Investment in the fruit and vegetable sector

1. INVESTMENT IN THE FRUIT AND
VEGETABLE SECTOR
Colombia is one of the countries with the best topographical conditions and
withagreatvarietyofclimaticzonesforthecultivationoffruitsandvegetables.
Thanks to being a tropical country located on the equator, its national territory
benefitsfromsunlightyear-round,whichmeansthatitisalwaysabletoharvest
all kinds of crops. Crops can grow both at sea level and at altitudes of 2,800
meters (9,168 feet), which represents close to 95% of the national territory.
FRUIT AND VEGETABLES IN COLOMBIA
GROWTH, CONFIDENCE AND
OPPORTUNITIES TO INVEST
Libertad y Orden

2. Colombia is a tropical country with a great
variety of ecosystems where close to 95
types of fruit are native to the country and
other species have been introduced in other
equatorial areas.
Colombia is ranked third in Latin America
for the number of hectares devoted to fruit
production, 748,604 hectares, which is
equivalent to 10.5% of the country. It is also
the fifth largest producer in the region with
8.5 million tons, equivalent to 7.2% of total
agricultural production. FAO - Figures for
Colombia Ministry of Agriculture.
Colombia is the seventh largest producer of
vegetables in Latin America, with 4.2% of
the total area used for vegetable cultivation
(107,694 hectares) and vegetables accounting
for 4.2% of total agricultural production (1.89
million tons). FAO - Figures for Colombia
Ministry of Agriculture.
COLOMBIAN FRUIT PRODUCTION
(MILLIONS OF TONS), 2007-2012.
The fruit and vegetables produced in Colombia
are better in physical quality in regard to their
organoleptic qualities, such as color, flavor,
aroma, higher content of soluble solids, and
degrees Brix compared to those from other
subtropical countries both in the northern
and southern hemisphere.
Colombia has two of the most accredited
International Research Centers for Tropical
Agriculture (CIAT) and CORPICA (Corporación
Colombiana de Investigación Agropecuaria
[Colombian Corporation for Agricultural
Research]).
2007 2008 2009 2010 2011 2012
7,7 7,4 7,5 7,7 7,9 8,5
3,63,33,23,13,03,23
Source: Ministry of Agriculture and Rural Development.
Including bananas and plantains Excluding bananas and plantains

3. Regions (departments) such as Antioquia, Bolivar, Santander, Cundinamarca,
Risaralda, Quindio, Caldas, Tolima, Huila, Nariño, Cauca, Valle del Cauca, Meta,
Casanare, Boyaca and Magdalena are the greatest vegetable and fruit producers
and offer great potential for new crops.
The current offering of fruit and vegetables in Colombia includes:
Mango Lemon Watermelon
Pitaya Pineapple guava Berries
Melon Pineapple Potato
Tomato Onion bulbs Mushroom
Passion fruit Banana Plantain
Asparagus Citrus fruit Papaya
Chili Guava Chili pepper Avocado
Limes Green onion Peas
COLOMBIAN FRUIT AND VEGETABLE PRODUCTION
(MILLIONS OF TONS), 2007-2012
CURRENT AREAS SUITABLE FOR FARMING:
2007 2008 2009 2010 2011 2012
1,721,68
1,76
1,70 1,71
1,89
Vegetables Source: Ministry of Agriculture and Rural Development.

4. INVESTMENT OPPORTUNITIES
New areas for planting and improvement of existing areas: fresh fruit and vegetable exports under free trade
agreements with the United States and the European Union are seen as a big challenge and an opportunity.
Asian markets also represent a big opportunity, especially when the treaty with South Korea enters into force.
Thanks to the FTA’s in force, Colombia has preferential access to the 10 most important import markets for
fruit and vegetables, which account for almost 60% of global purchases.
Assemblyofproductionplantsforpreserves,
marmalade, sauces and other food products
made from fruits and vegetables. Nowadays
many companies have to import their final
products, which increases production costs.
Assembly of processing plants that create
products for supplying other companies
(i.e., tomato sauce).
Organic and sustainable products represent
a big opportunity given new international
trends in nutrition. Many of these products
can grow in the country.

5. PROCESSING
COMPANIES
There are approximately 30 fruit and
vegetable processing companies.
The biggest corporate producers are located
in the departments of Magdalena, Valle del
Cauca, Antioquia, Cundinamarca, Atlantico
and Caldas. Some of them are:
Conservas California S.A.
Compañía Envasadora del Atlántico Ltda.
Panamericana de Alimentos S.A.S.
Productos Alimenticios Bary S.A.
Productora de Jugos S.A.S.
Industrias la Coruña Ltda.
Dole.
Olmúe.
Comercializadora Internacional Agrofrut S.A.

6. LARGE COMPANIES HAVE CHOSEN
COLOMBIA AS A PLACE TO INVEST
INCENTIVES
OLMUÉ (CHILE):
Established a fruit processing plant in Valle de Cauca
(pineapple, mango, melon, papaya).
ASOHOFRUCOL
Vegetable and Fruit Growers’
Association of Colombia.
MINISTRY OF AGRICULTURE AND
RURALDEVELOPMENT
Responsible for the management of
agricultural and livestock policies.
• Investments in new late-harvest crops (fruits, vegetables, palm oil) are
exempt from income taxes1
. This benefit is applied to plantations established
between January 1, 2003 and December 31, 2014, and will be in force for 10
years after starting production2
.
• Programs for productive companies seek to unite small producers with
industriallandowners(producersanddealers)forthecontinuousdevelopment
of projects in the medium and long term where there are supply commitments.
Close to 30% of the agricultural phase of the project is subsidized.
1. Act 939 of 2004, Article 1. In any case, only companies are subject to the CREE (impuesto sobre la Renta para la equidad [Income tax
for equality]) (9% for 2013-2015 and 8% since 2016).
2. Act 939 of 2004, Article 2.
PROCOLOMBIA
The entity in charge of promoting
international tourism, foreign
investment and non-traditional
exports in Colombia.
DOLE (UNITED STATES OF AMERICA):
In 2014, the U.S. multinational corporation Dole started
operating a plant for salads and a product distribution
center in the country.
TRANSFORMATION PROGRAM
PRODUCTIVE
Public-private alliance that promotes
productivity and competitiveness in
sectors with high export potential, by
means of more efficient coordination
between the public and private sectors.