Required Report - public distribution

**Date:** 2/13/2004

**GAIN Report Number:** NU4001

NU4001

**Nicaragua**

**Retail Food Sector**

**Nicaraguan Retail Food Sector**

**2004**

**Approved by:**

![](media/image1.wmf)Alan D. Hrapsky, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Ervin F. Leiva, Agricultural Specialist/Contractor

**Report Highlights:**

Nicaragua's market as a whole is small but has growth potential. This
report describes the dynamic retail food sector and the import channels
used in this area.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Managua \[NU1\]

\[NU\]

I.  **[Market Summary]{.smallcaps}**

    a.  [Market Trends]{.smallcaps}

    b.  [Household Food Expenditures]{.smallcaps}

        i.  [Consumption at Home]{.smallcaps}

        ii. [Expenses in Food]{.smallcaps}

        iii. [Consumption of Food]{.smallcaps}

        iv. [Purchase of Food with Credit]{.smallcaps}

II. **[Road Map For Market Entry]{.smallcaps}**

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A.  [Supermarkets]{.smallcaps}

B.  [Gas Marts, Convenience Stores]{.smallcaps}

C.  [Traditional Markets, Small Independent Grocery Stores]{.smallcaps}

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III. **[Competition]{.smallcaps}**

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1.  [Meat & By-Products]{.smallcaps}

2.  [Fish & Seafood]{.smallcaps}

3.  [Milk & Dairy Products; Eggs; Honey]{.smallcaps}

4.  [Vegetables, Plants, Roots and Tuber (edible)]{.smallcaps}

5.  [Fruits]{.smallcaps}

6.  [Coffee, Tea, Herbs, Mate, Spices]{.smallcaps}

7.  [Cereals]{.smallcaps}

8.  [Prepared Meat, Fish and Seafood]{.smallcaps}

9.  [Sugar & Confections]{.smallcaps}

10. [Cacao]{.smallcaps}

11. [Prepared foods with base of cereal, flour, milk, starch; Pastry
    Products]{.smallcaps}

12. [Prepared Vegetables and Fruits]{.smallcaps}

13. [Various Prepared Foods]{.smallcaps}

14. [Beverages, Vinegar, and Alcoholic Beverages]{.smallcaps}

15. [Prepared Food for Animals]{.smallcaps}

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IV. **[Best Product Prospects]{.smallcaps}**

V.  **[Post Contact and Further Information]{.smallcaps}**

**[I. Market Summary]{.smallcaps}**

-   Parmalat is the only producer of pasteurized milk in Nicaragua.

-   Compañia Licorera de Nicaragua is the only producer of rum. It
    produces a large variety of rums. The *Flor de Caña* brand offers
    eight different types, while the *Ron Plata* brand offers three.

-   Compañia Cervecera de Nicaragua is the only producer of beer.
    Currently, they produce four brands of beer: Toña, Victoria,
    Victoria Light, and Premium. Victoria and Premium have won
    international awards for quality. Compañia Cervecera also imports
    Heineken and Budweiser. The company expanded into bottled water
    production and currently holds the biggest market share.

-   There are oligopolies present in the sugar production, rice milling
    and distribution industries.

-   There are price controls on domestically produced soft drinks and
    sugar.

-   Nicaragua levies a sales tax of 15 percent (value-added tax).

-   Most import taxes range from five percent to 15 percent, with a few
    exceptions of higher taxes.

-   Excise taxes on soft drinks and alcoholic beverages are 17.5 percent
    to 43 percent, respectively. These are expected to decrease in time.

-   Presidential Decree 51/2001 partially reversed a series of import
    tax reductions, re-establishing a 15 percent ceiling for regular
    import duties on some products while eliminating a five percent duty
    on imported capital and intermediates goods.

-   Import duties are collected on CIF value.

-   Rice, sugar, chicken parts, milk products, and other agricultural
    goods have a 15 percent import duty.

-   Most final consumption goods are only subject to import duties of 10
    percent.

-   Under World Trade Organization rules, import duties may not exceed
    40 percent by 2004.

-   A five to 10 percent temporary protection tariff was eliminated in
    July 2001.

-   Nicaragua is a member of the System of Central American Integration
    ("SICA").

-   Goods produced by SICA members are imported duty-free (with some
    exceptions).

-   SICA members have signed free trade framework agreements with the
    Dominican Republic (1998), Chile (1999) and Panama (2001).

-   Nicaragua signed a bilateral treaty with the Dominican Republic
    (effective November 2000), and with Chile in late 2000.

-   There is a free-trade agreement with Mexico (effective July 1999).

-   Beginning 2001, Nicaragua joined negotiations for the Free-Trade
    Area of the Americas and agreed with 33 other nations to conclude
    negotiations by 2005.

-   Since May 2000, Nicaragua became a beneficiary of the Caribbean
    Basin Initiative.

-   Nicaragua is a beneficiary of Canada's Generalized System of
    Preferences.

-   Nicaragua's market as a whole is fairly small.

-   Nicaragua's market has growth potential.

-   Nicaragua is going to be favored by the CAFTA agreement between the
    United States and the Central American countries.

**[A. Market Trends]{.smallcaps}**

The following table provides a brief summary of the sector strengths and
weaknesses, market opportunities and competitive threats.

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Nicaraguans view U.S. products as   There is a constant weakening of
  safe and of high quality.           the local currency.

  A large number of Nicaraguans have  Many U.S. products (snacks, beer
  lived or have relatives in the U.S. and liquor) are easily substituted
  and have developed a taste for      with cheaper domestic or Central
  American products.                  American products.

  Franchises of ready-to-eat products Nicaraguans would like to own more
  have expanded (Pizza Hut, Dominos,  franchises, however, interest rates
  McDonalds, Burger King).            on bank loans are high and other
                                      sources of capital are hard to
                                      find.

  Seafood sales have increased in the Nicaraguans prefer fresh seafood.
  last decade.                        The imported frozen seafood sector
                                      is still developing.

  The retail industry has experienced Lack of roads makes distribution
  growth despite the country's        difficult.
  economy.                            

  There are several successful U.S.   There are specific labeling
  fast food and casual dining         requirements.
  restaurants.                        

  There is a growing middle and high  Although many consumers can afford
  class.                              U.S. quality products, most of the
                                      population is poor and select their
                                      products solely on price.
  ----------------------------------- -----------------------------------

**[B. Household Food Expenditures]{.smallcaps}**

Note: This section is a translated excerpt from the survey "Encuesta
Nacional Sobre Medicion del Nivel de Vida" (National Survey Measuring
Life Levels) made by the National Institute of Statistics and Census.

***Consumption at home***

Consumption patterns reveal the relative importance of diverse goods and
services on the average spending carried out by households (Table 1).

-   **Food consumption** represents the largest household expense,
    accounting for 54.2 percent of total spending. (*At the country
    level this means that on average, for each C\$100 spent, households
    dedicate C\$54.20 to food)*

-   **Housing and basic services** represent the second largest
    household expense with 18.2 percent of total spending.

-   Other Items[^1] account for 17.7 percent.

-   Health and Education account for 5.5 and 4.5 percent, respectively.

The percentage of total household expenditure dedicated to food is in
inverse relationship to the level of household spending: poorer homes
spend a bigger proportion of their income on food. Consequently, when
comparing residence areas, rural areas spend the largest portion of
total expenditure in food (60.3 percent), while spending only 15.2
percent in housing, 3.2 percent in education and 15.8 in other
activities. This seemingly affects the conditions of the residents of
these areas, who mostly seek free services or more economic
alternatives.

The capital city of Managua shows the same consumption patterns as the
rest of the country. Food spending represents a lower percentage (47.3
percent) while housing and other expenditures are higher than in the
other regions. This is explained by the accessibility that homes in
Managua have to basic services, which suggest better lifestyle
conditions.

In the Pacific, Central and Atlantic regions, more than 50 percent of
total household expenditure is dedicated to food, therefore limiting the
amount of income they have available for other necessities. In the rural
areas of the Central and Atlantic regions, this problem is present in
greater proportions (where 61.6 percent of total expenses is dedicated
to food purchases).

Another form of analyzing household expenditure patterns on food is
through the distribution of consumption on a percentage basis. This
represents the magnitude that each group of goods and services has on
the population\'s total consumption. This measure is traditionally used
to elaborate a nation's consumer price index. As seen on table 2,
consumption groups maintain the same consumption patterns displayed in
table 1, although there are some percentage points in difference.

  --------------- ----------- ---------- --------------- ------------ --------------- -----------
  **Table 1**                                                                         

  **Consumption                                                                       
  Patterns**                                                                          

  *(Percentage,                                                                       
  by main groups                                                                      
  and area of                                                                         
  residence)*                                                                         

                                                                                      

  **Area of       **Total**   **Food**   **Household**   **Health**   **Education**   **Other**
  Residence and                                                                       
  Region**                                                                            

                                                                                      

  The Republic    100         **54.2**   18.2            5.5          4.5             17.7

  Urban           100         **49.8**   20.3            5.4          5.5             19

  Rural           100         **60.3**   15.2            5.6          3.2             15.8

                                                                                      

  Managua         100         47.3       21.9            4.6          5.6             20.7

                                                                                      

  Pacific Urban   100         52         18.7            5.6          5.8             17.9

  Pacific Rural   100         58.6       14.8            5.6          4.1             16.8

                                                                                      

  Central Urban   100         51.4       19.1            6.8          5.1             17.6

  Central Rural   100         61.6       15.6            5.1          2.9             14.8

                                                                                      

  Atlantic Urban  100         52.9       19.1            6.2          4.0             17.9

  Atlantic Rural  100         61.6       14.6            6.4          2.1             15.4

                                                                                      

  *Total Annual                                                                       
  Consumption Per                                                                     
  Capita*                                                                             

  *Food: Food &                                                                       
  Beverage.                                                                           
  Household: Use                                                                      
  of the house                                                                        
  and basic                                                                           
  services.*                                                                          

  *Other:                                                                             
  clothing,                                                                           
  personal care,                                                                      
  equipment,                                                                          
  transfers of                                                                        
  money, others*                                                                      
  --------------- ----------- ---------- --------------- ------------ --------------- -----------

  ---------------- ----------- ---------- --------------- ------------ --------------- -----------
  **Table 2**                                                                          

  **Consumption                                                                        
  Distribution**                                                                       

  *(Percentage, by                                                                     
  main groups and                                                                      
  area of                                                                              
  residence)*                                                                          

                                                                                       

  **Area of        **Total**   **Food**   **Household**   **Health**   **Education**   **Other**
  Residence and                                                                        
  Region**                                                                             

                                                                                       

  The Republic     100         **47.6**   19.7            6.2          5.5             21.0

  Urban            100         **43.8**   21.9            5.9          6.2             22.2

  Rural            100         **58.1**   13.6            7.0          3.7             17.6

                                                                                       

  Managua          100         40.3       24.8            5.0          6.3             23.7

                                                                                       

  Pacific          100         51.4       16.5            6.6          5.9             19.6

                                                                                       

  Central          100         52.9       16.4            7.0          4.7             19

                                                                                       

  Atlantic         100         53.4       16.3            8.1          3.4             18.7

                                                                                       

  *Total Annual                                                                        
  Consumption Per                                                                      
  Capita*                                                                              

  *Food: Food &                                                                        
  Beverage.                                                                            
  Household: Use                                                                       
  of the house and                                                                     
  basic services.*                                                                     

  *Other:                                                                              
  clothing,                                                                            
  personal care,                                                                       
  equipment,                                                                           
  transfers of                                                                         
  money, others*                                                                       
  ---------------- ----------- ---------- --------------- ------------ --------------- -----------

![](media/image2.wmf){width="5.997222222222222in"
height="4.152777777777778in"}

  ----------------- ------------ ----------- ----------- ------------ ----------- -----------
  **Table 3**                                                                     

  **Monthly                                                                       
  Spending                                                                        
  Structure: Food &                                                               
  Beverages; 1998 &                                                               
  2001**                                                                          

  *(Percentage, by                                                                
  sub-group of                                                                    
  products and area                                                               
  of residence)*                                                                  

                                                                                  

  **Type of         **Monthly                            **Monthly                
  Product**         Expense                              Expense                  
                    1998**                               2001**                   

                    **The        **Urban**   **Rural**   **The        **Urban**   **Rural**
                    Republic**                           Republic**               

                                                                                  

  Total             100          100 (71.1)  100 (28.9)  100          100 (75.7)  100 (24.3)

  Cereals           6.0          6.4         5.2         5.9          6.3         4.7

  Bread & Cookies   6.8          7.2         5.7         6.3          6.4         6.2

  Rice              10.7         9.2         14.4        **9.4**      7.9         14

  Meat &            14.9         16.5        11.0        **16.7**     18.4        11.5
  by-products                                                                     

  Fish & Seafood    1.2          1.5         0.5         1.2          1.4         0.8

  Dairy             10.7         12.0        7.5         **13**       13.7        10.7

  Eggs              2.5          2.8         1.8         2.6          2.8         1.9

  Oils & Fats       4.7          4.0         6.5         3.9          3.3         5.8

  Vegetables        9.8          10.2        8.7         **10.6**     10.9        9.6

  Fruits            2.4          2.9         1.3         2.4          2.9         1.0

  Grains            9.0          6.2         15.9        **6.6**      4.7         12.8

  Sugar & Sweets    6.3          5.3         8.6         6.1          5.1         8.9

  Salt & Condiments 1.1          1.0         1.4         0.9          0.8         1.3

  Sauces            1.0          1.2         0.5         1.0          1.1         0.5

  Juices & Sodas    2.7          3.1         1.6         4.0          4.5         2.4

  Liquor & Beer     1.0          1.0         0.9         1.3          1.4         1.0

  Prepared Meals    2.6          3.2         1.2         4.2          4.9         2.1

  Other Meals       4.0          3.2         5.8         2.7          2.3         4.1

  Food Consumed     2.5          3.0         1.4         1.1          1.2         0.7
  Outside the Home                                                                
  ----------------- ------------ ----------- ----------- ------------ ----------- -----------

Food Spending Structure

Table 3 presents the monthly spending structure of Food and Beverages,
compared by sub-groups of products. As depicted in the table, the
sub-groups with higher percentage of spending in 2001 were:

-   Meat and by-products: 16.7 percent

-   Dairy: 13 percent

-   Vegetables: 10.6 percent

-   Rice: 9.4 percent

-   Grains: 6.6 percent

The percentage of spending is not an indicator of quantity consumed.
Many times, this percentage is inflated due to the high unitary price of
a product, like in the case of meat and by-products; while the opposite
happens to grains (corn and beans), which have a low unitary price.

Several important changes took place between 1998 and 2001:

-   Meats & by-products increased from 14.9 percent to 16.7 percent,
    representing a C\$1.80 increase for each C\$100 spent.

-   Dairy products increased from 10.7 percent to 13.0 percent.

-   Vegetables increased from 9.8 percent to 10.6 percent.

-   Rice decreased from 10.7 percent to 9.4 percent.

-   Grains (beans and corn) decreased from 9 percent to 6.6 percent.

-   Other products changed in smaller proportions.

Urban household expenditure accounts for almost 76 percent of the total
consumption done on a national level. Spending levels for rice, meat and
by-products, dairy, and vegetables increased for both urban and rural
areas.

Products that have a greater impact in the **urban** population\'s
expenses are:

-   Meat and by-products: 18.4 percent

-   Dairy: 13.7 percent

-   Vegetables: 10.9 percent

-   Rice: 7.0 percent

Products that have a greater impact in the **rural** population's
expenses are:

-   Rice: 14.0 percent

-   Grains: 12.8 percent

-   Meat and by-products: 11.5 percent

-   Dairy: 10.7 percent

Table 4 shows the distribution of the real expense in food and drinks.
Food expenditure represents approximately 93 percent of total
consumption (97 percent the urban areas). In rural areas, food that was
not bought (self produced, or acquired by any means other than buying
it) accounts for 17.4 percent of total consumption.

