Latin America, fertile field for US investments

On June 27, 2019, a forum on agricultural innovation was held in Brasilia, promoted by the CropLife organization and the National Vegetable Defense Association (ANDEF) of Brazil.
In this event, the CEO of CropLife, José Perdomo, indicated that, a greater investment in technology and education of farmers would be able to consolidate Latin America as the region with the largest production and export of food worldwide.

The agricultural industry has focused in recent decades on optimizing their processes to achieve higher quality in their food, making better use of the soil and prioritizing reducing the impact on the environment.

During the forum, Perdomo also stressed the great opportunity that the region has in this sector of the economy, being one of the main suppliers of food worldwide. In addition, he assured that there is a need to invest in the modernization of agronomic processes, through science and technology.

For his part, the director of Syngenta, Valdemar Fisher, during his participation in the event, said that agriculture represents one of the noblest activities on the planet, with which Latin America has the potential to be more and more protagonist of the economy world. A goal that will reach more quickly including more technology and education in the agronomy sector.

This is an economic scenario that US investors have taken advantage of in various opportunities. An example of this is the case of OPIC, an agency of the US Government. UU dedicated to facilitate the tasks of US companies, who wish to invest in emerging markets inside and outside of that territory; which in 2018 landed in Colombia with the intention of boosting with 500 million dollars, several projects where agricultural activities stood out.

Agricultural products for export

13% of world agricultural production came from part of Latin America. It is also responsible for 16% of exports in this sector. On the other hand, it has 23% of the arable land in the world; which is favored by 30% of the planet’s freshwater reserves. In addition, it responds to 30% of the meat, 60% of the banana and 59% of the coffee consumed by the world population.

Among their countries, Brazil stands out with the highest production of sugarcane, coffee and oranges. Guatemala as the largest producer of cardamom. Argentina for the highest production of lemons. Peru for its quinoa and Mexico for its large and important avocado crops.

On the other hand, 30% of the population in the world is engaged in agricultural work, which is responsible for 50% of the food consumed in the world.

Opportunity for investors

Latin America is a region with strong commercial links, a lucrative geographical position and a growing middle class market. This territory offers companies significant opportunities that can be exploited to obtain high profits.

If you want to obtain a portion of the market, you must offer the right products and services, at the indicated price. Also, you must enter a Latin American country that is ready for investment and expansion.

As stated above, despite its fertile lands and large agricultural production capacity; Latin America requires investment in technology to facilitate field activities, such as more sophisticated machinery, modern vehicles, GPS, sensors, satellites and aerial images together with Geographic Information Systems (GIS), etc.

This is a need that investors, entrepreneurs and entrepreneurs in general can take advantage of to turn it into an opportunity to enter the agricultural sector of a Latin American country.

Some of the most prosperous countries in the agricultural sector, in which it is important to consider making investments are the following:

Peru: it ranks 68th out of 190 countries in the Report on Ease of Doing Business in 2019. It currently has a very important participation in the agricultural sector, where it stands out with its production of grapes and mangoes for export.

Mexico: is one of the favorites among foreign investors. The country ranks 54 out of 190 economies in the Ease of Doing Business Report. It makes the difference in this sector with its great production and quality in avocados and tomatoes.

Colombia: its economy will grow 3.5% in 2019. Considered the most friendly country for business in Latin America. Colombia ranks 65th out of 190 countries in the Ease of Doing Business Report. It is a country recognized for its coffee and plantain crops.

Check foreign trade information in Latin America and find new business opportunities

With our foreign trade reports you can see important data such as countries with higher imports and exports in this sector, tariff costs, companies with greater participation in world agronomy, suppliers, among other details. This data will help you create strategies that allow you to expand your company’s activities and increase profits.

We invite you to make your inquiry now! It’s simple, you just have to click on the button “Try it for free” then fill in the fields requested by the page with your data and write the name of the company or product you require information from and ready.

logo
14213 SW 116th Terrace Miami, FL 33186 (305)-6024433

Paula Castaño
Sales manager.
+(57) 310 2917442
paucast@sicex.com

Pablo Castaño
General Manager
+(57) 3188538664
pcastano@sicex.com