Effects of COVID 19 on agribusiness in Colombia, Peru & Ecuador UPDATE #5

Here is an update of the most relevnt developments in Colombia, Peru & Ecuador related to COVID-19 and the effects on the agricultural sector. Read more about the impact it has on livestock, fruits, inputs, cocoa and shrimps.

Colombia

Agricultural prices in Colombia increased 16.85% so far this year,  main causes are mobility restrictions due to lockdown, increase of food purchases in households, increase in the prices of agricultural inputs and imported products due to the devaluation of the exchange rate .There were also groups with price reductions such as palm or palm kernel products (-11.3%), pork (-10.3%) and imported corn (-2.3%).

https://www.valoraanalitik.com/2020/06/03/precios-agropecuarios-en-colombia-se-dispararon-en-mayo/

Livestock sector began a new plan that seeks to increase exportations to more than US $ 100 million as of December. Domestic beef exports are still low for their potential, last year total production reached more than 933,000 tons, but only 3% was exported, in addition to this figure, farmers rely on the high quality stamp of local meat cuts and the status as a FMD free country. The plan will seek to start negotiations with 5 new countries before the end of 2020: Peru, Chile, Curaçao, Qatar and Kuwait. It is worth to mention that between January and April 10,105 tons were exported in the midst of the world crisis; That is half of the total sold in 2019 (21.000 tons).

https://www.agronegocios.co/ganaderia/los-cinco-paises-a-los-que-llegaran-las-exportaciones-de-carne-bovina-local-este-ano-3016134

The prices of agricultural inputs have had one of the most difficult years in terms of prices. In the first quarter there were increases between 20% and 25% due to dollar exchange rate increases ; and when the covid-19 pandemic began, the situation became even more complicated, to the point that producers speak of a price increase of more than 30%. This figure has been spoken among various sectors of especially dedicated to land activity; While for livestock work it could be less, Livestock National Federation Fedegan has spoken of up to 20% in the rise in agro-inputs.

https://www.agronegocios.co/aprenda/los-insumos-agropecuarios-se-encarecieron-30-en-medio-de-la-crisis-del-covid-19-3017116

According to ProColombia figures, Colombian fruit exports increased 9.37%  between January and April 2020. Avocado has been the most exported fruit with a growth of 20.8% worth US $ 40.38 million also bananas with exports worth US $ 26.65 million, this is an increase of 18.6% . One of the best-performing fruits in this period was blueberries, with a growth of 34,042%. Other fruits such as passion fruit, mango, watermelons (which increased their exports by 232% in the period), tahiti lemon and papaya also have a good projection. The main export market for Colombian fruits is The Netherlands. Last year during the same period sales to this market totaled US $ 44.9 million, in 2020 they have grown 14.7%. The US is the second market for Colombian fruits, and also increased its purchases by 24.8%.

https://www.agronegocios.co/agricultura/arandanos-tuvieron-la-mayor-alza-en-exportacion-en-los-primeros-cuatro-meses-del-ano-3017652

Peru

Mango shipments (in all its presentations) to various markets around the world worth US $ 296 million in the 2019-2020 campaign, whose main markets were the United States. (US $ 96,693 million) and the Netherlands (US $ 89,061 million), adding 62.8% of the total. The main presentation was fresh mango 16% and frozen 19.7%. The others were dry and canned.

https://agronoticias.pe/noticias/campana-2019-2020-exportacion-de-mango-sumo-us-296-millones/

The Ministry of Agriculture and Irrigation (Minagri) reported that rice exports grew 410% between January and April of this year. Rice shipments totaled 36,344 tons, while in the same period last year the sale was 8,898 tons. Shipments totaled US $ 24 million, Colombia is the main market (98%). The growing demand would respond to the liberation of taxes and the higher export quotas negotiated between both countries. At a general level, agro-exports totaled US $ 2,067 million as of April this year, this means an increase of 0.04% compared to the same period last year.

https://agronoticias.pe/ultimas-noticias/exportacion-de-arroz-crecio-410-en-el-primer-cuatrimestre-del-2020/

Producers from different regions of Peru will export 85 tons of cocoa for S / 595,000 to Europe and North America. A total of 991 cocoa families benefit from this sale through the company Amazonas Trading. The negotiation took place between March and April. The beans and their subsequent transformation into cocoa paste, husk, chocolate, nibs, powder and butter will reach Germany, The Netherlands, Switzerland, Belgium, Spain, Italy, France, Turkey, Canada, the United States and Mexico.

https://agronoticias.pe/ultimas-noticias/pasco-productores-exportaran-85-tm-de-cacao-a-europa-y-norteamerica/

During the covid-19 pandemic, ginger exports increased 137% in April 2020, accumulating sustained growth of 168% in the first quarter. The main destinations were Spain (+529%), The Netherlands (+255%) and the United States (+124%), the last two being the second and the world's largest importer, respectively. Peru is the world's fourth largest exporter of ginger after China, Thailand and India. Ginger is rich in antioxidants, in addition to its gastronomic use, it is attributed medicinal benefits such as strengthening the immune system. This last reason is likely to explain the increase in consumption given this pandemic scenario caused by covid-19.

https://agronoticias.pe/noticias/por-el-covid-19-exportaciones-de-kion-crecieron-137-en-abril/

Ecuador

Although shrimp exports rebounded slightly in April compared to March, prices remained down, according to statistics published by the National Chamber of Aquaculture (CNA) the average price per pound was $ 2.48 the most low in the last 12 years.

This is mainly due to the fact that after the quarantine was lifted in some countries, the reactivation of the market has been slow and the main niches of the crustacean are restaurants, hotels and companies related to events.

https://elproductor.com.ec/ecuador-precios-del-camaron-los-mas-bajos-en-los-ultimos-12-anos/

Corona
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