Following the release of the Outlook Colombia 2030 report showcasing the significant opportunity for U.S. grain exports to Colombia in the coming decades, U.S. Grains Council (USGC) staff traveled throughout Colombia and Peru to examine the potential demand and determine the best paths forward to develop these two markets.
“The Peruvian and Colombian markets hold significant potential,� said USGC Regional Director for the Western Hemisphere Marri Carrow. “We are excited about the future and stand ready to invest significant resources in these markets to continue to see the development of their feed grain demand.�
The team’s first stop was in Colombia, which recently increased its imports of U.S. corn and was the third largest market for U.S. corn in the 2014/2015 marketing year, purchasing 4.3 million metric tons (169 million bushels) valued at $806 million. This year, the country is on track to continue that pattern with 4.1 million tons (161.4 million bushels) of U.S. corn bought as of May 5 for this marketing year.
“In Colombia, we see a significant potential for U.S. feed grains,� Carrow said. “We have a very bullish opinion on the future, potential corn demand in Colombia, with our estimates being upwards of 8 million metric tons (314.9 million bushels) by the year 2030. While only time will tell on that, we are very excited about the potential this market holds.�
The team was also very enthusiastic about potential in the Peruvian market, which has taken nearly 1.7 million tons (67 million bushels) of U.S. corn as of May 5 for this marketing year, making it the fourth largest market for that commodity.
“In Peru we also saw a significant potential for growth in imports of U.S. feed grains,� Carrow said. “While this market is not quite as big as the Colombian market in terms of population and production, it still has potential.�
To tap into that potential, the Council is planning technical programs in May to train the Peruvian industry on U.S. contracting procedures and purchasing specifications.
Click here to read past Global Update articles about this mission.