The food industry in Central America remains active with the development of large investments that promise to generate significant changes in a sector that is adopting technology and seeking to trigger more efficiencies, key strategies to gain more space in the shopping carts of increasingly demanding consumers and become the kings of Central American plates.

The protagonists in the food industry in Central America moved their pieces in 2024 and are preparing for a market reconfiguration in 2025. Expansions, new investments, and incursions have characterized the development of this dynamic sector.

These strategies are reflected in the investment plans of large companies in the sector, such as Bimbo, Nestlé, Corporación Multi Inversiones, Cargill, Vitali Alimentos, and Castillo Hermanos, which take advantage of the potential of serving an integrated regional market with a diverse commercial proposal that seeks to conquer more tables and plates.

The investments underway range from increasing the geographical footprint and developing new products to installing new production plants, as in the case of the Mexican company Bimbo (the world’s largest bakery group), which is investing US$200 million in the construction of a new factory in El Salvador (which is expected to be operational in the second half of 2025) and with which it plans to meet the growing demand for its products in the food industry in Central America.

However, investments are not limited to an increase in capacity per se. They also include improvements in efficiencies and technology. The Swiss multinational Nestlé inaugurated its Data Analysis and Artificial Intelligence Center (CADIA) in February, a technological complex in zone 12 of Guatemala City, where the company invested US$5 million and which promises to create synergies between data analysis and commercial management through the use of AI and machine learning to optimize sales, marketing, and service processes.

“CADIA represents a qualitative leap in how we utilize technology to enhance our impact on the industry and people’s lives,” said Patricio Astolfi, General Director of Nestlé Guatemala.

Meanwhile, at the start of the year, the Guatemalan company Castillo Hermanos inaugurated the expansion of its La Italiana ice cream production plant in Panama, in the town of Pacora, as part of reinforcing its broad product portfolio in the indulgence segment and its growth strategy in that market.

NEW TRENDS

Juan Pablo Mancilla, executive director of the Food and Beverage Guild (GREMAB) attached to the Chamber of Industry of Guatemala, explains that the regional panorama is marked by a growth pattern driven by a market evolution enhanced by the adoption of new consumer trends.

“Regional consumption shows a trend of openness to a diversity of lifestyles, driven by various factors such as age, habits, socioeconomic levels, and culture, among others,” said Mancilla, who believes this has generated a demand for varied products aligned with emerging consumer preferences.

In recent years, companies in the food industry in Central America have taken a step forward in developing innovative products that cater to a new consumer eager for modern and practical solutions, benefiting partly from the opening of supply in other latitudes.

This is evident in developing proposals, such as the Guatemalan company Vitali Alimentos, which launched the SOMOS brand last year, aiming to consolidate itself as a leading player in the food service market.

In November 2024, Andrés Barrios, the company’s business manager, emphasized that the company’s objective with this development is not only to offer protein-based products but also to provide all the foods that comprise a dish, from side dishes to sauces.

Mancilla of GREMAB emphasizes that, in general, the food industry in Central America exhibits greater sophistication. The regional and extra-regional supply has evolved with greater diversification and innovation, adapting products to meet the different needs of the market. This has enabled it to enhance the consumer experience, facilitating its integration into various lifestyles.

MORE CONSCIOUS CONSUMERS

Rafael Murillo, senior manager of Strategy and Transactions at EY Central America, Panama, and the Dominican Republic, explains that one of the most marked trends in the region is the intention to adopt healthier lifestyles. This leads to a greater demand for fresh, high-nutrient-value, and even organic foods, which are gaining prominence in the portfolios of companies in the sector.

The specialist notes that, in parallel, consumers are concerned about making “more conscious” price selections and managing their household budgets, a trend that balances business bets.

“In summary, it is the search for a good quality-price ratio. Although each market in Central America and outside the region has its particularities, these trends are highly generalized globally,” says the EY specialist.

Xavier Vargas, CEO of Cargill Food Latin America, offers insights into this search for efficiency. They have recently expressed that they are advancing in consolidating their units, a strategy to increase their presence and business with the final consumer across a large region, from Mexico to Brazil. Central America stands out as a region that provides high returns.

The company’s objective is to consolidate its Central American operation (where its businesses in Honduras, Nicaragua, and Costa Rica stand out) but with a commitment to the development of the Guatemalan and El Salvadoran markets, where they are already considering the development of new investments, options that include the possibility of acquiring companies in the food industry in Central America or building their units from scratch.

