The drop in agro-exports could be caused by the lack of support from the authorities, who in the last three three years have failed to pay more than $5 million in incentives, said the president of the Nontraditional Agroexportadores Guild of Panama (Gantrap), Analeydis Chen de Ríos.
He stressed that partial payments have been made, through the Ministry of Agricultural Development's program called Promagro, that do not cover the entire debt, which along with other aspects, such as climatic phenomena, has caused the activity to stumble.
Chen said they are on the eve of an upcoming planting season from November and December, to be harvested between January and February, yet they face this lack of incentives problem.
He explained that the growth, maintenance and next season's subsistence of this activity depends very much on the payment of this debt. Among those affected are melon, watermelon, squash and pineapple producers.
The agro-exporter said that this year only 900 hectares planted will be reached between melon, watermelon and pumpkin, when in previous years there were 4,000 and even 7,000 hectares.
He said that in addition to this situation, they have also had to face bad production years, such as 2016 with the falling international prices, as well as climatic problems. All these factors influence the reduction in productive hectares.
"If the government complies with the established program and pays these certificates, it would give oxygen to the activity and it could increase exports," he said.
He also pointed out that there are few companies dedicated to agroexport due to a lack of incentives, and the delay in insurance indemnifications have also caused a decrease in the number of companies engaged in the activity.
According to information from the Ministry of Agricultural Development (Mida), the Promagro law was created on November 21, 2013. It establishes the Program for the Agricultural and Agroindustrial Promotion and Modernization.
This program is identified by two lines: financial assistance and loan lines.
Since 2014, exports have fallen from 3.1%; 14.9% in 2015; 8.5% in 2016. Meanwhile, in 2011, exports grew 7.9% and in 2007, 9.7%.
Juan Bulnes, president of the Panamanian Association of Exporters (Apex), indicated that there has been, in effect, a kind of containment in the issuance of incentives, and that has delayed the agro-export activity.
He emphasized that a number of factors, such as the increase in the costs of labor in the sector, have influenced the determination of whether or not to cultivate.
However, Bulnes believes that it is necessary to be technologically more competitive and to grow crops in controlled environments to achieve this.
"Basically, 66% of Panamanian goods exported are in sectors such as agriculture, fisheries, meat, poultry and food products, and the opportunities are there, and it depends on us going into technologies to overcome the obstacles presented along the way." he claimed.
As for the markets, he pointed out that China is an immense opportunity, since it is a potential customer and they hope to grow enough first, in order to reach those types of demand levels.
The president of Gantrap said that there are buyers in the market, mainly in fruits, who request products, and there have even been requests from China, but we do not have the facilities.
Source: panamaamerica.com.pa