Sector characterisation

Employment generation:

Contribution to GDP:

Conformation (small, medium, large):

Relative importance:

Market assumptions:

Technical standards and norms:

Sources of funding:

Activists and organisations:

New consumer preferences:

Operational risks:

Community and local pressures:

 Sector characterisation

The agricultural sector is one of the sectors that generates the most employment, according to DANE,
between November 2017 to January 2018, it employed approximately 278,000 people. In addition,
according to the latest statistics from DANE, the Colombian countryside has 4.9 million people
employed, out of 22.3 million people nationwide. Since 2020, the Ministry of Agriculture has proposed
to generate policies that will create more than 90,000 formal jobs annually, accompanied by
incentives such as low interest rates.

According to the Ministry of Agriculture, the agricultural sector grew by 3.8% in the GDP for the
second quarter of 2021, taking into account the figures revealed by DANE, which detailed that the
GDP for the second quarter of 2021, achieved an increase of 17.6%, where the growth of all branches
of agricultural activity was highlighted.

Alimentos Suqa S.A.S. is a company located in Bogotá, Cundinamarca, which produces dehydrated
fruits, vegetables and spices as raw material for the food industry, and also transforms food through
the process of dehydration and osmo-dehydration by hot air. It is a small company, since it currently
has 30 employees and its total assets exceed 501 legal monthly minimum wages.

Agriculture is a very important and fundamental sector in Colombia, since it is the one that supplies
food to the entire population, generates thousands of jobs in each part of its supply chain, and is
exported, which contributes to the economic growth of the country. If we talk specifically about the
blueberry sector, these fruits have great potential, since Colombia has the optimal conditions for this
can be produced and cultivated 52 weeks of the year in departments such as Cundinamarca, Boyacá,
Antioquia and Santander. In 2020, despite the difficulties generated by the Covid-19 pandemic,
blueberry exports in Colombia increased by 387% compared to 2019, where its main destinations
were the United States, Chile, the Netherlands, Panama and Aruba. In addition, ProColombia reported
that international sales of this red fruit reached $1,228,958 USD in 2020, where the United States was
the largest buyer.

Colombian people assume that blueberries are expensive fruits, because of this there is no high
demand and therefore consumption is low in the country. In addition, it is assumed that imported
blueberries are of better quality than domestic ones, so consumers prefer to buy foreign ones and, do
not take into account that the red fruit produced by Colombia is much better in size and taste. On the
other hand, there are people who assume that these fruits are healthy and bring many benefits to the
body.

-Weekly crop monitoring should be done with the aim of managing pests and diseases, this is a
preventive management, because the main pests presented in the crops are: Chiza (Ancognatha
Scarabaeoides) and cochineal (Pseudococcuselisae) The Chiza is responsible for 30% of losses due to
plant mortality. -Compliance with sanitary registration and INVIMA and Control of pollutants -
Compliance with ISO 22000-2018 -Compliance with Standard ISO 9001-2015 -Resolution 2674-2013 of
the Ministry of Health and Social Protection of Colombia (MSPS) is mandatory, its application depends
on permits from health authorities, in addition, it is a fundamental requirement for registration
INVIMA, operating permits from environmental and health authorities. -Compliance with ISO Standard
/ TS 22002.
The Ministry of Agriculture and Rural Development, Finagro, Asohofrucol (Hortifruticola Association of
Colombia), Instituto Colombiano Agropecuario (ICA) and Proplantas are some entities that provide
financing and other types of support to farmers of blueberries and other fresh fruits, from risk
insurance, improvement in harvesting activities, promotion, support to the sector in the development
and improvement of activities of production, processing, and marketing of blueberries and other
fruits.

Not applicable

Thanks to the greater awareness of healthy eating, the new consumer preferences are products that
help maintain a healthy life, with nutritional contributions for the consumer's life. In addition, they
prefer products that are easy to handle and prepare. The blueberry meets all these characteristics
because it is a fruit rich in vitamins A, C and E, fiber, calcium and its multiple antioxidant properties.
On the other hand, this fruit allows a quick and dynamic preparation, since not only can they be
consumed alone, but they can also be combined, or accompanied with meals and cereals.

