Colombia's flower sector pushes for credit lines and energy transition funding

Colombia’s floriculture sector is seeking new measures to sustain its productive and export capacity in the face of rising labor and production costs, peso revaluation, and tariff conditions in the United States.

Asocolflores noted that the sector generates around 240,000 direct and indirect jobs, and stressed that its high labor intensity means that increases in labor costs have a particularly significant impact on businesses.

Among the proposals put forward by the association are financing lines with preferential terms on maturity, interest rates, and guarantees, as well as support for integrated pest management to preserve access to international markets. Measures to address exchange rate volatility and incentives to maintain formal employment were also proposed.

According to the association, a credit line with an interest rate subsidy has been launched, and alternatives are being explored to restructure the debt of companies in the sector under more favorable conditions.

Another measure in preparation is a credit facility for energy transition projects. The aim is to facilitate investments that reduce energy costs and, as a result, lower production expenses for flower-growing operations.

Asocolflores also put forward proposals to get ahead of the potential effects of the El Niño phenomenon, particularly regarding water and energy availability, climate adaptation, and worker protection.

The conditions, timelines, and access mechanisms for the new financial instruments will be defined once the relevant approval processes have been completed.

For more information:
Asocolflores
asocolflores.org