The Guatemalan sugar industry: An overview

The growth of the Guatemalan Sugar Industry and some of the reasons (in particular, mill owners owning cane plantations) for this are discussed. Comparison is made with production statistics from neighbouring Central American countries, namely Panama, Nicaragua, Honduras, El Salvador and Costa Rica. Guatemala's production is the highest in the region. The industry is well structured and the millers' ownership of cane results in a relatively low cost of production. Approximately 75% of the industry's production (1.8 million tonnes in 2003) is exported, making it the third largest sugar exporter in Latin America. The addition of Vitamin A to domestic sugar is enforced by law and this offers some protection to the local industry from imports. The change in the Guatemalan presidency earlier in the year offers optimism for the continued development of the industry.