The operational risks that can occur in the cultivation of blueberries, is the formation of pests, the
most common pests are those of fruit flies, defoliation of shoots, terminals and fruits, these pests can
produce up to 40% damage on the total population of plants, they are also present throughout the
year, and to combat them, up to 25-30 applications/year of agrochemicals are made.
30% of the damage to the plant is due to the plague Anomalous sp: They feed on young rootlets, they
cause death of the plant when there is a high incidence. This pest is present throughout the year, and
there is still no defined effective control. The other remaining value of the damage is given by the
perforation of the ripe fruits caused by the birds. All these factors have a great influence on the
development of the fruit and the main risks are the death of the plant or that the blueberries do not
meet their size, quality and maturity.

The community asks the companies that the fruit has a good flavor (sweet with an acid touch), in
addition to complying with its size, warmth, maturity. On the other hand, companies are required to
meet the demand, to have continuity in deliveries, and thus have traceability in the supply chain, this
in order to create a competitive advantage in the product. In terms of quality, the requirements are
intact, healthy, clean products, with a fresh appearance (free of pests), ripe fruit, practically covered
with a waxy layer and a size not less than 10 or 11 millimeters.
SIGMA Q&P Consulting SAS

Análisis de las 5 fuerzas de Porter

Sector Consultoria en gestion empresarial

Conceptos preliminares Porter Escala Evaluación

COMPETITIVE ADVANGES 1 Nonexistent
1 Strategic direction: Mission, Vision and Objectives 2 Medium low
2 Cost leadership 3 Balance
3 Differentiation 4 Medium high
4 Business focus 5 High

Bargaining Power of Suppliers Weighting Evaluation Total

Supplier offers non-substitutable products 14 3 0.1 0.4
Knowledge of the supplier about the buyer 18 3 0.2 0.5
Importance of quality/cost ratio 15 4 0.2 0.6
Independence of supplier from industry 11 4 0.1 0.4
Threat of oligopoly 5 2 0.1 0.1
Easily substitutable suppliers 8 3 0.1 0.2
Costs of switching supplier 6 3 0.1 0.2
Supplier offers differentiated products 7 2 0.1 0.1
Forward integration 4 2 0.0 0.1
Supplier size 12 4 0.1 0.5
100 3.22 PNP

Bargaining Power of Buyers Weighting Evaluation Total

Buyer size 10 4 0.1 0.4
Financial muscle 13 3 0.1 0.4
Product need 8 4 0.1 0.3
Price sensitivity 12 3 0.1 0.4
Geographic location 5 2 0.1 0.1
Buyer independence 8 4 0.1 0.3
Product exclusivity under environmental standards 10 4 0.1 0.4
Backward integration 5 3 0.1 0.2
Cost of product switching by the consumer 8 4 0.1 0.3
Threat of oligopsony 10 4 0.1 0.4
Tendency to product switching 5 3 0.1 0.2
Non-differentiated products 6 3 0.1 0.2
100 3.49 PNC

Entry barriers Weighting Evaluation Total

Levels of investment 15 5 0.2 0.8
Land use 15 4 0.2 0.6
Water availability 10 4 0.1 0.4
Access to raw materials 5 5 0.1 0.3
Technology required 10 3 0.1 0.3
High regulation 5 4 0.1 0.2
Fixed costs 5 3 0.1 0.2
Access to distribution channels 5 3 0.1 0.2
Costs to customers for switching suppliers 10 4 0.1 0.4
Undifferentiated products 5 2 0.1 0.1
Weak brands in the market 5 3 0.1 0.2
Market growth 10 5 0.1 0.5
100 3.95 BE

