Colombia agricultural exports to US ‘could grow 250%’

ByGwen Catherine

May 10, 2022 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Colombia agricultural exports to the United States could grow 250% more than the up coming decade, hitting $1.4 billion (all figures in USD), with US desire for agricultural products established to spike.

A stock photo of a rural area in Colombia to accompany article on agricultural exports.
Colombia has an abundance of fertile land

That is according to a new report from the Colombian-American Chamber of Commerce (AmCham Colombia), which states that Colombia’s fertile, ample, and massively underutilized tracts of arable land could be employed to assistance fulfill increasing demand globally.

With UN estimates suggesting that the world-wide population could increase by 25% to hit 10 billion men and women by 2050, that will imply that inside of 30 yrs globally need for agricultural merchandise will be double what they ended up a 10 years ago.

SEE ALSO: Employer of Document in Colombia: Retain the services of Area Staff members Now

In accordance to the AmCham Colombia report, the South American state has a lot more than 25 million hectares of land that could be employed for agriculture, of which little much more than 5 million hectares are currently effective – that means the place has significant scope to meet up with the expanding will need.

That will involve an uptick in need from the United States in excess of the coming many years, which could see Colombia agricultural exports to the nation improve five-fold in just a ten years.

“It is envisioned that in the upcoming 10 several years the share of land devoted to cultivation will boost, with Latin America possessing the biggest likely at the world stage, which will support the location to situation alone as a entire world provider of agricultural products,” stated María Claudia Lacouture, govt director of AmCham Colombia, in email correspondence with Biz Latin Hub.

Orinoco area could be vital to increasing Colombia agricultural exports

Among the regions of Colombia with the best possible for agricultural improvement are the expansive Orinoco location – one of 5 principal regions of the region, which is largely produced up of the 4 departments of Arauca, Casanare, Meta, and Vichada.

A photo of AmCham Colombia Exec. Dir. María Claudia Lacouture and Colombian President Ivan Duque, taken from Facebook, to accompany article on Colombia agricultural exports.
AmCham Colombia Exec. Dir. María Claudia Lacouture and Colombian President Iván Duque (source: Fb)

In accordance to the AmCham Colombia report, the Orinoco location has more than 2.8 million hectares of fertile land that is ideal for agricultural improvement and forestry tasks, with Lacouture highlighting that the region is nicely positioned for financial commitment in its agricultural sector.

“As competitive rewards, the country has a low price tag per hectare, which is interesting for significant-scale initiatives, as very well as superior availability of h2o and photo voltaic radiation,” Lacouture wrote.

Even so, as the report highlights, taking advantage of this option will revolve all over Colombia’s means to make the expense wanted – some thing that Lacouture echoed.

“Investment is expected to put into action sustainable initiatives with technologies to make people crops effective in purchase to meet up with the intake wants of the US industry, as effectively as the phytosanitary prerequisites desired for commercialization in that market”, Lacouture wrote.

In that regard, the Colombia United States Trade Marketing Settlement, a absolutely free trade settlement concerning the two nations that has been in force considering the fact that 2012, provides sizeable potential as a driver of US investment into the Colombian agribusiness sector.

As the US Office of Point out highlights, the United States is Colombia’s premier trade associate, accounting for over a person-third of Colombia’s whole trade, though the South American country is amongst the best ten suppliers of crude oil to the United States.

The perfectly-set up commercial romantic relationship between the United States and Colombia, reinforced by their bilateral FTA, suggests that Colombia signifies an desirable place for US buyers, as properly as remaining perhaps essential to assembly the coming spike in US demand for agricultural products.

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At Biz Latin Hub, we present integrated sector entry and back again-workplace providers all over Latin The united states and the Caribbean, with workplaces in 17 significant towns in the area, which include Colombia’s cash Bogota and well-known tourist and financial investment place Cartagena.

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