Colombia’s National Association of Financial Institutions (ANIF) released a report Monday that forecasted growth in the agriculture sector to be around 1-1.5% for 2011, while the nation’s government predicted growth in the same sector to be around 2-4%.
According to ANIF’s study, the predictions for low growth in Colombia’s agriculture sector are attributed to “high input costs” and the “deterioration of infrastructure caused by the rainy season.”
But other reports are more optimistic. The Agriculture Society of Colombia (SAC) said it is likely for the agriculture sector to grow because of high domestic and international food prices, as well as increased investment in long-run crops and livestock. On the other hand, the SAC recognized that high unemployment rates in rural farming areas and the appreciating Colombian peso (COP) will pose challenges for the agricultural sector.
Colombia’s government stated that they are “especially optimistic” about the sector’s growth in 2011. They foresee growth to be around 2-4% in 2011.
Farmers didn’t display high expectations for the second trimester of 2011. According to a survey conducted by the SAC, Colombian farmers of coffee, livestock, fruits, and flowers reported extremely low expectations for increased output, land expansion, and capital investment.