Colombians have not been this happy in a while. The exchange rate is soaring, making it extremely profitable to sell in a foreign currency, facilitating the sale of flower exports abroad.
The exchange rate has remained high for the last three years, but the previous nine months have been truly sensational with the peso hitting resistance at an all-time high. We are at a critical stage where the Colombian peso can continue to bring a competitive advantage to producers nationwide. It is interesting to see from the foreign exchange perspective if the barrier breaks, and if it does, we can see great benefits for local producers for an extended period.
However, this will not last forever; Colombian growers have to reap the benefits of a high peso but conduct operations as if the peso was lower to maintain their competitive advantage. It is the right moment to invest and become more efficient via automatization or process optimization.
It is also time to ramp up innovation to get the highest return of investments possible. Also, the awaited opportunity to replace people who have become problematic over the past few years with lower performance and higher rotations is here. The benefits we see with the peso are in the upper one digit to lower two-digit percentage rate, a sum that carries weight in the overall numbers of any farm. Growers must take advantage of this bonanza of opportunities to stabilize the cash flow and make the most of good times.
Luis Cadavid is a C-Level Executive with a demonstrated track record at exceeding expectations, reducing inefficiencies and opening new markets in the commodities industry. He is also a Business Consultant specialized in sales, management, agribusiness and human resources.