Summary of "La Fazenda: Gigante colombiano que produce 880 mil cerdos al año en econ. circular(#1040 2023-07-15)"

Summary of Business-Specific Content from

“La Fazenda: Gigante colombiano que produce 880 mil cerdos al año en econ. circular (#1040 2023-07-15)”

Company Overview & Strategy

La Fazenda is Colombia’s largest agro-industrial company focused on high-quality pork production, processing, and marketing. It is vertically integrated from field to shelf.

Located in Puerto Gaitán, the company operates:
- 50,000 hectares of soybeans and corn, with plans to expand to 109,000 hectares by 2027.
- 25,500 sows producing 880,000 pigs annually, targeting 75,000 sows and over 2 million pigs by 2027.
- A dairy farm with 1,400 cows producing approximately 22,000 liters of milk per day, aiming for 100,000 liters in six years.
- Balanced feed plants, slaughterhouses, and a network of about 1,800 sales points including own stores, supermarkets, processors, and hotels.

Vertical Integration & Operations

La Fazenda operates with full vertical integration, covering:

Crop production (corn, soybeans, cotton, grasslands)
Pig farming
Slaughter and processing
Retail distribution

Key operational highlights:

Uses crop rotation and regenerative agriculture techniques to improve soil fertility and sustainability.
Controls 65,000 to 70,000 hectares through leases, partnerships, and ownership, planting about 50,000 hectares annually with crop rotations to maintain soil health.
Slaughterhouse capacity is 7,000 pigs per day, with plans to build a new plant to support expansion.
Feed production is precisely sized to animal needs, using software for planning based on sow and pig numbers.
The entire operation is centralized within a 70 km radius to minimize logistics costs and risks, avoiding “false freight” and reducing expenses by approximately 25%.

Circular Economy & Sustainability Model

La Fazenda employs a circular economy model where wastes and by-products from one process become inputs for another:

Pig farming produces large volumes of ejecta (2,500 tons daily), which are:
- Treated via biodigestion to extract methane (used as energy) and purify water.
- The treated water (biol), rich in nitrogen and potassium, is used to irrigate pastures, enhancing grass protein content (21%) and reducing feed costs.
Dairy cows are primarily fed on these nutrient-rich grasses, supplemented with concentrates to balance energy, achieving high milk productivity with low input cost.
The company integrates biodiversity preservation (gallery forests, bees) and regenerative agriculture practices, aiming for carbon sequestration and environmental balance.
Transitioning to robotic milking systems to reduce labor, stress on animals, and improve efficiency.

Marketing & Sales Strategy

Owns and operates a network of approximately 1,800 sales points across Colombia, including own stores and third-party retailers.
Product portfolio is designed to meet diverse economic strata (1 through 6), ensuring accessibility and balanced sales of pork cuts (hooves, loins, ribs).
Focus on nutrition: products are formulated for consistent protein content (e.g., ground meat with 85% lean, 15% fat).
Maintains a stable pet food flour market with advance sales and export potential for processed pork products (not raw pork).

Growth Targets & KPIs

Production Targets by 2027:

109,000 hectares planted.
75,000 sows in production.
Over 2 million pigs marketed annually.
Dairy milk production target: 100,000 liters/day within six years.

Operational KPIs include sow productivity, pig slaughter capacity, feed production volumes, and milk yield per cow. Efficiency gains are expected from minimizing freight, integrating processes, and implementing technology.

Technology & Innovation

Adoption of international consulting expertise from Brazil, Germany, and the U.S. specializing in regenerative agriculture.
Emphasis on digitalization and robotic technology in dairy farming.
Continuous shift towards biological agricultural inputs to maintain profitability and sustainability.

Organizational & Human Capital

Workforce of approximately 2,500 direct employees plus 500 contractors.
Strong, committed teams in agriculture, pig farming, and processing.
Emphasis on community development and systemic adoption of regenerative practices.

Actionable Recommendations & Frameworks

Use vertical integration to control costs, quality, and supply chain efficiency.
Implement circular economy principles to turn waste into resources, reduce environmental impact, and lower feed costs.
Apply regenerative agriculture and crop rotation to restore soil fertility and ensure long-term sustainability.
Centralize operations geographically to reduce logistics costs and risks.
Use technology and automation (robotic milking, digital planning software) to improve productivity and animal welfare.
Tailor marketing and product offerings to diverse consumer segments to balance product mix and maximize market reach.
Collaborate with international experts to stay updated on best practices and innovations.

High-Level Business Insights

La Fazenda demonstrates how a vertically integrated, circular economy model in agribusiness can achieve scale, sustainability, and profitability.
The company’s strategy addresses Colombia’s food security challenges by producing affordable, nutritious meat with a reduced environmental footprint.
The model balances operational efficiency with environmental stewardship, making it a potential benchmark for large-scale sustainable farming in tropical regions.

Presenters / Sources

Jaime Liévano (Company representative, strategic insights and future outlook)
International consultants from Brazil, Germany, and the U.S. (regenerative agriculture experts)
Narration by the video host/interviewer (unnamed)