Peru: Ag Promotion Law repeal pushes investors to Colombia
The repeal of Peru's Agricultural Promotion Law, which provided financial advantages, has prompted companies to move production to countries such as Colombia, Mexico and Brazil.
Peru is the fourth largest Latin American investor in Colombia and ranks 19th among all investors in the country, according to ProColombia.
Colombia has accumulated investments totaling US$1.6 million over the last decade, as stated by data from Banco de la República.
"Peruvian investment in Colombia has been multisectoral, reaching different areas of the economy including the agricultural sector, services, manufacturing and logistics among others," the President of ProColombia, Flavia Santoro told FreshFruitPortal.
"It is notable that Peruvian FDI today continues to diversify much more to all regions of the country and beyond the major cities."
When asked about the Peruvian businesses that have bought land in Colombia, Santoro said: "They are varied and from different areas such as the packaging, manufacturing and logistics industries."
"Camposol, Danper, Viveros Génesis, and Agrícola Cerro Prieto are some of the most significant businesses that have a presence in the avocado sector and in other fruits such as mangos and blueberries," she said.
Alfonso Bustamante, President of Agrícola Cerro Prieto told Peru21 that "we are going to continue complementing Peruvian crops in other areas in order to export more products."
"Colombia is also testing blueberries and raspberries to have quality fruits that go to market."
"There we have favorable tax conditions and jobs with no need for temporary hiring, which complicates things in Peru with the new Agrarian Law," he said.
Along the same lines, the Camposol company expects to expand its avocado production until 2025 in Colombia with a yield similar to that of Peru, of around 40 thousand tons per year.
The president of ProColombia assured that “Colombia has an ideal, strategic position as a platform to reach developing markets while diversifying production and supply chains."
"It has a government friendly to foreign investment that promotes, encourages and supports it."
"For the agricultural sector, it has more than 32 million hectares suitable for cultivation or production, and it is one of the nations cataloged by FAO as one of the seven tropical countries with the greatest potential to be a food pantry to the world," she added.