Market Profile - Colombia

Colombia Market Snapshot

Supply/Demand Basics

  • #3 import market for US corn in MY 2015/2016.
  • DDGS important in dairy cattle diet; imports for other species depend highly on price. CGM is widely used in poultry diets.
  • 3 companies dominate market with vertically integrated operations and investments.
  • Local production of ethanol and restricted imports undermine U.S. sales.
  • 66 TMT of U.S. sorghum imported in MY 2016.

Country Overview

  • Population: 47.2 million
  • Population growth: 1.02%
  • Urban %: 76.4%
  • Urban growth: 1.66%
  • GDP: $667.4 billion
  • GDP growth: 3.1%
  • GDP per capita: $13,800
  • Colombia depends heavily on energy and mining exports, making it vulnerable to a drop  in commodity price.
  • The Santos administration is using 2014 tax reform, which offset lost revenue from globa l drop in oil prices, to help finance peace deal with FARC.
  • Colombian officials estimate a peace deal may bolster economic growth by up to 2%.

Trade and Market Share Issues

  • Protein consumption has had steady growth as a result of urbanization and population increase.
  • The biggest growth potential for corn and co-products comes from the poultry, swine and dairy sectors.
  • Corn imports projected to continue to grow; USGC projects 9 MMT by 2030.
  • Suffering from currency devaluation that impacts importers cash flow and purchasing capacity.
  • Ethanol imports from the U.S. are restricted; current blend is 8%, but local production could only provide to reach 6% at 1.25 liters per day.

Policy Issues

  • Colombia attempting to impose non-tariff barriers to U.S. ethanol through a proposed resolution.
  • Government protects local biofuels production, mainly from sugarcane.
  • Corn demand growth has increased due to policies that maintain low import duties.
  • These policies are expected to maintain and benefit U.S. products in coming years.
Colombia Supply Demand