Colombia has significant potential for investment and growth in the agro-industrial sector due to its favorable climate and geography. It has a diversity of climates suitable for many agricultural commodities. The agro-industrial sector is an important contributor to Colombia's economy, accounting for 6.5% of GDP. Several foreign companies have already invested in Colombia to take advantage of opportunities in food processing and agricultural production and exports have been steadily increasing over the past decade. The government provides various incentives such as tax benefits to promote further investment and growth in the agro-industrial sector.

1. INVESTMENT IN THE
AGRO-INDUSTRY SECTOR
“I think that it is very favorable for investment and it is a country with
enormous potential. The GDP is growing at very attractive levels, the country
is being managed very well from a fiscal point of view, and it has a big labor
force, so we see Colombia as a very attractive market for PepsiCo and even
more so for the food and beverage sector.”
Indra Nooyi, President and Executive Director of PepsiCo.
Sixth Summit of the Americas, April 14, 2012.
GROWTH, CONFIDENCE AND
OPPORTUNITIES TO INVEST
Libertad y Orden

2. COLOMBIA: BROAD RANGE OF ALTERNATIVES FOR
AGRO-INDUSTRIAL PRODUCTION
Agro-industrial sectors with a global scope: More than half of the land on Earth that could be used for
agriculturalpurposesisfoundinonlyeighttropicalcountries:
As a country located in the tropics, Colombia has a diversity of thermal floors at altitudes above sea level, which go from 0 MSL
(> 24oC ) up to 4,000 MSL (< 60C ). (Earthtrends, 2011).
Productive Transformation Program, 2011
BEEF, CHOCOLATE-MAKING,
CONFECTIONERY AND RELATED
RAW MATERIALS, PALM, OILS AND
FATS, DAIRY, FRUIT AND VEGETABLE
PRODUCTION, AND AQUACULTURE.
ANGOLA, ARGENTINA, BOLIVIA,
COLOMBIA, BRAZIL, CONGO AND SUDAN.
ranked Latin American country for precipitation
levels, ranked tenth globally.
(FAO, 2011).
ranked country in Latin America for availability of
lands for agricultural production.
(FAO, 2011).
3rd
4º
(FAO, 2011).

3. Instituto Geográfico Agustín Codazzi [Agustín Codazzi Geographical Institute]
(IGAC) and Instituto Colombiano Agropecuario [Colombian Agricultural Institute]
(ICA), 2011.
1. Other uses: includes bodies of water, uncultivated land, urban or semi-urban areas, and
marginally cultivatable areas in natural parks.
SECTOR WITH THE GREATEST POTENTIAL FOR GROWTH
14.4 MILLION
HECTARES
Argentina
Colombia
Ecuador
Latam
México
Venezuela
9,1%
6,4% 5,9% 5,9% 5,2%
4,1% 3,7% 3,6%
6,5%
FARMING SECTOR’S SHARE OF THE GDP FOR LATIN AMERICA, 2012.
Based on the agro-ecological zoning map, Colombia’s
agricultural potential corresponds to 12.7% of national
territory, meaning:
In 2012, the country was the ranked second
in terms of the contribution of its farming
sector to the Gross Domestic Product (6.5%).
(Economist Intelligence Unit).
Between 2010 and 2012, farming GDP
in Colombia grew by close to 5%. (DANE,
Departamento Administrativo Nacional
de Estadística [National Administrative
Department of Statistics]).
million hectares are used for farming, of which:
29.1 million are for livestock, 2.9 million are for
agriculture, 3.6 million are for forests, and 1.8
million are used for other purposes. (Annual
farming statistics - Ministry of Agriculture and
Rural Development 2011).
Agricultural production in Colombia has
increased by nearly 16% between 2002
and 2012. Farming statistics - Ministry of
Agriculture and Rural Development).
2nd.
5%
16%
37,6
Brazil
Pending
Peru

