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Calendar 28/5/2024

South of Huila, the leading region in competitiveness in panela cane production

Sur del Huila, la región líder en competitividad en la producción de caña panelera

Panela cane is a crop of great importance to the Colombian economy, with a presence in 87.5% of the country's departments. 
22.6% of the national production of panela cane is concentrated in the departments of Nariño, Valle del Cauca, Huila, and Caldas in 2023.
 

Bogotá D.C., (@Minagricultura, @UPRAColombia, @claudialili76). Panela cane is a crop of great importance to the Colombian economy, with a presence in 87.5% of the country's departments. This agribusiness is the second most important nationally after coffee, and approximately 350,000 families are linked to this productive activity. 

This is how the ​​​Agricultural and Rural Planning U​nit (UPR​A) conducts an analysis of the production costs of panela cane in Colombia; a study focused on four regions of productive importance: Nariño, Valle del Cauca, Huila, and Caldas. For 2023, the results indicate that the South of Huila is the most competitive region, however, the entity delivers results year after year since 2021. 

Figure 1. Distribution of the percentage of production costs in four panela cane producing regions ​

Figura 1. Distribución del porcentaje de costos de producción en cuatro regiones productoras de caña panelera

The analysis reveals that 22.6% of the national production of panela cane is concentrated in the departments of Nariño, Valle del Cauca, Huila, and Caldas. In particular, the southern region of Huila stands out for its competitiveness conditions, associated with the highest yields per hectare (122.9 tons) and the lowest production costs per kilogram of cane ($125.1)," explained Claudia Cortés, director of UPRA.

On the other hand, the regions with the lowest yields per hectare and higher unit costs ($/kg) are the high western region of Caldas and the western region of Nariño. 
Based on the results obtained, it is concluded that the southern region of Huila has the best competitiveness conditions associated with the highest yields per hectare (122.9 t) and the lowest production costs per kilogram ($125.1). On the other hand, the regions with the lowest yields per hectare and higher unit costs ($/kg) are the high western region of Caldas and the western region of Nariño.

In 100% of the regions under study, the largest share of production costs corresponds to labor-intensive activities, with the high western region of Caldas standing out (71.0%), where harvesting and land preparation activities have the greatest weight. The second most important item is inputs, where the southern region of Huila has the highest share of these (36.7%), values related to propagation material (cuttings) and soil fertilizers.
 
The largest share of labor is found in the harvesting activity, with the highest percentage weight identified in the western region of Nariño (44.0%) and in the central region of Valle del Cauca (35.1%). Cane harvesting is done by "entresaque", removing the canes that have reached their peak maturity, which usually occurs 14 months after planting. Before cutting, leaf stripping is carried out to identify canes that are optimally mature for cutting. This activity ensures that the final product meets special organoleptic characteristics.
 
This detailed analysis of production costs provides a valuable tool for producers and planning authorities. With this information, they can make informed decisions to improve the competitiveness of the panela cane industry.