Among the foods that reported falls in their prices are black and creole potatoes (more than 10%), arracacha, plantains, and pork, whose different cuts fell without exceeding 5%. Some cuts of chicken, such as wings, legs, and breast, also decreased, as did fruit such as mango, passion fruit, tangerine, lemon, orange, and papaya. In the vegetable group, products such as junca onions, broccoli, green beans in pods, and paprika became cheaper.

In contrast, the largest price increases were recorded in vegetables such as white and red onions, tomatoes, cucumbers, green peas in pods, and carrots, with variations of more than 10%. Products such as beans, pumpkins, and some lettuce also rose. The rise in green peas, for example, was explained by lower availability from regions such as Nariño, Cundinamarca, and Antioquia, while cucumber was affected by harvest pauses in Norte de Santander, Risaralda, and Boyacá.

“Technical monitoring of price behavior is key to understanding the dynamics of the agri-food system. With this data, we can anticipate risks that affect food safety. Productive planning requires reliable information to make timely decisions in public policy,” said Dora Inés Rey, director of the UPRA.

In the group of grains and cereals, decreases were observed in imported products such as dry peas, threshed yellow corn, and lentils, while some varieties of domestic beans, prime rice, and imported husk corn became more expensive. As for processed foods, the prices of refined sugar, wheat flour, vegetable oil, and ground coffee rose, while products such as sunflower oil, cornstarch, and some pasta decreased.

The behavior of prices during May reflects, in several cases, the effect of weather conditions and harvest closures, as well as normal market adjustments. These data allow us to better understand the relationship between production, supply, and prices, which is key to guiding national agri-food policy.

Eggs. Photo credit: akirEVarga from Pixabay.

The prices of fresh fruits fell in products such as common mango, papaya, oranges, and pineapples. However, Tahiti lemons, mandarins, and avocados rose more than 10%, driven by a reduction in their supply due to adverse weather factors. The tubers and roots group also reported a reduction in the prices of yellow and white arracacha, as well as in bananas and cumin. Despite this, black potatoes, creole potatoes, plantains, and cassava experienced increases in their prices, especially highlighting the different varieties of black potatoes and cassava.

“Price fluctuations in wholesale markets reflect both seasonal conditions and variations in product supply. These changes are a reminder of the importance of monitoring the food market to ensure stability and access to fresh and nutritious products,” explained Dora Inés Rey, acting director of the UPRA.

In meat, pork prices fell in several cuts, while beef and chicken registered moderate increases. For their part, artisanal cheeses also had increases in their prices.

On the other hand, vegetable prices showed increases of more than 10% in products such as white onions, tomatoes, carrots, broccoli and junca onions; affected by the lower supply in the harvests due to rains in the main producing regions. The white-headed onion registered an increase of more than 10% due to the reduction in the harvests of Boyacá, Nariño and Cundinamarca.

Farmers holding Pineapples. Photo credit: UPRA.

In general, by food group, the supply of meat (+4.7%), fish (+3.8%), processed foods (+3.8%), and vegetables (+1.6%) increased. At the same time, a reduction was observed in grains and cereals (-5.1%), tubers, roots, and bananas (-3.2%), and fruits (-1.1%), key sectors for the basic diet of Colombians.

Relevant figures

• Tubers and roots: although products such as ginger (+216.6%) and yams (+24.6%) increased their supply, potatoes, one of the most consumed foods, registered a decrease of 4.4%.
•  Fruit: avocado (+36.9%) and mango (+22.2%) stood out with significant increases, while essential fruits, such as oranges (-28.4%) and tree tomatoes (-16.5%) decreased.
•  Vegetables: beets (+17.7%) and onions (+11.5%) showed a greater supply, unlike products such as beans (-12.5%) and carrots (-5.6%).

Dora Inés Rey Martínez, acting director of the Rural Agricultural Planning Unit (UPRA), highlighted the importance of monitoring supply behavior to ensure the country’s food security: “Stability in the food supply is essential for Colombia’s food security. Efforts must strengthen the production and logistics of basic foodstuffs, ensuring that they arrive constantly and affordably on the tables of all Colombians.”

“The UPRA reaffirms its commitment to the development of public policies that ensure the sustainability of agri-food production, promote crop diversity, and guarantee constant supply throughout the national territory,” she added in a statement.

Photo credit: Colombia’s Rural Agricultural Planning Unit (UPRA)

]]> https://www.financecolombia.com/colombia-sees-decrease-in-fresh-produce-prices-impacting-consumers/ Tue, 12 Nov 2024 15:29:31 +0000 https://www.financecolombia.com/?p=31440 In October 2024, Colombia’s wholesale prices for various fresh fruits and vegetables saw notable declines, according to the Unit of Agricultural Rural Planning (UPRA). Items like cucumber, onions, and beets dropped over 20%, reflecting an increase in supply due to favorable harvests in key regions such as Cundinamarca, Boyacá, and Cauca.

Root vegetables, particularly potatoes and yams, also experienced price reductions exceeding 10% due to higher yields from areas like the Cundiboyacense plateau and Norte de Santander. In contrast, the prices of certain grains and cereals, including corn and beans, rose by up to 5%, largely due to adverse weather conditions and limited market availability.

Despite logistical challenges posed by protests, including mining and farming strikes that disrupted supply chains, wholesale food prices generally stabilized. This trend was attributed to price declines in previous weeks that helped offset October’s fluctuations.

