Colombia agricultural exports to the United States could mature 250% over the next ten years, hitting $1.4 billion (all figures in USD), with US desire for agricultural goods established to spike.
That is according to a new report from the Colombian-American Chamber of Commerce (AmCham Colombia), which states that Colombia’s fertile, considerable, and massively underutilized tracts of arable land could be utilized to help meet up with rising need globally.
With UN estimates suggesting that the global inhabitants could expand by 25% to strike 10 billion people by 2050, that will suggest that inside of 30 several years worldwide desire for agricultural goods will be double what they ended up a ten years back.
SEE ALSO: Employer of Report in Colombia: Employ the service of Local Employees Now
In accordance to the AmCham Colombia report, the South American nation has more than 25 million hectares of land that could be applied for agriculture, of which very little additional than 5 million hectares are at the moment successful – this means the state has sizeable scope to satisfy the expanding need to have.
That will contain an uptick in desire from the United States over the coming many years, which could see Colombia agricultural exports to the place raise five-fold in just a decade.
“It is envisioned that in the up coming 10 decades the percentage of land devoted to cultivation will improve, with Latin The usa obtaining the best probable at the world wide amount, which will assistance the region to situation by itself as a environment supplier of agricultural merchandise,” reported María Claudia Lacouture, executive director of AmCham Colombia, in e-mail correspondence with Biz Latin Hub.
Orinoco location could be key to expanding Colombia agricultural exports
Among the locations of Colombia with the best probable for agricultural progress are the expansive Orinoco location – one particular of five key areas of the region, which is largely manufactured up of the four departments of Arauca, Casanare, Meta, and Vichada.
According to the AmCham Colombia report, the Orinoco region has extra than 2.8 million hectares of fertile land that is ideal for agricultural progress and forestry initiatives, with Lacouture highlighting that the region is nicely positioned for investment in its agricultural sector.
“As aggressive pros, the country has a minimal cost for each hectare, which is beautiful for large-scale assignments, as effectively as large availability of h2o and photo voltaic radiation,” Lacouture wrote.
Nonetheless, as the report highlights, taking edge of this prospect will revolve all over Colombia’s ability to deliver the financial investment essential – anything that Lacouture echoed.
“Investment is required to put into practice sustainable assignments with technology to make all those crops effective in order to meet the intake wants of the US market place, as very well as the phytosanitary necessities essential for commercialization in that market”, Lacouture wrote.
In that regard, the Colombia United States Trade Promotion Agreement, a free trade agreement amongst the two nations that has been in pressure considering the fact that 2012, presents considerable probable as a driver of US expenditure into the Colombian agribusiness sector.
As the US Department of State highlights, the United States is Colombia’s most significant trade partner, accounting for around a single-3rd of Colombia’s complete trade, while the South American country is amid the top rated 10 suppliers of crude oil to the United States.
The effectively-established industrial marriage among the United States and Colombia, bolstered by their bilateral FTA, implies that Colombia represents an desirable destination for US buyers, as perfectly as currently being most likely crucial to assembly the coming spike in US need for agricultural goods.
Biz Latin Hub can assist you undertaking company in Colombia
At Biz Latin Hub, we provide built-in market entry and back again-business office expert services throughout Latin The united states and the Caribbean, with offices in 17 main cities in the area, like Colombia’s funds Bogota and well known vacationer and expenditure spot Cartagena.
Our portfolio incorporates accounting & taxation, company formation, due diligence, hiring & PEO, and corporate legal providers. Our unmatched regional presence signifies we are ideally put to assist multi-jurisdiction current market entries and cross-border functions.
Call us today to uncover out more about how we can support you.
If you uncovered this write-up on Colombia agricultural exports of desire, you may well want to check out the relaxation of our coverage of this South American region. Or read about our team and specialist authors.