By: Juan Pablo Duque - Persian Manager
In this new podcast we
bring you information about the
citrus market in Antioquia and its potential. The department has the
second-best yield per ton harvested per hectare of citrus products in
the
country, which shows the quality of the soils and the ideal climatic
conditions
for these crops, mainly Tahiti limes and oranges, which represented
almost five
million dollars in exports for the department in 2019.
Today we have as a guest
Juan Pablo Duque, manager of
Equilibria Agro, a company dedicated to leading agribusiness projects
such as
Persian Limes. Persian Limes consists of 2,000 hectares of organic
Tahiti lime
which transforms the lives of farmers with an innovative social model
via the
export of fruit of the requisite quality to international markets.
Interviewer (I): Juan
Pablo, welcome and let’s go straight
to the first question. We know that the value of world citrus exports
was 15
billion dollars in 2019, with an average annual growth of 2.5% over the
last 4
years. The main imported products are oranges (24)%, followed by lime
and
mandarins (26% and 19% respectively). This means that there is still a
high
potential for the region and the entire chain. What do you think are the
challenges and opportunities that Antioquia has in this market?
JP: Firstly, Antioquia has
a privileged location. It has
access to the ports in the Pacific and the Caribbean, and is benefitting
from
the investment Colombia is making in developing its infrastructure,
including
dual carriageways, tunnels and viaducts. Additionally, a port is being
developed in the north of Antioquia, so we are in a very important
logistical
location.
This allows the fruit to
move easily, which is very
important to investors.
Another important issue is
that in some areas of Antioquia
there are very favourable agroclimatic conditions for citrus. For
example, in
the case of Southwest Antioquia, where there are some important crops
due to
their size and age (mainly orange), there are very interesting
developments and
productivity in the industry. Also, thanks to several decades of work in
developing citrus fruits, there is a skilled workforce in the
Southwestern
regions. It is not vast, but it is there.
Another important point is
the volume of fruit available.
The advantage being that if growers work together we can generate strong
synergies in terms of marketing. This is important since a small crop
can
hardly be commercialized successfully, but where there are several of us
we can
do interesting and important things.
Another important
challenge is the development of qualified
labour, which is lacking in the area in which we operate. We get
labourers
coming to us from other industries and that entails a learning curve,
and
mistakes are made along the way. We hope to establish training programs
so that
the people who come to work in citrus crops have knowledge of these
agricultural practices; how to sow, how to prune and other relevant
skills.
Additionally, we struggle to find qualified labour for administrative
positions; agronomists, experts in irrigation, drainage and
certifications.
This is a challenge, we need to have access to qualified people to help
us grow
our operations.
In terms of world
production of citrus, Spain is in the lead
with more than $ 3.5 billion dollars in exports. The growth potential
for
citrus cultivation in Antioquia is more than 200,000 hectares in the
Southwest and
Western subregions, while the priority markets for attracting investment
are
the United States and the Netherlands. For their part, the main citrus
importers are located in North America and Europe.
Therefore, we can conclude
that the main investment opportunities
for citrus cultivation in Antioquia are: (1) developing strategic
alliances
with local owners and producers, (2) the construction of fruit
collection
centres for their proper selection, preparation and export, and, (3)
expanding
the total cultivated area through the purchase of new land. These are
all
activities that Persian Limes has been able to visualize and materialize
in
order to continue strengthening and leading this market in the region.
I would say that in terms
of challenges, the modernization
of the Colombian countryside is very important. It is important to make
the
investments that allow us to increase productivity. For example,
irrigation is
very important, drainage is also very important, internal logistics,
information systems ... If you have a small crop of 50 trees you
remember what
you did. But when you already have 52 lots or 150,000 plants, you need
information systems. We have our own information system and others that
support
us with data analysis, and that allow us to be able to properly manage
our
operations. This will, consequently, ensure the quality of the fruit and
the
best productivity.
Another issue is
certifications. International markets buy
from you if you have certain certifications. You can select what you
want; if
you want to differentiate yourself by having more certifications there
are some
that are more demanding than others. There are some that are minimal
requirements, such as Global GAP, which you must have to be able to
export to
Europe. Others focus on social responsibility, organics or the
environment. You
can choose what you want to do in terms of strategy. Certifications make
it
easier for you to sell abroad and help organize you internally, so they
have
that additional administrative advantage.
Another major challenge is
supplier development. In the
countryside you see a lot of informality in the way labour is hired and
fruit
is bought. There is an important challenge there, and we have been
working on
formalizing purchasing with invoices, paying through bank accounts….
formalizing the system. All of our workers have bank accounts, they are
paid
all the requisite benefits and they are all under formal contract and
have
stable jobs.
In terms of the global
market, if we manage to win a space
for tropical oranges in international markets it would be a great
success. The
Colombian orange is not orange, it is green, but it has an incredible
flavour
and if we can get the market to accept this it would be a great
achievement.
This would allow us to export. This is something we have to work on in
terms of
marketing and communication, along with the guilds, validating its green
colour
attribute as a good thing, like an exotic variety. We have to launch our
fruit
into the international market as an exotic variety.
Regarding opportunities in
the lime market, they are not as
big as with avocado, but there are some opportunities in some markets,
namely
Europe, the United States and Asia. Since their diets already include
lime in
both food and drink, they have significant per capita consumption.
Another opportunity that
we see, and perhaps the most
important, is our purpose. Our purpose is to transform lives through
sustainable agriculture. We as a country must develop the countryside
and capitalize
on opportunities to provide a better life for our people. Colombia has
enormous
potential if it can develop its agriculture further. If we can do things
with
quality, with volume, we have an opportunity to reach those
international
markets with healthy returns.
The beneficiaries, then,
are going to be the people and
communities that are in the rural areas of the country; this is where we
need
to take the opportunities presented. I believe the greatest opportunity
we have
is that we can develop Colombian agriculture and offer these
international
opportunities to farmers who for decades have made it possible for us to
have
food in the national market. We want the fruits of our farmers to be
available
not only in the domestic market, but also in international markets. This
will
demand larger production areas and, as a consequence, will generate more
jobs
and therefore a stronger economy.
We thank Juan Pablo Duque
from Persian Limes and all of our
listeners for connecting with ACI Medellín, look out for a new episode
on the
internationalization of the city and the region, soon!