Good news for Colombian exports: agro-industrial sales grow

August 14, 2023

Colombian exports in the agricultural-agro-industrial sector grew from 2000 to 2021 and shifted towards processed goods.

Colombian exports, agroindustry, agricultural products transformation, Más Colombia

Colombian food is feeding more and more people around the world. Colombia’s exports in the agricultural and agro-industrial sector, from exotic fruits to coffee products, are becoming more desirable year after year.

Agricultural and agro-industrial exports have grown throughout the 21st century, according to recent research by the National Planning Department (DNP). In these years, products with some kind of transformation have gained importance over those that do not have a manufacturing process.

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A study on Colombian exports in the agricultural and agro-industrial sectors

In recent days, the DNP presented a study entitled “Colombian exports of the agricultural and agro-industrial sector: a regional approach”. To carry it out, the entity took into account the annual data of foreign trade from 2000 to 2021.

The DNP’s research assumes as a large sector all agricultural activities without transformation (agriculture, livestock, forestry and fishing) plus agro-industrial activities (processed foods, beverages and tobacco products).

Agricultural and agro-industrial sector: Colombian exports are growing in value and importance

Colombian exports in this large agricultural and agro-industrial sector increased by US$ 6,301 million in the 22 years studied, from US$ 3,112 million in 2000 to US$ 9,413 million in 2021, according to Jennifer Timoté, DNP researcher.

In the period studied (2000-2021), the average annual growth rate of the sector’s exports was 5.9%. It should be noted that not even because of the pandemic did it stop increasing. On the contrary, in the two years following the appearance of Covid-19, exports grew more than the average. In 2020, Colombia’s exports in the agricultural and agro-industrial sector increased 6.9% and in 2021 there was an increase of 19.9%, according to the DNP.

An important indicator is to know how much Colombian exports in the agricultural and agro-industrial sector weigh in comparison with the entire export basket. During the period from 2000 to 2021, the sector’s exports were on average 37.3% of the country’s total exports, without taking into account mining and oil.

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The sector’s share in Colombian exports has shown a growth trend over time. From 2000 to 2004, the agricultural and agro-industrial sector accounted for 37.2% of exports excluding mining and oil. From 2005 to 2014, it showed a slight drop and the sector’s share of exports was 34%. From 2015 to 2019, the share increased to 41.8% and, after the pandemic, it was 43%.

Agribusiness weighs more in Colombian exports than the agricultural sector

In the first years studied by the DNP, there was an important change in the composition of Colombia’s agricultural and agro-industrial exports. From 2000 to 2004, 66.6% of the export basket consisted of unprocessed agricultural products. From 2005 onwards, the agricultural part moved into second place, with a share of around 35% in the following years, a percentage that was maintained until 2021, the last year included in the study.

From 2005 onwards, what had the highest share was food with some type of manufacturing processing. That is, foods that went through an industrial process. Since 2005, they have accounted for more than 60% of the export basket of the large sector studied by the DNP. Among them, the most important item is coffee products.

During the 22 years of the study, forestry had an important increase. In 2000 it accounted for 0.09% of Colombia’s agricultural and agroindustrial exports. It ranked sixth in terms of participation, below tobacco products, beverages and fisheries.

In 2021, on the other hand, forestry reached third place in importance, with a 0.7% share. This was surpassed by agriculture and the food industry, which together accounted for more than 95% of the sector’s export basket.

The trade balance in the agricultural-agro-industrial sector is positive, but declining

From 2000 to 2021, the agroindustrial agricultural sector was characterized by a surplus trade balance. On average, there has been a surplus of US$1,787 million per year. The years from 2005 to 2009 were the most positive, with an annual surplus of US$2,842 million on average.

As of 2012, a downward trend in the sector’s trade balance result began, highlighted the researcher Timoté. The worst year was 2019, when the surplus was below US$1.3 billion, well below the average surplus for the entire period studied.

The study also explained that, from 2000 to 2004, the sector’s surplus was mainly due to agricultural products. From 2005 onwards, this changed in line with the composition of the export basket. Since 2005, the surplus is mainly explained by agro-industrial products, i.e., those that contain some manufacturing process.