Agribusiness
El Salvador hosts fertile and diverse land that offers ideal conditions for a range of crops and agro-industrial activities. With an immense geography, from mountains to coasts, it is a paradise for agriculture.
El Salvador provides a unique combination of factors that make the agribusiness sector the perfect ground for investment. The land, stability, tax incentives, and commitment to innovation come together to create a favorable environment for growth and success in the agribusiness world.
exported in 2023
of Salvadoran exports in 2023
exported in 2023
as destinations for exported products in 2023
The agribusiness sector in El Salvador offers a number of investment opportunities in several key areas
- Investments in advanced agricultural technologies: Salvadoran agriculture can enhance productivity and profitability through precision farming, vertical crops, and intelligence development for crop management.
- Agro-industry and food processing: The manufacturing of processed food and agricultural and aquacultural products represents a significant opportunity.
- Tropical fruit exports: El Salvador is known for its high-quality tropical fruit production, such as mangoes, pineapples, and avocados. Investments in expanding the production and export of these fruits are highly profitable.
- Development of cold chains: Investing in the development of cold chains for perishable products improves efficiency and competitiveness.
- Agricultural research and development: Investing in agricultural research and the development of new crop varieties increases productivity and resistance to pests and diseases.
- Logistical infrastructure: Investment in logistical infrastructure, such as storage and transportation centers, improves the food supply chain and facilitates export.
- Investments in agricultural startups: The agricultural startup ecosystem in El Salvador is growing. Investing in these new companies can lead to innovative solutions and growth opportunities.
Investing in
El Salvador
El Salvador offers an advantageous business environment for agriculture with the implementation of the Free Zone Law, which includes food manufacturing. This legislation provides a series of benefits for agribusiness investors, including:
- Tax exemptions: Companies engaged in food manufacturing in free zones enjoy tax exemptions, including exemptions from “Impuesto de Importación de Materias Primas” (Import Tax on Raw Materials), “Impuesto sobre la Renta” (Income Tax), and “Impuesto al Valor Agregado” tax or “IVA”.
- Customs simplification: Companies in free zones have streamlined access to customs, making it easier to import and export raw materials and finished products.
- Labor flexibility: Companies in free zones have the flexibility to hire both foreign and local employees without restrictions, facilitating the formation of highly skilled teams.
El Salvador is conveniently located in the heart of Central America, with access to major markets in the region and availability to most important ports. This strategic location reduces logistical costs and facilitates the distribution of products both nationally and internationally.
The Government of El Salvador is committed to the development of the agribusiness sector and works closely with the private sector to facilitate investment. This translates into financial support, technical advice, and training programs for entrepreneurs and farmers.
Hidroexpo is a great example of success in the Salvadoran agricultural sector, focusing on hydroponics, a cultivation technique that uses nutrient-rich water instead of soil. Its emphasis on sustainability and efficiency has optimized water resources and maximized production. Since it started, Hidroexpo has had a positive impact, both economically and environmentally, positioning itself as a model for agricultural innovation in El Salvador.
Dummen Orange represents a successful investment in the floriculture niche in El Salvador. With a strong focus on exportation, this company has achieved consistent growth, evident in their quality and variety, flourishing in both national and international markets. Dummen Orange’s experience highlights the importance of research and development in the local flower industry and the opportunities El Salvador offers.
