BUSINESS:
Hammocks: Swinging in the Shade

by Paula Blomster, originally published in Nica News 21 (March 1999)

	At the 1st Expo-Contest last year, held in the Cultural Center of Managua. Photo: Paula Blomster

Hammocks are a symbol of the relaxed way of life in Central America. The Mayan Indians first made them over 1,000 years ago. By the 19th century, hammock production in Nicaragua was concentrated in Rivas and Masaya. The first hammocks were made of natural fibers (cabuya and agave) until the spread of cotton production in the 1950s. Fiber was replaced with cotton, changing the hammock's image dramatically and contributing to its overall comfort of its use. The peculiarity of Nicaraguan hammocks, the pole, was introduced in the 1970s. In the 1980s, Nicaraguan hammock exports began to rise because of the interest sparked among the many people coming here from the plethora of solidarity movements. In the 1990s, Nicaraguan hammocks began to consolidate their position in the international market on a competitive basis.

There has been a strong tendency for growth, as shown by figures for exports to Germany. In 1994, the FOB value of these exports was $9,826, rising each year until 1997, which saw earnings of $212,794.

Nicaraguan hammocks fetch a high price in New York City, for example, where they may go for as much as $200. The local manufacturer may receive an average price of $25 for each hammock, and the middleman who gets it to port (FOB) may mark it up to $40.

The Nicaraguan hammock has conquered its niche in international markets because of its grace and style, as well as the fact that they are handmade. It is a relative newcomer to the hammock market but has been rapidly overtaking other competitors, like the ones from Brazil. In 1995, for example, Brazil exported $126,000 worth of hammocks to the United States, while Nicaragua rang up $81,000 in sales. In 1996, however, Brazil's share had declined to $51,000, while Nicaragua's had risen to $130,000.

In the national market, the variation in price between one hammock and another depends mostly on how much cotton is woven into it, since that accounts for about 70% of the direct costs of production.

To promote new designs -essential for maintaining its share of the international market and generating greater returns for the producers- the United Nations Industrial Development Organization (UNIDO) has a project with the National Institute for Promotion of National Small and Medium Enterprise, INPYME. In 1998, it organized an exposition and contest for new designs, resulting in the introduction of new designs in the categories of "New," "Ecological" and "Surprise Design."

In the first category, Edwin Prado won the first prize of $300 for his washable hammock. The pole can be removed and the hammock can be cleaned in a washing machine.

In the "Ecological" category, a Managua producer, Blanca Camacho, won with her use of certified non-chemical dyes. She had replaced the traditional mahogany pole with one made from bamboo, and her production process was environmentally-friendly. The hammock, of course, was also pretty.

The "Surprise Design" category was for products that use the same materials and techniques employed in hammock manufacture, such as vests, table cloths, and swings. The Hamaca Siesta firm in Masaya won first prize with manager Patricio Gutiérrez's loveseat. This product, however, has not been able to conquer the local market in the same way as the round swing made by José Ramiro Suazo.

A new category is to be included in the 1999 contest: "Export Hammock." This would have to be light-weight, with a design different from those already offered in the international markets, and with a competitive price.

The 2nd Hammock Expo-Contest will be held on April 17 around the swimming pool at the Intercontinental Hotel from 8:30 a.m. to 5 p.m. Hammocks will be on sale for special promotion since we are at the height of the hot dry season. There will be other activities, such as a fashion show of clothing colored with natural dyes. Be sure to look for the winning designs in the different markets and stores where hammocks are sold. Get one for your backyard or porch and start to enjoy one of the more comfortable aspects of the laid-back lifestyle of the sub-tropics.