While fresh fruits like papaya, mango, and pineapple saw price reductions, products such as lime and avocado experienced increases. Additionally, there were slight drops in the costs of beef, pork, and chicken cuts, although reductions were minimal—under 3%.

For more information on food price changes in Colombia, visit the official UPRA report.

Headline photo: Colombian criolla potatoes (photo: Loren Moss)

Colombia already exports Mangos to Canada, France, the Netherlands, Belgium, UAE, and Qatar. In 2021, the US Animal & Plant Health Inspection Service (APHIS) green-lighted Colombian Mangos on phytosanitary safety grounds. With this approval, Mangos make up one of the 108 fresh agricultural products admitted into the US, joining among other products, paprika, Hass avocado, uchuvas, blueberries, tangerine, orange, pineapple, aromatic herbs and Tahiti lemon.

This particular shipment was grown on the Varahonda farm in Palmira, formally known as Agricola Varahonda SA, and packed at Frutales Las Lajas in Zarzal, Valle del Cauca. The Varahonda farm in Valle del Cauca, near Cali, Colombia generates formal employment for mothers who are heads of household, and contributes to the economic and social development of the rural communities surrounding their crops in the southwest of the country.

“The first export of fresh mango to the United States represents a great opportunity to consolidate the exportable supply of fresh fruits, generating formal employment and opportunities in rural areas of the country. We will continue working to enhance national food production to achieve food sovereignty, and thus achieve balances in trade,” said the Minister of Commerce, Industry and Tourism, German Umaña Mendoza.

Colombia’s climate allows the country to produce Mangos year-round. According to the Minister of Agriculture and Rural Development, Cecilia López Montaño, “there are approximately 35,000 hectares (86,487 acres) of mango in Colombia distributed in 22 (of 32) departments, led by Cundinamarca outside of Bogotá, followed by Antioquia and Norte de Santander.”

“We have great expectations with the business of exporting mango to the United States, which begins this year. We believe that our fruit will be very well received in the North American market, and we see a lot of interest. We have a production projection for next year of approximately one thousand tons,” said Juan Felipe Peña, manager of Agricola Varahonda SA.

Headline photo: Mangos from Santa Fé de Antioquia, Colombia (photo © Loren Moss)

Caution: As of 13 January 2020, Finance Colombia has been unable to verify any information regarding Flora Growth Corp.

Kasa markets fruit juices and pulps from organic exotic fruits such as mango, acai, passion fruit (maracuyá), camu camu, copoazú and guava, as well as more commonly used fruits such as bananas, strawberries, oranges and apples.  Kasa also produces chocolate confectionery using 70% Colombian cacao.

Mamba-branded products are widely distributed in Colombia, sold in retailers such as Carulla, Tostao’ Café & Pan, Deli Reposteria, Jumbo, and is available for home delivery via UberEats.

Over the last year, Kasa has been researching and developing CBD (cannabidiol)-infused juices and chocolate, and already has a line of CBD-infused juices (10 mg CBD/250 ml of juice) and chocolate bars (40 mg CBD/100 mg of chocolate).  Kasa hopes to sell such CBD-infused products in the Latin American market immediately upon receiving regulatory approval, which is expected later this year.

Kasa has been researching and developing Cannabidiol-infused juices and chocolate.

Launched by filmmaker Santiago Mora in 2013, Kasa has received several innovation & social impact awards and grants from the Colombian government for its work with local farmers and indigenous Amazonian communities such as the Tarapacá in the Putumayo region to cultivate fruits for the Mamba beverages, providing sustainable economic opportunities to these communities and offering an alternative to Amazon deforestation and illegal mining in these areas.

“We are excited to acquire an entrepreneurial, innovative company like Kasa Wholefoods.  They have done an excellent job of developing a line of world-class juices and chocolates.  There is immense demand for CBD-infused products in Latin America and worldwide, said Damian Lopez, Flora’s CEO. “We will combine our organic CBD-Oil with Kasa’s organic Amazonian based fruit juices and chocolates to satisfy this demand. We expect to obtain regulatory approval in Colombia to infuse food & beverages with CBD in 2020 and be the market leader in this category.”

In order to consummate the transaction, Flora must pay Kasa shareholders $294,000 in cash, and pay Kasa’s outstanding debt balance of USD$91,000.  Existing Kasa shareholders will retain a 10% equity interest in Kasa which may not be diluted until Flora invests $5 million USD in Kasa.  Once this financing milestone is met, all shareholders of Kasa will be diluted if they do not participate in any further Kasa financing. The transaction is subject to the parties finalizing negotiations and entering into a definitive agreement and obtaining of the necessary regulatory approvals.

In addition to the US Undersecretary of Commerce, representatives from Colombia’s Ministry of Agriculture, ProColombia, and the Colombian Embassy participated in the meeting, which had the stated goal of increasing Colombia’s exports and diversifying the range of products that can be exported, taking advantage of the binational free-trade agreement between Colombia and The United States.

In the first half of this year, Colombia exported $6.85 billion USD worth of products, or 29% of the country’s entire exports, making the US Colombia’s most important trading partner. Of this total, $2.5 billion were exports other than mining or petroleum, increasing diversified trade by 1.75% over the same period last year.

In 2018, US direct investment in Colombia reached $2.478 billion USD, and in the first quarter of this year, $596.2 million USD. Telecommunications, finance and tourism received most of the US investors’ attention during that quarter.

Photo courtesy MinTIC