Guatemala has the highest production per hectare in the world

Guatemala’s Yield Lead

Guatemala has the highest production per hectare in the world, exceeding that of Thailand by more than 2X and Indonesia by more than 3X.

 

 

Guatemala’s Competitive Advantage

Guatemala’s strategic location, high production yields and abundant government incentives places it as a front-runner country to take advantage of the supply shortages that are affecting the world

  • Crop Productivity

    Rubber yields are the highest in the world due to climate conditions

  • Connectivity

    Land routes and access ports to the Pacific and Atlantic oceans

  • Government Support 

    Tax and regulatory incentives and for the agricultural sector

  • Free Trade Agreements

    With Mexico, EU, USA, Colombia, Chile, Panama and Taiwan 

The Opportunity for Consumption in Guatemala

Geopolitical and economic factors have caused an increase in rubber demand. Many North and South American industries are looking for new cost-efficient supply chains away from the Asian markets to meet this demand.

Rise in Natural Rubber Demand

Main Consumption Drivers

  • Crop Productivity Increasing population and urbanization causing a growth in demand in the automotive and footwear industry.

  • Environmental awareness: Rise in demand for environmentally sourced products.

  • Covid-19 impact: surge of the necessity for rubber gloves and medical equipment.

Changes in the Supply Chain

 

Soaring demand for natural rubber due to main consumption drivers

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Greater need of imports of natural rubber

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Increase in freights, causing higher prices and risk of accidents

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Elevated prices of consumer products

 

Consumer countries are expected to apply near-shoring to improve delivery times and avoid additional transporting costs and risks