Agriculture in Panama

[1] Major agricultural products include bananas, cocoa beans, coffee, coconuts, timber, beef, chicken, shrimp, corn, potatoes, rice, soybeans, and sugar cane.Major agricultural products in Panama include bananas and other fruit, corn, sugar, rice, coffee, shrimp, timber, vegetables, and livestock.[6] As production of rice barely supplies total consumption, stocks run very low each year prior to harvest in September.Two of the new players have created tension within the sector by introducing innovative business practices thereby increasing competition and triggering a battle with the more traditional mills.[7] Although production has been increasing, Panama had been exporting smaller quantities in recent years and has even been importing refined sugar.The poultry industry continues growing at a strong pace, covering local demand and allowing exports to Central America and the Caribbean.Production and export of fertile eggs is picking up, since high quality of breeders from Panama is gaining recognition.Panama exported $1.3 million worth of eggs for incubation in 1997, mainly to Central America and also to Colombia.Over the past year, as Panama has gradually shifted its trade policies to more open markets, local importers have started bringing in increasing quantities of produce, particularly from the United States.[14] Panama normally produces an average of 2,000 tons of sorghum per year, which is sold to industries that process animal foodstuffs.Since farmers do not have sufficient storage capacity for the entire harvest, they are at a disadvantage when marketing their product in a hurry.[2] Agriculture employs many Panamanians (in relation to its percentage of Panama's GDP) because many farmers are engaged in subsistence farming.The expanded role of the state in agriculture improved social conditions in rural areas, but long-term economic gains arising from the agrarian reform were modest.In March 1986, the government instituted major changes in the agricultural incentives law and removed price controls, trade restrictions, farm subsidies, and other supports.[15] Throughout the 1990s, agricultural production increased by an average of 5 percent per year, with the exception of 1998 when Hurricane Mitch caused extensive damage to crops.Tree cutting, land clearing, weeding, and harvesting were accomplished with a few kinds of knives, principally the machete and the axe, which comprised the major farm implements.The land acquisition created uncertainty and adversely affected private investment in agriculture, slowing production in the 1970s.[17] As part of its agrarian reform, the government placed heavy emphasis on organizing farmers into collectives for agricultural development.Several organizational forms were available, the two most important being asentamientos (settlements) and juntas agrarias de producción (agrarian production associations).Rural credit was greatly increased; farm machinery was made available; improved seeds and other inputs were supplied; and technical assistance was provided.Improved sewerage facilities, community health programs, and rural clinics reduced mortality rates considerably.Other major foreign agricultural companies include Del Monte Corporation and Dole Foods.