Valledupar - Economy

Economy

The economy of the region is based almost entirely on the primary sector. Agriculture and cattle raising are central to the economy. During the 1970s, the region experienced an economic boom because of a massive production of cotton when worldwide demand was high. This helped to modernize Valledupar, and it became the second most productive region in Colombia for some time. The cotton boom ended during the 1980s because of a decrease in cotton production during the years of violence. The resulting economic recession left many in debt and unable to repay loans to the banks. During these years marimberos, or marijuana sellers, also produced and contributed to the economic boom, because of the high demand in the United States.

Today, Valledupar mainly produces cotton, rice, oil palm, tobacco, coffee, cocoa and other cash crops. Since the late 20th century, the city has benefited from the department of Cesar's development of coal mining in the region of La Jagua de Ibirico. The secondary sector has been flourishing from a few agricultural products and derivates from cattle. With the increased presence of the military to protect the infrastructure and trade, the economy has been recovering. Terrorist groups are still present: FARC, ELN and AUC. These groups contribute to the illicit drugs industry in the region. They cultivate great quantities of opium poppies and marihuana around the area.

The region is using technology in order to develop into a more modern city. In a smaller scale, other sources of the economy are: fishing, transportation, construction, industrial manufacturing, electricity and gas, commerce, hotel industry, government, real estate, education, healthcare and domestic services.

The Vallenato Legend Festival, has gained economic importance because of its impact in Valledupar's economy. The Festival has become a destination for the tourist industry, and enables the promotion of other local products. The region's contemporary arts and crafts, ecotourism and cuisine have contributed to a growing hospitality industry.

In 2006 during the Vallenato Legend Festival, the Federación Nacional de Cafeteros de Colombia agreed to promote local coffee as one of their products, under the name Cafe Festival de la Leyenda Vallenata (Vallenato Legend Festival Coffee). This effort is to promote coffee produced by the local small and medium-sized farms from the Sierra Nevada de Santa Marta and the Serrania del Perija.

Valledupar annually hosts one of the most important Cattle Fairs (Spanish: Ferias Ganaderas) in Colombia at the end of August. It is also an opportunity to feature other agricultural and domestic products.