Uncovering a Niche Market: Bolivian Organic Foods

Sure, the big business news from Bolivia right now include problems with LAB, problems with Repsol, problems with El Mutún, problems with clothing imports and promises from Petrobras...Overlyy negative stuff.

However, I thought it would beworthwhilee to look at an interesting and positive news item in today's La Razón. Chapare Exporta, the agribusiness company founded by Miguel Zambrana[1] 15 years ago, has just begun banana exports to Europe. A historic landmark for a small Bolivian company given the strict agricultural protections common in the European Union. According to Zambrana the European market for bananas and its derivatesurpasseses $US 5.000 million a year, the objective of the company is to capture 10 percent of that market in the next few years. Bolivian banana exports currently cover 30-40 percent of thArgentineanan market, and with quotas and other trade barriers ineighborur countries expanding to European, Asian and North American markets seems a logical step.

On a similar step, other Bolivian agricultural companies are striving to promote their products abroad and enter new markets. Fourteen such companies will be exposing their products in the BioFach 2006 fair [2], in Nuremberg, Germany, in the next few days. Products promoted include organic quinoa, coffee, tea, medicinal herbs, dehydrated fruits, and others. Some of the companies include: Anapqui, Andean Valley S.A, AOPEB, BioCrush S.A, Coronilla S.A., El Ceibo Ltda. Irupana AOF and Hahenmann Labs.

Bolivian companies specializing in agricultural and organic products will also be present in other upcoming trade fairs, including Foodex in Japan, Agroexpo in Colombia, Interzum in Germany and Fancy Foods Show in the US.

A so it goes, slowly but surely Bolivian private enterprise has found a niche in selling high quality organic foods internationally. If only we had more free trade agreements.

Notes:

[1] Some may remember Mr. Miguel Zambrana for his daring attempt of suing then congressman and sindicate strong-man Evo Morales and other MAS nomenklatura for damages caused by the constant blockades in el Chapare in past years. Week long blockades derived in months worth of production rotting in trucks on their way to Argentina, contracts being defaulted and other losses. It's surprising to see how Chapare Exporta has recovered.

[2] For a complete listing and contact addresses of many of the companies cited here, click on this link.