Knowledge for Development

Positive outlook for El Salvador’s sugar industry: Higher yielding sugarcane varieties, diversification of industry


Date: 04/04/2006


El Salvador Sugar Annual 2004

Authors: Stephen Huete (approved); Miguel Herrera (prepared)

Release date: April 2004

Source: USDA (United States Development Agency) Foreign Agricultural Service GAIN (Global Agriculture Information Network) Report

Higher yielding sugarcane varieties, diversification of industry to produce energy and alcohol/ethanol, investment in milling equipment to improve sugar yields and additional access to the U.S. market due to CAFTA provide a positive outlook for El Salvador’s sugar industry in the 3 to 5 year term.   A National Sugar Law that regulates sugar production, distribution and marketing is an important component to the reengineering process that the industry is currently undergoing.  In addition, the sector seems to be recovering financially after facing debt complications due to natural disasters and lack of government policies to assist sugar farmers. However, ultimately the success of the industry will rely on compliance with the Sugar Law by all parties involved, continued improvement in sugarcane and sugar yields, and increased diversification either into additional energy co-generation projects or of excess production land into non-traditional crops that can provide higher incomes to sugar farmers (from the original executive summary).

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