IN SEARCH OF MORE EFFICIENCIES

Murillo believes that the business environment is key. Among the primary challenges facing the food industry in Central America are cost volatility and deficiencies in regional infrastructure, which sometimes limit performance in production processes and the supply chain.

However, he values that this is compensated— in part —by a vision of scale, something that, while generating opportunities, also represents challenges. “The size of individual markets in Central American countries introduces an additional complexity, as it requires addressing multiple factors for each of them while simultaneously achieving a reasonable scale at the regional level,” says the analyst.

He adds that other emerging factors also pose challenges, highlighting global geopolitical dynamics that introduce uncertainty.

At the start of the year, the Trump administration’s tariff policy generated concerns about its impact on productive activities, which could affect food manufacturing.

However, Murillo maintains that, in the sum of factors, the region continues to be full of opportunities, as there are countries and regions with untapped potential that can benefit from the arrival of foreign investment and the expansion in dynamic sectors such as technology and financial services.

“One of the main opportunities in our region is to exploit adaptive innovation, with products that offer alternatives to traditional consumption such as fortified or nutritionally beneficial products, the implementation of sustainable or more economical packaging, ‘sachetization’—with economical versions of premium products or smaller presentations—and the use of waste or automation,” he reiterates.

MULTILATINAS IN EXPANSION

The incursion of the Guatemalan company CMI into the US market in 2024 was one of Central America’s most ambitious business moves, but it is not entirely a surprise.

The company announced in November an agreement to acquire a majority stake in Del Real Foods, which gives it control of a leading Hispanic food brand. In addition, in February of this year, it celebrated the opening of the 122nd restaurant of its Pollo Campero chain in New York, USA.

Murillo, of EY, maintains that both CMI’s move in the United States and Bimbo’s case in El Salvador are clear examples of the dynamism characteristic of the food industry in Central America in recent years, as well as how multilatina companies continue to expand rapidly.

Argentina’s improving economic data continues to surprise, with its growth forecast revised upward to 5.7% for 2025, while the global trend is moving in the opposite direction. The Argentine economic stabilization program has focused on a tough fiscal adjustment, which penalizes specific sectors such as retirees and industry, and a currency control policy that generates distrust among foreign investors. Several analysts question whether these positive figures can be sustained in the long run.

Argentina appears determined to leave its recession behind, as confirmed by the latest economic outlook report from the Organization for Economic Cooperation and Development (OECD), which raised its growth forecast to 5.7%. Meanwhile, the global trend saw a downward revision due to geopolitical uncertainty and trade tensions.

The shift in Argentina’s forecast is significant: for 2024, the figure was -1.8 %, and if the 5.7% growth for 2025 is confirmed, it would be the second strongest among G20 nations, behind only India, which expects a 6.4% expansion.

Additionally, the country has been experiencing a reduction in inflation. In 2024, inflation reached 118% annually, a decrease of 44% from the previous year. For 2025, OECD projections suggest inflation could settle around 28%. This is a direct result of the Argentine economic stabilization program, which has prioritized strict fiscal policies to curb inflationary pressures.

A Rapid Stabilization Plan

President Javier Milei appears to be achieving the monumental goal of reducing Argentina’s inflation through a strict fiscal adjustment combined with a quasi-fixed exchange rate policy, as explained by economist Gerardo Della Paolera, Executive Director of the Bunge and Born Foundation.

“President Milei has done a very rapid adjustment—one of the fastest known stabilization plans—and it has been successful. Consumption levels have recovered, and inflation has decreased by 25%. We have a monthly inflation rate of around 2%,” Della Paolera explains, though he notes that many questions remain regarding the Central Bank and monetary reform.

Progress has been made, but reducing inflation alone is insufficient for an effective economic recovery plan. Milei himself warned of this in his inaugural speech as president:

“There is no money. We know that in the short term, the situation will worsen, but later, we will see the fruits of our efforts.”

From the beginning of his administration, he made it clear that he would implement budget cuts—symbolized by his chainsaw in hand.

The fiscal adjustment plan has included devaluing the Argentine peso, budget cuts in nearly all sectors, layoffs of public employees, suspension of public works projects, and reductions in subsidies. These policies are central to the Argentine economic stabilization program, which aims to achieve long-term financial discipline. However, this raises the question of whether the program is truly effective.

Economist Della Paolera argues that it produces results, though with some caveats. “Moving toward fiscal balance has worked. What remains to be seen is how the state reform will be implemented, as public investment needs to recover,” he said, emphasizing Argentina’s infrastructure needs. “It is more expensive to transport exportable products from northern Argentina to other Argentine ports than to the Liverpool market. The country severely lacks infrastructure, which is also essential for economic growth,” he added.