This table also presents food groups that account for the greater share
in real spending (or total consumption):

-   Meat and by-products: 16.1 percent

-   Dairy: 12.3 percent

-   Vegetables: 10.8 percent

-   Rice: 9.2 percent

-   Grains: 9.0 percent

![](media/image3.wmf){width="6.826388888888889in"
height="4.4944444444444445in"}

  ---------------- --------------- -- --------------- -- ------------------- -- --------------- ---- -- --------------- -- ------------------- -- --------------- ------ --------------- ----- ------------------- -- -- -- --
  **Table 4**                                                                                                                                                                                                               

  **Distribution                                                                                                                                                                                                            
  of Consumption**                                                                                                                                                                                                          

  *(Percentage, by                                                                                                                                                                                                          
  type of product,                                                                                                                                                                                                          
  area of                                                                                                                                                                                                                   
  residence, and                                                                                                                                                                                                            
  form of                                                                                                                                                                                                                   
  acquisition)*                                                                                                                                                                                                             

                                                                                                                                                                                                                            

  **Type of        **Total                                                      **Urban                                                           **Rural                                                                   
  Product**        Consumption**                                                Consumption**                                                     Consumption**                                                             

                   **Total            **Purchased**      **Not-Purchased**      **Total                 **Purchased**      **Not-Purchased**      **Total                **Purchased**         **Not-Purchased**            
                   Consumption**                                                Consumption**                                                     Consumption**                                                             

                                                                                                                                                                                                                            

                                                                                                                                                                                                                            

  Total            100                92.9               7.1                    100                     96.7               3.3.0                  100                    82.6                  17.4                         

  Cereals          5.6 (100)          97.7               2.3                    6.2 (100)               98.6               1.4                    4.2 (100)              93.8                  6.2                          

  Bread & Cookies  5.9 (100)          99.3               0.7                    6.2 (100)               99.4               0.6                    5.1 (100)              98.9                  1.1                          

  Rice             **9.2** (100)      95.1               4.9                    7.8 (100)               98.7               1.3                    12.9 (100)             89.4                  10.6                         

  Meat &           **16.1** (100)     96.7               3.3                    18 (100)                98.7               1.3                    10.8 (100)             87.9                  12.1                         
  by-products                                                                                                                                                                                                               

  Fish & Seafood   1.3 (100)          88.5               11.5                   1.4 (100)               91.6               **8.4**                .9 (100)               75.7                  **24.3**                     

  Dairy            **12.3** (100)     97.5               2.5                    13.4 (100)              98.4               1.6                    9.4 (100)              93.7                  6.3                          

  Eggs             2.6 (100)          91.4               8.6                    2.8 (100)               96.6               3.4                    2.1 (100)              73.1                  **26.9**                     

  Oils & Fats      3.7 (100)          97.8               2.2                    3.2 (100)               97.9               2.1                    4.9 (100)              97.6                  2.4                          

  Vegetables       **10.8** (100)     91.1               8.9                    11.1 (100)              95.1               4.9                    10 (100)               79.4                  **20.6**                     

  Fruits           2.7 (100)          81.9               18.1                   3.1 (100)               88.9               **11.1**               1.7 (100)              48.4                  **51.6**                     

  Grains           **9.0** (100)      68.4               31.6                   5.3 (100)               85.8               **14.2**               19 (100)               55.6                  **44.4**                     

  Sugar & Sweets   5.7 (100)          98.2               1.8                    5.1 (100)               98                 2.0                    7.5 (100)              98.5                  1.5                          

  Salt &           0.9 (100)          96.0               4.0                    .8 (100)                97.5               2.5                    1.2 (100)              93.2                  6.8                          
  Condiments                                                                                                                                                                                                                

  Sauces           0.9 (100)          97.5               2.5                    1.1 (100)               97.6               2.4                    .4 (100)               97.3                  2.7                          

  Juices & Sodas   3.8 (100)          98.1               1.9                    4.4 (100)               98.3               1.7                    2 (100)                96.8                  3.2                          

  Liquor & Beer    1.2 (100)          97.1               2.9                    1.4 (100)               97.2               2.8                    .8 (100)               96.7                  3.3                          

  Prepared Meals   4.2 (100)          94.2               5.8                    5 (100)                 94.8               5.2                    1.9 (100)              89.9                  10.1                         

  Other Meals      2.9 (100)          86.4               13.6                   2.3 (100)               93.5               6.5                    4.4 (100)              76.3                  23.7                         

  Food Consumed    1.0 (100)          100                0.0                    1.2 (100)               100                0.0                    0.6 (100)              100                   0.0                          
  Outside the Home                                                                                                                                                                                                          

                                                                                                                                                                                                                            

  *Reference                                                                                                                                                                                                                
  Period: 15 days                                                                                                                                                                                                           
  prior to survey*                                                                                                                                                                                                          
  ---------------- --------------- -- --------------- -- ------------------- -- --------------- ---- -- --------------- -- ------------------- -- --------------- ------ --------------- ----- ------------------- -- -- -- --

Analyzing the importance of food that was consumed, but not purchased,
we find that in **urban** areas, the products with more weight are:

-   Grains: 14.2 percent

-   Fruits: 11.1 percent

-   Fish and shellfish: 8.4 percent

**Rural** areas exhibit a higher percentage of products that are not
purchased. Products that stand out are:

-   Fruits: 51.6 percent

-   Grains: 44.4 percent

-   Vegetables: 20.6 percent

-   Eggs: 26.9 percent

-   Fish and shellfish: 24.3 percent

-   Meat and by-products: 12.1 percent

***Consumption of food***

Another form of analyzing consumption is through the access that
households have to food products: either through purchase,
self-production, self-supply, or other forms of acquisition.

  --------------------------- -------------- ---- ------------ ----------- -- -- ------
  **Table 5**                                                                    

  **Households that buy Food                                                     
  & Beverages**                                                                  

  *(Percentage, by area of                                                       
  residence and type of                                                          
  product)*                                                                      

                                                                                 

  **Type of Product**         **Households                                       
                              that                                               
                              Purchase**                                         

                              **The               **Urban**    **Rural**         
                              Republic**                                         

  Cereals                     72.4                87.7         48.1              

  Bread & Cookies             78.3                85.8         66.3              

  Rice                        86.2                88.3         82.7              

  Meat & by-products          72.4                85.8         51.2              

  Fish & Seafood              21.2                27.2         11.7              

  Dairy                       100                 100          100               

  Eggs                        50.5                65.1         27.2              

  Oils & Fats                 83.5                87.3         77.5              

  Vegetables                  90.4                94.8         83.4              

  Fruits                      42.1                54.4         22.6              

  Grains                      74.7                78.0         69.4              

  Sugar & Sweets              96.6                91.4         91.9              

  Salt & Condiments           87.8                88.2         87.1              

  Sauces                      98.0                37.7         12.6              

  Juices & Sodas              42.6                53.4         25.4              

  Liquor & Beer               6.9                 7.8          5.3               

  Prepared Meals              37.0                47.9         19.6              

  Other Meals                 74.6                73.8         75.89             

  Food Consumed Outside the   20.3                23.6         15.2              
  Home                                                                           

                                                                                 

  *Reference Period: 15 days                                                     
  prior to survey*                                                               
  --------------------------- -------------- ---- ------------ ----------- -- -- ------

Table 5 shows the results of a household survey that asked about
products purchased during the previous 15 days. The products with most
demand, measured by percentage of households that buy them were:

-   Dairy: 100 percent (12.3 percent of household food expense)

-   Sugar and sweets: 91.6 percent (5.7 of household food expense)

-   Vegetables: 90.4 percent (10.6 percent of household food expense)

-   Rice 86.2 percent (9.4 percent of household food expense)

Other products with high demand were salt and condiments (87.8 percent),
oils and fats (83.5 percent), bread and cookies (78.3 percent), grains
(74.7 percent), cereals (72.4 percent), and meat and by-products (72.4
percent).

A general trend exhibited in the previous table shows that, for the most
part, urban homes purchase more than rural homes, except in the case of
dairy, sugar and sweets, and salt and condiments, for which the
percentages are similar. This is indicative of the advantage urban homes
have over rural homes in terms of the production and consumption of
food.

There are some sub-groups of products where the percentages of rural
home purchases are considerably less than for urban homes: cereals, meat
and by-products, fish and shellfish, eggs, fruits, and grains. The
reason for this is that rural homes do not purchase many of these
products, but rather acquire them in other ways.

  ------------------------------- -------------- --------- ------------ ----------- -----
  **Table 6**                                                                       

  **Households that buy Food &                                                      
  Beverages**                                                                       

  *(Percentage, by area of                                                          
  residence and detailed food                                                       
  groups)*                                                                          

                                                                                    

  **Type of Product**             **Households                                      
                                  that                                              
                                  Purchase**                                        

                                  **The                    **Urban**    **Rural**   
                                  Republic**                                        

  Sugar                           90.3                     90.0         90.7        

  Rice (grain)                    86.2                     88.3         82.7        

  Salt                            84.7                     85.1         84.2        

  Vegetable Oil                   82.3                     86.5         75.6        

  Coffee                          71.9                     72.1         71.5        

  Beans (grain)                   71.5                     76.2         64.0        

  Tomato                          67.7                     78.4         50.8        

  Simple Bread                    66.8                     77.3         50.2        

  Chicken Meat                    59.1                     74.7         34.5        

  White Onion                     55.8                     54.9         57.1        

  Green Pepper                    55.6                     68.2         35.7        

  Tortilla                        51.3                     71.5         19.4        

  Potato                          50.7                     58.2         38.9        

  Eggs                            50.5                     65.1         27.2        

  Banana, Plantain                50.1                     61.6         31.7        

  Bovine Meat                     46.8                     60.5         25.0        

  Quesillo, Curd, Cream           46.0                     53.5         34.0        

  Garlic                          43.6                     47.4         37.4        

  Soda, Mineral Water             41.0                     51.7         24.1        

  Pinolillo, Wheat                41.0                     48.4         29.4        

  Cheese, Butter                  39.7                     52.5         19.2        

  Liquid Milk                     39.5                     50.1         22.5        

  Sweet Bread                     37.7                     39.0         35.6        

  Yellow Onion                    31.9                     40.6         18.2        

  Condiments                      30.3                     35.0         22.9        

                                                                                    
  ------------------------------- -------------- --------- ------------ ----------- -----

  ----------------------------------------------- ------------ -----------
  *Reference Period: 15 days prior to survey*                  

  ----------------------------------------------- ------------ -----------

Table 6 shows the nationwide demand for food products in 2001. The 10
most sought after products were:

-   Sugar

-   Rice

-   Salt

-   Vegetable oil

-   Coffee

-   Beans

-   Tomatoes

-   Simple bread

-   Chicken meat

-   White onions

Some products such as citric fruits, other fruits and corn in grain do
not appear in this list of preferable products; however, it is known
that they are part of the Nicaraguan diet. These products are acquired
mostly by own production, as show in the following table.

Table 7 is similar to table 6, but refers to products acquired by means
of self-production and self-supply.

The most important **self-produced** products are:

-   Eggs

-   Citric fruits

-   Beans

-   Bananas

-   Milk

-   Chicken meat

-   Corn

-   Other fruits

Between 10 and 30 percent of homes acquire these products by means of
their own production. The most important **self-supplied** products are:

-   Avocado

-   Quesillo (local type of cheese)

-   Curd or cream

-   Rice

-   Coffee

-   Sugar

-   Pinolillo (cornmeal)

-   Salt

-   Vegetable oil

-   Simple bread

-   Soda

Between five and eight percent of homes acquire these products from some
sort of family business.

Urban homes generally self-supply their food, while rural homes have
more ease of acquiring food through self-production. More than 50
percent of rural households obtain eggs without purchasing them, and 20
percent of these homes consume citric fruits, beans, bananas, milk,
chicken meat, and corn without the need of buying them. In general, it
is observed that these forms of acquisition are more important for rural
than urban homes, becoming an alternative to satisfy their nutritional
requirements.

  ----------------- ------------ ------------------- ----------------- ----------- ------------------- ----------------- ----------- ------------------- -----------------
  **Table 7**                                                                                                                                            

  **Households that                                                                                                                                      
  acquired products                                                                                                                                      
  by                                                                                                                                                     
  self-production                                                                                                                                        
  and self-supply**                                                                                                                                      

  *(Percentage, bye                                                                                                                                      
  area of residence                                                                                                                                      
  and types of                                                                                                                                           
  products)*                                                                                                                                             

                                                                                                                                                         

                                                                                                                                                         

  **Type of         **The                                              **Urban**                                         **Rural**                       
  Product**         Republic**                                                                                                                           

                    **Total**    **Self-Produced**   **Self-Supply**   **Total**   **Self-Produced**   **Self-Supply**   **Total**   **Self-Produced**   **Self-Supply**

                                                                                                                                                         

  Eggs              28.1         23.2                4.9               13.2        7.4                 5.8               51.7        48.3                3.3

  Citric Fruit      27.2         19.0                8.3               25.7        18.2                7.5               29.6        20.2                9.4

  Beans (grain)     16.5         10.0                6.5               8.5         2.0                 6.5               29.0        22.7                6.3

  Plantain, Banana  15.6         8.6                 6.9               10.1        3.4                 6.7               24.3        17.0                7.3

  Liquid Milk       13.8         7.9                 5.9               6.0         1.5                 4.5               26.1        18.0                8.2

  Chicken Meat      13.4         10.8                2.7               5.1         1.9                 3.2               26.7        24.9                1.7

  Avocado           13.0         5.2                 7.8               12.8        4.1                 8.7               13.2        6.9                 6.4

  Maize (grain)     11.9         9.8                 2.0               3.3         1.9                 1.3               25.5        22.4                3.1

  Other Fruits      10.3         6.9                 3.3               9.4         6.4                 2.9               11.6        7.7                 3.9

  **Herbs**         9.8          7.7                 2.1               8.1         5.8                 2.3               12.5        10.8                1.7

  Quesillo, Curd,   8.9          3.8                 5.1               5.7         0.8                 4.9               14.0        8.6                 5.3
  Cream                                                                                                                                                  

  Rice (grain)      8.7          1.8                 7.0               7.1         0.3                 6.8               11.3        4.1                 7.2

  Coffee            8.7          2.3                 6.4               6.6         0.4                 6.2               12.0        5.3                 6.7

  **Chiltoma**      7.0          1.7                 5.3               7.2         1.3                 5.9               6.8         2.3                 4.5

  Tortilla          6.8          4.0                 2.2               3.9         1.5                 2.1               11.4        8.0                 2.3

  Sugar             6.7          0.0                 6.7               6.7         0.0                 6.7               6.7         0.1                 6.6

  Pinolillo, Wheat  6.3          0.6                 5.6               6.1         0.2                 5.9               6.5         1.2                 5.3

  Salt              6.2          0.1                 6.1               5.9         0.0                 5.9               6.7         0.1                 6.5

  Vegetable Oil     5.9          0.0                 5.8               5.9         0.0                 5.9               5.8         0.1                 5.7

  Simple Bread      5.7          0.2                 5.5               6.3         0.1                 6.2               4.7         0.4                 4.3

  Tomato            5.2          0.5                 4.6               5.4         0.1                 5.2               4.9         1.0                 3.7

  Soda, Mineral     4.8          0.0                 4.8               5.7         0.0                 5.7               3.3         0.0                 3.2
  Water                                                                                                                                                  

  Fish              4.2          0.7                 2.6               3.0         0.2                 2.6               6.1         3.4                 2.7

  **Yucca**         4.1          2.8                 1.4               1.5         0.4                 1.0               8.4         6.5                 1.9

                                                                                                                                                          

  *Reference                                                                                                                                             
  Period: 15 days                                                                                                                                        
  prior to survey*                                                                                                                                       
  ----------------- ------------ ------------------- ----------------- ----------- ------------------- ----------------- ----------- ------------------- -----------------

  --------------------- ------------- ----------------- -----------------
  **Table 8**                                           

  **Households that buy                                 
  Food on Credit**                                      

  *(Percentage, by area                                 
  of residence and                                      
  region)*                                              

                                                        

  **Region**            **The                           
                        Republic**                      

                        **Total**     **Urban**         **Rural**

                                                        

                                                        

  Total                 18.0          15.9              21.4

                                                        

  Managua               13.1                            

                                                        

  Pacific               17.0          14.8              20.0

                                                        

  Central               24.8          24.7              24.9

                                                        

  Atlantic              14.3          17.6              11.3

                                                         

  *Reference Period: 15                                 
  days prior to survey*                                 
  --------------------- ------------- ----------------- -----------------

Purchase of food with credit

An approach to satisfy the immediate demand of food in a household is
through the use of credit purchases. In our survey, 18 percent of homes
carried out purchases with credit (table 8). There is a greater
incidence of this purchase modality in rural homes (21 percent) than in
urban homes (16 percent). This is explained because most of these
purchases are carried out with informal credits. Small grocery stores or
*pulperias* offer credit to their neighbors mainly because of the
seasonal character of the rural income strongly that is tied to
agricultural production.

About 25 percent of the homes in the Central region purchase food with
credit (in both rural and urban areas). In the Pacific region, this is
seen in only 17 percent of homes, followed by the Atlantic region with
14.3 percent and Managua with 13.1 percent.

**[II. Road Map For Market Entry]{.smallcaps}**

**[Entry Strategy]{.smallcaps}**

The best suggested method for new-to-market exports to enter the
Nicaraguan retail market is through local distributors. Local
distributors have long-standing relationships with supermarkets, gas
marts, convenience stores, grocery stores, and *pulperias*. Exporters
are advised to choose a local distributor to be their exclusive local
representative.

When choosing a local distributor it is best to make personal visits and
decide on the best business partner. A good distributor should have a
wide customer base, adequate storage facilities, a good distribution
network and transportation system, provide essential market information,
and have long-standing relationships in the retail market. It is also
important to determine how the marketing and advertising of the product
being exported will be conducted.

A way of making local distributors bid for the exclusive import rights
of a product is to present it to the purchase managers of the most
important supermarkets, convenience stores and gas marts. In turn, these
managers can request local distributors to offer this product and create
a demand for it.

Depending on the type of product, exporters are also advised to contact
individual supermarket chains and convenience stores. Many of these
establishments make direct imports of non-perishable items if there is
enough volume to be sold.

Nicaragua requires specific labeling instructions for retail food
products. Required information includes: name of product, list of
ingredients, weight, country of origin, name of manufacturer and
address, batch number, health registry, expiration date, instructions
(when applicable), and a quantitative label of the ingredients.

**[Market Structure]{.smallcaps}**

**[Supermarkets and Club Warehouses]{.smallcaps}**

Supermarkets purchase most of their products through local distributors.
Only a few products are imported directly by supermarkets. Clubs, in
this case Price Smart, import most of their products, but also sell
locally produced food products.

**[Convenience Stores and Gas Marts]{.smallcaps}**

Some convenience stores (La Familiar, Stop-N-Go, Porta's) import
directly from the US, and also purchase from local distributors. Local
distributors supply all Gas Marts.

**[Confidentiality]{.smallcaps}**

Retailers are allowed by law to keep all their financial information
confidential. For tax purposes, all retailers must submit this
information to the Internal Revenue Service (Dirección General de
Ingresos), which keeps this information confidential. None of the
retailers that participated in this study were able to provide any
information concerning sales or growth prospects. The Internal Revenue
Service also denied giving sales information on the sector as a whole.

