Colombia agricultural exports to the United States could increase 250% around the following ten years, hitting $1.4 billion (all figures in USD), with US desire for agricultural items established to spike.
That is in accordance 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 utilized to aid fulfill increasing desire globally.
With UN estimates suggesting that the global population could expand by 25% to strike 10 billion people by 2050, that will suggest that in just 30 decades all over the world demand from customers for agricultural goods will be double what they have been a 10 years back.
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According to the AmCham Colombia report, the South American nation has more than 25 million hectares of land that could be utilised for agriculture, of which tiny far more than 5 million hectares are now successful – indicating the region has important scope to satisfy the developing need.
That will consist of an uptick in need from the United States more than the coming many years, which could see Colombia agricultural exports to the state maximize five-fold inside of a decade.
“It is anticipated that in the up coming 10 years the share of land devoted to cultivation will increase, with Latin America obtaining the greatest likely at the global stage, which will aid the area to posture itself as a environment supplier of agricultural merchandise,” reported María Claudia Lacouture, executive director of AmCham Colombia, in electronic mail correspondence with Biz Latin Hub.
Orinoco location could be essential to expanding Colombia agricultural exports
Among the areas of Colombia with the best prospective for agricultural development are the expansive Orinoco area – one particular of five main locations of the country, which is largely produced up of the 4 departments of Arauca, Casanare, Meta, and Vichada.
According to the AmCham Colombia report, the Orinoco region has additional than 2.8 million hectares of fertile land that is perfect for agricultural growth and forestry jobs, with Lacouture highlighting that the country is perfectly positioned for financial investment in its agricultural sector.
“As aggressive strengths, the region has a lower cost for every hectare, which is attractive for massive-scale initiatives, as properly as substantial availability of h2o and solar radiation,” Lacouture wrote.
Having said that, as the report highlights, having advantage of this prospect will revolve about Colombia’s capacity to create the expense wanted – a little something that Lacouture echoed.
“Investment is required to carry out sustainable initiatives with technological innovation to make these crops productive in get to meet the consumption requirements of the US market, as properly as the phytosanitary necessities needed for commercialization in that market”, Lacouture wrote.
In that regard, the Colombia United States Trade Marketing Arrangement, a free trade arrangement among the two international locations that has been in drive considering that 2012, delivers important opportunity as a driver of US expense into the Colombian agribusiness sector.
As the US Division of State highlights, the United States is Colombia’s major trade husband or wife, accounting for in excess of 1-third of Colombia’s full trade, though the South American country is amid the top 10 suppliers of crude oil to the United States.
The effectively-established business relationship involving the United States and Colombia, bolstered by their bilateral FTA, signifies that Colombia represents an desirable vacation spot for US traders, as effectively as being most likely vital to conference the coming spike in US demand for agricultural merchandise.
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