Wheat and meslin flour and cereals market in El Salvador

Earlier Report Observations

The market for wheat and meslin flour and cereals in El Salvador showed considerable volatility from 2018 to 2023. After rising to 261.0 thousand tons in 2019, domestic consumption fell sharply to 185.9 thousand tons in 2020 before partially recovering. This movement occurred within a highly concentrated market dominated by a few firms like Molsa and Harisa, which held significant pricing power. International prices for Hard Red Winter wheat, a key input, consistently influenced local market conditions throughout the period.

A notable regulatory development was the official price monitoring of wheat flour initiated by the Superintendencia de Competencia in 2019 to oversee potential anti-competitive practices. The market contraction in 2020 was followed by a rebound, though activity remained subdued. In 2022, the Ministry of Agriculture and Livestock reported little commercial activity in the basic grains market, which contributed to a slight dip in volume that year.

The market structure remained stable with no entry of new major players or launches or closures of large production facilities reported during these years. The persistent influence of global wheat prices and the concentrated supply base were enduring features shaping the market's dynamics.

Production wheat and meslin flour and cereals in El Salvador

In kind, 2018-2021, K t

Top producers of wheat and meslin flour and cereals, 2018-2021

World map of production of wheat and meslin flour and cereals, 2018-2021

In 2019, El Salvador produced 285.9 thousand tons of wheat and meslin flour and cereals, marking the highest output in recent years. However, production fell sharply by 27.7% in 2020 to 206.8 thousand tons, the lowest level recorded. By 2021, output rebounded significantly, reaching 246.2 thousand tons—a 19.0% increase compared to the previous year.

Annual dynamics of production in El Salvador in kind, 2018-2021, K t

In value, 2018-2021, M $ US

In 2019, the value of wheat and meslin flour and cereals production in El Salvador peaked at 122.2 million US dollars. The following year saw a substantial decline of 29.7%, with output dropping to 85.9 million US dollars, the lowest value in the period. By 2021, production rebounded strongly to 110.9 million US dollars, representing a dramatic 29.1% increase from 2020. Overall, from 2018 to 2021, production grew by 4.5%, equivalent to an annual growth rate of 1.5%.

Annual dynamics of production in El Salvador in value, 2018-2021, M $ US

Exports wheat and meslin flour and cereals from El Salvador

Exports in kind, t

In 2019, El Salvador's exports of wheat and meslin flour and cereals reached their highest level at 53 068 tons, following a modest 2.3% increase that year. However, exports plummeted by 26.3% in 2020 and continued to decline slightly by 1.9% in 2021, totaling 38 364 tons. Over the entire period from 2018 to 2021, exports decreased by 26.1%, which translates to an annualized decline of 9.6%.

Annual dynamics of product's exports from El Salvador in kind, 2018-2021, t

Between 2018 and 2021, Guatemala and Honduras together accounted for 99.0% of El Salvador's total exports of wheat and meslin flour and cereals in volume terms. Other countries contributed to a more diversified but less significant portion of the export market.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from El Salvador in kind, 2018-2021

Exports in value, K $ US

In 2019, the value of El Salvador's exports of wheat and meslin flour and cereals peaked at 22 676 thousand US dollars. The following year saw a sharp decline of 28.4%, with exports dropping to 16 237 thousand US dollars. By 2021, exports showed a modest recovery, reaching 17 278 thousand US dollars—a 6.4% increase compared to 2020. Overall, from 2018 to 2021, export value decreased by 23.6%, equivalent to an annualized decline of 8.6%.

Annual dynamics of product's exports from El Salvador in value, 2018-2021, K $ US

From 2018 to 2021, Guatemala and Honduras concentrated the majority of El Salvador's exports of wheat and meslin flour and cereals in value terms. Other markets formed a less significant part of the export landscape.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from El Salvador in value, 2018-2021

Imports wheat and meslin flour and cereals to El Salvador

Imports in kind, t

In 2019, El Salvador's imports of wheat and meslin flour and cereals reached their highest level at 28 197 tons, following a 13.8% increase that year. However, imports fell sharply by 35.6% in 2020 and continued to decline by 15.0% in 2021, totaling 15 444 tons. Over the period from 2018 to 2021, imports decreased by 37.7%, equivalent to an annualized decline of 14.6%.

Annual dynamics of product's imports to El Salvador in kind, 2018-2021, t

Between 2018 and 2021, Honduras dominated El Salvador's imports of wheat and meslin flour and cereals in volume terms, accounting for 77.8% of total flows. Other trading partners held relatively minor shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to El Salvador in kind, 2018-2021

Imports in value, K $ US

In 2019, the value of El Salvador's imports of wheat and meslin flour and cereals peaked at 11 960 thousand US dollars, after a 10.4% increase that year. The following year saw a significant decline of 33.3%, with imports dropping to a lower level. By 2021, imports stood at 7 534 thousand US dollars, showing a further decrease of 5.6% compared to 2020. Overall, from 2018 to 2021, import value fell by 30.5%, equivalent to an annualized decline of 11.4%.

Annual dynamics of product's imports to El Salvador in value, 2018-2021, K $ US

Throughout 2018 to 2021, Honduras clearly dominated El Salvador's imports of wheat and meslin flour and cereals in value terms, taking 78.3% of total flows. Other countries each held significantly smaller shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to El Salvador in value, 2018-2021