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Guatemala: Sugar snap production significantly down

foodmate 2017-10-24
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Tag: Sugar snap

As the end of the rainy season approaches in Guatemala, sugar snap growers are still trying to recover from the cost of torrential rainfall during the season. Its not unusual for a dip in sugar snap production to occur during this time, however this year has been one of the worst in recent times and has significantly decreased supplies.

"The Guatemala sugar snap season runs all year round," said Tom Iglesias, of Century Farms International. "Volumes typically dro off during the rainy season, which lasts from the end of May, or beginning of June through November, after which production picks up. However, this year has been particularly bad because of the excessive rain that has affected the country. There are reports that numbers are down by more than 35% of the usual amount for this time of year due to the exceptionally wet and rainy season."

Prices climb in response
With production lagging, prices are spiking as importers look to other sources to supplement supply. 

"Not only have our growers suffered losses from the exceptional rainy season, but they are telling us that they have only been getting a 15% yield from their plants in the last few weeks," continued Iglesias. “Although prices are high, the volume is not there. Everyone is eager for the new crop to come up in order for Guatemala to be able to resume its exceptional quality and recoup the losses due to the rains. Our customers have come to expect the superior quality that Guatemala is known for and are eager for volumes to return to normal.”

"The rains have affected quality and demand," he added. "With production down, importers are looking elsewher to ensure their customers receive shipments. While Peru is attempting to fill the gap in production from Guatemala, it was also affected by the weather this year which has also impacted their volume. Due to the shortages caused by the weather, supplies have had to be flown in. As a result, prices are unusually high right now, ranging from $36-40, when typically they are $18-22."

Marginal growth in value added market
Despite the current production issues, Iglesias said they are confident that supplies will be back on track shortly. He noted that there has been a steady but slow growth in the value added market. 

"Weve been seeing more sugar snaps in the value added market," he said. "There has also been a few new products in this category, including sugar snaps in microwaveable bags, tray pack, salad mixes, etc. Most production though, continues to be sold bulk in 10lb boxes."

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