Page 106 - STRATEGY Magazine (G)

GUATEMALA: AGRIBUSINESS
Nature’s Need for Nurturing
Agriculture has grown into one of the largest sectors of Guatemala’s economy. Though the nation is bless- ed with fertile land, years of mismanagement have deterred progress. However, steps are being taken to improve long-term productivity.
Serving as a vital link between Guatemala’s agrarian past and its agribusiness future, agriculture has become one of Guate- mala’s most important sectors, both in terms of the economy and the necessity for strategic planning and natural resource conservation. Agriculture represents 13.5 percent of Guatema- la’s gross domestic product (GDP), and, according to the Food and Agriculture Organization of the United Nations, it employs between 40 and 50 percent of Guatemala’s workforce and accounts for more than 50 percent of foreign exchange reve- nues from exports. These numbers could potentially increase
in the coming years as Guatemala focuses on the importance of its agricultural capabilities and improves its processes and regulations.
Guatemala’s agricultural sector relies heavily on the produc- tion of coffee and sugar. The region is fourth in the world in
sugar production, and along with coffee, has directly created 75,000 jobs. Guatemala also grows corn, beans, and bananas, and it is the world’s largest producer of cardamom, a spice known as much for its health benefits as its culinary dexterity.
The region’s seafood exports alone have reached US $30 mil- lion, while its total agricultural, fish, and forestry exports have reached US $1.8 billion.
LOCAL AND BEYOND
A significant factor in this development has been the country’s free trade agreements and a willingness to encourage outside investment. The most important of these agreements, the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) with the United States, began in 2006 and has successfully increased the region’s bilateral trade. While the
104 STRATEGY
SPECIAL REPORT
COURTESY AGROAMERICA