Guatemala - AgricultureGuatemala - Agriculture

Overview
Processed foods make up an important economic sector in Guatemala and are identified as the Food and Beverage category within the Manufacturing Industry.  13 different industries make up this category:

Meats and meat products,
Fish and fishery products,
Fruits, legumes and horticultural products,
Oils and fats or animal and vegetable origin,
Wheat and bakery products,
Sugar, sweeteners, beverage preparations,
Pasta and processed cereals,
Other food preparations,
Alcoholic beverages,
Pet foods and preparations for animal feed,
Tobacco products (Although this is not considered as a food and beverage product within the International product classifications, Guatemala does consider it as part of this category).

The United States is Guatemala’s largest supplier of agricultural, food, fishery and forestry products. In 2018, exports totaled $1.2 billion.  U.S. exports of consumer ready products such as red meats, chicken, dairy products, fresh fruits, condiments, sauces, food preparations, and processed products such as baking materials are often used to improve the quality of the processed goods produced in Guatemala.  Some processors use domestic inputs in processing, but consistent supplies are not available domestically and processors rely on the U.S. to supply these goods.

Guatemala is one of the major food processing countries in Central America.  Domestic brands offer a wide variety of products that
include shelf-stable, ready-to-eat meals such as canned and refried beans, tomato paste and sauce, soy-based ready meals, and instant noodle soups, among other products.   These products are available to consumers not only in local supermarkets, but also at corner stores, and open-air-markets throughout the country. 

The Guatemalan food processing industry exports to other countries as well, and is one of the fastest growing sectors of the food industry.  Approximately 25 percent of the food and beverage companies in Guatemala are large processors, 50 percent are medium-sized companies, and the rest are small processing companies.

U.S. food ingredient producers that want to enter the Guatemalan market may contact the local food processors directly or through local importers/agents/distributors depending on the type of product.  The larger food processors usually prefer to import directly from the suppliers, while medium and smaller processors are sometimes not familiar with importing procedures and prefer a local distributor supply their inputs.  The key to success in the market is to match local prices with higher quality inputs as Guatemala is a price-conscious market.  U.S. products are well known for their quality and safety; therefore, local food processors are looking for U.S. companies that can supply products that comply with these two important factors.  Local companies prefer to establish long-term business relationships with U.S. suppliers that can offer good credit terms, customer service, and marketing support.

This section should give a basic, broad overview of the sector.
 

(total market size = (total local production + imports) - exports)
Units: $ thousands
Source: Global Trade Atlas (http://www.gtis.com);  and Bank of Guatemala (http://www.banguat.gob.gt)

Leading Sub-Sectors
-               Chocolate and Confectionary
-               Condiments and Sauces
-               Food preparations (protein concentrates, ingredients & beverage bases, baking inputs)
-               Prepared/Preserved Meats
-               Processed vegetables (French fries, canned vegetables)
-               Dairy products (cheeses, whey protein, cream & powdered/condensed milk)
-               Snacks (mixes of nuts, baked snack foods)