Fact-Finding Agro-Food Bolivia with a Special Focus on the Santa Cruz Region
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Fact-finding Agro-Food Bolivia With a special focus on the Santa Cruz region Commissioned by the ministry of Foreign Affairs Fact-finding Agro-food Bolivia With a special focus on Santa Cruz region ICI Business Fact-finding Bolivia 2016-2017 Commissioned by the Royal Dutch embassy in Lima Michel Peperkamp – ICI Business | Access Latin America With contribution of: Maarten Kraaijenhagen – Access Latin America With special thanks to Hans van Mourik (Dutch embassy) and all the Bolivian entities and entrepreneurs that provided information and shared their views. [2] Contents Executive summary .......................................................................................................................................... 4 Bolivia in general ............................................................................................................................................ 10 Bolivian regions .............................................................................................................................................. 12 Agricultural inputs .......................................................................................................................................... 14 Agroindustry .................................................................................................................................................. 16 Soybean ......................................................................................................................................................... 18 Sugar cane ..................................................................................................................................................... 20 Maize ............................................................................................................................................................. 21 Sorghum ........................................................................................................................................................ 21 Wheat ............................................................................................................................................................ 21 Sunflower ....................................................................................................................................................... 21 Feed ............................................................................................................................................................... 22 Livestock and processed animal products ....................................................................................................... 24 Poultry ........................................................................................................................................................... 26 Cattle ............................................................................................................................................................. 29 Dairy ............................................................................................................................................................... 31 Other Agrofood industries .............................................................................................................................. 35 Overview of the future challenges .................................................................................................................. 40 Public and private organizations ..................................................................................................................... 42 Public policies ................................................................................................................................................. 45 Public investments Bolivia .............................................................................................................................. 47 Doing business in Bolivia ................................................................................................................................ 52 Challenges and needs for Dutch companies in Bolivia ..................................................................................... 53 Dutch companies ........................................................................................................................................... 55 Financing opportunities and obstacles ............................................................................................................ 56 Leading companies in Bolivia ......................................................................................................................... 58 Opportunities for Dutch-Bolivian cooperation ................................................................................................ 59 Annex I: SWOT analysis .................................................................................................................................. 64 Annex II: References ....................................................................................................................................... 66 Annex III: Project opportunity: a Mennonite cooperative ................................................................................ 68 Annex IV: PSI Projects ..................................................................................................................................... 71 Annex V: Trade fairs and events ......................................................................................................................75 Annex VI: Information & links ......................................................................................................................... 76 Annex VII: Inputs, machinery and feed ............................................................................................................ 78 Annex VIII: Soybean ....................................................................................................................................... 79 Annex IX: Sugar cane ...................................................................................................................................... 80 Annex X: Maize ............................................................................................................................................... 81 Annex XI: Wheat ............................................................................................................................................. 82 Annex XII: Sunflower ...................................................................................................................................... 83 Annex XIII: Sorghum ....................................................................................................................................... 84 Annex XIV: Rice .............................................................................................................................................. 85 Annex XV: Sesame ......................................................................................................................................... 86 Annex XVI: Other crops .................................................................................................................................. 87 Annex XVII: Poultry ........................................................................................................................................ 88 Annex XVIII: Livestock and beef ...................................................................................................................... 91 Annex XIV: Dairy ............................................................................................................................................ 93 Annex XX: Pigs ............................................................................................................................................... 95 Annex XXI: Productive maps ........................................................................................................................... 96 [3] Executive summary A quick overview in English, Spanish and Dutch In the last decade Bolivia showed a significant development in the agricultural production and agro-food industry. A positive contributing factor was the strong GDP growth from 2006 until 2015, supported by the high prices for gas and minerals. While mining and gas revenues decreased in recent years, the agricultural sector remains a very valuable economic driver for Bolivia. It is a sector in which opportunities are endless, but with deviant local circumstances and the typical challenges of a country in development. Fact-finding This fact-finding report, commissioned by the Dutch embassy in Lima, has the objective to pinpoint some of the challenges in Bolivian agribusiness as well as to identify potential opportunities for bilateral cooperation on different levels of the private, non-profit and public sector. Certain findings may be a motive for further investigation. The principle focus of this report will be on the agricultural commodities and livestock (cattle and poultry) and some of their related businesses such as feed, dairy and meat. However, potential opportunities in preserving fruit, high value crops and food processing are also briefly reviewed. Department of Santa Cruz Santa Cruz is the centre of agricultural development, especially in commodity crops as well as commercial livestock. The different agro industries