2.2.5.- Nicaragua

With a share of only 3% in Central America’s total export of fruits, vegetables and ornamentals in 2006, Nicaragua is the second smallest producer and exporter regarding these sectors in Central America (after El Salvador with 2If taking into account the whole agricultural sector, the most important agricultural exports are coffee and sugar.
Agricultural yields in Nicaragua are dreadfully low by regional standards, and less land is irrigated now than 30 years ago, i.e. red bean and rice yields are no higher than they were in the late 1970’s.
Nevertheless, efforts to diversify Nicaragua’s export crops are enjoying increasing success. Easier access to the US market through DR-CAFTA and expanded sales to Central America have encouraged production of exports such as peanuts, red beans and fruits, formerly regarded as non-traditional goods. Exports to Europe are still very limited having the lack of access to the Caribbean Sea as its main reason.

2.2.5.1.- Production

Area of production
In table 2.34 the area harvested for the major agricultural products is given, according to the data available. There is a big discrepancy between the area harvested and its production, compared to the export figures due to the fact that most produce is consumed in the local market.

Production quantity
Table 2.35 shows the production quantity for the major agricultural products, according to the data available.

2.2.5.2.- Trade

Export
Table 2.36 shows the export value (US$) of the major agricultural products for the sectors covered by this study. Nicaragua’s main export product, when the fruits, vegetables and ornamentals sectors are concerned, are dried red beans with a share of 51% in the total export value from the sectors. Banana stands in second place with 17%. Other products are of minor significance.

In 2006, the export value of ornamentals was about US$ 1.1 million, of which almost all was leather leaf. From 2003 onwards, the export value of leather leaf has been stable around US$ 1 million.
The export value of vegetables has doubled since 2002, to a value of US$ 48 million in 2006. This is mainly due to a substantial growth in the export of small red beans, with a share of 74% in 2006.
Export of fruits shows a gradual growth of 28% during 2002-2006 to a value of US$28 million. Banana is the major exported fruit with a stable value around US$ 12 million and with a share of 56% in 2006. Watermelon and mango are the second and third exported fruit, respectively, but with less value.
Prepared and preserved vegetables and fruits are not of significant importance regarding Nicaragua’s export.

Export trade partners
Leather leaf from Nicaragua is mainly exported to the Netherlands. As for vegetables, El Salvador is the main importer and The United States imports almost all of Nicaragua’s fruits.

Export to the Netherlands
It is remarkable that almost all non-traditional agricultural export from Nicaragua to the Netherlands is leather leaf. Nevertheless, it is a fact that mango will start playing a (minor) role in these statistics in the year 2007. Apparently, most melons, bananas and watermelons exported from Nicaragua have North America as their final destination.

Import
In table 2.39 the import value (US$) of the major agricultural products are given for the sectors covered by this study. It is remarkable that quite some products, being produced in Nicaragua, are also being imported. Examples are onions, potatoes and beans. As there is very little local production, ornamentals are also imported.

2.2.5.3.- Agricultural supplies and services

Nicaragua has a very small export oriented agricultural sector and products and services are therefore not always available. Due to the lack of access to the Caribbean Sea, many products come from neighbouring countries. Presently, there are no supply products to be detected where local presence for Dutch companies is recommendable. The only export oriented agricultural producers buy their products locally or by directly abroad.