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Economy Keys Facts

Colombian sector opportunities

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Colombia Inside Out 2021

Colombian sector opportunities

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AGRIBUSINESS

April 7, 2021
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AGRIBUSINESS
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REASONS TO INVEST IN AGRIBUSINESS

 

  • Colombia has agricultural and agro-industrial growth potential to serve the local and international market. About 40 million hectares have been declared national agricultural frontier (35% of the territory) and only about 8 million are cultivated (UPRA, Ministry of Agriculture and Rural Development).
  • According to the Rural Agriculture Planning Unit (UPRA), Colombia has a great expanse of hectares with a high and medium aptitude for the development of the sector’s main species. Among these, some 16 million hectares have been registered for oil palms, 12.8 million for cocoa, 12.5 million for pineapple and 2.1 million for avocado plantations.
  • Colombia is a signi‑cant food consumer in the region and an important export platform to satisfy the Americas. Colombia's expanded market in the region* is USD 1.4 trillion, equivalent to 30% of the world's processed food and beverage market. Colombia is the ‑fth largest market in the LATAM (Euromonitor).
  • Because of its climate, various thermal ­oors, wáter availability and nutrient-rich lands, Colombia has a varied supply of agricultural products throughout the year.
  • The ‑ne or ­avor properties of Colombian cocoa are guaranteed by the optimal agro-ecological conditions and excellent genetic materials.
  • According to the International Cocoa Organization (ICCO), 95% of the Colombian cocoa used for exports, received the “‑ne or ­avor” distinction, attribute granted to only 5% of the beans commercialized worldwide. On the other hand, only 75% of the Peruvian and Ecuadorian exports receive this distinction.
  • The Colombian agricultural supply has products with organic, HACCP, ISO, BCR, GlobalGap, Fairtrade certi‑cation, among others.
  • Between 2016-2020, Colombia was the fourth country with the largest number of FDI projects in the agribusiness sector in Latin America, after Mexico, Brazil and Argentina (Fdi Markets).
  • Colombia incentives reforestation projects through the Forest Incentive Certi‑cate which recognizes up to 50% of the costs of establishment for each hectare of new forest plantations for comercial purposes and up to 50% of the maintenance costs from year 2 to year 5.
  • The agri-food sector is one of the pillars of the national economy and is recognized internationally. The agriculture and processed food sector represent 10.3% of the country's GDP. On the other hand, 5 out of every 10 dollars exported in non-mining-energy products corresponds to agribusiness products.
  • The Colombian business network offers possibilities of strategic alliances or supplying companies to develop value-added products in Colombia. There are more than 5,800 companies dedicated to the production of beverages, food products, agriculture, livestock, hunting, and related service activities, and forestry and wood extraction (EMIS).