A. Supermarkets and Club Warehouses

+-------------+---------+--------+------+-----+---------+------------+
| **Retailer  | *       | *      | **S  | **  | **Loca  | **         |
| Name**      | *Outlet | *Owner | ales | No. | tions** | Purchasing |
|             | Type**  | ship** | (\$  | of  |         | Agent      |
|             |         |        | Mil) | Out |         | Type**     |
|             |         |        | \*** | let |         |            |
|             |         |        |      | s** |         |            |
+-------------+---------+--------+------+-----+---------+------------+
| La Colonia  | Supe    | Local  | \~50 | 7[^ | M       | Direct     |
|             | rmarket |        |      | 2]  | anagua  | Imports,   |
|             |         |        |      |     |         | Local      |
|             |         |        |      |     |         | Dis        |
|             |         |        |      |     |         | tributors  |
+-------------+---------+--------+------+-----+---------+------------+
| La Union    | Supe    | Fo     | \~15 | 5   | M       | Direct     |
|             | rmarket | reign, |      |     | anagua: | Imports,   |
|             |         | Local  |      |     | 4       | Local      |
|             |         |        |      |     |         | Di         |
|             |         |        |      |     | Leon: 1 | stributors |
+-------------+---------+--------+------+-----+---------+------------+
| Palí        | Supe    | Fo     | \    | 20  |         | Direct     |
|             | rmarket | reign, | ~50  |     | Managua | Imports,   |
|             |         | Local  |      |     | & Main  | Local      |
|             |         |        |      |     | Cities  | Dis        |
|             |         |        |      |     |         | tributors  |
+-------------+---------+--------+------+-----+---------+------------+
| Di          | D       | Local  | NA   | 1   | Managua | Direct     |
| stribuidora | istribu |        |      |     |         | Imports,   |
| San         | tor[^3] |        |      |     |         | Local      |
| Sebastián   |         |        |      |     |         | Dis        |
|             |         |        |      |     |         | tributors  |
+-------------+---------+--------+------+-----+---------+------------+
| Price Smart | Club    | Fo     | \    | 1   | Managua | Direct     |
|             |         | reign, | ~18  |     |         | Imports,   |
|             |         | Local  |      |     |         | Local      |
|             |         |        |      |     |         | Di         |
|             |         |        |      |     |         | stributors |
+-------------+---------+--------+------+-----+---------+------------+

\*Sales figures are estimates obtained from an industry source.

NA -- Not available

***Supermarkets***[^4]***:***

There are only three supermarket chains in the country. Corporación de
Mercados Unidos (CSU) operates two chains: La Union and Palí. La Union
is geared towards the middle to high-class segment in the capital city.
La Union has four outlets in Managua and one in Leon. Palí is focused on
serving the middle and lower class segments, competing directly with
open-air markets, traditional markets, and small "mom and pop"
operations. Palí operates in Managua, Granada, Masaya, Chinandega,
Matagalpa, Jinotepe, and Tipitapa. Despite the economy's downfall,
supermarkets have experienced constant growth of four to five percent
over the last years. A reason for growth has been a constant transfer
from the informal (regular markets) to the formal sector.

Casa Mantica S.A. operates Supermecados La Colonia, a well-established
supermarket chain that operates only in Managua. In August 2003, La
Colonia opened its sixth outlet, and in November of the same year it
opened its seventh and biggest outlet. According to La

Colonia, only a handful of products are comprised of direct imports
(butter, dairy, pork, tomato sauce, and others). It is important to note
that filling a container to import products is very difficult; for this
reason, some products are purchased from wholesalers (mostly in Miami)
and consolidated shipments are then made to Nicaragua. For the last
couple of years, La Colonia has been expanding its services. To date, La
Colonia offers typical supermarket products along with apparel, film
processing, pharmaceutical products, jewelry, and fast food venues
inside the supermarket. In their biggest outlet, La Colonia offers two
banks, a Radio Shack store, a dry-cleaner, a shoe store, and a perfume
shop. La Colonia does not have plans of expanding outside Managua, given
the lack of a niche for this kind of supermarkets outside the capital.

Many other establishments throughout the country call themselves
supermarkets; however, they are mostly small grocery stores, mini marts
and/or convenience stores. The majority of the population obtains
fruits, red meat, vegetables, poultry, eggs, pork, and fish from public
markets.

***Club Warehouses:***

Nicaragua's first club warehouse, Price Smart, opened in July 2003.
Price Smart was very successful at selling memberships, acquiring a
record number of members (compared to other Price Smarts) before the
club was opened to the public. Some managers of supermarkets claim that
Price Smart's popularity is mostly due to curiosity, which will
eventually fade away. However, Price Smart sales for the fist month
exceeded budget forecasts by more than 20 percent. Grocery stores and
gas marts have not been significantly affected by the opening of Price
Smart, given that they are convenience stores and serve a different
niche.

Some experts believe that Price Smart will have a positive effect on the
whole industry by familiarizing the Nicaraguan population with new
products (mostly from the US). Owners of some grocery stores believe
that in the long run, people will prefer to stop by their stores to pick
up these products, given that these stores are more conveniently
located.

Banco de la Produccion (BANPRO) is part owner of Price Smart. They only
way to pay at Price Smart is with cash or with a credit card issued only
by this bank. BANPRO has implemented a strategy in which they
automatically issue a credit card with a \$500 limit to anyone who can
prove that they have another credit card (issued by any bank). They have
also issued and mailed credit cards to hundreds of Price Smart members.
Some analysts believe that in the coming months, people will realize
that they cannot keep spending too much money with their credit cards
and Price Smart sales will drop. Nevertheless, Price Smart managers
expect growth and sustained sales.

## [B. Independent Supermarkets]{.smallcaps}

The following table presents a list of independent supermarkets.

  --------------- ------------- --------------- ----------- ----------- --------------- --------------
  **Retailer      **Outlet      **Ownership**   **Sales     **No. of    **Locations**   **Purchasing
  Name**          Type**                        (\$Mil)**   Outlets**                   Agent Type**

  Abastecedora    Grocery Store Local           NA          1           Bluefields      Local
  Yoli                                                                                  Distributors

  Comercial       Grocery Store Local           NA          1           Bluefields      Local
  Belkisdamaris                                                                         Distributors

  Mercadito Mas x Supermarket   Local           NA          1           Bluefields      Local
  Menos                                                                                 Distributors

  Distribuidora   Grocery Store Local           NA          1           Chinandega      Local
  Comercial la                                                                          Distributors
  Cementera                                                                             

  Romero Bayardo  Supermarket   Local           NA          1           Chinandega      Local
  A.                                                                                    Distributors

  Roney, S.A.     Supermarket   Local           NA          1           Chinandega      Local
                                                                                        Distributors

  Supermercado    Grocery Store Local           NA          1           Chinandega      Local
  Selecto                                                                               Distributors

  Comercial San   Grocery Store Local           NA          1           Leon            Local
  Miguel                                                                                Distributors

  Abarrotes       Grocery Store Local           NA          1           Estelí          Local
  Panameño                                                                              Distributors

  Mini Super Ray  Supermarket   Local           NA          1           Estelí          Local
  Lun                                                                                   Distributors

  Super Economico Supermarket   Local           NA          1           Estelí          Local
                                                                                        Distributors

  Surtidora       Grocery Store Local           NA          1           Estelí          Local
  Laguna Rizo                                                                           Distributors

  Supermercado    Supermarket   Local           NA          1           Granada         Local
  Lacayo                                                                                Distributors

  Mini Super 4m   Supermarket   Local           NA          1           Jinotega        Local
                                                                                        Distributors

  Supermercado    Supermarket   Local           NA          1           Juigalpa        Local
  San Antonio                                                                           Distributors

  Distribuidora   Grocery Store Local           NA          1           Matagalpa       Local
  la Profe                                                                              Distributors

  Supermercado la Supermarket   Local           NA          1           Matagalpa       Local
  Matagalpa                                                                             Distributors

  Supermercado    Supermarket   Local           NA          1           Ocotal          Local
  San Judas                                                                             Distributors

  Supermercado    Supermarket   Local           NA          1           Puerto Cabezas  Local
  Monter                                                                                Distributors

  Comercial Hugo  Grocery Store Local           NA          1           Rivas           Local
  Navas                                                                                 Distributors
  --------------- ------------- --------------- ----------- ----------- --------------- --------------

  -------------- ------------- -------- ------- -------- --------- --------------
  Surtidora      Grocery Store Local    NA      1        Sebaco    Local
  Elvis                                                            Distributors

  Supermercado   Supermarket   Local    NA      1        Managua   Local
  de la Policia                                                    Distributors

  Supermercado   Supermarket   Local    NA               Managua   Local
  del Ejercito                                                     Distributors
  -------------- ------------- -------- ------- -------- --------- --------------

The independent retailers presented in the previous table range from
small to medium size, and could be considered grocery stores,
convenience stores, or supermarkets. All of these compete with public
(traditional) markets, and supply staple food products and basic
necessary products.

The Supermercado de la Policia is a special supermarket set up by the
government to serve police officers and their families. In a similar
matter, Supermercado del Ejercito serves the military and their
families. The annual income of police and military officers is extremely
low, therefore these supermarkets facilitate their need of food and
other necessities by selling duty-free products and offering lower
prices than other supermarkets.

**[C. Convenience Stores and Gas Marts]{.smallcaps}**

+-------------------+--------+-------+----+-----+--------+----------+
| #                 | **     | **O   | *  | **  | *      | **Pu     |
| ### Retailer Name | Outlet | wners | *S | No. | *Locat | rchasing |
|                   | Type** | hip** | al | of  | ions** | Agent    |
|                   |        |       | es | Out |        | Type**   |
|                   |        |       | (  | let |        |          |
|                   |        |       | \$ | s** |        |          |
|                   |        |       | Mi |     |        |          |
|                   |        |       | l) |     |        |          |
|                   |        |       | ** |     |        |          |
+-------------------+--------+-------+----+-----+--------+----------+
| On the Run, Tiger | Gas    | For   | N/ | 18  | Major  | Local    |
| Mart              | Mart   | eign  | A  |     | Cities | Dist     |
|                   |        |       |    |     |        | ributors |
+-------------------+--------+-------+----+-----+--------+----------+
| Star Mart, Food   | Gas    |  Fo   |  N | 10  | Major  | Local    |
| Mart              | Mart   | reign | /A |     | Cities | Dist     |
|                   |        |       |    |     |        | ributors |
+-------------------+--------+-------+----+-----+--------+----------+
| Select Market     | Gas    | For   |  N | 12  | Major  | Local    |
|                   | Mart   | eign  | /A |     | Cities | Dist     |
|                   |        |       |    |     |        | ributors |
+-------------------+--------+-------+----+-----+--------+----------+
| Stop-N-Go         | Conve  | Local |  N | 2   | M      | Direct   |
|                   | nience |       | /A |     | anagua | Import   |
|                   |        |       |    |     |        | 60%,     |
|                   |        |       |    |     |        | Dist     |
|                   |        |       |    |     |        | ributors |
|                   |        |       |    |     |        | 40%      |
+-------------------+--------+-------+----+-----+--------+----------+
| La Familiar       | Conve  | Local |  N | 2[  | M      |  Direct  |
|                   | nience |       | /A | ^5] | anagua | Imports, |
|                   |        |       |    |     |        | Local    |
|                   |        |       |    |     |        | Dist     |
|                   |        |       |    |     |        | ributors |
+-------------------+--------+-------+----+-----+--------+----------+
| Super Porta\'s    | Conve  |       |  N | 3   | Ma     |  Direct  |
|                   | nience | Local | /A |     | nagua, | Imports, |
|                   |        |       |    |     | M      | Local    |
|                   |        |       |    |     | asaya, | Dist     |
|                   |        |       |    |     | G      | ributors |
|                   |        |       |    |     | ranada |          |
+-------------------+--------+-------+----+-----+--------+----------+

***Convenience Stores:***

Most convenience stores are relatively small, measuring less than 500
square meters. They sell both domestic and imported beverages, snacks,
canned food, and some carry perishable items. The majority of
convenience stores acquire their goods through local distributors,
although some import directly.

There has been a recent trend in the creation of small convenience
stores in middle to high-class neighborhoods. These serve as convenience
stores for those people who do not want to make a trip to the
supermarket. Many of these stores have experienced success and increase
in sales despite the economic downturn; given that their customers
include middle to high-class customers and foreigners. La Familiar and
Super Porta's have remodeled their outlets many times, each time making
them bigger. Moreover, La Familiar is currently building a second and
bigger store, Porta's already opened its third outlet, and Stop-N-Go
started operations in its second outlet.

***Gas Marts:***

In recent years, many of the older gas stations have been remodeled and
new gas stations with gas marts have been built nationwide. They offer
imported and local goods such as snacks, non-alcoholic beverages and
alcoholic beverages. Many also offer imported microwave foods and local
fast food (pizza, hot-dogs, chicken, etc).

All gas marts are located along important roads and boulevards. Local
distributors supply most of the products they carry.

**[D. Traditional Markets -- Small "Mom and Pop" Independent Grocery
Stores and Wet Markets]{.smallcaps}**

***Grocery Stores:***

Grocery stores are located throughout the country. The majority of
grocery stores acquire their goods through local distributors. Many
grocery stores call themselves supermarkets, mini-markets, or regular
markets. These stores carry local and foreign products, and some carry
perishable items.

***Open Air Market***

Open-air-markets refer to those places or meeting points of local
producers, where fruit and vegetable stands are usually set up. Local
producers of fruits and vegetables from neighboring towns set these up
open-air markets found near supermarkets and/or markets. Producers place
their fruits and vegetables on baskets along the street, tables, or
stands. At the end of the day they pack unsold fruits and vegetables and
return the next day. Some also carry staple grains such as rice and
beans. The number of these markets in the capital has been decreasing,
in an attempt of the municipalities to clean the streets of Managua.
Furthermore, these markets compete directly with the bigger centralized
markets (following description).

***Markets (public markets)***

Each major city has one or more traditional market. Markets represent
the informal sector of the economy. A wide range of customers from
different segments of society buy products such as rice, beans,
vegetables, sugar, meat, and other basic foods. These markets supply
most of the food to the population. Many local distributors are
strategically located close to these markets in order to easily supply
merchants, while some distributors even sell to the public. These
markets offer all kinds of products from apparel and electronics, to
food and traditional products. The biggest market in Managua is called
*Mercado Oriental*. This market is commonly referred to as *the black
market*. Bookkeeping in these markets is almost impossible and so is tax
paying. Merchants sell at different prices during the day, often

bargaining each sale. Moreover, they do not always keep a well-managed
inventory and there is often double bookkeeping.

***Pulperias***

*Pulperias* are small family-owned stores. Most of them are very small,
comparable to a small room with a wide window through which buyers ask
and pay for products. Most *Pulperias* carry snacks and beverages, and
some carry homemade products such as pastry, baked goods or cookies. It
is estimated that there are around 15,000 *pulperias* nationwide. They
sell low-cost products, locally produced or from neighboring countries.
Many *pulperias* sell food on credit to their neighbors and friends.

**[E. Financing]{.smallcaps}**

The banking system in Nicaragua is the smallest in Central America. In
mid-2000 there were 11 banks, however five were forced to close in part
by fraudulent practices. Currently there are only six banks. As of July
2002, two banks controlled more than 50 percent of the market share,
accounting for 14.18 billion *córdobas*. More than 70 percent of
deposits are in US dollars. The *córdoba* depreciates at an annual rate
of six percent against the dollar. Therefore, retail businesses are
highly influenced by the US dollar, calculating the *córdoba* value of
products using the latest exchange rate.

Loans are made in *córdobas* and dollars. In July 2002 the lending rate
for short-term loans (less than one year) denominated in dollars was
17.27 percent, and 23.33 percent for loans in *córdobas*. Loans in
*córdobas* maintain their value even with the devaluation of the local
currency.

Foreigners are allowed to borrow from local banks and to repatriate
capital without restrictions. New businesses are required to make
payments on-delivery and on-sight. Once established, businesses may be
granted 30 to 60 day credits with no interest. Business partners are to
be chosen very carefully given that contracts may become hard to enforce
since the judiciary system is inefficient and corrupt. Foreign companies
often prefer to borrow from their parent companies to avoid paying
high-interest on local sources of funding.

Banks in Managua usually take 24 hours to clear córdoba denominated
checks. The process is slower outside the capital. Dollar-denominated
checks may take up to two weeks to clear and high commission surcharges
may apply.

Import credit can be obtained through the Export Financing Fund and the
US Export-Import Bank. Credit lines must be approved by the Central Bank
of Nicaragua and are available through local or US banks. US suppliers
exporting to Nicaragua benefit from credit-guarantees provided by the
USDA.

