Food industry in El Salvador: challenges facing new health regulations

Picture of Lourdes Tisnado

Lourdes Tisnado

Firstly, it is important to note that the food industry in El Salvador is a key sector for economic development and the population’s well-being. However, this sector faces constant challenges due to health regulations that seek to guarantee food quality and safety. In August 2024, Legislative Decree No. 956 created the Superintendency of Health Regulation (SRS) to centralize and modernize the supervision of products for human and animal consumption.

The implementation of the SRS has brought about a series of changes in administrative processes that directly affect companies in the food sector. The restructuring of the entities responsible for regulation, changes in product registration and certification procedures, and the requirement for international standards have created new challenges for the industry. In this article, we will analyze these challenges and their impact on the operations of food companies in El Salvador, considering national legislation, technical regulations, and international commitments that affect the sector.

It is important to break down this issue into several points to understand it fully:

  1. Restructuring of administrative processes and their implications.

With the creation of the SRS, regulatory functions that were previously distributed among the Ministry of Health (MINSAL), the Ministry of Agriculture and Livestock (MAG), the National Drug Administration (DNM), and the Superior Council of Public Health (CSSP) were centralized in a single entity regulated by the Law Creating the Superintendency of Health Regulation. This reorganization involved changes in the administrative procedures that companies must comply with to obtain permits, health registrations, and quality certifications.

One of the most significant changes has been the modification of food product registration procedures, which were previously governed by fragmented guidelines, as each entity had its own approval system, which led to delays due to a lack of coordination between institutions. The National Integrated Health System Law (Legislative Decree No. 1031/2012) already established the need for coordination between institutions, but it was with the creation of the SRS that this centralization was achieved.

With the SRS, a unified product registration and licensing process has been implemented, which, while seeking to streamline approval, has also created uncertainty among companies due to the transition to a new bureaucratic system. Companies must now undergo stricter inspections and audits before a product can be marketed.

This means that food industries must adapt their production and documentation processes to the new regulatory requirements. Initial lack of clarity in the application of these standards has led to delays in product approval, affecting market availability and generating additional costs for producers.

  1. Food quality and safety standards requirements.

Another challenge facing the food industry is compliance with international quality and safety standards. The SRS has strengthened the implementation of regulations aligned with the Codex Alimentarius, a set of international standards that regulate food safety. This means that companies must ensure that their products meet more stringent criteria in terms of composition, labeling, traceability, and production processes.

To meet these standards, companies must invest in updating their manufacturing processes, improving their quality control systems, and training their staff in good production practices. These changes can represent a significant economic burden.

In addition, SRS inspections and audits are now more rigorous, increasing the risk of penalties for companies that do not comply with regulations.

Penalties for non-compliance can be high, and in some cases, the temporary suspension of product sales can affect the profitability and reputation of companies in the sector.

  1. Impact on competitiveness and access to international markets.

While the implementation of the SRS represents a challenge for the food industry, it can also be an opportunity to improve the sector’s competitiveness. Companies that manage to adapt to the new regulations will have easier access to international markets that demand high standards of quality and safety.

El Salvador is part of trade agreements with countries that require strict health certifications. The centralization of regulation in the SRS allows for more effective supervision of these requirements, facilitating compliance with standards demanded by markets such as the United States and the European Union.

However, the adaptation process may not be complete. Companies must undergo constant evaluations and demonstrate that they comply with good manufacturing and quality control practices. In addition, the costs associated with certification and process adaptation can be a barrier for many local companies, limiting their ability to compete with imported products.

To mitigate these impacts, it is essential that the government and the SRS provide technical and financial support to companies, especially SMEs. Training programs, subsidies for infrastructure modernization, and advice on regulatory processes could facilitate the transition to this new model of health supervision.

  1. Conclusion

In conclusion, the creation of the Superintendency of Health Regulation represents a significant change in the relationship between the food sector and the government in El Salvador. While its objective is to ensure product safety and quality, the transition to this new regulatory framework has created significant challenges for companies in the sector.

Changes in administrative processes have led to a restructuring of the way companies register and certify their products, which has created uncertainty and potential delays in marketing.

Despite these challenges, the implementation of stricter regulations can also strengthen the competitiveness of the Salvadoran food industry, allowing access to international markets with higher health standards. For this transition to be successful, the SRS needs to work together with the private sector, providing technical support and facilitating the adaptation processes.

The food industry in El Salvador faces multiple challenges under the new SRS regulations, but with the right strategies and support from the authorities, it is possible to turn these challenges into opportunities for growth and improvement in the quality of food products.