Colombia, Land of Opportunities For Agricultural American Companies

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Content publication date

April 12, 2023
The South American country has a favorable investment climate thanks to its economic growth and its ability to face external crises. In addition, it has legal and juridical security, with stable macroeconomic indicators, highly qualified labor and access to global markets.

One of the sectors that represent investment opportunities in the country and that has the support of the National Government for its development is agriculture. According to the Food and Agriculture Organization (FAO), Colombia is considered one of the world's agricultural pantries, considering the prospects for global growth in the coming years. About half of the land that could enter world agricultural production is located in only seven tropical countries, including Colombia.

Thanks to its geographical location in the heart of the Americas, Colombia can produce all types of crops nonstop throughout the year. In addition, it has a wide margin for growth sustainably. Colombia is a significant consumer and producer of food in the region and is increasingly emerging as an export platform. The Colombia sector has extensive experience producing various types of products responding to global consumer trends.

Colombia has a wide variety of tropical fruits, such as banana, avocado, lemon, pineapple, and mango, and exotic fruits, such as goldenberry, gulupa, pitahaya, and granadilla, which are widely accepted in the international market. Colombia is the leading exporter of exotic fruits in America, the second exporter of bananas, the fourth of avocados, and the sixth of lemon in the continent.

INVESTMENT OPPORTUNITIES IN THE AGRICULTURAL SECTOR IN COLOMBIA

• Investment in machinery for phytosanitary treatment in order to facilitate the sanitary access of fruits such as papaya, and pitahaya, among others.

• Develop strategic alliances with local fruit and vegetable owners and producers to take advantage of the wide fruit and vegetable aptitude available in the country.

• Construction of collection centers for Colombian fruits for their proper selection, preparation and export.

• Establish plants with Individually Quick Frozen (IQF) product lines in order to take advantage of the access of this class of products to countries with which there are trade agreements and with third countries.

Two Successful Stories of Agri-Business Foreign Investment with Social Impact

Goldenberry Farms™, Where Good Things Grow

This company was born with the mission to bring healthier options to top importers and grocers. The idea of doing well for the workers, the environment, and consumers grew into a network of wholly owned and operated farms spanning several countries, growing premium tropical fruit. Today, with operations and distribution spanning several continents, they are proud to be a leader in delivering premium, ethical, and sustainable produce. Goldenberry Farms investment in Colombia began with an invitation in 2018 to a ProColombia event in Bogota, where various projects were studied. GBF Colombia began as a small impact-farming investment near Medellin in 2019, with the objective to invest into a rural areas and develop a plantation and export operation for goldenberries (Uchuva) and passionfruit. In addition to their fields and facilities, they work with a growing network of partners and farmers, developing programs that aim to improve small producers' and workers' quality of life. GBF has a leadership team to provide technical assistance, education, experienced oversight, and quality assurance to satisfy international customers’ palates and requirements.

Goldenberry Farms has worked successfully with ProColombia, as well as other agro-focused agencies in Colombia, and recently announced the expansion of their popular sustainable-farming programs, including their “Where good things grow™” soil health and carbon initiatives. The program was initially inspired by “Kiss the Ground” a Netflix documentary on soil health hosted by Woody Harrelson, focusing on soil rehabilitation as a viable solution to averting a climate and food crisis. According to the documentary, proper soil management is key to helping combat global warming, flooding, and the minimize the use of chemicals our food

The GBF social initiatives in Colombia increased during the COVID pandemic; realizing that with export markets disrupted, many farmers could not sell 100% of their harvest, and fresh fruit was often discarded. Goldenberry Farms began, then, a program of supporting small, regional farms by purchasing their food for the purposes of local food donations nationally. In this way, there was a benefit to sustaining the local farm community, as well as offering fresh fruit to local families. As food insecurity continued to affect regional communities in 2022, Goldenberry Farms continued the program but also began to add donations from the companies’ own farms. These donations are coupled with non-perishable items, such as rice and dried beans, to help families with a healthy and balanced meal kit. In 2022, Goldenberry Farms donated more than 37,000 pounds of fresh and freshly dehydrated produce as part of its “Where Good Things Grow” initiative to support farmers and local communities. The company is very proud of their investments into Colombia, and continues to grow with additional farm investments, as well as a recently announced indoor growing complex, which will allow for the creation of more agro-jobs, as well as opportunities for graduate students to work and study some of the newest technologies in indoor cultivation.

In addition, the company is developing technological advances in several varieties and growing techniques, and shelf-life products in conjunction with a regional University in Antioquia. Goldenberry Farms is a grower, packer, and exporter of tropical fruit.

NBF

Colombia is committed to diversifying the exports basket and the arrival of foreign investment with added-value bets. One of the companies that is part of this business is the Mexican NBF, which is dedicated to offering organic and natural products and installed its production plant in Colombia last year, generating more than 50 direct jobs and more than 400 indirect ones in Valle del Cauca, a department located in the Pacific Region of Colombia.

They settled in the south American country with a clear objective: to produce avocado oil. Its bulk production is sent to its plant in Mexico where it is converted into refined, extra virgin or 'winterized' oil, (in which it is cooled and kept at a low temperature) according to customers’ requirements in different destinations around the world.The company's goal, says Rodrigo Pla Carelli, manager of international projects, is to be able to carry out the entire production process in the country once there is greater availability of raw material. Today, about 65 tons are processed per day.

“This is the type of investment that contributes to the Reindustrialization Policy led by the Ministry of Trade, Industry and Tourism, and that we seek for Colombia, with contributions in technology transfer, competitiveness, employment, and with added value bets that contribute to modernization and growth of agro-industrial activity in the region and in the country”, pointed out Carmen Caballero, president of ProColombia. 

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