  ------------------------- ------------ ------------ ------------ ----------
  **Bank Deposits and       **1999**     **2000**     **2001**     **2002**
  Lending (C\$ m)**                                                

  **Deposits**                                                     

  State Banks               191.9        0.0          0.0          0.0

  Private Banks             17569.8      18494.5      20730.3      23498.7

  ***Total***               17761.7      18494.5      20730.3      23498.7

  **Loans**                                                        

  State Banks               68.7         0.0          0.0          0.0

  Private Banks             13152.5      11238.9      9084.6       10459.3

  ***Total***               13227.2      11238.9      9084.6       10459.3

  Source: Superintendencia                                         
  de Bancos y Otras                                                
  Instituciones Financieras                                        
  ------------------------- ------------ ------------ ------------ ----------

**[III. Competition]{.smallcaps}**

Nicaragua organizes imports of edible products in the following
categories:

1.  Meat & By-Products

2.  Fish & Seafood

3.  Milk & Dairy Products; Eggs; Honey

4.  Vegetables, Plants, Roots and Tubers (edible)

5.  Fruits

6.  Coffee, Tea, Herbs, Mate, Spices

7.  Cereals

8.  Prepared Meat, Fish and Seafood

9.  Sugar & Confections

10. Cacao

11. Prepared foods with base of cereal, flour, milk, starch; and Pastry
    Products

12. Prepared Vegetables and Fruits

13. Various Prepared Foods

14. Beverages, Vinegar, and Alcoholic Beverages

15. Prepared Food for Animals

**1. Meat & By-Products**

**Net Imports 2002:**

**2,330,994 Kilos**

**\$2,675,975 (CIF)**

**Major Supply Sources:**

  --------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  **COUNTRY**     **Kilos**                                                      **Value \$**                              

                  **2000**             **2001**             **2002**             **2000**             **2001**             **2002**

  ***Total***     ***3,284,772.60***   ***2,762,202.11***   ***2,330,944.54***   ***3,582,323.04***   ***3,426,018.92***   ***2,675,975.33***

  **USA**         67.11%               58.19%               88.75%               61.99%               56.83%               76.73%

  **Costa Rica**  14.78%               26.01%               5.56%                13.71%               25.13%               11.41%

  **Guatemala**   12.82%               3.58%                4.44%                17.38%               5.01%                7.28%

  **Others (8)**  5.28%                12.21%               1.25%                6.91%                13.03%               4.57%
  --------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-   There has been a decrease in kilos imported, representing a 15.9
    percent reduction from 2000 to 2001, and 15.6 percent reduction from
    2001 to 2002.

```{=html}
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-   Over 88 percent of imported kilos came from the US in 2002, which
    account for 76.7 percent of the total value.

-   The US has been the most important source of imports for the last
    three years.

-   Costa Rica is the second most important source of import, although
    not nearly as important as the US.

-   An estimated 5.5 percent of imported kilos came from Costa Rica,
    representing 1.41 percent of the total value.

-   An estimated 4.4 percent of imported kilos came from Guatemala,
    representing approximately 7.3 percent of the total value.

-   The rest of the supply sources are practically insignificant,
    accounting for only 1.25 percent of total kilos and for
    approximately 4.6 percent of total value.

-   An estimated 12.1 percent of total consumption of meat and
    by-products is not purchased.

-   It is estimated that 10.8 percent of chicken meat is self-supplied
    (24.9 percent rural).

**Strengths of Supply Countries:**

*The US dominates the import market with:*

-   Fresh, refrigerated and frozen chicken thighs and legs (454,925.31
    kilos and \$368,678.64)

-   Frozen paste of pieces and remains of chicken (601,210.5 kilos and
    \$306,759.74)

-   Frozen pork meat (150,263.93 kilos and \$303,686.54)

-   Frozen hams (185,698.75 kilos and \$274,963.42)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   Nicaragua produces a significant amount of bovine meat.

-   Chicken production is strong, and is led by Tip Top Industrial.

-   Tip Top Industrial sells customized prepared chicken to many
    restaurants and hotels.

*Disadvantages:*

-   Local production is comprised mostly of meat and poultry, and of ham
    to a lesser degree.

**2. Fish & Seafood**

**Net Imports 2002:**

**34,362 Kilos**

**\$85,896 (CIF)**

**Major Supply Sources:**

  ------------- ----------------- ----------------- ----------------- ------------------ ----------------- -----------------
  **COUNTRY**   **Kilos**                                             **Value \$**                         

                **2000**          **2001**          **2002**          **2000**           **2001**          **2002**

  ***Total***   ***78,957.67***   ***54,445.49***   ***34,362.43***   ***264,207.32***   ***93,646.20***   ***85,896.12***

  USA           19.08%            39.44%            76.72%            16.04%             74.93%            70.76%

  Chile         0.00%             0.12%             4.05%             0.00%              0.96%             20.25%

  Costa Rica    57.49%            56.02%            15.20%            14.97%             19.63%            4.49%

  Others (12)   23.43%            4.42%             4.03%             68.98%             4.49%             4.50%
  ------------- ----------------- ----------------- ----------------- ------------------ ----------------- -----------------

-   Approximately 11.5 percent of total fish and seafood consumption is
    not purchased (8.4 percent urban and 24.3 percent rural)

**Strengths of Supply Countries:**

*The US dominates the import market with:*

-   Salmon from the Pacific (3,515.95 kilos and \$13,084.27)

-   Refrigerated and fresh fish filets and meat (3,299.25 kilos and
    \$7,294.59)

*Chile dominates the import market with:*

-   Salmon from the Pacific (1,298.09 kilos and \$16,692.20)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   Fresh (local) seafood is available in all supermarkets.

*Disadvantages:*

-   Foreign products offer more variety.

**3. Milk & Dairy Products; Eggs; Honey**

**Net Imports 2002:**

**7,454,361 Kilos**

**\$15,879,824 CIF**

**Major Supply Sources:**

  --------------- --------------------- -------------------- -------------------- --------------------- --------------------- ---------------------
  **COUNTRY**     **Kilos**                                                       **Value \$**                                

                  **2000**              **2001**             **2002**             **2000**              **2001**              **2002**

  ***Total***     ***11,163,272.62***   ***7,872,922.13***   ***6,024,373.30***   ***20,899,596.48***   ***18,139,030.47***   ***12,064,108.34***

  **New Zealand** 13.59%                31.98%               35.41%               12.12%                40.13%                39.77%

  **USA**         27.86%                19.35%               18.68%               21.52%                16.16%                16.80%

  **Panama**      8.92%                 8.53%                16.48%               7.39%                 7.16%                 15.80%

  **Costa Rica**  8.75%                 17.55%               16.78%               8.33%                 13.35%                14.81%

  **El Salvador** 22.06%                6.19%                2.46%                32.38%                7.28%                 3.56%

  **Mexico**      1.02%                 2.93%                2.80%                1.22%                 2.35%                 3.22%

  **Australia**   0.82%                 0.93%                2.84%                0.66%                 0.59%                 2.37%

  **Others        16.97%                12.55%               4.56%                16.39%                12.97%                3.67%
  (24):**                                                                                                                     
  --------------- --------------------- -------------------- -------------------- --------------------- --------------------- ---------------------

-   There has been a decrease in kilos imported, representing a 29.5
    percent reduction from 2000 to 2001, and a 23.5 percent reduction
    from 2001 to 2002.

```{=html}
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```
-   Over 35 percent of imported kilos came from New Zealand,
    representing 39.8 percent of the total value.

-   Around 18 percent of imported kilos came from the US, representing
    16.8 percent of the total value.

-   New Zealand has had a constant increase in exports to Nicaragua,
    achieving significant growth from 2001 to 2002.

-   Panama and Costa Rica have maintained their positions for the last
    two years, just below the US.

-   An estimated 8.6 percent of consumed eggs are not purchased (26.9
    percent rural), and an estimated 23.2 percent of consumed eggs are
    self-produced (48.3 percent rural)

-   In rural areas, 18 percent of consumed liquid milk is locally
    produced, and 8.2 percent is self-supplied.

**Strengths of Supply Countries:**

*New Zealand dominates the import market with:*

-   Whole milk in packages with less than five kilograms (683,326.38
    kilos and \$2,414,493.74)

-   Whole milk in packages with more than or equal to five kilograms
    (809,244 kilos and \$1,017,490.85)

-   Butter (280,243.29 kilos and \$422,915.45)

-   Cheddar Cheese (118,178.62 kilos and \$304,836.64)

-   Mozzarella cheese (94,065.93 kilos and \$303,329.74)

-   Other types of milk and cheeses (148,180.73 kilos and \$335,337.96)

*The US dominates the import market with:*

-   Whole milk in packages with more than or equal to five kilograms
    (416,990 kilos and \$875,714.96)

-   Cheese other than cheddar or mozzarella (179,134.09 kilos and
    \$466,600.05)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   Provide cheaper prices on milk and dairy products.

-   Fresh milk easily accessible.

*Disadvantages:*

-   Lack of proper infrastructure.

**4. Vegetables, Plants, Roots and Tuber (edible)**

**Net Imports 2002:**

**35,865,312 Kilos**

**\$9,908,227 CIF**

**Major Supply Sources:**

+---------+-------+---------+---------+---------+---------+--------+
| **CO    | **Ki  |         |         | **Value |         |        |
| UNTRY** | los** |         |         | \$**    |         |        |
+---------+-------+---------+---------+---------+---------+--------+
|         | **2   | *       | *       | *       | *       | **     |
|         | 000** | *2001** | *2002** | *2000** | *2001** | 2002** |
+---------+-------+---------+---------+---------+---------+--------+
| ***T    | ***4  | ***37   | ***35   | ***17   | ***17   | ***9,9 |
| otal*** | 2,399 | ,448,05 | ,865,31 | ,370,88 | ,063,31 | 08,227 |
|         | ,503. | 1.21*** | 2.42*** | 4.78*** | 4.23*** | .84*** |
|         | 20*** |         |         |         |         |        |
+---------+-------+---------+---------+---------+---------+--------+
| ## Gu   | 6     | 45.44%  | 45.50%  | 49.68%  | 35.07%  | 45.69% |
| atemala | 4.56% |         |         |         |         |        |
+---------+-------+---------+---------+---------+---------+--------+
| **Costa | 1     | 27.50%  | 32.55%  | 28.28%  | 41.81%  | 22.95% |
| Rica**  | 4.95% |         |         |         |         |        |
+---------+-------+---------+---------+---------+---------+--------+
| **USA** | 4.33% | 12.10%  | 9.56%   | 4.46%   | 14.35%  | 21.26% |
+---------+-------+---------+---------+---------+---------+--------+
| **C     | 6.36% | 12.17%  | 9.66%   | 5.97%   | 6.35%   | 6.70%  |
| anada** |       |         |         |         |         |        |
+---------+-------+---------+---------+---------+---------+--------+
| *       | 9.81% | 2.78%   | 2.73%   | 11.61%  | 2.42%   | 3.39%  |
| *Others |       |         |         |         |         |        |
| (26)**  |       |         |         |         |         |        |
+---------+-------+---------+---------+---------+---------+--------+

-   Approximately nine percent of consumed vegetables are not purchased
    (20.6 percent rural)

**Strengths of Supply Countries:**

*Guatemala dominates the import market with:*

-   Potatoes (10,487,164 kilos and \$2,352,684.3)

-   Yellow onions (3,552,514 kilos and \$1,630,234.92)

-   Cabbage (1,709,516.36 kilos and \$314,706.43)

*Costa Rica dominates the import market with:*

-   Carrots (3,770,195.2 kilos and \$910,239.73)

-   Potatoes (3,041,177.6 kilos and \$347,034.77)

-   Fresh or refrigerated tomatoes (442,636 kilos and \$253,967.72)

*The US dominates the import market with:*

-   Beans, adzuki (small red) (phaseolus or vigna angularis)
    (1,118,469.14 kilos and \$918,022.82)

-   Lentils (716,478.85 kilos and \$387,371.79)

-   Beans, common black (453,959.59 kilos and \$351,963.7)

-   Yellow onions (956,088.45 kilos and \$243,299.28)

-   Potatoes (89,370.5 kilos and \$133,965.58)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   Locally produced vegetables, plants, roots, and tubers are cheaper.

-   The climate allows for year-round production.

-   CSU has a strategic alliance with Hortifruiti.

-   Hortifruti fills all of CSU's fruit and vegetable needs.

-   Hortifruti trains local producers, and provides packing supplies for
    more efficient collection of products.

*Disadvantages:*

-   The country is vulnerable to natural disasters (El Niño, hurricanes,
    and droughts)

-   Yields per hectare are the lowest in Central America.

**5. Fruits**

**Net Imports 2002:**

**4,219,609 Kilos**

**\$2,919,378 CIF**

**Major Supply Sources:**

  --------------- --------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  **COUNTRY**     **Kilos**                                                       **Value \$**                              

                  **2000**              **2001**             **2002**             **2000**             **2001**             **2002**

  ***Total***     ***11,585,408.96***   ***9,384,774.87***   ***4,219,609.71***   ***7,654,632.95***   ***3,960,712.42***   ***2,919,378.22***

  **Costa Rica**  46.30%                44.56%               63.05%               53.05%               48.98%               43.28%

  **USA**         8.30%                 14.29%               12.06%               22.19%               27.30%               30.04%

  **Chile**       1.70%                 4.21%                6.16%                4.07%                7.08%                16.85%

  **Guatemala**   10.42%                19.31%               6.39%                8.00%                11.87%               5.33%

  **Honduras**    32.46%                16.71%               11.84%               10.27%               2.95%                2.74%

  **Others (13)** 0.81%                 0.92%                0.51%                2.42%                1.83%                1.75%
  --------------- --------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-   There has been a substantial decrease in fruit imports: from 2000 to
    2001 there was a 19% reduction, and from 2001 to 2002 there was a
    55% reduction.

-   18.1% of consumed fruits are not purchased (11.1% urban, 51.6%
    rural)

-   19% of citric fruits are self-produced (18.2 urban, 20.2 rural)

**Strengths of Supply Countries:**

*Costa Rica dominates the import market with:*

-   Price competitiveness and geographical proximity to Nicaragua.

-   Favorable weather conditions to grow fruits.

-   Guavas (452,1075.4 kilos and \$630,080.15)

-   Apples (293,023.1 kilos and \$205,097.56)

-   Fresh grapes (149,564.05 kilos and \$169,200.44)

-   Other fruits (953,442.62 kilos and \$259,248.32)

*The US dominates the import market with:*

-   Apples (620,205.09 kilos and \$429,762.9)

-   Fresh grapes (198,922.04 kilos and \$169,297.09)

-   Dry grapes & raisins (100,259.52 kilos and \$166,328.08)

-   Other fruits (212,041.10 kilos and \$111,674.84)

*Chile dominates the import market with:*

-   Apples (421,230.23 kilos and \$320,368.55)

-   Fresh grapes (115,525.6 kilos and \$122,093.96)

-   Other fruits (41,249.01 kilos and \$49,512.82)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   Local production of fruits is cheaper than imports.

-   CSU has a strategic alliance with Hortifruiti.

-   Hortifruti fills all of CSU's fruit and vegetable needs.

-   Hortifruti trains local producers, and provides packing supplies for
    more efficient collection of products.

-   The climate allows for year-round production of certain fruits.

*Disadvantages:*

-   Nicaragua's climate is not favorable for the production of apples or
    grapes.

**6. Coffee, Tea, Herbs, Mate, Spices**

**Net Imports 2002:**

**1,223,564 Kilos**

**\$1,471,167 CIF**

**Major Supply Sources:**

+---------+-------+--------+---------+---------+---------+---------+
| **CO    | **Ki  |        |         | **Value |         |         |
| UNTRY** | los** |        |         | \$**    |         |         |
+---------+-------+--------+---------+---------+---------+---------+
|         | **2   | **     | *       | *       | *       | *       |
|         | 000** | 2001** | *2002** | *2000** | *2001** | *2002** |
+---------+-------+--------+---------+---------+---------+---------+
| # Total | ***   | ***5   | ***1    | ***2    | ***1    | ***1    |
|         | 2,975 | 17,193 | ,223,56 | ,995,80 | ,053,28 | ,471,16 |
|         | ,059. | .47*** | 4.03*** | 9.13*** | 5.48*** | 7.27*** |
|         | 12*** |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+
| ## Sr   | 2.56% | 17.64% | 9.78%   | 10.99%  | 35.04%  | 31.42%  |
| i Lanka |       |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+
| **El    | 5     | 24.90% | 34.99%  | 45.78%  | 24.47%  | 27.29%  |
| Sal     | 0.86% |        |         |         |         |         |
| vador** |       |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+
| **Vi    | 0.00% | 0.00%  | 38.10%  | 0.00%   | 0.00%   | 14.51%  |
| etnam** |       |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+
| **Costa | 3     | 5.88%  | 2.57%   | 29.41%  | 10.16%  | 9.19%   |
| Rica**  | 8.11% |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+
| **USA** | 2.28% | 13.42% | 7.44%   | 3.67%   | 8.97%   | 7.20%   |
+---------+-------+--------+---------+---------+---------+---------+
| **M     | 0.00% | 0.33%  | 3.42%   | 0.00%   | 0.09%   | 5.52%   |
| exico** |       |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+
| *       | 6.19% | 37.84% | 3.70%   | 10.15%  | 21.27%  | 4.86%   |
| *Others |       |        |         |         |         |         |
| (23)**  |       |        |         |         |         |         |
+---------+-------+--------+---------+---------+---------+---------+

**Strengths of Supply Countries:**

*Sri Lanka dominates the import market with:*

-   Cinnamon, not grounded or pulverized (119,690.77 kilos and
    \$462,294.60)

*El Salvador dominates the import market with:*

-   Coffee, not toasted (282,520.06 kilos and \$131,487.53)

-   Pepper, grounded and pulverized (58,350.06 kilos and \$124,229.87)

-   Black tea in bottles of 3 kg or less (64,210.09 kilos and \$
    97,330.63)

*Vietnam dominates the import market with:*

-   Coffee, not toasted (466,176 kilos and \$213,484.80)

*Costa Rica dominates the import market with:*

-   Cinnamon, grounded and pulverized (6,428.99 kilos and \$29,871.69)

-   Pepper, grounded and pulverized (4,826.94 kilos and \$27,413.78)

*The US dominates the import market with:*

-   Green tea in bottles of 3 kilograms or less (39,311.32 kilos and
    \$16,228.17)

-   Pepper, grounded and pulverized (5,961.38 kilos and \$15,580.23)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   The country produces good quality coffee.

-   People in rural areas have easier access to locally produced coffee.

*Disadvantages:*

-   Some spices do not grow in the country.

