Fertile new projects
COLOMBIA IS FAMOUS FOR ITS EXCELLENT COFFEE BUT IT ALSO EXPORTS BANANAS, FLOWERS AND LESS TRADITIONAL PRODUCTS. THE GOVERNMENT PLANS TO MODERNIZE THE SECTOR AND INCREASE EXPORTS

After suffering through just 1% growth in 1998 and negative growth in 1999, Colombia’s agriculture sector bounced back last year to expand by 5.36%. The industry as a whole accounts for some 14% of the nation’s GDP. Coffee, which accounts for well over 20% of the nation’s exports and provides a living directly and indirectly to some 1.6 million people, is still the top crop.
One of the most important institutions in Colombia is in fact the National Federation of Coffee Growers (Fedecafe), headed by Jorge Cardenas Gutierrez. Fedecafe represents over 80% of the growers and over 95% of the national coffee production. It continues to play a vital role in the country’s development through infrastructure funding and the modernization of farming methods.

RODRIGO VILLALBA MOSQUERA Minister of Agriculture

Last year’s growth figures for agriculture were no accident, as many in the industry had feared. Instead, they were the result of a well-organized government effort to increase production, promote exports and diversify. “All indicators for the first quarter of this year point to a growth in the agriculture sector of exactly 4.99%,” notes Colombian Agriculture Minister Rodrigo Villalba Mosquera. “This tells us that growth in the sector is not fleeting, but is consolidated and steady. And we have other indicators showing an increase in farming area and investments.”
Funding new projects and technological improvements in the agriculture industry was a difficult endeavor during the lean recession years of 1998-99. Since last year, however, domestic and international financing derived from Plan Colombia and other government-led programs and international assistance funds has allowed the industry to recover lost ground.

“We are currently working with the Ministry of Foreign Trade to create an investment fund for mega-projects, especially in the agriculture sector, with an aim towards exports. We already have a commitment from the Inter-American Development Bank for loan of US$100 million, which is on top of the government’s funding programs,” Mr. Villalba explains.
The industry’s traditional products are coffee, flowers and bananas, all of which are well positioned in international markets. Non-traditional products that have the most potential as foreign revenue earners include palm and palm oil, cotton, cocoa, corn, fruits and livestock products.

“Right now we already have the potential to export palm oil, meat and milk. There are other products that we are still trying to recover for manufacturing and domestic consumption,” Mr. Villalba says. “For example, 10 years ago we were net exporters of cotton and now we’re importing as part of our strategy to supply the national industry. The same goes for corn, soybean and cocoa, all products that we will be able to export in the medium and long term. In the short term our strategy is to produce for domestic supply.”

So for both the short and long term the government is committed to making the agriculture business a profitable one for both domestic and foreign investors, who Mr. Villalba insists are more than welcome. “All I can tell foreign investors is that Colombia’s agriculture sector is once again a good and profitable business venture. We have set up important instruments to help finance projects and are adding new ones. The government is also making great efforts to guarantee security and investments. There will be no risks to investors here,” Mr. Villalba concludes.