Guatemala agricultural sector faces 5% sales drop due to drought

Guatemala's agricultural sector faces a significant downturn due to drought conditions and the El Niño phenomenon. The Cámara del Agro estimates that sector sales could drop by approximately 5% during 2026. A survey of producers indicates that 70% expect a production decrease of at least 10%, while nearly 40% anticipate a decline exceeding 25%.

These climate challenges are compounded by rising production costs. Since January, diesel prices have increased by roughly 77%, and nitrogenous fertilizers have seen significant price volatility, with sulfur rising by 261% year-on-year. Producers are also facing higher expenses for irrigation, energy, and animal feed to mitigate the lack of rainfall.

The scarcity of rain has already led to crop losses, potentially impacting 51,000 households. There are growing concerns regarding food security and the risk of a food crisis in the coming year, exacerbated by global price increases for commodities like wheat and soy following the conflict in Ukraine.