**7. Cereals**

**Net Imports 2002:**

**173,500,575 Kilos**

**\$33,798,849 CIF**

**Major Supply Sources:**

+----------+------+---------+---------+---------+---------+---------+
| **C      | *    |         |         | **Value |         |         |
| OUNTRY** | *Kil |         |         | \$**    |         |         |
|          | os** |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
|          | **20 | *       | *       | *       | *       | *       |
|          | 00** | *2001** | *2002** | *2000** | *2001** | *2002** |
+----------+------+---------+---------+---------+---------+---------+
| # Total  | **   | **17    | **17    | **3     | **3     | **3     |
|          | 192, | 5,169,1 | 3,500,5 | 6,258,0 | 6,088,4 | 3,798,8 |
|          | 042, | 26.27** | 75.66** | 18.02** | 52.62** | 49.54** |
|          | 399. |         |         |         |         |         |
|          | 45** |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **USA**  | 79   | 78.15%  | 89.27%  | 78.91%  | 72.77%  | 88.62%  |
|          | .89% |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **       | 12   | 10.35%  | 6.91%   | 10.55%  | 8.46%   | 5.77%   |
| Canada** | .11% |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **Gua    | 0    | 0.45%   | 0.29%   | 0.61%   | 0.76%   | 1.66%   |
| temala** | .34% |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **El     | 3    | 0.02%   | 1.37%   | 2.66%   | 0.03%   | 1.54%   |
| Sa       | .87% |         |         |         |         |         |
| lvador** |      |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **       | 0    | 0.03%   | 0.16%   | 0.27%   | 0.21%   | 1.30%   |
| México** | .10% |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **Costa  | 1    | 5.68%   | 1.98%   | 2.51%   | 9.64%   | 1.09%   |
| Rica**   | .74% |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+
| **Others | 1    | 5.33%   | 0.01%   | 4.49%   | 8.14%   | 0.02%   |
| (20)**   | .95% |         |         |         |         |         |
+----------+------+---------+---------+---------+---------+---------+

**Strengths of Supply Countries:**

*The US dominates the import market with:*

-   Wheat, hard (106,418,472 kilos and \$20,870,095.99)

-   Other rice, not peeled (25,923,509.24 kilos and \$3,933,976.16)

-   Yellow maize (7,687,583.22 kilos and \$1,762,693.66)

-   Rice, semi-whitened or whitened (3,166,716.37 kilos and
    \$1,102,879.57

-   Wheat, other (3,911,613.86 kilos and \$592,188.97)

*Canada dominates the import market with:*

-   Wheat, hard (11,986,710 kilos and \$1,950,216.74)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   Cheap labor allows for better prices on locally produced products.

-   There are oligopolies present in the rice milling and distribution
    industries.

*Disadvantages:*

-   Local production is vulnerable to climate variations. Hurricane
    Mitch and El Niño have affected local production.

**8. Prepared Meat, Fish and Seafood**

**Net Imports 2002:**

**4,171,320 Kilos**

**\$5,851,655 CIF**

**Major Supply Sources:**

  -------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  **COUNTRY**    **Kilos**                                                      **Value \$**                              

                 **2000**             **2001**             **2002**             **2000**             **2001**             **2002**

  ***Total***    ***3,623,024.69***   ***3,337,036.29***   ***4,171,320.48***   ***5,046,706.23***   ***4,931,190.85***   ***5,851,655.19***

  **Costa Rica** 29.22%               41.27%               38.95%               37.45%               53.10%               51.69%

  **USA**        13.02%               12.63%               19.25%               14.53%               13.81%               20.04%

  **Thailand**   24.64%               21.70%               25.19%               15.11%               14.89%               15.11%

  **Norway**     17.79%               7.34%                5.52%                24.12%               8.79%                5.62%

  **Ecuador**    10.98%               11.21%               5.52%                3.90%                4.11%                2.82%

  **Others       4.34%                5.85%                5.57%                4.90%                5.30%                4.71%
  (22)**                                                                                                                  
  -------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-   Prepared meat, fish and seafood experienced a decrease of 7.9
    percent in 2001 on imported kilos, which was offset by a 25 increase
    on imported kilos in 2002.

**Strengths of Supply Countries:**

*Costa Rica dominates the import market with:*

-   Sardines (583,835.86 kilos and \$694,104.93)

-   Tuna (249,423.15 kilos and \$554,192.15)

-   Frozen cooked tuna filets (213,921.76 kilos and \$513,550.60)

-   Stuffed pork (170,686.21 kilos and \$355,801.48)

-   Stuffed poultry (198,510.56 kilos and \$351,250.10)

*The US dominates the import market with:*

-   Sardines (442,647.05 kilos and \$321,477.09)

-   Stuffed pork (48,500.18 kilos and \$126,390.39)

*Thailand dominates the import market with:*

-   Sardines (1,005,444 kilos and \$ 813,251.87)

**9. Sugar & Confections**

**Net Imports 2002:**

**7,108,163 Kilos**

**\$8,992,543 CIF**

**Major Supply Sources:**

  --------------- --------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  **COUNTRY**     **Kilos**                                                       **Value \$**                              

                  **2000**              **2001**             **2002**             **2000**             **2001**             **2002**

  ***Total***     ***14,568,861.26***   ***5,860,080.99***   ***7,108,163.52***   ***8,144,600.85***   ***7,645,689.80***   ***8,992,543.84***

  **Guatemala**   6.67%                 20.34%               21.48%               18.75%               22.23%               20.77%

  **El Salvador** 45.66%                15.30%               19.14%               21.59%               18.12%               19.10%

  **Argentina**   4.01%                 8.99%                13.44%               11.64%               10.48%               13.96%

  **Costa Rica**  4.46%                 9.43%                6.53%                20.48%               16.84%               12.99%

  **Mexico**      14.59%                25.76%               15.16%               10.63%               14.10%               12.21%

  **Brazil**      0.63%                 4.43%                6.96%                1.90%                4.60%                6.46%

  **USA**         1.83%                 5.62%                7.96%                6.69%                4.27%                6.35%

  **Ecuador**     0.27%                 1.34%                4.74%                0.41%                0.79%                3.08%

  **Others (27)** 21.88%                8.79%                4.60%                7.90%                8.58%                5.08%
  --------------- --------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-   Sugar and confections experienced a decrease of 60 percent in 2001
    on imported kilos, but it was partially offset by a 21 percent
    increase in 2002.

**Strengths of Supply Countries:**

The most important products from countries that export to Nicaragua are
diverse confectionary items and bubble gum.

  --------------- ----------------- ---------------- ------------ --------------
  **COUNTRY**     **Confectionary                    **Bubble     
                  Items**                            Gum**        

                  **Kilos**         **Value \$**     **Kilos**    **Value \$**

  **Guatemala**   1,254,668.93      \$1,418,051.62   267,576.45   \$444,051.05

  **El Salvador** 1,350,478.27      \$1,703,123.44   9,972.00     \$14,089.28

  **Argentina**   833,216.33        \$1,102,533.28   121,982.41   \$152,483.85

  **Costa Rica**  206,202.23        \$757,350.82     234,955.33   \$383,233.32

  **Mexico**      263,612.55        \$686,095.81     753,315.74   \$389,607.32

  **Brazil**      478,454.44        \$565,795.32     16,232.17    \$14,751.42

  **USA**         201,968.82        \$346,512.39     258,656.51   \$96,965.86
  --------------- ----------------- ---------------- ------------ --------------

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   There is a 55 percent import tax on sugar.

-   Local production of sugar meets local demand.

*Disadvantages:*

There are no confectionary manufacturers like in El Salvador, Guatemala,
and Costa Rica.

**10. Cacao**

**Net Imports 2002:**

**1,845,436 Kilos**

**\$3,342,721 CIF**

**Major Supply Sources:**

  --------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
  **COUNTRY**     **Kilos**                                                      **Value \$**                              

                  **2000**             **2001**             **2002**             **2000**             **2001**             **2002**

  ***Total***     ***2,406,658.21***   ***2,178,644.46***   ***1,845,436.06***   ***3,337,130.04***   ***4,270,490.70***   ***3,342,721.21***

  **USA**         14.62%               16.22%               21.38%               25.80%               38.73%               32.74%

  **Costa Rica**  11.45%               18.07%               21.40%               20.88%               23.65%               30.54%

  **El Salvador** 26.14%               15.60%               10.28%               20.18%               11.99%               11.12%

  **Mexico**      29.61%               28.38%               25.67%               10.82%               7.35%                7.54%

  **Holland**     0.00%                0.19%                5.13%                0.00%                0.34%                5.34%

  **Argentina**   5.32%                4.71%                5.33%                7.90%                4.27%                4.36%

  **Chile**       4.93%                6.35%                2.69%                6.63%                6.19%                2.21%

  **Brazil**      0.35%                2.63%                1.91%                0.67%                2.83%                1.92%

  **Others (17)** 7.57%                7.86%                6.21%                7.12%                4.66%                4.24%
  --------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-   Cacao imports suffered a 9.5 percent decrease in imported kilos from
    2000 to 2001, and decreased further in 2002 by an estimated 15
    percent.

**Strengths of Supply Countries:**

*The US dominates the import market with:*

-   Cacao paste without grease (133,450.19 kilos and \$340,419.77)

-   Chocolates --the rest (83,337.36 kilos and \$293,747.52)

-   Chocolates --with filling (75,297.86 kilos and \$208,706.72)

-   Cacao powder with sugar (44,887 kilos and \$152,067.94)

*Costa Rica dominates the import market with:*

-   Chocolates --without filling (194,064.32 kilos and \$543,185.76)

-   Cacao powder with sugar (106,968.28 kilos and \$302,917.09)

*El Salvador dominates the import market with:*

-   Chocolates --the rest (189,706.42 kilos and \$371,625.98)

**11. Prepared foods with base of cereal, flour, milk, starch; Pastry
Products**

**Net Imports 2002:**

**30,5483,132 Kilos**

**\$36,337,554 CIF**

**Major Supply Sources:**

  --------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
  **COUNTRY**     **Kilos**                                                         **Value \$**                                

                  **2000**              **2001**              **2002**              **2000**              **2001**              **2002**

  ***Total***     ***21,729,267.51***   ***26,129,923.47***   ***30,548,132.87***   ***27,188,772.76***   ***34,251,532.29***   ***36,337,554.08***

  **El Salvador** 30.33%                23.05%                28.23%                25.96%                22.96%                29.18%

  **Costa Rica**  27.70%                27.12%                25.19%                22.20%                20.56%                18.79%

  **Mexico**      9.53%                 7.22%                 9.58%                 18.45%                14.73%                18.68%

  **Guatemala**   18.13%                20.01%                16.58%                16.65%                18.57%                16.32%

  **USA**         9.73%                 17.02%                15.36%                9.77%                 13.00%                8.89%

  **New Zealand** 0.00%                 0.75%                 1.25%                 0.00%                 2.17%                 4.10%

  **Others (35)** 4.58%                 4.84%                 3.81%                 6.98%                 8.01%                 4.05%
  --------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------

-   Products in this category have experienced increases during the last
    two years. From 2000 to 2001, imports (kilos) increased by more than
    20 percent, followed by a subsequent growth of almost 17 percent in
    2002.

**Strengths of Supply Countries:**

*El Salvador dominates the import market with:*

-   Various toasted products (i.e. cornflakes) (5,627,485.94 kilos and
    \$6,718,951.33)

-   Other toasted products (1,485,346.33 kilos and \$1,787,221.19)

-   Modified milk, powdered (440,586.65 kilos and \$1,382,158.54)

-   Cookies and wafers (603,305.73 kilos and \$386,651.66)

*Costa Rica dominates the import market with:*

-   Cookies and wafers (1,643,057.11 kilos and \$2,020,094.27)

-   Simple bread and cookies (1,676,262 kilos and \$1,125,045.62)

-   Bakery and crackers (1,153,672.63 kilos and \$952,804.37)

-   Prepared pasta (1244,370.87 kilos and \$820,286.34)

*Mexico dominates the import market with:*

-   Modified milk (2,545,605.65 kilos and \$6,097,570.43)

*Guatemala dominates the import market with:*

-   Cookies and wafers (1,896,093.91 kilos and \$1,837,167.76)

-   Puffed rice and corn flakes (469,788.03 kilos and \$1,127,487.36)

-   Prepared pasta (1,039,924.03 kilos and \$653,454.07)

*USA dominates the import market with:*

-   Miscellaneous (3,977,182.71 kilos and \$1,658,828.39)

-   Modified milk (78,472.65 kilos and \$505,738.02)

**12. Prepared Vegetables and Fruits**

**Net Imports 2002:**

**13,480,752 Kilos**

**\$9,453,871 CIF**

**Major Supply Sources:**

  --------------- --------------------- --------------------- --------------------- --------------------- -------------------- --------------------
  **COUNTRY**     **Kilos**                                                         **Value \$**                               

                  **2000**              **2001**              **2002**              **2000**              **2001**             **2002**

  ***Total***     ***13,180,862.66***   ***11,721,363.95***   ***13,480,752.22***   ***11,929,807.37***   ***9,926,921.25***   ***9,453,871.54***

  **USA**         22.47%                23.86%                15.67%                38.37%                33.56%               22.80%

  **Guatemala**   14.33%                26.18%                27.52%                10.57%                19.36%               20.01%

  **Costa Rica**  9.34%                 10.03%                8.33%                 12.75%                14.60%               14.39%

  **Chile**       14.03%                6.91%                 14.29%                11.27%                5.36%                12.46%

  **Honduras**    25.16%                15.98%                17.44%                13.16%                9.38%                12.22%

  **Mexico**      5.94%                 6.40%                 4.83%                 6.11%                 6.63%                6.26%

  **Holland**     0.01%                 1.15%                 2.60%                 0.01%                 0.98%                2.44%

  **El Salvador** 5.08%                 4.79%                 2.59%                 3.62%                 4.18%                2.12%

  **Spain**       1.22%                 0.88%                 1.18%                 1.50%                 1.37%                1.89%

  **Canada**      0.81%                 1.00%                 3.16%                 0.59%                 1.11%                1.82%

  **Others (19)** 1.62%                 2.82%                 2.39%                 2.05%                 3.47%                3.59%
  --------------- --------------------- --------------------- --------------------- --------------------- -------------------- --------------------

-   Imported kilos from the Prepared Vegetables and Fruit category
    decreased by 11 percent from 2000 to 2001 and were offset by an
    increase of 15 percent in 2002.

**Strengths of Supply Countries:**

*The US dominates the import market with:*

-   Orange juice concentrate (316,595.8 kilos and \$477,206.25)

-   Prepared or conserved potatoes, frozen (466,293.49 kilos and
    \$393,644.03)

-   Prepared or conserved vegetables[^6], not frozen (255,695.1 kilos
    and \$385,325.58)

-   Prepared or conserved tomatoes, whole or in pieces (204,033.55 kilos
    and \$116,048.67)

*Guatemala dominates the import market with:*

-   Apple juice (1,741,258.95 kilos and \$905,862.1)

-   Other fruit juices (1,246,043.14 kilos and \$598,130.11)

*Costa Rica dominates the import market with:*

-   Homogenized preparations (689,092.42 kilos and \$920,847.1)

**13. Various Prepared Foods**

**Net Imports 2002:**

**13,731,676 Kilos**

**\$34,680,974 CIF**

**Major Supply Sources:**

  --------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------
  **COUNTRY**     **Kilos**                                                         **Value \$**                                

                  **2000**              **2001**              **2002**              **2000**              **2001**              **2002**

  ***Total***     ***12,038,616.71***   ***12,975,746.49***   ***13,731,676.34***   ***30,497,259.25***   ***33,901,009.11***   ***34,860,974.83***

  **Costa Rica**  29.14%                29.64%                28.47%                44.73%                43.66%                41.73%

  **Guatemala**   38.68%                34.98%                35.32%                22.36%                19.79%                17.58%

  **USA**         18.17%                21.68%                19.24%                11.89%                14.62%                16.07%

  **Mexico**      3.76%                 2.88%                 3.90%                 12.47%                14.02%                13.46%

  **Others (37)** 10.25%                10.83%                13.07%                8.56%                 7.90%                 11.15%
  --------------- --------------------- --------------------- --------------------- --------------------- --------------------- ---------------------

-   The import of Various Prepared Foods has exhibited an upward trend
    over the last three years, increasing by 7.8 percent in total kilos
    imported in 2001 and by 5.8 percent in 2002.