“Not All Sectors Suffer Equally”

Della Paolera also highlighted the need for pension and social security reform, as Argentina’s retirees have borne the brunt of Milei’s fiscal adjustment. According to data from the Argentine Institute of Fiscal Analysis, pension spending accounted for 19% of total budget cuts. This has led retirees to protest every Wednesday since mid-2024, as they have lost purchasing power and have faced changes to the rules governing access to free medication.

According to Della Paolera, several sectors have been affected, but not all to the same extent. “President Milei has been very skillful in increasing what is known as the universal child allowance, which benefits the most disadvantaged sectors. He raised it by 300%, alleviating the situation for those in greatest need. However, the industrial and private sectors operate on very thin profit margins and are under immense pressure. Because with the current exchange rate regime, where the dollar is appreciating much slower than inflation in pesos, businesses are somewhat strangled by this real exchange rate lag,” he analyzed.

For Della Paolera, it is crucial to stimulate investment, which has stagnated due to investor uncertainty regarding the future of exchange rate regulations, which remain unclear. This is one of the significant unresolved aspects of the Argentine economic stabilization program, as investors require greater clarity on currency policies before committing to large-scale projects.

Currency Controls: Key to Reducing Inflation, but Not to Economic Growth

In Argentina, the term “cepo cambiario” colloquially refers to restrictions on the purchase of U.S. dollars. Milei’s administration implemented these restrictions. For analysts like Della Paolera, this temporary fix helps control inflation but does not necessarily drive growth.

With these restrictions, the Central Bank has been unable to rebuild its reserves. This exchange rate policy, which adjusts at a rate below inflation, ensures a steady decline in inflation every month. However, the key question is whether this is sustainable. “Generally, you remove exchange controls in favorable economic conditions when there is confidence. If we enter turbulent times, lifting the restrictions will become increasingly difficult,” Della Paolera said. He noted that once these controls are lifted, their impact on different sectors and the sustainability of economic growth will become evident.

Economist Carlos Quenan, Vice President of the Institute of the Americas in France, shares this view. “In principle, a libertarian government like Milei’s should not rely on such controls, as they are a form of government intervention,” Quenan noted, referring to tensions between exporters and importers.

“Exporters, despite having a special regime that allows them to settle part of their sales at a parallel exchange rate, would prefer full exchange rate liberalization. On the other hand, importers face tensions because the government is also pursuing trade liberalization alongside an overvalued exchange rate that favors imports. This creates the worst possible scenario: trade liberalization coupled with an overvalued peso that benefits imports but puts domestic producers at a disadvantage,” he added.

Both economists acknowledge the progress of Milei’s fiscal adjustment plan, but they are unsure whether such stringent austerity measures are sustainable in the long run. While the Argentine economic stabilization program has successfully lowered inflation, the long-term outlook depends on balancing fiscal responsibility and investment-friendly policies.

How Long Will Social Tolerance Last?

Quenan acknowledges that some sectors of the economy have been severely impacted but also highlights the remarkable level of social tolerance for Milei’s Argentine economic stabilization program. “The government firmly believes that controlling inflation is a highly valued goal. And while social costs vary across different sectors, inflation control will likely secure strong electoral results in the midterm elections this October,” he explained.

There is a sense of anticipation in Argentina. Economic growth is expected this year, and inflation will likely continue declining. However, as analysts point out, many questions remain unanswered. Issues such as the independence of the Central Bank, the exchange rate system, investment regulations across various sectors, the savings system, and the trust required to attract foreign investment all require further clarification. Most importantly, the future of the Argentine economic stabilization program remains uncertain, as many argue it cannot last indefinitely.

The Argentine president appears to be succeeding in the first phase of his stabilization plan. Still, the true test lies ahead—developing a long-term economic strategy that ensures sustained improvement for all sectors of the country.

The Regional Government of Valparaíso and InvestChile, the Foreign Investment Promotion Agency, have taken a significant step toward attracting foreign investment to Valparaíso by signing a Collaboration Agreement. This milestone agreement aims to strengthen the region’s investment appeal, foster economic growth, and establish Valparaíso as a hub for innovation, logistics, and sustainable development.

Strengthening Investment Opportunities in Valparaíso

This agreement will consolidate joint efforts to promote new investment opportunities, create favorable conditions for business development, and enhance the region’s long-term economic sustainability. The Regional Governor of Valparaíso, Rodrigo Mundaca, emphasized the importance of this collaboration, noting that the government has worked closely with InvestChile for the past year to ensure that foreign investment aligns with the region’s most pressing needs.

