agriculture

Ministry unable to help farmers

Watermelon and cantaloupe production is expected to substantially drop this year.

Producers are instead switching to crops that can be marketed to U.S. consumers.

eric batista/la prensa

getting picked: Watermelon production is expected to fall this year as farmers have had trouble exporting their crops. 1145990

Despite efforts by the Ministry of Agricultural Development, it appears likely that the country’s production of cantaloupes, watermelons and other so-called non-traditional agricultural products will fall dramatically this year.

Minister Olmedo Espino met again with members of GANTRAP, a union that represents farmers who specialize in these products, but was not able to come up with any concrete proposals to help the industry.

According to estimates, the cantaloupe and watermelon crop this year will be just 2,600 hectares, after having occupied 4,300 hectares last season.

Exporters and producers say that the drop in production is due to the lack of government support, difficulties in getting bank financing and the loss of preferential tariffs for exports to the European Union.

Francisco Antúnez, president of the agricultural export company Comexa, said that the season’s first shipment containing 20 tons of watermelon was sent to the Netherlands Thursday.

The company will have to pay a 5.3 percent tariff on the shipment, which will cost the company more than $600. Those fees will have to be absorbed by the Panamanian company in order that the product can be competitive with the fruits of other countries in Central and South America who do not pay those tariffs.

The government has proposed refunding taxes paid by Panamanian exporters, but those within the industry said they have concerns about how the payments will be administered. And many of the European importers have indicated that payment of the fee may cause tax complications, which will likely prompt them to seek out products from other countries.

Panama was denied the preferential tariff rate when it failed to submit the paperwork to qualify for the program.

The government has made efforts to reimburse producers, but the problems they have encountered with other such programs have made them wary of the current initiative.

Producers are cutting melon and watermelon planting and instead planting crops to sell in the U.S. market, even though economic conditions in that country are not the best at the moment.

Además en Herald

• 2008 crime rate conflicts with new security reforms
• Banana industry has terrible year
• Calm returns to Veraguas town
• Ministry unable to help farmers
• Poll: trucks not being operated safely
• Chiriquí town shuts down unhygienic dump
• Court orders council not to buy building
• Officials mull changes to school calendar
• Colleges attract foreign students