Stories

Colombia’s Agricultural Potential and the Coffee Industry

Millions of people across the world start their mornings with a cup of coffee that traces its origins in the lush hills of Colombia, supporting along the way tens of thousands of jobs and families, farmers and entrepreneurs. Coffee is one of the success stories that exemplifies Colombia’s vast potential to build greater prosperity by capitalizing on its agricultural sector. Yet, the spillover effects of this development tale have been uneven for many Colombians.

Huila, Caldas, Tolima are just three of the many regions that make up Colombia’s Coffee Axis (Spanish: Eje Cafetero). Recognized as a protected UNESCO World Heritage Site, this region is a true testament to the distinctive global brand recognition enjoyed by Colombian coffee.

Historical Challenges and the Path to Sustainable Development

Nestled along the Cordillera mountains, the people of Huila, Caldas and Tolima, like many other parts of Colombia, had witnessed decades of civil war and violence, which resulted in chronic underdevelopment and underinvestment. In 2016, the signing of a Peace Agreement between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC) established the Program of Development with a Territorial Focus (PDET) – a key initiative to promote sustainable development in 16 regions of the country most affected by poverty and conflict. PDET was designed to sustain peace by addressing inequality and targeting comprehensive investments in rural development.

Canada’s Role in Supporting Colombian Development

Canada has been an unwavering supporter of Colombia’s national development priorities and transition to long-term peace. As early as 2011, the signing of the Canada-Colombia Free Trade Agreement (CCoFTA) opened the door for enhanced economic cooperation and investment. Today, trade between the two countries exceeds CAD $2.6 billion, making Colombia Canada’s third largest export market in South America, after Brazil and Peru. However, there are untapped opportunities to increase utilization of free trade agreements to better benefit disadvantaged groups and marginalized communities.

Export Deployment Mechanism for Trade and Development (EDM) and Its Role

To enhance the opportunities of bilateral trade with Colombia and other countries around the world, Canada is supporting a technical assistance facility entitled Export Deployment Mechanism for Trade and Development (EDM). Implemented by Cowater International and the Institute of Public Administration of Canada (IPAC) , EDM is designed to respond to country demands for tailored expertise in areas that support micro, small and medium enterprise (MSME) development, export enhancement and trade policy improvements. The ultimate objective is to maximize inclusive economic growth in developing countries that have trade and investment agreements with Canada.

Strengthening Colombia’s Export Capacity and Circular Economy Practices

In Colombia, EDM has been working primarily with ProColombia – a government agency responsible for promoting foreign investment, tourism and non-traditional exports; and CONFECAMARAS – the Colombian Confederation of Chambers of Commerce. In alignment with Colombia’s national development plan, EDM activities have targeted enhancements to Colombia’s export capacity in the agro-industrial sector and promoting the adoption of circular economy (CE) and environmental sustainability practices by local MSMEs.

Despite being a continental leader in the adoption of circular economy regulations, Colombia has struggled with translating its national CE vision into concrete actions by MSMEs. Micro and small enterprises face significant barriers, including administrative burdens, limited knowledge of CE implementation, a lack of access to funding for green and clean investments, and insufficient marketing strategies to leverage sustainability improvements as a competitive advantage.

Why Circular Economy and Sustainability Matter

CE and sustainability improvements are critical for two reasons. First, both the European Union and Canadian markets, two important destinations for Colombian goods, are increasingly prioritizing sustainable production practices, particularly in areas such as deforestation and corporate social responsibility. Second, global consumers are becoming more aware and anticipant of production standards that protect and preserve the environment.

EDM’s Support for Circular Economy Integration

EDM stepped in to support CONFECAMARAS by providing technical assistance to 65 officials from 26 regional Chambers of Commerce across Colombia, on how to link circular economy and sustainability concepts with clear and actionable roadmaps at the company level. This support is tailored to the specific needs of different sectors and company sizes, ranging from improved water management practices for agricultural businesses to energy-efficient solutions for manufacturing companies.

Looking Ahead: Expanding Impact on MSMEs

In the second phase of this initiative, 61 MSMEs are expected to benefit from training. The goal is for these businesses to pioneer new approaches and new models that can serve as best practices among their industry peers.

“This type of sustainability and circular economy programs [supported by EDM] are very important for the Chamber of Commerce. They provide us with the tools that will allow us to accompany our entrepreneurs in formalizing our joint responsibility, comprising businesses based in Chocó and the regional Chamber of Commerce, to ensure the sustainability of our planet”, noted Gladys Elena Marulanda Agudelo, Advisor, Chocó Chamber of Commerce, Colombia.

Enhancing Market Entry for Colombian Businesses

A complementary EDM technical assistance activity has worked in collaboration with ProColombia to support Colombian businesses in enhancing their market entry and export readiness. Focusing on four pilot regions – Caldas, Huila, Magdalena and Tolima – EDM support has reached 110 representatives of government organizations, regional chambers of commerce and MSMEs in understanding the legal requirements and identifying high-potential agricultural products for the Canadian market. Three market studies were completed on the Canadian market requirements for specialty coffee (green and roasted), fruits (focus mango and Tahiti lime), and ethnic snacks. Delivered in partnership with Globally Cool, this initiative has facilitated over 40 meetings between Colombian MSMEs and potential Canadian buyers. This initiative has been critical in providing export development assistance for trade organizations and ensuring that Colombian companies are better equipped to access the Canadian and international markets.

Building a Globally Competitive MSME Sector

In Colombia, locally driven commitment to meet evolving global market demands is encouraging regional Chambers of Commerce to integrate environmental sustainability as a core business support service for their members. This is a key building block to make Colombia’s MSME sector more globally competitive and resilient in the long-term. From 2018 to 2025, EDM has delivered more than 85 technical assistance projects to support 7 countries and one regional organization (ASEAN) in enhancing their trade and investment opportunities.