“Attracting foreign investment to Valparaíso plays a vital role in the region’s economic strategy. It is highly relevant that our investment attraction efforts focus on key areas such as logistics, renewable energy, and innovation,” Mundaca stated.

Why Valparaíso? A Prime Destination for Investors

Valparaíso boasts characteristics that make it an attractive destination for foreign investors. The region has a diversified economic structure encompassing mining, agriculture, tourism, port operations, culture, and higher education. By signing this agreement, the Regional Government and InvestChile aim to maximize investment potential, strengthen territorial capabilities, and enhance the region’s economic landscape.

The ultimate objective is contributing to residents’ well-being while positioning the region as a science, technology, logistics, and creativity leader.

Addressing Regional Challenges with Strategic Investments

Governor Mundaca highlighted the region’s economic significance: “Today, the Valparaíso Region is the most important in the country, as it hosts the nation’s key ports.” The region faces challenges related to electromobility, a critical issue on both a regional and national scale.

“Ports and electromobility are crucial challenges, as is investing in a growth economy centered on science, technology, knowledge, and innovation. These factors define how we add value to the raw materials extracted here and contribute to a sustainable, environmentally friendly, and socially responsible economic development model,” Mundaca added.

Building a Dynamic and Sustainable Economic Ecosystem

The agreement will also enhance regional governance, facilitating the transition to an economic landscape that fosters a more dynamic, innovative, and inclusive economy. Attracting foreign investment to Valparaíso is about bringing in capital and building partnerships that generate long-term benefits for the region’s businesses, workforce, and communities.

InvestChile’s Commitment to Regional Development

Karla Flores, National Director of InvestChile, expressed her gratitude to the Regional Government and Governor Mundaca, acknowledging the trust in this partnership. She emphasized, “This agreement enables InvestChile to provide all its capabilities to the Regional Government, actively seeking and supporting international investment projects that align with the region’s strategic priorities.”

InvestChile is key in identifying investment opportunities and connecting international companies with regional development strategies. “At the national level, our Ministerial Committee sets priorities regarding which projects to pursue and the types of companies needed to support sectoral development strategies. However, we recognize that each region has unique needs. Our goal is to identify the investments the Regional Government prioritizes and support the region in building the necessary capacities to attract and sustain these investments,” Flores explained.

A Coordinated Approach to Investment Success

InvestChile and the Regional Government are committed to a collaborative approach in attracting foreign investment to Valparaíso. This partnership requires coordinated efforts from regional authorities, local stakeholders, and international investors to ensure a seamless investment process.

“This is a relay race: we can identify potential investors, but it requires a joint effort to facilitate their entry, support their business case development, and ultimately convince them that Valparaíso is the best place to establish operations. Beyond that, we must assist them in successfully implementing their projects to create real economic impact,” Flores added.

Key Objectives of the Collaboration Agreement

The main objectives of this agreement include:

• Facilitating Foreign Investment: Promoting strategic sectors, including infrastructure, logistics, creative industries, and renewable energy.
• Enhancing Regional Development Strategies: Strengthening the region’s productive potential and generating employment opportunities.
• Encouraging Technical Cooperation: Supporting knowledge transfer, research, and development initiatives.
• Providing Technical Assistance: Sharing key economic and market insights to support investment decisions.
• Creating Synergies: Building strong connections between local and international stakeholders to maximize the benefits of foreign public-private investment.
• Promoting Sustainability: Ensuring investment projects align with environmentally friendly and socially responsible business practices.

A Vision for the Future

This partnership marks a transformative step in attracting foreign investment to Valparaíso. By leveraging the strengths of both the Regional Government and InvestChile, the agreement paves the way for a more resilient and dynamic regional economy.

With a strong commitment to sustainability, innovation, and economic inclusivity, Valparaíso is positioning itself as a premier destination for international investors. As the region embarks on this new phase of development, strategic investment efforts will play a pivotal role in shaping its future prosperity and global competitiveness.

China has criticized the agreement between Hong Kong-based company CK Hutchison and the American firm BlackRock regarding the sale of the Balboa and Cristobal ports at both ends of the Panama Canal, alleging that Washington’s involvement constitutes coercion. The battle for the Panama Canal ports has intensified as the U.S. and China engage in a dispute over these critical assets in the context of CK Hutchison’s agreement to sell them to BlackRock. This development aligns with President Donald Trump’s ambitions to take control of the crucial maritime passage.

