2.1.- Introduction
This chapter defines the agricultural significance of each Central American country, regarding the sectors covered in this study. On a production level, the area of production and total production quantity of major crops are displayed based on available data taken from the FAO. For crops like flowers and ornamental plants, these figures have not been included as they are not available. As far as trade is concerned the export value of the major agricultural products, main export trade partners, exports with the Netherlands and import value of imported agricultural products are given based on data from SIECA and TradeMap. Please take into consideration the ‘reliability of the data’ discussed in Appendix E.
All products have been investigated based on international customs codes (HS codes). The report is based on the first 6 digits as used of these codes. Foreign trade statistics from SIECA and TradeMap have been used for collecting the data.
As part of agricultural trade, the agricultural supplies and services will be discussed. The products and services will be divided into the following categories.
2.2.- Countries
2.3.- Central America
2.3.1.- Introduction
Central America as region represents a total export value of US$ 2,8 billion of the total agricultural exports covered in this study. In this paragraph the total exports and exports to the Netherlands will be reviewed.
2.3.2.- Trade
2.3.2.1.- Central America
Central America’s biggest export product is by far fruits (US$ 1,2 billion in 2006).
The large export value is mainly due to the exports of bananas and to lesser extent melons and pineapple. The exports of fruits account for 72% of the total agricultural exports covered in this study. The other sectors (ornamentals, vegetables and prepared and processed fruits and vegetables) have an almost even share in the total export value of around 8-10% of total agricultural exports in 2006. Focus in this report has been on fresh produce and to a far lesser extent on processed and prepared fruits and vegetables.
Costa Rica is the number one exporter of agricultural products of Central America especially in fruits and ornamentals. Guatemala follows on a second place where Panama sits on a second place as far as the export of fruits is concerned. It has to mentioned again that serious doubts exist on the reliability of the figures for Panama and it has to be noted as well that it is a well known fact that invoices in Guatemala are usually lower than the actual values to avoid paying taxes. Honduras can be called a medium sized country as far as exports of agricultural products are concerned. Both Nicaragua and El Salvador are relatively small exporters of agricultural products.
It can be said for Central America as a region as well as for a number of separate countries that a significant growth of total exports can be noted over the last five years. Especially the growth of fruit exports accounts for this growth on Central American level. All above info is reflected in table 2.50 on the next page.
2.3.2.2.- Export to Nethelands
The number one supplier from Central America to the Netherlands is Costa Rica with a total export value of US$ 227 million in 2006. Exports to the Netherlands consist of mainly fruits followed by preserved vegetables and fruits (mainly fruit juices) and ornamentals (plants and foliage). The second Central American country is Panama, but only because of the exports of fruits (banana and (water)melons). Guatemala and Honduras have traditionally more focus on the North American market than Europe which is being reflected in the export statistics. However, both Honduras and El Salvador are already exporting quite some ornamentals to the Netherlands.
2.3.3.- Biofuel production in Central America
Part of the study was to investigate new potential sectors and other agricultural crops, other than fruit, vegetables and ornamentals. The most important sector to be mentioned, is biofuel. Nevertheless, the interest from Dutch investors, importers and exporters will most likely be limited to some investors and some suppliers of chemical crop protection and industrial machinery, although such companies are not active in Central America and it is not to be expected that they will become active.
On the other hand small potential crops haven’t been discussed with much detail because it is expected that the interest of Dutch companies of the target group won’t be substantial for such niche products. The organic sector as well as certification labels are described throughout the report as part of specific products/sectors. As biofuel being a growing sector occupying big acreages, information on this sector can be found in this paragraph.
Costa Rica, El Salvador and Guatemala are considered to be best equipped for expansion in bio fuel production, based on their current production capabilities, the organization of their agro industrial sectors, and the aptitude of their governments in recognizing the importance of the bio fuels sector and in legislating accordingly. Some estimates show that these countries have industry indicators comparable to those found in Brazil. While Guatemala shows a great deal of promise, there are special interests within the country which could impede further development of its bio fuels industry.
The other Central America countries are also regarded to have potential, such as Nicaragua and Panama, due to their climate, dependence on foreign sources of oil, and existing sugarcane industries. These countries, however, have slightly less advanced physical and political infrastructure for biofuels development, which includes processing plants for production and the regulatory frameworks to promote biofuels use on a large scale. Of this group, Nicaragua has shown particular promise and continues to move forward in the development of its biofuels sector.
Ethanol production occurs in the region on a significant scale, but biodiesel production is less common. There is a concentration of production units in Guatemala. The top 13 processing plants in Central America represent half of the region’s capacity. More detailed information can be found in the report A Blueprint for Green Energy in the Americas (Garten Rothkopf, Inter-American Development Bank, 2007).