**Strengths of Supply Countries:**

*Costa Rica dominates the import market with:*

-   Concentrates for the elaboration of sodas (439,594.8 kilos and
    \$10,161,350.22)

-   Sauces and condiments[^7] (1,186,256.83 kilos and \$1,291,395.22)

-   Miscellaneous preparations[^8] (405,025.13 kilos and \$999,968.93)

-   Ketchup and other tomato sauces (1,039,696.79 kilos and
    \$835,134.77)

*Guatemala dominates the import market with:*

-   Preparations for soups, broth (1,599,041.43 kilos and
    \$2,832,372.17)

-   Ketchup and other tomato sauces (2,112,965.84 kilos and
    \$1,891,539.9)

*The US dominates the import market with:*

-   Other miscellaneous preparations (216,325.44 kilos and
    \$1,639,401.22)

-   Preparations for soups, broth (968,410.18 kilos and \$1,082,951.35)

-   Sauces and condiments[^9] (578,138 kilos and \$635,224.45)

-   Homogenized and composed preparations (265,343.05 kilos and
    \$630,107.2)

-   Tea extracts, essences and concentrates (89,033.77 kilos and
    \$504,651.69)

-   Ketchup and other tomato sauces (247,581.87 kilos and \$221,939.25)

**14. Beverages, Vinegar, and Alcoholic Beverages**

**Net Imports 2002:**

**19,332,434 Kilos**

**\$12,259,241 CIF**

**Major Supply Sources:**

  --------------- --------------------- --------------------- --------------------- -------------------- -------------------- ---------------------
  **COUNTRY**     **Kilos**                                                         **Value \$**                              

                  **2000**              **2001**              **2002**              **2000**             **2001**             **2002**

  ***Total***     ***12,489,765.98***   ***13,685,961.04***   ***19,332,434.00***   ***7,812,045.57***   ***9,194,412.19***   ***12,259,241.74***

  **Costa Rica**  14.30%                35.04%                27.30%                13.13%               23.69%               19.06%

  **Guatemala**   5.67%                 14.92%                27.41%                5.09%                10.36%               17.59%

  **El Salvador** 19.25%                20.63%                22.39%                15.58%               17.29%               17.52%

  **Panama**      4.77%                 1.64%                 2.72%                 22.62%               4.17%                15.11%

  **USA**         7.81%                 10.94%                5.14%                 11.04%               10.20%               8.22%

  **Mexico**      11.69%                7.96%                 7.44%                 10.73%               8.22%                6.02%

  **Chile**       1.89%                 1.83%                 1.75%                 4.97%                3.92%                4.19%

  **England**     0.43%                 1.57%                 0.59%                 2.00%                12.04%               3.94%

  **Spain**       0.25%                 0.77%                 1.03%                 0.87%                1.86%                2.05%

  **France**      0.37%                 0.63%                 0.67%                 0.77%                1.93%                1.84%

  **Others (35)** 33.56%                4.07%                 3.54%                 13.20%               6.32%                4.46%
  --------------- --------------------- --------------------- --------------------- -------------------- -------------------- ---------------------

-   The *Beverages, Vinegars, and Alcoholic Beverages* import group has
    experienced a substantial increase in imported kilos. Total imported
    kilos increased from 2000 to 2001 by 9.6 percent and from 2001 to
    2002 by more than 41 percent.

**Strengths of Supply Countries:**

*Costa Rica dominates the import market with:*

-   Water-based beverages; milk-based beverages (3,272,964.16 kilos and
    \$1,808,303.70)

-   Water, not soda or composed (1,594,104.94 kilos and \$382,539.58)

*Guatemala dominates the import market with:*

-   Sodas in metallic containers (2,381,319.11 kilos and \$1,080,701.14)

-   Sodas in plastic containers (1,135,530.93 kilos and \$388,570.2)

-   Water-based beverages, milk-based beverages (1,110,272.34 kilos and
    \$348,614.57)

*El Salvador dominates the import market with:*

-   Sodas in metallic containers (2,740,421.79 kilos and \$1,269,325.92)

-   Water-based beverages, milk-based beverages (981,189.54 kilos and
    \$584,668.69)

*Panama dominates the import market with:*

-   Whiskey (76,349.74 kilos and \$486,208.65)

-   Other whiskeys (83,673.32 kilos and \$454,321.42)

-   Rum (150,347.37 kilos and \$176,545.35)

*The US dominates the import market with:*

-   Beer, not in cans (355,721.28 kilos and \$220,424.45)

-   Whiskey (24,884.79 kilos and \$194,113.07)

-   Beer, in cans (240,172.44 kilos and \$155,996.50)

**Advantages & Disadvantages of Local Suppliers:**

*Advantages:*

-   There are 12 local purified water companies. Prices are very
    competitive and international competition is non-existent.

-   There are local bottling plants of Coca-Cola and Pepsi.

-   Locally produced beer and rum dominate the alcoholic beverage
    market.

**15. Prepared Food for Animals**

**Net Imports 2002:**

**19,354,648.91 Kilos**

**\$9,800,910.70 CIF**

**Major Supply Sources:**

  --------------- --------------------- --------------------- --------------------- --------------------- --------------------- --------------------
  **COUNTRY**     **Kilos**                                                         **Value \$**                                

                  **2000**              **2001**              **2002**              **2000**              **2001**              **2002**

  ***Total***     ***37,911,689.20***   ***17,829,776.90***   ***19,354,648.91***   ***13,528,419.90***   ***10,234,884.07***   ***9,800,910.70***

  **Costa Rica**  20.02%                28.34%                35.50%                25.24%                24.23%                31.39%

  **Guatemala**   7.16%                 14.02%                24.51%                12.13%                16.06%                22.61%

  **USA**         63.75%                39.93%                16.88%                48.28%                41.20%                22.13%

  **Panama**      5.88%                 13.22%                15.15%                8.36%                 11.64%                12.76%

  **Mexico**      0.70%                 2.74%                 4.24%                 2.05%                 4.45%                 6.87%

  **Others (19)** 0.00%                 0.00%                 0.00%                 0.00%                 0.00%                 0.00%
  --------------- --------------------- --------------------- --------------------- --------------------- --------------------- --------------------

-   This category experienced a sharp decline of 53 percent in imported
    kilos from 2000 to 2001, while exhibiting an increase of
    approximately eight percent during the following period.

**Strengths of Supply Countries:**

*Costa Rica dominates the import market with:*

-   Prepared food for bovines, poultry; with vitamins and antibiotics
    (710,028.72 kilos and \$1,012,301.73)

-   Flour for bovines, poultry (3,703,920 kilos and \$970,034.79)

-   Food for cats and dogs, small packages (1,480,124.88 kilos and
    \$693,720.61)

*Guatemala dominates the import market with:*

-   Prepared food for bovines, poultry; with vitamins and antibiotics
    (3,530,434.46 kilos and \$1,473,576.99)

-   Fish food (1,064,124 kilos and \$662,169.53)

*The US dominates the import market with:*

-   Fish food (2,166,139.4 kilos and \$1,227,436.64)

-   Prepared food for bovines, poultry; with vitamins and antibiotics
    (396,650.12 kilos and \$445,604.70)

-   Food for cats and dogs, small packages (507,083.58 kilos and
    \$363,721.50)

  ------------------------------------------------------------------------------------ ------------ ------------ ------------ ------------ ------------
  **U.S. Food Exports to Nicaragua (US\$ \'000)**                                                                                          

  **End-Use Code**                                                                     **Value      **Value      **Value      **Value      **Value
                                                                                       1998**       1999**       2000**       2001**       2002**

  Rice                                                                                 18,683       20,713       13,108       26,849       19,217

  Wheat                                                                                16,445       12,112       7,445        13,219       14,238

  Other foods                                                                          8,244        9,242        6,929        8,807        10,398

  Oilseeds, food oils                                                                  6,813        8,408        7,765        11,629       8,604

  Corn                                                                                 1,979        7,192        7,149        7,505        6,387

  Animal feeds, n.e.c.                                                                 4,040        3,140        6,150        5,975        6,540

  Vegetables                                                                           1,986        5,018        1,206        2,718        1,440

  Dairy products and eggs                                                              2,734        1,013        3,756        3,876        621

  Food, tobacco machinery                                                              1,766        1,024        3,617        2,354        1,308

  Meat, poultry, etc.                                                                  861          1,702        2,458        1,413        1,662

  Bakery products                                                                      1,170        2,130        1,548        1,611        1,631

  Fruits, frozen juices                                                                1,669        2,451        1,600        1,077        923

  Tobacco, un-manufactured                                                             1,427        527          792          695          891

  Soybeans                                                                             0            1,780        0            1,671        577

  Nonagricultural foods, etc.                                                          408          422          362          479          739

  Wine and related products                                                            244          536          418          330          342

  Tobacco, manufactured                                                                216          90           535          505          407

  Alcoholic beverages, excluding wine                                                  44           62           470          433          577

  Sorghum, barley, oats                                                                11           6            7            714          310

  Nuts                                                                                 229          229          341          66           78

  Fish and shellfish                                                                   128          208          70           203          220

  **Total**                                                                            **69,097**   **78,005**   **65,726**   **92,129**   **77,110**

                                                                                                                                           

  *Source: Foreign Trade Division, U.S. Census Bureau, Washington, D.C.*                                                                   

  *http://www.census.gov/foreign-trade/statistics/product/enduse/exports/c2190.html*                                                       
  ------------------------------------------------------------------------------------ ------------ ------------ ------------ ------------ ------------

  ------------------------------------------------------- ------------ ------------ ------------ ------------ ------------
  **Nicaragua: Food Imports (US\$ \'000)**                                                                    

  **Product group**                                       **Value      **Value      **Value      **Value      **Value
                                                          1997**       1998**       1999**       2000**       2001**

  Edible Products N.E.S.                                  32,485       40,572       43,278       40,228       47,238

  Rice                                                    34,382       26,887       35,230       19,046       14,601

  Cereal etc Flours/Starch                                10,842       15,176       21,971       21,784       26,529

  Wheat/Meslin                                            14,534       22,191       23,264       10,349       16,919

  Vegetables, Fresh/Chilled/Frozen                        10,764       15,101       24,754       17,318       17,209

  Fixed Veg Oil/Fat, Soft                                 17,619       16,641       17,362       13,371       16,744

  Fixed Veg Oils Not Soft                                 13,060       16,827       18,651       11,396       13,358

  Milk Pr Excluding Butter/Cheese                         8,269        12,113       13,078       16,048       13,211

  Animal Feed Ex Unml Cereal.                             9,124        8,754        12,679       13,563       10,250

  Cereal Meal/Flour N.E.S.                                4,910        5,956        5,648        7,343        6,557

  Maize Except Sweet Corn                                 2,836        5,722        10,578       6,604        3,974

  Sugar Confectionery                                     3,189        4,233        7,245        7,431        7,403

  Eggs, Albumin                                           5,579        5,592        5,593        4,933        7,428

  Animal/Veg Oils Preces'd                                5,867        8,255        4,737        3,721        3,858

  Animal Oil/Fat                                          5,567        6,305        5,477        4,086        4,913

  Alcoholic Beverages                                     4,562        5,808        4,114        4,380        4,244

  Fish/Shellfish Prep/Pres                                1,857        9,204        4,456        3,713        3,066

  Fruit/Nuts, Fresh/Dried                                 2,591        4,409        5,529        4,010        4,244

  Fruit/Veg Juices                                        1,840        4,026        4,875        4,578        4,811

  Margarine/Shortening                                    1,850        1,927        2,410        7,589        6,256

  Veg Root/Tuber Prep/Pres                                2,189        3,599        3,619        5,043        3,399

  Beverage Non-Alcohol N.E.S.                             2,476        2,278        3,417        2,588        4,526

  Flout/Meal Wheat/Meslin                                 87           1,981        1,977        4,201        5,502

  Chocolate/Cocoa Preps                                   1,780        2,133        3,003        2,890        3,750

  Butter and Cheese                                       1,845        3,060        2,815        3,133        2,155

  Meat N.E.S.,Fresh/Chilled/Frozen                        1,119        2,338        2,037        3,265        2,840

  Crustaceans Molluscs etc                                363          512          3,273        3,403        2,902

  Cheese and Curd                                         1,066        1,438        1,609        1,585        1,823

  Coffee/Coffee Substitute                                190          118          2,413        2,500        612

  Meat/Offal Preserved N.E.S.                             547          706          1,129        1,275        1,799

  Oil Seeds-Non Soft Oil                                  1,387        1,315        530          658          1,181

  Oil Seeds etc -- Soft Oil                               128          451          2,808        417          154

  Fruit Preserved/Fruit Preps                             436          477          722          1,143        758

  Cereal Grains N.E.S.                                    716          760          902          249          593

  Spices                                                  459          501          644          767          767

  Sugar/Molasses/Honey                                    483          592          918          730          261

  Cocoa                                                   192          338          428          447          521

  Tea and Mate                                            221          325          327          297          274

  Beef, Fresh/Chilled/Frozen                              31           220          277          317          486

  Fish, Live/Fresh/Chilled/Frozen                         42           28           108          84           85

  **Total**                                               **207484**   **258869**   **303885**   **256483**   **267201**

                                                                                                              

  *Source: International Trade Statistics*                                                                    

  *http://www.intracen.org/tradstat/sitc3-3d/ir558.htm*                                                       
  ------------------------------------------------------- ------------ ------------ ------------ ------------ ------------

From 1997 to 2001, food imports from the United States have account for
an estimated 19 percent to 33 percent of the total food imports. This
proportion could potentially increase in the coming years.

![](media/image4.wmf){width="5.9944444444444445in"
height="4.197916666666667in"}![](media/image5.wmf){width="6.003472222222222in"
height="4.197916666666667in"}

**[IV. Best Product Prospects]{.smallcaps}**

The following table shows the average annual growth rate over the past
five years (1998 -- 2002) for all major categories and products with an
annual growth of 10 percent or more in their value.