Threat of Substitutes Weighting Evaluation Total

Switching to other management models 15 3 0.2 0.5
Costs of switching to cheaper products 30 4 0.3 1.2
Switching to cheaper products 40 4 0.4 1.6
Shift to direct contracting 15 3 0.2 0.5
100 3.70 SUST

Level of Rivalry Weighting Evaluation Total

Size of competitors 10 2 0.1 0.2
Number of rivals 10 3 0.1 0.3
Low switching costs 5 3 0.1 0.2
Storage costs 8 3 0.1 0.2
Ease of expansion 12 4 0.1 0.5
High exit barriers 5 5 0.1 0.3
Low fixed costs 10 3 0.1 0.3
Undifferentiated products 10 4 0.1 0.4
Sector growth 15 5 0.2 0.8
Similarity of rivals 15 5 0.2 0.8
100 3.82 GR

Force TOTAL VALUE

Bargaining Power of Suppliers 3.22
Bargaining Power of Buyers 3.49
Barriers to Entry 3.95
Threat of Substitutes 3.70
Degree of Rivalry 3.82

5 Porter's Forces: INDUSTRY NAME

TOTAL VALUE
Bargaining Power of Suppliers

3,0
Degree of Rivalry Bargaining Power of Buyers
3.82 2,6
 3,0
Degree of Rivalry Bargaining Power of Buyers
3.82 2,6

3.70 3.95

Threat of Substitutes Barriers to Entry

Conclusions

What is the force that most impacts the sector? Why? According to the results obtained, the
force that most impacts the sector is the entry of new competitors into the blueberry
market, since the level of investment required to compete with current companies is high
and they must have a very differentiating product to stand out. It is a sector that is regulated
by norms and standards that must be met. Although most of the processing companies in
the market are small, they have good financial muscle and the exit barriers are high, making
it difficult for them to withdraw easily.

1. What market forces determine the profitability of the sector?

The forces that most influence the profitability of the sector are: the level of rivalry
between companies, which reflects the intensity and basis of competition in the
market, it should be considered whether all competitors converge in the same
dimensions or if they seek the same objectives, and the degree to which this influences
profitability depends on this. Another important force is the threat of new entrants to
the market, since they generally arrive with lower prices, which leads consumers to
change suppliers and negatively affects the profitability of the companies, but it is
favorable for the industry since it diversifies the supply and motivates other
competitors to boost their investment.

2. What variables can affect the competitive behaviour of my company?

Some important variables that can affect the competitiveness of the company are the
lack of technology, the capacity for innovation, the quality/price ratio. Other variables
that can affect behavior are politics, since changes in government can increase financial
expenses such as taxes, and economic variables in changes in the representative rate of
the market.

3. What strategic actions should I take to minimise the impact of market forces?

One of the strategic actions that we must implement to minimize market forces, in this
case entry barriers, which are the ones that most affect the cranberry sector, import
tariffs should be raised, because in Colombia the consumption of blueberry is not so
high. Additionally increase investment in companies, so that there are economies of
scale. In the case of the bargaining power of suppliers could be better the power they
have, through the backward integration of companies, ie become suppliers, since
Colombia has the right field for the production of blueberry, With this you can stop the
 SUST

Weighting Evaluation

g Power of Buyers
g Power of Buyers
 COMPANY'S NAME
Inverview
1

What is the composition of the market in this sector

in Santander and in Colombia? (Consultants and
clients: size, quantity in our niche).

Who dominates the business management market

for small and medium sized companies in Santander
and Colombia ?

3
What is the common product offer in this market?

What are the gaps in the supply of products and

services available in the market?

5
What are the sales channels most commonly used in
the sector?

What is the effectiveness of these sales channels and

what is the trend?
7

How does the price vary for the different products?

What are the critical success factors of your

company and what are the critical success factors of
the sector?

What are the decision elements that influence the

choice of a company in this sector?

10

How do you consider the quality of service of the

companies in the sector?
11

What are the new trends in products for the sector?