At the beginning of March, CK Hutchison announced that it had agreed with a North American investment firm to sell the Balboa and Cristobal ports at both ends of the Panama Canal and 41 other ports in 23 countries. The deal, which has yet to be signed, is valued at $23 billion. However, after its announcement, Chinese authorities criticized the port sale, accusing Washington of intimidating the Hong Kong-based firm, as the South China Morning Post reported. The battle for the Panama Canal ports is unfolding in an environment of rising geopolitical tensions, with Beijing perceiving the deal as a strategic maneuver by Washington to curtail its global trade influence.

The agreement is currently at the “agreement-in-principle” stage, allowing 145 days to finalize the purchase terms. During this time, CK Hutchison’s shareholders and the Panamanian government must approve the transaction.

What Changes Will the Agreement Bring?

According to China Daily, Hutchison Port Group is one of the world’s largest port companies, owning 43 container ports with 199 berths in 23 countries, including two Panamanian ports in which it holds a 90% stake. In this context, the sale of an 80% stake in Hutchison Port Group could give BlackRock control over 10.4% of global container traffic, making it the third-largest port operator in the world.

Such an agreement would significantly impact logistics costs and supply chains for China, which remains the largest trading partner for more than 120 countries. Passage through the Panama Canal could become more difficult for Chinese ships if ports on both sides were to come under the control of an American company. The battle for the Panama Canal ports reflects broader economic and political struggles, as China views this potential shift in power as a direct threat to its trade routes and global supply chain stability.

Additionally, the deal would strengthen Trump’s “America First” strategy and allow Washington to exert more significant influence in the Asia-Pacific region, according to Andrew KP Leung, an international strategist and former Hong Kong official. The acquisition of such an extensive port portfolio could also help the U.S. compete with China in container shipping and global trade, particularly when combined with the imposition of new tariffs.

How Can China Undermine the Agreement?

Beijing has time to prevent the deal if the final contract remains unsigned. Experts believe that since the agreement does not involve ports in China, its authorities cannot directly regulate its implementation.

Regina Ip Lau Suk-Yee, chairwoman of Hong Kong’s Executive Council—a key decision-making body—stated that it would be difficult for mainland and local authorities to intervene in the deal. She noted that it is an “excellent deal” for the company, adding, “If CK Hutchison is to be blamed for anything, it is for not considering national interests and the national reaction before closing the deal.” She further argued that the authorities should protect the company from U.S. pressure.

Nevertheless, Beijing has several tools at its disposal to derail the pact. According to Reuters, it could invoke antitrust laws and interfere in the transaction if it deems the deal would eliminate or restrict competition in the Chinese domestic market. The battle for the Panama Canal ports is thus likely to extend beyond diplomatic criticism to legal and regulatory measures that China could use to block or complicate the sale.

Another tool is the Foreign Investment Security Review Measures, adopted in 2021, which enables the examination of a deal to determine whether it poses a national security risk. Under this law, Chinese authorities “may have the authority to review transactions between foreign companies if the subject of the transaction is an entity related to China.” Felix Ng, a partner at the law firm Haldanes, noted that this is particularly relevant in the case of CK Hutchison, which has facilities and representative offices in China.

The 2020 National Security Law could also scrutinize the agreement, which penalizes collusion with foreign forces and subversion against the Chinese government. Simon Young, a professor at the University of Hong Kong’s Faculty of Law, noted that for this law to be applied, authorities must demonstrate that the port agreement endangers national security, violates Chinese laws or policies, and would have severe consequences. The deal could be annulled if violations are discovered, and the government could seize the company’s assets.

Pressure from the U.S.

Additionally, Beijing could attempt to nullify the agreement by demonstrating that CK Hutchison was pressured into finalizing it. According to Dominic Wai Siu-Chung, a lawyer specializing in commercial litigation, the coercion argument could also be used by the party that signs the agreement itself. The battle for the Panama Canal ports highlights the escalating tensions between Washington and Beijing, as each side employs economic, legal, and diplomatic strategies to gain control over one of the world’s most vital shipping lanes.

The possibility of using this tool to influence the deal is also reflected in the words of Chinese Foreign Ministry spokesperson Mao Ning, who stated that Beijing firmly opposes “economic coercion, hegemonism, and intimidation,” referring to the Trump Administration’s pressure on the Hong Kong-based company. Reports indicate that China has already launched an investigation into the port sale.www.youtube.com/watch?v=JWdrCmuAYL0