Trade and Agricultural Markets in Nicaragua
Nicaragua is a small Central American country bordering both the Atlantic and the Pacific oceans. With a total territory of over 130.000 square kilometers, Nicaragua is somewhat larger than Pennsylvania. The country’s total population is of about 6 million citizens and its landscape is dominated by volcanic mountains alongside warm tropical lowlands. Currently, Nicaragua’s annual gross domestic product (GDP) is of approximately US$30 billion and the country has experienced positive economic growth upwards of 4.0% throughout recent years. Furthermore, the country is slowly developing as a tourism as well as retirement destination for the Americas. Nevertheless, Nicaragua remains the second poorest country in the western hemisphere, after Haiti.
The Nicaraguan national economy is divided into 18% agriculture, 23% manufacturing, and 59% services. However, the agriculture industry utilizes about 43% of the national territory, while another 25% is forested. Likewise, Nicaragua’s agricultural industry employs 32% of the national labor force, while manufacturing employs about 18% and services employ another 50%. Geographically, Nicaragua’s location is strategic as a maritime position on the western Caribbean and its landscape is unique because of the large freshwater lakes located in the center of the country. In fact, Nicaragua has for hundreds of years discussed the possibility of hosting an interoceanic canal to rival the crossing through Panama. Though the Nicaragua canal has never materialized, during recent years the discussion of its construction has been revived because of the interest of Chinese investors.
Similarly, Nicaragua’s natural resources include gold, silver, copper, tungsten, lead, zinc, timber, and fish. Within the manufacturing industry, Nicaragua focuses on food and beverage processing, chemicals, machinery production, metal products, knit and woven apparel, petroleum refining and distribution, footwear, wood, electric wiring, and mining. Meanwhile, the country’s agricultural industry has as main products coffee, bananas, sugarcane, rice, corn, tobacco, cotton, sesame, soya, beans, beef, veal, pork, poultry, dairy products, shrimp, and lobsters. Since 2006, Nicaragua is a full member within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR), which has expanded the export markets for domestic industries. This article explores the status of the agricultural market in Nicaragua.
Trade and Agricultural Markets in Nicaragua
In terms of trade, Nicaragua’s main partners are the United States, Mexico, China, El Salvador, Venezuela, and Costa Rica. Likewise, Nicaragua takes part in the Central American Integration System (SICA), which seeks to harmonize food safety standards and agricultural trade regulations for the region. This is particularly important for Nicaragua, given that agriculture accounts for approximately 75% of the country’s exports. At the same time, Nicaragua imports important quantities of food products and a large sector of its population lives of subsistence agriculture.
Nicaragua’s population is mostly young, below 40 years of age, and its staple diet is rich in carbohydrates. However, local populations tend to not consume enough proteins, vegetables, and fruits. Simultaneously, in major urban centers, such as Managua, Leon, and Granada, consumer oriented food items like salty snacks, candy, and carbonated beverages are becoming increasingly popular. This dynamic is creating important inroads for the import of consumer food items to Nicaragua’s urban supermarkets.
(Read more about Magnesium – A vital mineral for optimal health)