12

What are the main threats to companies in the

sector?
According to experts, the local market has been very active and
they point out that there is at least a weekly demand of 6,000 kilos
of blueberries, which is growing stronger and stronger. Colombia
has a large population and has lacked product to supply local
demand; despite this demand is relatively low considering
consumption in other countries such as the Netherlands, the
United States and China. In addition, this fruit is identified in
Santander by its spherical shape measuring approximately 0.6 to
1.6 cm in diameter, for its good juice content in its pulp and
bittersweet taste.

Currently in the sector of blueberries at national level you can find

that the company Elite Blu is the one that dominates the market. It
is a division of Elite Flower Farmers SAS, for the development of
production projects of fresh food for export, and also the fields of
Elite Blu in Boyacá are the largest in Colombia and currently
occupy 70 hectares. Finally in Santander there are no companies
or farms producing this type of fruit, but you can find wholesalers
of fruits and vegetables such as Difrucol S.A.S.

There are a variety of types of sale of blueberries such as

dehydrated blueberries but the most common and people usually
buy are fresh blueberries.

The problems in offering products and services available in the

market is that blueberries do not meet the size, warmth and
maturity, and the sector is not standardized and does not have
enough technology to achieve the desired economies of scale. On
the other hand, that the product is not delivered with the service
standards already defined by the company and also not meet the
promises made to the consumer previously.

Mainly at the national level the retail distribution channel is widely

used, since the main points of sale of the Blueberries are in
specialized supermarket chains and fruit shops.

There is more information to the customer about product

characteristics, greater market coverage as it will reach super-
machineries that may have several branches, control of the
product and variety of places to obtain the fruit.
Really the prices for the blueberries do not vary much since the
fruit in the country is classified as a luxury fruit, for its high cost in
the market, additionally the prices are quite high compared to
prices in other countries such as Chile who are leaders in this
market, also the prices offered by some of the most representative
companies in this sector such as Solucion Agro, Blueberries
Colombia, Proplantas and Forever Blueberries are between $8,000
and $50,000 from 125kg to 500kg and marketing large quantities
for industry (more than 1,000kg), prices per kg range from $30,000
onwards.

For the company, some success factors are: the broad capacity for
innovation; the high technology; the good approach with the
client; and the high performance in the processes, in which a
measurement is made on the scope of the objectives set by the
company. Finally, for the sector the success factors are: the
natural ones such as the availability of land, the water supply and
the topographical and climatic diversity that allow to have a
competitive advantage in the production of blueberries; In
addition, economic factors with the help of ministries such as
Agriculture and Rural Development, which aims at progress in
research, technological improvement and evolution in the
productive chains of the sector.

Some elements that influence the decision to choose a company in

a sector are: commitment to corporate social responsibility; that
they are environmentally friendly, that is, that their practices are
sustainable and that their packaging is biodegradable; that meet
quality and phytosanitary standards; that their product portfolio is
broad and different from those of the competition; and that the
after-sales service is very good.

Companies in the blueberry sector generally have good quality in

the service they provide, as they are very attentive to their
customers, their requirements, their needs and of course the new
trends they adopt. Most make optimal use of social networks and
websites where they often allow online shopping. In addition, the
after-sales service is good, because by promotions, discounts and
new product information companies contact their customers.
A trend in blueberries is that the varieties of this fruit are
spreading, which causes it to lose its identity a bit making it a more
heterogeneous product; where producers renew their growing
operations with new generations of proprietary genetics, focusing
on attributes such as yield to make production more profitable at
the farm level. The blueberry has a generally sophisticated
demand that seeks that this fruit is 100% organic, natural, fresh,
with no added sugar, that it retains its properties, that the
traceability of the supply chain is sustainable, that the price-quality
relationship is in line with what is offered, that buying the fruit
provides a good experience, and that there is excellent handling
and packaging so that it reaches the consumer in optimal
conditions.

The emergence of new sales channels and marketing methods are

driving the trend of increased consumption of blueberries, from
direct-to-consumer channels developed by growers and marketers
to sophisticated targeting, economic digitalization is expected to
work in favor of the blueberry industry if it keeps pace with
technological advances.

