4.4.5.2 Market potential

General data on agriculture in Nicaragua:

Nicaragua has a population of about 4.5 million, of which 22.4% work in the agricultural sector.

The neoliberal agricultural policy since the beginning 1990s has led to a concentration of large-scale farms which are dominating agricultural production, although Nicaragua still has more equal land distribution than other Latin American countries. The number of agricultural cooperatives has declined by 50% within the last decade (from 3000 to 1500).

Small farmers receive only marginal agricultural extension from the government, but a range of NGOs are working with farmers. Government policy is mainly promoting agricultural production for export. It is very difficult for small farmers and cooperatives to get access to credit provided by the government to boost the agricultural sector, so that the main beneficiaries are large-scale farmers.

Production according to organic farming principles is increasing, which however mainly refers to the cash crops such as coffee. Production of vegetables in Nicaragua is comparatively insignificant, even for export. The major vegetables grown are tomato, cabbage and other brassicas, onion, capsicum and carrots (see Table 57).

Table 57: Agricultural production in Nicaragua in 1998/99 (selected crops)

Crop species	Production volume in t	Cultivated area in ha
Agricultural export		924,355
Coffee	5,985.3	91,650
Sesame	3,287	18,050
Tobacco	2,185	2,115
Local consumption
Rice	182,270	958,800
Beans	155,956	250,560
Maize	320,862	318,990
Sorghum	57,522	55,765
Soya	28,272	20,868

The application of insecticides in Nicaraguan farming systems is very common. Pesticides are imported by a few large importers and distributed to 226 smaller retailers. These in turn employ merchandisers who sell the pesticides on the market or offer them going from house to house. The agricultural supply traders provide credit for the farmers and advise them how to use the products.

Neem and other biological agents are distributed via the conventional agricultural supply channels. Additionally NGOs, government administration offices, farmers' associations and cooperatives are also selling agro-chemicals. Therefore it is difficult for the MoA to control the pesticide market on all levels.

Table 58 gives some indications of the costs of pesticide application as a share of the total production costs in Nicaragua according to Appel & Beck (1991).

Table 58: Costs of pest control in selected crops (according to Appel & Beck, 1991)

Crops	Costs of pesticide application in US$	% share of total production costs
Cotton	721.57	64.4
Industrial tomato production	766.78	45.0
Cabbage	572.07	44.3
Beans	132.57	39.6
Tobacco	1520.79	37.3
Maize	154.6	32.9
Rice	267.46	26.9
Maize, traditional	43.39	26.5
Sesame	103	20.2
Beans (traditional)	17.63	10.6
Beans, traditional	17.87	9
coffee, (traditional)	10.21	5.1

Source: Beck (1997)

To regulate the introduction, use and application of pesticides in Nicaragua the following regulations exist:

1. "El Reglamento sobre importacion, Distribucion y uso de productos Quimicos y Quimico Biologicos para la industria Agropecuaria (1960) facula al Ministerio de Agriculura y Ganaderia (MAG), extender certificados de aprobacion para la importacion, fabricacion y venta de productos para uso agropecuario".

2. Registro de Agroquimicos y Sustancias afines (1993).

3. Comision de Agroquimicos (1993).

The responsible national authority is the "Departemento de Registro y Control de Agroquimicos de la Direccion de Sanidad Vegetal", which is in charge of importing and trading of pesticides.

The following table (59) provides the value of imported insecticides in Nicaragua.

Table 59: Import of selected agrochemicals from 1996-1998

Product	1996 (in 1000 US$)	1997 (in 1000 US$)	1998 (in 1000 US$)
Insecticide	4,955.57	5,827.85	8,174.86
Others	243.06	557.63	170.99
Total	41,394.81	49,527.92	53,526.88

Source: Banco Central DGPSA - AG

No pesticides other than neem-based pesticides are manufactured in Nicaragua.

In 1999 Copinim and the newly created venture IOSA were offering neem products, and only low quantities of neem pesticides were imported.

The following table (60) provides information on products offered by Copinim and their prices.

Table 60: Products offered by Copinim and their prices

Product/unit	Price (cordoba)	Application recommendations
Torta Nim, price 1 kg	30	25 g/l water, 0.3% azadirachtin
Nim-Action O.4 SL, Price 1 l	120	4-6 ml/l water, 0.4% azadirachtin
· Aceite de Nim C E 80, price 1 l	110	4-10 ml/l water
· Pasta Nim, 125 g	15	Treatment of sores and injures of animals

All products of Copinim have been registered in Nicaragua. Copinim is exporting to other countries in central America and has good chances of having the products registered.