CENTRAL AMERICA:

YOUR NEAREST PRODUCTION SITE TO BOTH NORTH AMERICA AND EUROPE!

Edwin Smit 15th of October 2008 Director Ideas Amsterdam

‘Ease of Doing Business’ Indicator

2007 2008 2009

El Salvador 72 71 72

Panama 64 65 81

Nicaragua 87 93 107

Guatemala 115 114 112

Costa Rica 117 115 117

Honduras 126 121 133

17 key aspects

Score: (1) weak (2) regular (3) good (4) excellent

CR ES GT HN NI PN1. Political aspects 3 3 2 3 1 3

2. Social aspects 3 2 2 2 2 3

3. Security 2 1 1 1 3 3

4. Economic aspects 3 3 3 3 2 3

5. Fiscal aspects 3 2 3 3 3 3

6. Finance 2 3 2 2 2 3

7. Infrastructure (local) 2 3 3 2 2 3

8. Infrastructure (export) 3 2 3 3 1 2

9. Communication 2 4 3 2 3 3

10. Free Trade Agreements 2 3 3 3 3 3

11. Climate and natural resources 3 3 4 3 3 3

12. Agr. Sector Organizations 3 3 3 2 3 2

13. Fitosanitary Service 2 3 3 3 3 2

14. Agricultural supplies 3 2 3 3 2 2

15. Unqualified Labour 1 3 3 3 4 2

16. Management 4 2 3 3 2 2

17. Subsidies 1 3 2 2 3 2

Business Ideavelopment Chart

16,6%0% 100%

Weak

Strong

Introduction

Growth

Maturity

Bu

sin

es

s C

om

pe

titi

ve

ne

ss

Market share per country of total Central American exports (2006)

Decline

Business Oportunities – target groups

16,6%0% 100%

WEAK

STRONG

Bu

sin

ess

com

pet

itiv

enes

s

Market share per country of total Central American exports (2006)

Investors: green

Importers: yellow

Exporters: blue

16,6%0% 100%

WEAK

STRONG

Bu

sin

ess

com

pet

itiv

enes

s

Market share per country of total Central American exports (2006)

BIC – Costa Rica

16,6%0% 100%

WEAK

STRONG

Introduction

Growth

Decline

MelonWatermelon

Banana

Young plants

Pre-finished pot plants

Foliage

Cut flowers

Pineapple

MaturityMango

Bu

sin

es

s c

om

pe

titi

ve

ne

ss

Vegetables(others)

Vegetables(to/cu/pe/eg)*)

Processed fruits & vegs

Market share COSTA RICA of totalCentral American exports (2006)

BIC – El Salvador

16,6%0% 100%

Market share EL SALVADOR of total Central American exports (2006)

Introduction

Growth

Decline

Maturity

Melon

Watermelon

Young plants

Pre-finished pot plants

Foliage

Cut flowers

Pineapple

Banana

Processed fruits & veget

WEAK

STRONGB

us

ine

ss

co

mp

eti

tiv

en

es

s

Mango

Vegetables(other)

Vegetables(to/cu/pe/eg)*

BIC - Guatemala

16,6%0% 100%

Market share GUATEMALA of totalCentral American exports (2006)

Bu

sin

es

s c

om

pe

titi

ve

ne

ss

WEAK

STRONG

Introduction

Growth

Decline

Maturity

Mango

MelonWatermelon

Banana

Young plants

Pre-finished pot plants

Foliage

Cut flowers

Pineapple

Vegetables(to/cu/pe/eg)*)

Vegetables (others)

Processed fruits & veget

BIC - Honduras

16,6%0% 100%

Market share HONDURAS of total Central American exports (2006)

Bu

sin

es

s c

om

pe

titi

ve

ne

ss

WEAK

STRONG

Introduction

Growth

Decline

Maturity

Cut flowers

Pineapple

MelonWatermelon

Banana

Young plants

Pre-finished pot plants

Foliage

Mango

Vegetables(other)

Vegetables(to/cu/pe/eg)*)

Processed fruits & veget

BIC - Nicaragua

16,6%0% 100%

Market share NICARAGUA of total Central American exports (2006)

Bu

sin

es

s c

om

pe

titi

ve

ne

ss

WEAK

STRONG

Introduction

Growth

Decline

Maturity

Cut flowers

Melon

Watermelon

Banana

Foliage

Young plants

Finished pot plants

Mango

Processed fruits & veget

Vegetables(other)

Vegetables(to/cu/pe/eg)*)

Pineapple

BIC - Panama

16,6%0% 100%

Market share PANAMA of total Central American exports (2006)

Bu

sin

es

s c

om

pe

titi

ve

ne

ss

WEAK

STRONG

Introduction

Growth

Decline

Maturity

Cut flowers

Pineapple

Mango

Melon

Foliage

Young plants

Finished pot plants

Watermelon

Banana

Processed fruits & veget

Vegetables(other)

Vegetables(to/cu/pe/eg)*

BIC – Central America

16,6%0% 100%

weak

strong

Introduction

Growth

Decline

Maturity

El Salvador

NicaraguaCosta Rica

Panama

Honduras

Guatemala

Bu

sin

es

s c

om

pe

titi

ve

ne

ss

Market share per country of total Central American exports (2006)

Conclusions

Strategic Allies

• Knowledge on a production level• Knowledge on a marketing - sales level• Finance• Access to high-tec supplies and services

-> Need for omnipotent strategic allies!

Central America!

• Huge geografic potential• The region ‘does not sell itself as a region’

Therefore: little interest from foreign companies for Central America (countries are too small to justify active export policies)

Upcoming Events

March 2009Agricultural Trade Mission Guatemala – Costa Rica

- Status: Confirmed !- To be organized by Magnifiq and Ideavelop- Focus at the ornamental sector- A visit to and a matchmaking program during the Agritrade- Minimum of 12 Dutch participants

September 2009Agricultural Trade Mission

Nicaragua – Honduras - Guatemala

-Status: still to be approved by the EVD-To be combined with a mission of Dutch mayors to Nicaragua-To be organized by LEI, Magnifiq and Ideavelop-Fruits and Vegetables-Minimum of 15 Dutch participants

October 2009Central American participation to Hortifair 2009

- Status: still to be approved - Focus on the region, not on individual countries- Importance of having exchange of events; not only Dutch events in Central America- Great political importance (unification of Central America)- To be organized by Magnifiq, Ideavelop and the 6 Central American countries- Sectors: Fruits, Vegetables and Ornamentals

March 2010Business Meetings Guatemala and Costa Rica

- Status: Confirmed !- Focus on the region, not on individual countries- Importance of having exchange of events; not only Dutch events in Central America- To be organized by Magnifiq, Ideavelop and the 6 Central American countries-Fruits, Vegetables and Ornamentals-Minimum of 20 Dutch participants

All presentations of this seminar can be found on:

www.ideavelop.biz/events.html

Thank you very much and see you in Central America!