Some of the threats faced by blueberry companies are climatic

changes that affect the cultivation and volume production of this
fruit. Another threat is the presence of pests in the fruit, which
lead to the use of pesticides, which can be toxic. Another threat is
that in Colombia there are very few phytosanitary products
registered for blueberries, so more control tools are needed. Some
challenges that companies in the sector must overcome is to make
blueberries become a basic purchase in the basic family basket,
making known the versatility, flavor, benefits in the body and
healthiness in the processes. Another challenge for the sector is in
terms of reducing active ingredients and chemical residuals in
order to have friendlier options; due to this, companies must have
products with a biorational profile, which allow them to reduce
the chemical load and comply with phytosanitary certifications.

A103
Competence Characterisation
Company What it does?

Manitoba S.A.S. is a Colombian company

with more than 40 years of experience
Manitoba S.A.S.
that works with the nutritional needs of
consumers in mind. The company is
dedicated to the purchase, production
and marketing of snacks.

Dipsa food is a Colombian company that

carries out its production in Bogotá, it was
Dipsa Food
founded 18 years ago and is dedicated to
the sale of healthy snacks, with products
based on chocolate-coated peanuts and
cereal bars and granola.

It is a Colombian company located in

Mosquera dedicated to the design of
innovative food solutions. It has been
Drycol S.A.S
working in the market for 14 years, with
the objective of processing and
commercializing its special products
according to each segment, generating
satisfaction to the final consumer.

It is a Colombian company located in

Bogota, which seeks to promote a healthy
lifestyle by guaranteeing products of
optimum quality in the selection and
Insualimentos S.A.S
transformation of domestic and imported
raw materials, through production
systems that ensure the proper
implementation of manufacturing
processes with the highest standards in
the market.

It is a Colombian company that specializes in

fruit growing, focused on good agricultural
C.I FrutiReyes S.A.S practices and international quality standards.
Frutireyes supplies fresh, dried and frozen
exotic fruits from all over Colombia.
 It is a pioneering company in Colombia to
dehydrate sun fruit on a large scale, its
process is 100% natural and artisanal, with
high quality standards. They are characterized
by having no chemicals, no added sugars or
preservatives. They work under 10 principles
Macarito of Sustainable Development. They deliver to
their customers unique products in taste
thanks to the solar dehydration 31 that
preserves the essential properties of fresh
fruit. They are located in Vereda Aposentos
Altos Sector the Tanks in the municipality of
Tinjacá, Boyacá.

Competition Visualisation
Competitors Weaks
Manitoba S.A.S.
Dipsa Food
Drycol S.A.S
Insualimentos S.A.S
Offer

The company in its catalog offers peanuts,

blueberry almonds, macadamia nuts,
pistachios, walnuts and other dry
products.

The company imports, produces and

markets dry fruits, nuts, quinoa, chia,
blueberries, cereals, dehydrated fruits and
superfoods.

Its product portfolio includes bananas,

ripe and dried mango, raisins, apples,
pineapple slices, all of them dehydrated. It
offers a chocolate accompaniment as an
addition to the initial presentation,
turning the product into a snack,
attracting the attention of children and
adults.

Its product portfolio includes nuts, seeds,

spices, dried fruits, cereals, superfoods,
snacks and functional flours.

In its portfolio of products offers dry banana,

dry mango, dried papaya, gooseberry,
cranberries, dried fisalis, dried pineapple,
dried pitahaya.
 In its product portfolio it offers dehydrated
fruit snacks, fruit with chocolate, aromatic
with dehydrated fruit, granola with
dehydrated fruit and dehydrated fruits in
bulk.

Strengths
 Business Objective
1 Customer satisfaction
Profitability
2
3 Value-creating human factor
4
5
6
7
8
9
10
11
12
13
14
15
Strategy

Expanding the market with new products, new channels, web and network presence and referrals.
Critical Success Factors

Increasing profitability