PRESS ROOM

South of Huila, the Leading Region in Competitiveness for Panela Cane Production in the Second Half

Panela cane is a crop of great importance to the Colombian economy, present 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, present in 87.5% of the country's departments. This agro-industry is the second most important at the national level after coffee, with approximately 350,000 families involved in this productive activity.
The Rural Agricultural Planning Unit (UPRA) conducts an analysis of the production costs of panela cane in Colombia; focusing on four significant production regions: Nariño, Valle del Cauca, Huila, and Caldas. For the second half of 2023, the results indicate that the South of Huila is the most competitive region. However, the entity provides results annually since 2021.
Figure 1. Distribution of the Percentage of Production Costs in Four Panela Cane Producing Regions

"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. Particularly, the southern region of Huila stands out for its competitive conditions, associated with the highest yields per hectare (122.9 tons) and the lowest production costs per kilogram of cane ($125.1)," explained Claudia Cortés, director of UPRA.
On the other hand, the regions with the lowest yields per hectare and the highest unit costs ($/kg) are the high west of Caldas and the west of Nariño.
Based on the results obtained, it is concluded that the southern region of Huila combines the best competitive conditions associated with the highest yields per hectare (122.9 tons) and the lowest production costs per kilogram ($125.1). On the other hand, the regions with the lowest yields per hectare and the highest unit costs ($/kg) are the high west of Caldas and the west of Nariño.
In 100% of the regions studied, the largest share of production costs corresponds to activities requiring labor, with the high west of Caldas standing out (71.0%), where harvesting and land preparation activities are the most significant. The second most important category is inputs, with the southern region of Huila showing the highest share of these costs (36.7%), mainly related to propagation material (cuttings) and soil fertilizers.
The greatest share of labor costs is found in the harvesting process, with the highest percentage weights in the western region of Nariño (44.0%) and the center of Valle del Cauca (35.1%). The cane harvest is done selectively, removing the canes that have reached their maximum maturity, usually 14 months after planting. Before cutting, the leaves are removed to identify the mature canes ready for harvesting. This activity ensures that the final product meets the 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.