CENTRAL AMERICAN REGION

Feedback from the Trade on Their Plans and Interest in the USA Pear Season:

Northwest pears were available in the region, but in countries like Guatemala and Panama, volumes decreased because importers did not receive more loads. Importers and retailers commented that prices at origin were higher compared with other origins, which is limiting the handled volumes. Trade members will continue quoting USA Pears in order to supply the wholesale and retail market; USA Pear volumes are expected to increase for the next month, as trade members will receive more loads. USA Pears reported an 80% pear market share in the wholesale sector with 73% share in supermarket stores and 77% in traditional channels. sales and quality were reported as good during this period.

Expectations for Any Freight or Logistics Challenges:

For trade members, there are no challenges or concerns related to freight or logistics issues.

Opportunities in Your Market for Specific Varieties, Sizes, and Grades:

Anjou, Bosc and Red Anjou are the main varieties requested by trade members in the region, however, the Central American market is also open to other varieties if the price is competitive. Small and medium sizes are preferred; regarding the quality grades, US#1 and Fancy are preferred.

Update on the Competition in the Market:

Argentinean pears reported a 13% pear market share in the wholesale sector, while in the retail sector 16% share were reported in both supermarket stores and traditional channels; sales and quality were reported as good; volumes are expected to decrease during the next month, because importers will not receive more loads. Pears from Chile reported a pear market share of 5% in the wholesale sector with 7% in both supermarket stores and traditional channels. Sales and quality were reported as good during this period; volumes are expected to decrease during the next month as importers will not receive more loads. Pears from Spain reported a 2% pear market share in the wholesale sector, but at retail, this origin was available just in supermarket stores reaching a 2% share; volumes are expected to decrease during the next month, because importers will not receive more loads. Asian pears from California were available just in the retail sector reaching a 2% pear market share in the supermarket stores, good sales and quality were reported. Volumes are expected to decrease during the next month, because importers will not receive more loads.

Political or Economic Issues Impacting Imports, Retail, or Consumer Behavior:

Central America, which is a region highly dependent on international economic dynamics, will be impacted by these global changes. Although the economic recovery of the United States – the region's main trading partner – is a positive sign that could translate into an increase in Central American exports, the effects of the possible tariff policies of the Trump Administration must be considered. Another important trading partner, the European region, is having a slow recovery which could limit export opportunities to these markets. Weak demand and private capital investment, affected by high interest rates and inflation, could slightly lower imports of Central American products.

Other Brief Comments:

Walmart Central America celebrates its 20th anniversary with $7.9 billion in purchases from suppliers during 2024. The figure reflects the company's impact on the growth of more than 5,000 food, textile, technology and consumer goods companies in Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua. Walmart has more than 920 stores in different formats and a workforce of 37,000 employees, consolidating its position as the largest retailer in the region, boosting trade and job creation. As part of its 20th anniversary, the country held Expo Walmart, the largest trade fair in Central America. More than 400 business meetings between buyers and suppliers were scheduled at this event, offering growth opportunities to manufacturers, distributors and small businesses. The trade show featured 193 stands, including 10 for small and medium-sized enterprises (SMEs), with the participation of suppliers from the United States, Argentina, Mexico, Peru, Brazil, Colombia, Ecuador, Spain, China and all of Central America.