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COLOMBIAN SECTOR OPPORTUNITIES

Colombian sector opportunities

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insideout2021

Colombian sector opportunities

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AGRIBUSINESS INDUSTRY

April 5, 2022
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AGRIBUSINESS
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COCOA AND ITS BYPRODUCTS

 

1. Colombia has ideal conditions for producing a wide variety of specialty cocoa.

  • Colombia produces under environmentally sustainable norms a large quantity of cocoa classified as "Fine Flavor," and its genetic and regional climatic biodiversity creates a broad palette of flavors and aromas which makes the country an ideal location for investment.

2. The country has the potential as an important player in the international specialty cocoa market.

  • Colombia ranks #5 in global exports of "Fine Flavor" cocoa with a quality that has been recognized internationally, a production aligned with ESG requirements, and access to the most important markets through trade agreements.

3. Cocoa is a sector of national relevance, prioritized by the government

  • A national 12-year Land Plan has supported the sector's development with ambitious objectives and several policy tools to increase production to supply domestic and international markets.
  • Notably, the cocoa sector also contributes to the consolidation of peace in the country.

 

FRESH FRUITS

 

1. Colombia has excellent conditions to harvest fruit.

  • Colombia is one of the countries with the highest levels of rainfall in the world and, thanks to its location in the intertropical zone, enjoys high irradiation and favorable average temperatures allowing the production of a great diversity of fruits and a large percentage of highly fertile soils.

2. The country now wants to bet on fruit exports to exploit its advantages further.

  • Colombia is a significant producer of fruits and exotic fruits with large areas available to increase fruit production for export, labor available, international connectivity to enable fruit to reach buyers quickly, and preferential access to essential global markets.

3. There are programs to promote the production

  • There is an ecosystem of institutions that support producers, reforms to remove regulatory barriers to market integration and entrepreneurship, and sector entities that offer programs and instruments for primary production and processing companies.
  • Infrastructure and digital connectivity projects aim to improve the competitiveness of the external sector.

4. The sector offers attractive investment opportunities along the value chain.

  • Crops within the agricultural frontier to generate export-oriented production, including organic production. Fruit processing plants, storage infrastructure, and packing houses for value addition and export.
  • Financing to obtain certifications required by the international market.

 

PROCESSED FOOD AND BEVERAGES

 

1. Colombia has an agricultural and agro-industrial growth potential to serve the local and international markets.

  • Colombia is set to become one of the world's food pantries and an agricultural power in the region with 32 million hectares with potential for agricultural development and tropical climatic conditions that make it possible to produce various foods throughout the year (FAO).

2. The agri-food sector is one of the pillars of the national economy and is recognized internationally.

  • The sector is a dynamizer of the economy, generating 1 out of every five jobs and contributing 1 of every 10 pesos of the GDP. (MinAgricultura - DANE). Compared to the previous year, the sector also grew its FDI more than 30% in 2021.

3. Colombia is a significant food consumer and a critical export platform to satisfy the Americas.

  • Within alcoholic beverages and hot beverages, Colombia ranked the fourth-largest market in LATAM. Additionally, Colombia is the second-largest market for rice and pasta, and it positioned itself as the fourth-largest market in LATAM for fresh foods (Euromonitor).
  • Thanks to the free trade agreements and its unique geographical location, Colombia is positioned as a great export platform to reach more than 1.5 billion consumers.

4. The national government is committed to boosting the sector and take measures to consolidate production and opportunities at the international level offering legal tax incentives that impact the agro-industrial sector.

5. The Colombian business ecosystem offers possibilities of strategic alliances or supplying companies to develop value-added products in Colombia.

  • In Colombia, more than 2,000 companies in 27 regions in the country are dedicated to the production of beverages, food products, agriculture, livestock, related service activities, and forestry and wood extraction (EMIS).