<table>
<colgroup>
<col style="width: 48%" />
<col style="width: 1%" />
<col style="width: 6%" />
<col style="width: 1%" />
<col style="width: 6%" />
<col style="width: 2%" />
<col style="width: 5%" />
<col style="width: 2%" />
<col style="width: 3%" />
<col style="width: 2%" />
<col style="width: 3%" />
<col style="width: 2%" />
<col style="width: 4%" />
<col style="width: 2%" />
<col style="width: 3%" />
<col style="width: 2%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="3"><p><strong>CATEGORY</strong></p>
<p><strong>&amp;</strong></p>
<p><strong>BEST PRODUCTS</strong></p></td>
<td colspan="4" rowspan="2"><strong>Average Annual Growth Rate (Imports
1998 -2002)</strong></td>
<td colspan="2" rowspan="2"><strong>DAI</strong><a href="#fn1"
class="footnote-ref" id="fnref1"
role="doc-noteref"><sup>1</sup></a></td>
<td colspan="2" rowspan="2"><strong>IEC</strong><a href="#fn2"
class="footnote-ref" id="fnref2"
role="doc-noteref"><sup>2</sup></a></td>
<td colspan="2" rowspan="2"><strong>IGV</strong><a href="#fn3"
class="footnote-ref" id="fnref3"
role="doc-noteref"><sup>3</sup></a></td>
<td colspan="2" rowspan="2"><strong>DAI MEX</strong><a href="#fn4"
class="footnote-ref" id="fnref4"
role="doc-noteref"><sup>4</sup></a></td>
<td colspan="2" rowspan="2"><strong>DAI DOM</strong><a href="#fn5"
class="footnote-ref" id="fnref5"
role="doc-noteref"><sup>5</sup></a></td>
<td></td>
</tr>
<tr class="even">
<td></td>
</tr>
<tr class="odd">
<td colspan="2"><strong>Kilos</strong></td>
<td colspan="2"><strong>Value</strong></td>
<td colspan="2"><strong>2002</strong></td>
<td colspan="2"><strong>2002</strong></td>
<td colspan="2"><strong>2002</strong></td>
<td colspan="2"><strong>2002</strong></td>
<td colspan="2"><strong>2002</strong></td>
<td></td>
</tr>
<tr class="even">
<td><strong>MEAT &amp; BY-PRODUCTS</strong></td>
<td colspan="2"><strong>7.58%</strong></td>
<td colspan="2"><strong>9.57%</strong></td>
<td colspan="2"><strong>5% - 170%</strong></td>
<td colspan="2"><strong>0% - 30%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 120%</strong></td>
<td colspan="2"><strong>0% - 170%</strong></td>
<td></td>
</tr>
<tr class="odd">
<td>Bovine meat: Fresh or refrigerated - de-boned</td>
<td colspan="2">8.04%</td>
<td colspan="2">10.69%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">8.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Pork meat: Fresh or refrigerated - the rest (no ham)</td>
<td colspan="2">8.92%</td>
<td colspan="2">10.49%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">10.0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Pork meat: Frozen - ham, shoulders and pieces, with bones</td>
<td colspan="2">10.53%</td>
<td colspan="2">11.57%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">10.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Pork meat: Frozen - the rest</td>
<td colspan="2">9.24%</td>
<td colspan="2">11.21%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">10.0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Meat &amp; edible disposals from chicken, rooster, duck, turkey,
swan: Fresh or refrigerated - thighs and legs</td>
<td colspan="2">12.22%</td>
<td colspan="2">11.83%</td>
<td colspan="2">170%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">120.0%</td>
<td colspan="2">170.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Meat &amp; edible disposals from chicken, rooster, duck, turkey,
swan: Frozen - in paste</td>
<td colspan="2">12.22%</td>
<td colspan="2">10.41%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">10.0%</td>
<td colspan="2">15.0%</td>
<td></td>
</tr>
<tr class="odd">
<td><strong>FISH &amp; SEAFOOD</strong></td>
<td colspan="2"><strong>3.90%</strong></td>
<td colspan="2"><strong>7.28%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 13%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% -6.3%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
<td></td>
</tr>
<tr class="even">
<td><strong>MILK &amp; DAIRY PRODUCTS; EGGS; HONEY</strong></td>
<td colspan="2"><strong>-25.00%</strong></td>
<td colspan="2"><strong>-25.38%</strong></td>
<td colspan="2"><strong>0% - 60%</strong></td>
<td colspan="2"><strong>0% - 13%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 15.4%</strong></td>
<td colspan="2"><strong>0% - 40%</strong></td>
<td></td>
</tr>
<tr class="odd">
<td>Milk and cream, concentrated: Whole with no sugar or sweeteners, in
containers greater or equal to 5kg</td>
<td colspan="2">11.42%</td>
<td colspan="2">12.51%</td>
<td colspan="2">60%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.4%</td>
<td colspan="2">20.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Cheeses and curd: Mozzarella</td>
<td colspan="2">10.07%</td>
<td colspan="2">12.88%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">10.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Cheeses and curd: Cheddar - in blocks or bars</td>
<td colspan="2">8.43%</td>
<td colspan="2">10.62%</td>
<td colspan="2">5%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">5.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Cheeses and curd: Other cheeses</td>
<td colspan="2">9.62%</td>
<td colspan="2">11.16%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">10.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="odd">
<td><strong>VEGETABLES, PLANTS, ROOTS, TUBER</strong></td>
<td colspan="2">-22.52%</td>
<td colspan="2">-23.05%</td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td></td>
</tr>
<tr class="even">
<td>Lentils</td>
<td colspan="2"><strong>13.82%</strong></td>
<td colspan="2"><strong>12.11%</strong></td>
<td colspan="2">15%</td>
<td colspan="2">0%</td>
<td colspan="2">15%</td>
<td colspan="2">0%</td>
<td colspan="2">0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Beans, common black</td>
<td colspan="2">12.29%</td>
<td colspan="2">11.59%</td>
<td colspan="2">15%</td>
<td colspan="2">0%</td>
<td colspan="2">E</td>
<td colspan="2">10%</td>
<td colspan="2">10%</td>
<td></td>
</tr>
<tr class="even">
<td>Onions, yellow</td>
<td colspan="2">18.99%</td>
<td colspan="2">10.78%</td>
<td colspan="2">15%</td>
<td colspan="2">0%</td>
<td colspan="2">0%</td>
<td colspan="2">0%</td>
<td colspan="2">15%</td>
<td></td>
</tr>
<tr class="odd">
<td><strong>FRUITS</strong></td>
<td colspan="2"><strong>-27.00%</strong></td>
<td colspan="2"><strong>-17.77%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 32%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
<td></td>
</tr>
<tr class="even">
<td>Grapes, including raisins: Fresh</td>
<td colspan="2">-10.35%</td>
<td colspan="2">11.49%</td>
<td colspan="2">15%</td>
<td colspan="2">32.0%</td>
<td colspan="2">E</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Apples: Fresh</td>
<td colspan="2">13.77%</td>
<td colspan="2">12.80%</td>
<td colspan="2">15%</td>
<td colspan="2">32.0%</td>
<td colspan="2">E</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td><strong>COFFEE, TEA, HERBS, MATE, SPICES</strong></td>
<td colspan="2"><strong>14.40%</strong></td>
<td colspan="2"><strong>14.15%</strong></td>
<td colspan="2"><strong>5% - 15%</strong></td>
<td colspan="2"><strong>0% - 16%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td></td>
</tr>
<tr class="odd">
<td>Cinnamon: without grounding or pulverizing</td>
<td colspan="2">7.57%</td>
<td colspan="2">10.16%</td>
<td colspan="2">5%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td><strong>CEREALS</strong></td>
<td colspan="2"><strong>-36.59%</strong></td>
<td colspan="2"><strong>-30.68%</strong></td>
<td colspan="2"><strong>0% - 103.5%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 20%</strong></td>
<td colspan="2"><strong>0% - 62%</strong></td>
<td></td>
</tr>
<tr class="odd">
<td>Wheat: hard</td>
<td colspan="2">18.35%</td>
<td colspan="2">15.11%</td>
<td colspan="2">0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">E</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Maize: white</td>
<td colspan="2">18.14%</td>
<td colspan="2">11.05%</td>
<td colspan="2">10%</td>
<td colspan="2">0.0%</td>
<td colspan="2">E</td>
<td colspan="2">10.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="odd">
<td><strong>PREPARED MEAT, FISH AND SEAFOOD</strong></td>
<td colspan="2"><strong>15.30%</strong></td>
<td colspan="2"><strong>-22.18%</strong></td>
<td colspan="2"><strong>5% - 15%</strong></td>
<td colspan="2"><strong>0% - 20%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 6.3%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
<td></td>
</tr>
<tr class="even">
<td>Stuffed products from chicken, rooster, duck, turkey, swan</td>
<td colspan="2">9.52%</td>
<td colspan="2">11.15%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Stuffed products from pork</td>
<td colspan="2">9.69%</td>
<td colspan="2">11.27%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td>Other preparations of meat, disposals or blood: Pork - ham and
pieces of ham</td>
<td colspan="2">8.22%</td>
<td colspan="2">10.32%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="odd">
<td>Extracts and juices: Frozen tuna - cooked loin</td>
<td colspan="2">9.24%</td>
<td colspan="2">10.26%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td><strong>SUGAR &amp; CONFECTIONS</strong></td>
<td colspan="2"><strong>14.23%</strong></td>
<td colspan="2"><strong>20.05%</strong></td>
<td colspan="2"><strong>0% - 55%</strong></td>
<td colspan="2"><strong>0% - 20%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 55%</strong></td>
<td colspan="2"><strong>0% - 55%</strong></td>
<td></td>
</tr>
<tr class="odd">
<td>Confectionary items without cacao, including white chocolate: Bubble
gum, even those covered in sugar</td>
<td colspan="2">11.43%</td>
<td colspan="2">14.09%</td>
<td colspan="2">15%</td>
<td colspan="2">20.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
<td></td>
</tr>
<tr class="even">
<td colspan="2">Confectionary items without cacao, including white
chocolate: The rest</td>
<td colspan="2">18.97%</td>
<td colspan="2">19.53%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2"><strong>CACAO</strong></td>
<td colspan="2"><strong>11.38%</strong></td>
<td colspan="2"><strong>13.39%</strong></td>
<td colspan="2"><strong>5% - 15%</strong></td>
<td colspan="2"><strong>0% - 12%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>3.2% - 6.3%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
</tr>
<tr class="even">
<td colspan="2">Powdered cocoa without sugar or sweeteners</td>
<td colspan="2">9.18%</td>
<td colspan="2">12.13%</td>
<td colspan="2">5%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">3.2%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Chocolate and other nutritious preparations that contain
cocoa: The rest, in tablets, bars, or blocks - with filling</td>
<td colspan="2">10.70%</td>
<td colspan="2">10.34%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2"><strong>PREPARED FOODS W/ BASE OF CEREAL, FLOUR, MILK,
STARCH; PASTRY PRODUCTS</strong></td>
<td colspan="2"><strong>26.25%</strong></td>
<td colspan="2"><strong>27.48%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 20%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 6.3%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
</tr>
<tr class="odd">
<td colspan="2">Modified milk</td>
<td colspan="2">13.63%</td>
<td colspan="2">16.29%</td>
<td colspan="2">0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Mixtures and paste for preparing pastry or bakery
products</td>
<td colspan="2">13.75%</td>
<td colspan="2">11.15%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Modified milk, in powder</td>
<td colspan="2">13.96%</td>
<td colspan="2">17.77%</td>
<td colspan="2">0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Cookies waffles and wafers, even with filling</td>
<td colspan="2">-15.58%</td>
<td colspan="2">12.23%</td>
<td colspan="2">0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Toasted bread and similar products</td>
<td colspan="2">9.23%</td>
<td colspan="2">10.10%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2"><strong>PREPARED VEGETABLES AND FRUITS</strong></td>
<td colspan="2"><strong>20.81%</strong></td>
<td colspan="2"><strong>14.07%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 20%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 6.3%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
</tr>
<tr class="odd">
<td colspan="2">Tomatoes, prepared or conserved: Whole or in pieces</td>
<td colspan="2">11.30%</td>
<td colspan="2">10.00%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Tomatoes, prepared or conserved: Concentrate</td>
<td colspan="2">16.45%</td>
<td colspan="2">14.27%</td>
<td colspan="2">5%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">5.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Vegetables, prepared or conserved: Potatoes</td>
<td colspan="2">14.53%</td>
<td colspan="2">14.06%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Fruit and vegetable juices: Apple juice</td>
<td colspan="2">12.20%</td>
<td colspan="2">10.86%</td>
<td colspan="2">15%</td>
<td colspan="2">9.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2"><strong>VARIOUS PREPARED FOODS</strong></td>
<td colspan="2"><strong>14.94%</strong></td>
<td colspan="2"><strong>15.22%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 8%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
</tr>
<tr class="even">
<td colspan="2">Instant Coffee</td>
<td colspan="2">9.64%</td>
<td colspan="2">12.36%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Extracts, essences and concentrate of tea or herb
concentrates, and preparations with these products</td>
<td colspan="2">-6.92%</td>
<td colspan="2">12.07%</td>
<td colspan="2">15%</td>
<td colspan="2">8.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Yeast</td>
<td colspan="2">11.23%</td>
<td colspan="2">13.60%</td>
<td colspan="2">0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Prepared soups, preparations for soups</td>
<td colspan="2">14.52%</td>
<td colspan="2">12.81%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Nutritious preparations, homogenized</td>
<td colspan="2">11.44%</td>
<td colspan="2">13.70%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2"><strong>BEVERAGES, VINEGAR, AND ALCOHOLIC
BEVERAGES</strong></td>
<td colspan="2"><strong>23.59%</strong></td>
<td colspan="2"><strong>16.77%</strong></td>
<td colspan="2"><strong>5% - 15%</strong></td>
<td colspan="2"><strong>0% - 42%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 10%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
</tr>
<tr class="even">
<td colspan="2">Water, without gas</td>
<td colspan="2">15.22%</td>
<td colspan="2">12.53%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Sodas, in plastic containers</td>
<td colspan="2">13.78%</td>
<td colspan="2">11.03%</td>
<td colspan="2">15%</td>
<td colspan="2">9.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">5.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Sodas, in metallic containers</td>
<td colspan="2">18.90%</td>
<td colspan="2">16.01%</td>
<td colspan="2">15%</td>
<td colspan="2">9.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">5.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Beverages based on water - sugared or sweetened,
scented, produced from artificial concentrates of vegetables or
fruits</td>
<td colspan="2">20.10%</td>
<td colspan="2">17.29%</td>
<td colspan="2">15%</td>
<td colspan="2">9.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">5.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Ethyl alcohol - absolute, 80% vol</td>
<td colspan="2">13.13%</td>
<td colspan="2">10.95%</td>
<td colspan="2">10%</td>
<td colspan="2">42.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">10.0%</td>
</tr>
<tr class="odd">
<td colspan="2"><strong>PREPARED FOOD FOR ANIMALS</strong></td>
<td colspan="2"><strong>-25.67%</strong></td>
<td colspan="2"><strong>15.12%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 6.3%</strong></td>
<td colspan="2"><strong>0.0%</strong></td>
</tr>
<tr class="even">
<td colspan="2">Food for dogs and cats</td>
<td colspan="2">18.06%</td>
<td colspan="2">15.94%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">15.0%</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Food for fish (not aquarium)</td>
<td colspan="2">-22.67%</td>
<td colspan="2">13.41%</td>
<td colspan="2">15%</td>
<td colspan="2">0.0%</td>
<td colspan="2">E</td>
<td colspan="2">6.3%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2">Pre-mixtures for the production of complete or
complementary food, with antibiotics and/or vitamins - for livestock,
birds, and aquaculture</td>
<td colspan="2">20.01%</td>
<td colspan="2">17.97%</td>
<td colspan="2">0%</td>
<td colspan="2">0.0%</td>
<td colspan="2">E</td>
<td colspan="2">0.0%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="odd">
<td colspan="2">Pre-mixtures for the production of complete or
complementary food - for livestock, birds, and aquaculture</td>
<td colspan="2">10.27%</td>
<td colspan="2">10.07%</td>
<td colspan="2">5%</td>
<td colspan="2">0.0%</td>
<td colspan="2">E</td>
<td colspan="2">3.2%</td>
<td colspan="2">0.0%</td>
</tr>
<tr class="even">
<td colspan="2"><strong>TOTAL - ALL CATEGORIES</strong></td>
<td colspan="2"><strong>-36.05%</strong></td>
<td colspan="2"><strong>-24.80%</strong></td>
<td colspan="2"><strong>0% - 170%</strong></td>
<td colspan="2"><strong>0% - 42%</strong></td>
<td colspan="2"><strong>0% - 15%</strong></td>
<td colspan="2"><strong>0% - 120%</strong></td>
<td colspan="2"><strong>0% - 170%</strong></td>
</tr>
</tbody>
</table>
<aside id="footnotes" class="footnotes footnotes-end-of-document"
role="doc-endnotes">
<hr />
<ol>
<li id="fn1"><p>DAI: Import Tax<a href="#fnref1" class="footnote-back"
role="doc-backlink">↩︎</a></p></li>
<li id="fn2"><p>IEC: Excise Tax<a href="#fnref2" class="footnote-back"
role="doc-backlink">↩︎</a></p></li>
<li id="fn3"><p>IGV: Value Added Tax<a href="#fnref3"
class="footnote-back" role="doc-backlink">↩︎</a></p></li>
<li id="fn4"><p>DAI MEX: Import Tax for Mexico<a href="#fnref4"
class="footnote-back" role="doc-backlink">↩︎</a></p></li>
<li id="fn5"><p>DAI DOM: Import Tax for Dominican Republic<a
href="#fnref5" class="footnote-back" role="doc-backlink">↩︎</a></p></li>
</ol>
</aside>

**A. Products Present in the Market with Good Sales Potential**

The most sought after products by the population are:

-   Sugar

-   Rice

-   Salt

-   Vegetable oil

-   Coffee

-   Beans

-   Tomatoes

-   Simple bread

-   Chicken meat

-   White onion

###### B. Products Not Present in Significant Quantities with Good Sales Potential

Ready-to-eat meals, microwave foods and T.V.-dinners have good sales
potential. It is important to recognize that this trend would mostly be
picked up in the capital city. It is important to note that in Managua,
only 39.1 percent of households have a refrigerator, while in the whole
nation, only 20.6 percent of homes own one. However, there is still a
niche for these kinds of foods. Noodle soups have had success on the
market, partly because of their simplicity and convenience (microwave or
stove top).

**C. Products Not Present Because They Face Significant Barriers**

Even though most import taxes (DAI) are between five and 15 percent,
taxes for some "protected" products remain high:

  ------------------------------- --------- --------- --------- -------- --------
  **Product**                     **DAI**   **IEC**   **IGV**   **DAI    **DAI
                                                                MEX**    DOM**

  Poultry thighs and legs         170       0         0         120      170

  Various kinds of poultry meat   30        0         0         30       30

  Powdered milk                   60        0         15        15.4     40

  Whole milk                      60        0         0         15.4     40

  Skim milk                       60        0         15        15.4     40

  Rice                            103.5     0         0         18.8     62

  Sugar                           55        0         15        55       55
  ------------------------------- --------- --------- --------- -------- --------

Other products that would have low sales potential are rum and beer.
Nicaraguan's like to drink locally produced beer (there are four kinds).
Compared to international beers, local beers have good quality.
Furthermore, Nicaraguan rums are internationally recognized. They are of
higher quality and are relatively cheaper than imported brands.

**[V. Post Contact and Further Information]{.smallcaps}**

**Key Contacts:**

AMCHAM AND BILATERAL BUSINESS COUNCILS

Nicaraguan/American Chamber of Commerce

President, Lic. Sergio Ulvert

Executive Director, María Regina Sandino

Carretera Masaya, Detras del Sandy's, 1c. Abajo, Managua

Apartado Postal: 2720 Managua, Nicaragua

Tel: (505) 267-3099, 267-3633; Fax: (505) 267-3098

E-Mail: amcham@amchamnic.org.ni

Web site: www.amchamnic.com.ni

Nicaraguan American Chamber of Commerce in Miami

President, Sr. Petronio López

Executive Director, Sra. Ema Savany

175 Fountainbleu Blvrd Suite 1R 10

Miami, FL 33172.

Miami, Fl 33173

or P.O. Box 527723

Miami, FL 33152

Tel: (305) 599-2737; Fax: (305) 220-1841

E-Mail: nacc@fdn.com

Web site: www.nacc-miami.com

##### NICARAGUAN COMMERCIAL BANKS

Financiera Nicaragüense de Inversiones

General Manager, Lic. Marco Antonio Narvéz

Edificio FNI, de la Rotonda Rubén Darío 600 mts al Este

Tel: (505) 278-5788, 278-5806; Fax: (505) 278-5800

E-Mail: manarvaez@fni.com.ni

Web site: www.fni.com.ni

Banco de la Producción (BANPRO)

General Manager, Lic. Arturo Arana U.

Plaza Libertad, Contiguo a Metrocentro

Apartado 2309, Managua

TEL: (505) 278-2508; FAX: (505) 278-4113, 277-3996

E-Mail: ACECILIA@banpro.com.ni

Web site: www.banpro.com.ni

Banco de Crédito Centroamericano (BANCENTRO)

General Manager, Ing. Julio Cárdenas

Edificio BANCENTRO

Km. 4-1/2 Carretera Masaya, Managua

Tel: (505) 278-2777; Fax: (505) 278-6001

E-Mail: cbriceño@bancentro.com.ni

Web site: www.bancentro.com.ni

Banco de Exportación (BANEXPO)

General Manager, Ing. Adolfo Argüello

Edificio Banexpo, Rotonda Güegüense 25 vrs abajo, Managua

Tel: (505) 268-6818; Fax: (505) 266-8796

E-Mail: servicio@banexpo.com.ni

Web site: www.banexpo.com.ni

Banco de America Central (BAC)

General Manager, Lic. Luciano Astorga T.

