Colombia agricultural exports to US ‘could grow 250%’

ByForest Midden

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

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Colombia agricultural exports to the United States could improve 250% over the following 10 years, hitting $1.4 billion (all figures in USD), with US demand from customers for agricultural goods 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, plentiful, and massively underutilized tracts of arable land could be utilized to support meet climbing demand from customers globally.

With UN estimates suggesting that the worldwide populace could mature by 25% to hit 10 billion men and women by 2050, that will suggest that inside of 30 yrs globally need for agricultural merchandise will be double what they were a 10 years ago.

SEE ALSO: Employer of Report in Colombia: Employ the service of Regional Team 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 minimal additional than 5 million hectares are at this time effective – meaning the state has sizeable scope to meet the escalating want.

That will incorporate an uptick in need from the United States above the coming yrs, which could see Colombia agricultural exports to the state enhance 5-fold in just a ten years.

“It is expected that in the following 10 decades the percentage of land devoted to cultivation will improve, with Latin America getting the greatest likely at the world wide degree, which will help the area to position itself as a earth provider of agricultural items,” claimed María Claudia Lacouture, government director of AmCham Colombia, in email correspondence with Biz Latin Hub.

Orinoco region could be essential to growing Colombia agricultural exports

Amid the areas of Colombia with the highest opportunity for agricultural growth are the expansive Orinoco region – a person of 5 major locations of the place, which is mostly manufactured up of the four 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 (resource: Facebook)

In accordance to the AmCham Colombia report, the Orinoco region has a lot more than 2.8 million hectares of fertile land that is great for agricultural growth and forestry assignments, with Lacouture highlighting that the region is perfectly positioned for investment decision in its agricultural sector.

“As aggressive pros, the state has a reduced expense for every hectare, which is attractive for significant-scale assignments, as very well as superior availability of drinking water and photo voltaic radiation,” Lacouture wrote.

However, as the report highlights, getting gain of this possibility will revolve all around Colombia’s ability to generate the expense desired – one thing that Lacouture echoed.

“Investment is needed to carry out sustainable tasks with know-how to make those crops successful in buy to satisfy the consumption needs of the US marketplace, as nicely as the phytosanitary necessities needed for commercialization in that market”, Lacouture wrote.

In that regard, the Colombia United States Trade Advertising Arrangement, a absolutely free trade agreement involving the two nations that has been in force due to the fact 2012, presents considerable probable as a driver of US financial commitment into the Colombian agribusiness sector.

As the US Office of State highlights, the United States is Colombia’s most significant trade companion, accounting for more than one particular-third of Colombia’s whole trade, while the South American region is among the leading 10 suppliers of crude oil to the United States.

The well-established commercial partnership in between the United States and Colombia, bolstered by their bilateral FTA, implies that Colombia signifies an eye-catching place for US investors, as very well as becoming possibly crucial to meeting the coming spike in US demand from customers for agricultural merchandise.

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At Biz Latin Hub, we deliver integrated industry entry and back again-business office products and services through Latin The usa and the Caribbean, with places of work in 17 big towns in the area, together with Colombia’s money Bogota and popular tourist and expense spot Cartagena.

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If you uncovered this report on Colombia agricultural exports of desire, you may well want to check out the rest of our coverage of this South American region. Or read about our team and specialist authors.

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