A Coffee Business in Colombia is Good for Investors
Colombia has brought in a lot of direct foreign investors and they have one of the most consistently growing economies in Latin America. Colombian coffee gained a lot of importance because it is a commodity people demand for. In addition, it helped Colombia reach the entrepreneurial stage they are at today. It is a mixture of demand from Europe, coffee beans are top quality, and the current era of post-FARC paves the way for great opportunities for a coffee business in Colombia.
1. The Reputable Coffee Exporters Aim for the US and EU Market
The largest Arabica producer in Colombia, very high quality of beans available today. Caldas, Quindio and Risaralda are 3 regions in Colombia that are all part of their coffee triangle. It is UNESCO’s heritage site where several of the smoothest coffee being sold anywhere in the world is being produced. The unique conditions in those regions are conducive to producing high-quality coffee.
The use of organic pesticides to produce coffee that appeals to the US and European markets are being supported by the Colombia Coffee Federation. Their support is given by helping local farmers achieve excellence.
More investment opportunities enter the county because the market for coffee exporters had increased.
2. There are More Coffee Imports Because of the EU Colombia FTA
The impact of the Free Trade Agreements to European union:
Colombian coffee’s quality directly reflects its international reputation. The greatest consumption average per capita is by the European Union and 45% of coffee production in the world is imported by them. Therefore, it is the largest market in the world.
Since there have been trading increases between Colombia and the EU, Colombia coffee will become more available to everyone. There was a 9.2% increase in coffee importation from 2015 to 2016 because of the European demand. This contributed to the Colombian Coffee market potential.
3. The Government Policies in Colombia Empower Investors
The government of Colombia has been very supportive of diversity in its markets and this is one of the reasons why the country is stable. President Juan Manuel Santos was a representative of the country’s coffee organization under FNC. The coffee production and this adds 25% to rural employment amounting to 1.6 million indirect employment and 800,000 direct employment. The investors can expect the government to have policies that support and stimulates the market.
A large population of businessmen and politicians in Colombia gravitate more towards the international reputation of Coffee compared to Cocoa growers. Therefore, a lot of the foreign direct investors are encouraged to enter the barriers.
4. The Effect of Post-FARC Peace Treaties on the Policies of Agriculture in Colombia
The peace treaties by FARC have been giving great polemic to Colombia but the citizens of the country all agree that Colombia has to get past that.
A portion of the treaty aims to foster rural development sustainability which involves shifting from the increasing cocoa production to coffee or cocoa which are possible alternatives.
Most of the land was inaccessible because FARC was fighting to be open to selling at low prices. Due to this, the production increased. The current increase in supply decreased because of this and the prices became lower which created a lot of investment opportunities.
5. Investors Find Stability and Make a Lot of Income
Those who are investing in real estate are prioritizing the agricultural land in Colombia. The lands generate investments and yield high which is why they are popular in the portfolio of people. The agricultural land generates yield and the value increases over time. Since there is an increase in the demand for food with less land availability, the projected long-term aspects of the increase are positive. More so when buying at a cheap price.
Today, a lot of farmers do not have the capacity to buy local equipment and they do not get to use their land, which offers excellent potential for existing farms to be optimized. This is done by forming cooperatives that offer guidance and investment.
Colombia’s growth had always benefited a lot from the coffee industry and it has become lucrative in recent years. Although, before investing time, money, and energy, it is best to ask professionals in Colombia for advice especially about having a coffee business in Colombia.
