Madagascar is a country with great agricultural potential. The food sector is the heart of the Malagasy economy. Large areas of usable land are still unexploited (there is 9.5 million hectares of usable land).

80% of the population is involved in the agricultural sector and in 2000, contributed to 31.8% of Gross Domestic Product (Source: Madagascar Central Bank). The country has an important agri-business potential taking into account the enormous agricultural potential. 26% of all formal Malagasy industrial businesses accounted for in the agricultural sector.

Agri-business is the most important branch since it represents more than 37% of the total industrial production. For "canned and vegetable" products, Madagascar is the main exporter in Indian Ocean region. Other products also represent a potentiality for export, such as green beans, green pepper, pickling mushrooms, frozen vegetables... The dry vegetables are also part of the main exporting products in this sector.

Here below, some statistic data of the production and export.

Production

Branches/products	Unit	1998	1999	2000
Production	T	-	-	-
Sugar	T	60 278	61 369	70 936
Wheat flour	T	42 000	20 969	38 378
Candies	T	1 441	1 474	1 651
Biscuits	T	195	154	194
Concentrated milk	T	1 245	1 033	2 143
Cooking oil	T	1 280	1 037	1 334
Concentrated Milk	T	709	1 083	973
Pasta	T	84 049	ND	ND
Fruits and vegetables canned	T	-	-	-
Exportations	-	-	-	-
Sugar	T	688	2 674	848
Cocoa	T	88	1 041	15

Exportation of biological products

Branches/products	Unit	1998
Rabusta coffee	210 045	350 410
Arabica coffee	7 550	18 950
Vanilla	8 640	14 890
Vanilla Extracts	350	30
Black Pepper	12 500	17 200
Green Pepper	4 420	10 800
Cannela	7 690	5 520
Cloves	1 645	8 290
Palm Oil	323 460	216 350

Madagascar's diversified climates and relief offer a range of agricultural possibilities. Indeed, each area of the Big Island is characterized by a climate proper for any kind of culture which do not require a cold climate below O°C.

The Malagasy soils represent significant arable surfaces: 5 000.000 ha constituting 8,4% of the total of the national territory.