Colombia's agricultural sector will face a number of challenges in the medium term. Key export crops - such as coffee and cocoa - have underperformed in recent years owing to a lack of investment in infrastructure and outbreaks of disease. Although regeneration work is under way, it will take time to bear fruit. The strength of the Colombian peso against the US dollar is also posing challenges for the agribusiness sector, as the competitiveness of Colombia's exports is being eroded. Finally, there is still unrest among dairy, livestock and grain producers who fear that the entry into force of the Colo mbia-EU free trade agreement will further erode their profitability. The Ministry of Agriculture has taken steps to support these sectors to adapt to the arrival of inexpensive imports; however, ongoing efforts to improve infrastructure and modernise production techniques will be required.
Full Report Details at
- http://www.fastmr.com/prod/924133_colombia_agribusiness_report_q1_2015.aspx?afid=301
Key Forecasts
* Sugar production growth to 2017/18: 19.6% to 2.4mn tonnes. The strong growth rate is mainly due to the bumper crop recorded in 2013/14, following the steep decline in 2012/13's production. Overall, sugar output growth will remain low, owing to the limited land available for expansion.
* Milk production growth to 2017/18: 16.8% to 8.9mn tonnes. Milk producers will strongly expand output to meet demand, and as improved security encourages new investment in dairy farming. The strong growth in the Colombian economy will also favour the dairy sector in general.
* Coffee production growth to 2017/18: 34.7% to 13.4mn tonnes. Production will be aided by programmes to replace aging plantations and improve resistance to disease. However, we remain cautious about the long-term trajectory of Colombian coffee production, especially with prices currently low and the strong Colombian peso.
* BMI Universe Agribusiness Market Value: USD15.4bn in 2015; up from USD15.0bn in 2014 ;...
The Colombia Agribusiness Report features Business Monitor International (BMI)'s market assessment and independent forecasts for production, consumption and trade across core agricultural commodities.
BMI's Colombia Agribusiness Report includes independent commodity price forecasting and analysis for key agricultural outputs, an overview of the agribusiness competitive landscape and a discussion of the downstream context of agricultural production in relation to country food consumption forecasts and composite food and beverage trade forecasts.
Key Benefits
* Use BMI's independent industry forecasts to test other views - a key input for successful planning in dynamic agribusiness markets.
* Apply BMI's medium-term commodity price analysis to assist with budgetary planning and the identification of investment opportunities and potential risks.
* Assess the activities and market position of your competitors, partners and clients.
Coverage
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Report Published: "Colombia Agribusiness Report Q1 2015"
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001