4. Colombia has up to two million hectares suitable for
cultivating cocoa. (Corpoica - The Colombian Corporation
of Farming Research, Fedecacao - The National Federation
of Cocoa Growers and the Ministry of Agriculture and Rural
Development).
The growing production of oil palm and sugar cane requires
the construction of new bio-refineries, biomass plants
and development of transesterification, which allow the
transformation of sugar cane and oil palm into biodiesel.
LARGE FOREIGN COMPANIES HAVE CHOSEN
COLOMBIA AS A PLACE TO INVEST
DOLE F OOD, UNI T ED STAT ES: the U.S.
multinational specializing in the fruit and vegetable sector
invested in the construction of a new production and
distribution plant for fruit and vegetables in Colombia. The
plant will be located in Cundinamarca and will be aimed at
meeting the needs of the national and international market.
MONDELÉZ , UNI T ED STAT ES: the U.S.
multinational Mondeléz Internacional acquired
Kraft Foods, which made an investment
in the expansion of its manufacturing and
confectioner y plant in Cali.
OLMUE, CHILE: the fruit company constructed a fruit
processing plant in Valle de Cauca.
DANNON, FRANCE: it entered the Colombian market in an
alliance with Alqueria, opening a production plant in Cajica,
Cundinamarca.
OPPORTUNITIES FOR THE
AGRO-INDUSTRIAL SECTOR
Construction of production plants for processed foods like pulps, jams,
preserves, sauces and other products derived from fruits and vegetables,
with the aim of commercializing their production in the domestic market and
exploring markets for exportation.
In Colombia there are available areas (continental and maritime) that comply
with the physical requirements necessary for carrying out the cultivation
of different species like Cobia, Trout, Grouper, Bocachico, Palmaro, etc.
Additionally, Colombia’s tropical location, the climate and the temperature of
the waters favor year-round shrimp production.

5. Late-yield crops: in Colombia, crops that are considered late-yield such
as cocoa, rubber, oil palm, citrus fruit and fruit trees that are established
before December 31, 2014 are exempt from paying any income tax for 10
years, counting from when production starts.
Income tax exemption for forest plantations: investments in new
forest plantations and sawmills are exempt from the income tax. This
benefit covers plantations established after 2003 and has no seasonal
restrictions.
Forest Incentive Certificate (CIF): the CIF is a monetary incentive that
recognizes up to 50% of the investment made in the establishment,
as well as the maintenance costs up to the fifth year, of plantations of
introduced or native species defined by the Ministry of Agriculture.
Vallejo Plan: by virtue of this program, capital goods and spare parts2
or raw materials and supplies can be imported with total or partial
suspension of customs duties (VAT and tariffs), given compliance with
certain export commitments. The Vallejo Plan also allows for benefiting
from simplified import procedures.
Free Trade Zones: Free Trade Zones are geographical areas where
companies can be established to develop industrial activities for goods or
services under a regime that offers customs and tax benefits, such as the
opportunity to benefit from a reduced income tax rate, as well as being
able to import machinery, equipment, and supplies without incurring
customs duties.
Thesebenefitsarenotsubjecttoexportcommitments.Purelyagricultural
activities cannot be developed under the Free Trade Zone regime, they
need to be an industrial transformation of raw materials
13
AnenviablelogisticalpositionwithaccesstothePacific
and Atlantic oceans, at just:
free trade agreements in force,
including partial agreements:
five signed and three under
negotiation. Ministry of Trade,
Industry and Tourism.
Colombia has:
International Air Transportation Association - IATA and Airlines-Processed by
ProColombia.
COLOMBIA AS AN EXPORT
PLATFORM FOR ESTABLISHING
LOGISTICS HUBS
6 DAYS BY BOAT AND
3 HOURS BY PLANE FROM THE U.S.A.
11 DAYS BY BOAT AND
11 HOURS BY PLANE FROM EUROPE
INCENTIVES AND BENEFITS
FOR INVESTMENTS IN THE
COLOMBIAN AGRO-
INDUSTRIAL SECTOR
2. The capital assets that are the object of this benefit are those that are established in
Resolution No. 1148 of 2002 by the Ministry of Trade, Industry and Tourism.

6. SUPPORT FROM PUBLIC
ENTITIES FOR SECTOR DEVELOPMENT
MINISTRYOFAGRICULTUREANDRURALDEVELOPMENT: responsible
for formulating, coordinating, and evaluating the policies that promote
competitive, equitable and sustainable development of processes for
agriculture, forestry, fisheries and rural development, with a focus on
decentralization, cooperation and participation, and which contributes to
improving the standard and quality of life of the Colombian people.
PRODUCTIVE TRANSFORMATION PROGRAM:
seeks to develop world-class sectors via the formulation and
execution of sectoral business plans that favor economic
growth and strengthen the national productive apparatus
via public-private alliances.
PROCOLOMBIA: entity in charge of promoting investment,
exports and tourism in Colombia.
AGRO-INDUSTRIAL EXPORTS// 2002-2012. US$ MILLIONS.
2002
2.127 2.207
2.617
3.119
3.446
4.095
4.772
4.433
3.861
4.440 4.680
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Libertad y Orden
Source: DANE
CAGR 2002-2012
Exports: 8.2%