Frente a la Loteria Nacional

Apartado 2304, Managua

Tel: (505) 267-0220/3; Fax: (505) 267-0224

E-Mail: lro@credomatic.com

Web site: www.bancodeamericacentral.com

Banco de Finanzas (BDF)

General Manager, Lic. Silvio Lanuza

Esquina Opuesta Hotel Intercontinental, Managua

Tel: (505) 222-2444; Fax: (505) 228-3056/7

E-Mail: gerencia@bdf.com.ni

Web site: www.bdfnet.com.ni

Banco Caley Dagnall

General Manager, Licda. Teresa Montealegre

Km. 3 Carretera Sur, Managua

Tel: (505) 268-0068; Fax: (505) 268-0069

E-Mail: tere_montealegre@bancaley.com.ni

Web site: www.bancaley.com.ni

##### NICARAGUAN MARKET RESEARCH FIRMS

CID/GALLUP

Manager for Nicaragua and El Salvador, Lic. Federico Denton

Del Cartel, 2 c. abajo, Carretera a Masaya, Managua

TEL: (505) 278-3132; FAX: (505) 278-1066

E-Mail: cidganic@cablenet.com.ni

Web site: www.cidgallup.com

RAC International

General Director, Dr. Roger A. Cerda

Country risk & economic analysis

Planes de Altamira, Ia. Etapa, Casa No. 35

P.O. Box: LM - 124

Managua, Nicaragua

Tel: (505) 277-2383, Fax: (505) 277-2384

E-Mail: rcerda@post.harvard.edu; rcerda@racinternational.com;
rcerda@cablenet.com.ni

Web site: [www.racinternational.com](http://www.racinternational.com/)

**NICARAGUAN TRADE OR INDUSTRY ASSOCIATIONS IN KEY SECTORS**

Centro de Exportaciones e Inversiones (CEI)

(Center for Exports and Investment)

General Manager, Lic. Jaime Pfaeffle

Manager of Exports and Investments, Licda. Noy de Bernheim

Del Hotel Intercontinental, 1c. Abajo, 3 ½ c. al sur #1208, Managua

Tel: (505) 268-3860, 268-1064; Fax: (505) 266-4476

E-Mail: jpfaeffle@cei.org.ni

Web site: www.cei.org.ni

Cámara de Comercio de Nicaragua (CACONIC)

(Chamber of Commerce of Nicaragua)

President, Ing. Alfredo Cuadra García

General Manager, Lic. Mario Alegria

Plaza España, 400 mts al sur, 1/2c. Arriba, Managua

Tel: (505) 268-3505, Fax: (505) 278-3600

E-Mail: comercio@ibw.com.ni

Web site: N/A

Cámara de Industrias de Nicaragua (CADIN)

(Chamber of Industries of Nicaragua)

President, Ing. Gabriel Pasos

Secretary, Dr. Gilberto Solís

De los semáforos de Plaza España 300 mts al sur, Managua

Tel: (505) 266-8847/51; Fax: (505) 266-1891

E-Mail: cadin@cadin@org.ni

Web site: www.cadin.org.ni

Asociación de Distribuidores de Productos de Consumo de Nicaragua
(ADIPROCNIC)

(Association of Consumer Product Distributors)

General Manager, Licda. María José Quiroz de Portobanco

Km 4-1/2 Carretera Norte, Módulo 12, Oficentro Norte, Managua

Tel: (505) 248-2154; Fax: (505) 249-5108

E-Mail: adiprocnic@teranet.com.ni

Web site: N/A

Consejo Superior de la Empresa Privada (COSEP)

(Private Sector Advisory Council)

President, Dr. Anastasio Somarriba

Executive Director, Dr. Orestes Romero Rojas

TELCOR Zacarías Guerra 175 mts abajo

Apartado Postal No. 5430, Managua, Nicaragua

Tel: (505) 228-2030/40; Fax: (505) 228-2041

E-Mail: cosep@nic.gbm.net

**Annex**

**I. Population**

  -------------- ---------- ----- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  **Total                                                                                                       
  Population**                                                                                                 

  *(Thousands of                                                                                                
  persons, at                                                                                                  
  mid-year)*                                                                                                   

  **1980**       **1985**         **1990**   **1996**   **1997**   **1998**   **1999**   **2000**   **2001**   **2002**

  2 919          3 400            3 824      4 552      4 679      4 807      4 938      5 071      5 208      5 347

  *Source:                                                                                                      
  Cepal -                                                                                                      
  Anuario                                                                                                      
  Estadistico                                                                                                  
  2002*                                                                                                        
  -------------- ---------- ----- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

  --------------- --------------- --------------- --------------- --------------- --------------- ---------------
  **Total                                                                                          
  Population                                                                                      
  Growth Rates**                                                                                  

  *(Average                                                                                        
  annual rates                                                                                    
  per 100                                                                                         
  inhabitants)*                                                                                   

  **1980-1985**   **1985-1990**   **1990-1995**   **1995-2000**   **2000-2005**   **2005-2010**   **2010-2015**

  3.1             2.3             2.9             2.7             2.6             2.3             2.1

  *Source:                                                                                         
  Cepal - Anuario                                                                                 
  Estadistico                                                                                     
  2002*                                                                                           
  --------------- --------------- --------------- --------------- --------------- --------------- ---------------

  -------------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
  **Total Population,                                                                                                  
  by area of residence                                                                                                 
  and sex, by                                                                                                          
  department -                                                                                                         
  projections for                                                                                                      
  2003**                                                                                                               

  **Department**       **TOTAL**                           **URBAN**                           **RURAL**               

                       Both Sexes  Males       Females     Both Sexes  Males       Females     Both Sexes  Males       Females

  **The Republic**     5,482,340   2,730,165   2,752,175   3,191,670   1,532,381   1,659,289   2,290,670   1,197,784   1,092,886

  Nueva Segovia        212,557     106,780     105,777     104,669     50,756      53 913      107,888     56,024      51,864

  Madriz               133,974     68,582      65,392      37,898      18,167      19 731      96,076      50,415      45,661

  Estelí               214,399     106,020     108,379     124,705     58,639      66 066      89,694      47,381      42,313

  Chinandega           439,986     219,731     220,255     273,039     133,127     139 912     166,947     86,604      80,343

  León                 395,251     196,576     198,675     232,493     111,140     121 353     162,758     85,436      77,322

  Managua              1,374,025   667,426     706,599     1,276,525   612,682     663 843     97,500      54,744      42,756

  Masaya               315,630     157,394     158,236     191,393     92,988      98 405      124,237     64,406      59,831

  Granada              191,927     95,825      96,102      123,992     59,945      64 047      67,935      35,880      32,055

  Carazo               178,818     89,575      89,243      109,614     53,540      56 074      69,204      36,035      33,169

  Rivas                168,517     85,491      83,026      61,670      29,715      31 955      106,847     55,776      51,071

  Boaco                169,443     84,830      84,613      55,158      25,069      30 089      114,285     59,761      54,524

  Chontales            181,793     89,959      91,834      101,655     47,538      54 117      80,138      42,421      37,717

  Jinotega             298,754     151,496     147,258     64,697      29,987      34 710      234,057     121,509     112,548

  Matagalpa            485,537     244,098     241,439     179,537     84,676      94 861      306,000     159,422     146,578

  RAAN                 250,071     126,574     123,497     71,155      34,478      36 677      178,916     92,096      86,820

  RAAS                 376,548     190,275     186,273     160,652     79,168      81 484      215,896     111,107     104,789

  Río Sn Juan          95,110      49,533      45,577      22,818      10,766      12 052      72,292      38,767      33,525

  *Source: Instituto                                                                                                   
  Nacional de                                                                                                          
  Estadisticas Y                                                                                                       
  Censos; Dirección de                                                                                                 
  Estadísticas                                                                                                         
  Sociodemográficas*                                                                                                   
  -------------------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------

  --------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  **Projections                                                                      
  of Total                                                                          
  Population**                                                                      

  *(Thousands of                                                                     
  persons, at                                                                       
  mid-year)*                                                                        

  **2005**        **2010**   **2015**   **2020**   **2025**   **2030**   **2035**   **2040**

  5 773           6 493      7 216      7 937      8 629      9 285      9 895      10 489

  *These figures                                                                    
  correspond to                                                                     
  the recommended                                                                   
  projection,                                                                       
  which involves                                                                    
  the use of an                                                                     
  average                                                                           
  fertility                                                                         
  hypothesis.*                                                                      

  *Source:                                                                           
  Cepal - Anuario                                                                   
  Estadistico                                                                       
  2002*                                                                             
  --------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

  -------------- ---------- --------- ----------- ----------- ----------- ----------- ----------- -----------
  **Estimated                                                                                      
  Population, by                                                                                  
  Age Group,                                                                                      
  2002**                                                                                          

  *(Thousands of                                                                                   
  persons, at                                                                                     
  mid-year)*                                                                                      

  ** **          **Age                                                                            
                 groups**                                                                         

  **Total**      **0-4**    **5-9**   **10-14**   **15-19**   **20-24**   **25-29**   **30-34**   **35-39**

  5 347          818        759       664         613         528         426         348         283

  *These figures                                                                                   
  correspond to                                                                                   
  the                                                                                             
  recommended                                                                                     
  projection,                                                                                     
  which involves                                                                                  
  the use of an                                                                                   
  average                                                                                         
  fertility                                                                                       
  hypothesis.*                                                                                    

  *Source:                                                                                         
  Cepal -                                                                                         
  Anuario                                                                                         
  Estadistico                                                                                     
  2002*                                                                                           
  -------------- ---------- --------- ----------- ----------- ----------- ----------- ----------- -----------

  -------------- ---------- ------------- ------------- ----------- -----------
  **Structure of                                                     
  the Total                                                         
  Population, by                                                    
  Age Groups**                                                      

  *(Percentage                                                       
  of total                                                          
  population)*                                                      

  **Year**       **Age                                              
                 groups**                                           

                 **0-14**   **15-34**     **35-49**     **50-64**   **65 and
                                                                    over**

  **1990**       46.4       33.7          11.3          5.8         2.8

  **2000**       42.6       34.5          12.9          5.8         3.1

  **2010**       38.1       36.8          14.5          7.3         3.3

  **2020**       32.4       36.8          17.6          9           4.3

  *Source:                                                           
  Cepal -                                                           
  Anuario                                                           
  Estadistico                                                       
  2002*                                                             
  -------------- ---------- ------------- ------------- ----------- -----------

  -------------- ---------- ---------- ---------- ---------- ---------- ----------
  **Percentage                                                           
  of Urban                                                              
  Population**                                                          

  *(Percentage                                                           
  of total                                                              
  population)*                                                          

  **1985**       **1990**   **1995**   **2000**   **2005**   **2010**   **2015**

  51.4           52.5       53.9       55.3       56.7       58.1       59.4

  *The term                                                              
  "urban" is                                                            
  defined as it                                                         
  is used in                                                            
  each country.*                                                        

  *Source:                                                               
  Cepal -                                                               
  Anuario                                                               
  Estadistico                                                           
  2002*                                                                 

                                                                        
  -------------- ---------- ---------- ---------- ---------- ---------- ----------

  --------------- -------------- ------- --------------- -------------- ---------
  **Population in                                                       
  Locales with                                                          
  20,000 or More                                                        
  and 100,000 or                                                        
  More                                                                  
  Inhabitants**                                                         

  *(Percentage of                                                        
  total                                                                 
  population)*                                                          

  **Localities                           **Localities                   
  with 20                                with 100                       
  thousand**                             thousand**                     

  **or more                              **or more                      
  inhabitants**                          inhabitants**                  

  **1980**        **1990**       ** **   **1980**        **1990**        

  \...            41                     \...            22.7            

  *The data refer                                                       
  to the year in                                                        
  which                                                                 
  population and                                                        
  housing                                                               
  censuses were                                                         
  conducted in*                                                         

  *each country,                                                         
  e.i., around                                                          
  the year                                                              
  heading the                                                           
  column.*                                                              

  *Source:                                                               
  Cepal - Anuario                                                       
  Estadistico                                                           
  2002*                                                                 
  --------------- -------------- ------- --------------- -------------- ---------

  ---------------- --- ------------ ------------ -------------- ------------------ ---------
  **Population in                                                                  
  the Main                                                                         
  Metropolitan                                                                     
  Area & Two Main                                                                  
  Metropolitan                                                                     
  Areas**                                                                          

  *(Percentage of                                                                   
  total                                                                            
  population)*                                                                     

                       ** **        ** **        **Population                      
                                                 Growh Rate**                      

  **Metropolitan       **\~1980**   **\~1990**   ** **          **1980-1990**       
  area**                                                                           

  Managua              21.2         18.8                        3.0                 

  Managua and León     24.2         21.7                        3.0                 

  *Metropolitan                                                                    
  area refers to                                                                   
  the city in                                                                      
  question plus                                                                    
  the high density                                                                 
  zones in its                                                                     
  environments.*                                                                   

  *The data refer                                                                  
  to the years in                                                                  
  which population                                                                 
  and housing                                                                      
  censuses were                                                                    
  conducted in                                                                     
  each country;*                                                                   

  *i.e., around                                                                    * *
  the year at the                                                                  
  top of the                                                                       
  column.*                                                                         

  *Source: Cepal -                                                                  
  Anuario                                                                          
  Estadistico                                                                      
  2002*                                                                            
  ---------------- --- ------------ ------------ -------------- ------------------ ---------

  --------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  **Gross                                                                                                             
  Domestic                                                                                                           
  Product, at                                                                                                        
  Current Market                                                                                                     
  Prices**                                                                                                           

  *(Millions                                                                                                          
  dollars)*                                                                                                          

  **GDP**         **1980**   **1985**   **1990**   **1995**   **1996**   **1997**   **1998**   **1999**   **2000**   **2001**

  **Total**       705        1 485.3    1 076.3    1 835.1    1 919.9    1 968.4    2 068.2    2 212.5    2 429.9    2 551.5

  **Per Capita**  241.6      436.8      281.5      414.6      421.8      420.7      430.2      448.1      479.1      489.9

  *The series is                                                                                                      
  based directly                                                                                                     
  on information                                                                                                     
  provided by the                                                                                                    
  Central Bank of                                                                                                    
  Nicaragua,                                                                                                         
  National                                                                                                           
  Accounts                                                                                                           
  Departament.*                                                                                                      

  *Source:                                                                                                            
  Cepal - Anuario                                                                                                    
  Estadistico                                                                                                        
  2002*                                                                                                              
  --------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

  ---------------- ----------- ----------- ---------- ---------- ---------- ----------
  **Economically                           * *        * *        * *        * *
  Active                                                                    
  Population**                                                              

  *(Thousands                                                               * *
  persons)*                                                                 

  **1980**         **1985**    **1990**    **1995**   **2000**   **2005**   **2010**

  937              1 147       1 329       1 590      1 901      2 280      2 706

  *Refers to                                                                * *
  population aged                                                           
  10 and over.*                                                             

  *Source: Cepal -                                                           
  Anuario                                                                   
  Estadistico                                                               
  2002*                                                                     
  ---------------- ----------- ----------- ---------- ---------- ---------- ----------

II\. GDP & GNP

  ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  **Gross                                                                                                                                 
  Domestic                                                                                                                               
  Product, at                                                                                                                            
  Constant                                                                                                                               
  Market                                                                                                                                 
  Prices**                                                                                                                               

  *(Millions of                                                                                                                           
  dollars, at                                                                                                                            
  constant                                                                                                                               
  prices)*                                                                                                                               

  **GDP**       **At                             **At                                                                                    
                constant                         constant                                                                                
                1990                             1995                                                                                    
                prices**                         prices**                                                                                

                **1980**   **1985**   **1990**   **1990**   **1994**   **1995**   **1996**   **1997**   **1998**   **1999**   **2000**   **2001**

  **Total**     2 478.8    2 551.0    2 137.5    1 737.1    1 806.8    1 887.0    1 982.4    2 090.3    2 176.9    2 338.0    2 487.9    2 562.5

  **Per         848.6      749.5      558.5      454.3      420.2      426.3      435.5      446.8      452.8      473.5      490.6      492
  Capita**                                                                                                                               

  *Source:                                                                                                                                
  Cepal -                                                                                                                                
  Anuario                                                                                                                                
  Estadistico                                                                                                                            
  2002*                                                                                                                                  
  ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

  --------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------------- --------------- ----
  **Gross                                                                                                                                                                              
  Domestic                                                                                                                                                                            
  Product, Growth                                                                                                                                                                     
  Rates**                                                                                                                                                                             

  *(Percentages                                                                                                                                                                        
  based on values                                                                                                                                                                     
  at 1995                                                                                                                                                                             
  prices)*                                                                                                                                                                            

  **GDP**         **Annual                                                                                                                            **Average                       
                  Growth                                                                                                                              Annual Rate**                   
                  Rate**                                                                                                                                                              

                  **1991**   **1992**   **1993**   **1994**   **1995**   **1996**   **1997**   **1998**   **1999**   **2000**   **2001**   **2002**   **1991-1995**   **1996-2000**   

  **Total**       -0.4       0.8        -0.4       4          4.4        5.1        5.4        4.1        7.4        6.4        3          0.5        1.7             5.7             

  **Per Capita**  -3.1       -2.1       -3.3       0.9        1.5        2.2        2.6        1.4        4.6        3.6        0.3        -2.1       -1.3            2.8             

  *Source: ECLAC,                                                                                                                                                                     
  on the basis of                                                                                                                                                                     
  official                                                                                                                                                                            
  figures                                                                                                                                                                             
  converted into                                                                                                                                                                      
  dollars at                                                                                                                                                                          
  constant 1995                                                                                                                                                                       
  prices.*                                                                                                                                                                            

  *2002:                                                                                                                                                                              
  Preliminary                                                                                                                                                                         
  estimates.*                                                                                                                                                                         
  --------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- --------------- --------------- ----

[^1]: Includes expenses on transport, dress and footwear, goods and
    services for the personal care, equipment of the home, and transfers
    to other homes.

[^2]: The 7^th^ locale of La Colonia is expected to open late 2003.

[^3]: Distribuidora San Sebastian is a distribuitor, but acts like a
    supermarket, selling to individual customers.

[^4]: Any full-line, self-service grocery store with an annual sales of
    \$2 million or more.

[^5]: The second outlet of La Familiar is expected to open late 2003.

[^6]: Does not include: potatoes, beans, sweet corn, peas, asparagus, or
    olives.

[^7]: Does not include: ketchup, soy sauce, or mustard.

[^8]: Corn flour, tortilla flour, others, emulsificantes

[^9]: Does not include: ketchup, soy sauce, or mustard.