A project is being promoted for price risk management in order to reduce losses caused by constant changes in the international price of grain.

The Association of Producers and Exporters in Nicaragua (APEN) together with the Agricultural Exchange, SA (Bagsa) is promoting a digital platform on which producers can consult the international prices of their products and the development of a hedging instrument, ie insurance against falling prices. The proposal also aims to cover producers of rice and sorghum.

Luis Arevalo, general manager of Bagsa told Elnuevodiario.com.ni that “… Not having this coverage tool is worse, because if suddenly a hundredweight of coffee goes from $180 to $130, then the loss for the producer would be $50 per hundredweight. This is where small and medium subsistence farmers are most affected, as having no tools with which to face a price drop, they are loaded with debt for the next cycle, unmotivated, lacking the resources to manage their farm and entering another cycle of proliferation of rural poverty. ”

He added that “… Managing price risk is an issue that requires an established organization in affinity with the agricultural sector, with the capacity for nationwide brokerage and with a structure of a brokerage houses such as Bagsa, but we are convinced that like everything in life begins slowly, but in time will start to grow. “

Source: elnuevodiario.com.ni