For the 2018-2019 harvest was reported in the country the production of 17.1 million quintals of sugar, 5% more than the 16.4 million quintals recorded in the previous harvest.
Data from the Salvadoran Council of Sugar Agroindustry (CONSAA), specify that the 17.1 million quintals of sugar harvested in the 2018-2019 cycle, represents the highest production recorded in the last six years in the country.
The Constitutional Chamber of El Salvador declared the demand of the sugar manufacturers inadmissible, arguing that there is no link between the cancellation of the FTA with Taiwan and the application of constitutional norms.
After the Salvadoran government decided to finalize the trade agreement with the Asian country in December last year, an act that was not consulted with the country's productive sector, the guild presented in February this year an appeal of unconstitutionality.
As of March 15, the FTA between Taiwan and El Salvador will be null and void, a situation that will prevent the Central American country from selling 80,000 tons of sugar at favorable prices.
The Salvadoran government concluded the trade agreement with the Asian country in December last year, a decision that was not consulted with the country's productive sector and will affect sugar exports, as it will no longer have preferential treatment.
The downward trend in international prices and the climate impact are part of the challenges facing producers in the region for the next harvest.
According to data from CentralAmericaData, the average price per kilo of sugar exported by countries in the region fell 38% between May 2012 and June 2017, from $1.13 to $0.70.
Because of the drought that is affecting several areas in Central America, in El Salvador, agricultural producers estimate that at least 6.3 million hundredweight of corn, valued at $39 million, have been lost.
Representatives from the Salvadoran Chamber of Small and Medium Agricultural Producers (Campo) said that due to the drought, which lasted up to 40 days in some areas of the country, they have lost more than 6 million hundredweight of corn, valued at $38.6 million.
In the first nine months of 2017, countries in the region exported $1.166 billion worth of sugar, 41% more than was sold during the same period in 2016.
Figures from the information system on the Raw Sugar Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Production from the 2016-2017 cycle amounted to 2.7 million metric tons, 4% less than the previous cycle, but the next is projected to reach 2.9 million metric tons.
Figures from Banco de Guatemala show that in the first semester the exported volume of sugar fell 8%, and $561 million were generated.
Between 2012 and 2016, exports to Canada almost doubled, raising from $55 million to $101 million, making it the main destination for Guatemalan sugar.
Figures from the information system on the the Sugar Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
The guild foresees closing the 2017/18 cycle with a production of more than 17 million hundredweight of sugar, which would represent a 10% increase compared to the previous cycle.
If expectations by employers in the sugar guild are met, production from the 2017/18 cycle would be the best achieved yet.Favorable climate conditions and the expected expansion of sowing areas, from 105 thousand to 109 thousand manzanas, are the reasons for the guild's expectations for the cycle that begins next month.
Five Asian countries bought more between January and July of this year than was acquired in all of 2016.
The trade agreement between El Salvador and Taiwan, in force since 2008, has made it the gateway for Salvadoran sugar in Asia, according to the president of the Sugar Association of El Salvador (AAES), Mario Salaverría.
In search of fresh resources, capital shares in sugar factories and plants held by Corporación Salvadoreña de Inversiones will be sold to private companies.
The aim of the Sánchez Cerén administration is to part with its shares and obtain fresh resources to pay off debts amid the liquidity crisis it is facing.The decree approved by the Legislative Assembly"... establishes a deadline up until October 10 for Corsain to be able to gradually sell the shares it owns, which could be worth about $23 million."
From August 22 to 25, companies from the sector will be gathering together in San Pedro Sula to participate in business roundtables and discuss topics relevant to the sector.
The Congress of Sugar Technicians of Central America will be held at the Copantl Hotel Convention Center in San Pedro Sula. Business roundtables will be held and international experts will be giving talks on topics of interest to the sector, such as the effect of climate change on sugar production, use of technology, production costs, among other things.
Total production from the 2016/17 harvest surpassed 15.6 million hundredweight, registering an increase of 18% compared to the previous harvest.
Figures from the National Committee of Sugar Producers show that the production of the San Antonio sugar mill was 7 million hundredweight, followed by Monte Rosa with 6.3 million, Benjamin Zeledon with 1.3 million and Montelimar with 1.2 million hundredweight of sugar.
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