Market Snapshot 2018 - Colombia - Commodity Table

Supply/Demand Basics

  • #4 import market for US corn in 2016/17. No sorghum imports in 2016/17.
  • DDGS imports continue to grow in importance.
  • CGM widely used in poultry diets, but imported quantities were lower in 2017 due to prices.
  • Three companies dominate market with vertically integrated operations and investments.
  • Seven sugar millers produce 450 million liters per year for E8 blend mandate.

Country Overview

  • Population / growth: 2 million / 1.02%
  • Urban % / growth: 77% / 1.47%
  • GDP / growth: $712.5 billion / 2%
  • GDP per capita: $14,500
  • Colombia depends heavily on energy and mining exports, making it vulnerable to drops in commodities prices.
  • May 2018 presidential elections, new government to begin in August. Implementation and financing of signed peace agreement with FARC is major challenge.
  • Growth expected to strengthen over 2018/19, with economic growth driven by the recovery of non-oil exports and oil prices and the 4G infrastructure program.

Trade and Market Share Issues

  • Steady growth in protein consumption as result of urbanization and population increase.
  • Biggest growth potential for feed grains are the poultry and swine sectors.
  • Corn imports projected to continue to grow; USGC projects 9 MMT by 2030.
  • Ethanol imports from US are restricted based on carbon footprint standards. Blend goal of E10, but currently blend rate of 8%. Local prices are uncompetitive at North Coast due to transportation costs.

Policy Issues

  • U.S. corn demand growth continues due to policies under FTA that maintain low import duties.
  • Local corn growers’ association attempting to modify treatment of corn under FTA. Although case was solved, and FTA benefits preserved, new attempts can be made in future by this organization.
  • Non-tariff barriers on US ethanol through resolution that establishes a maximum footprint limit associated with the GHG inventory for ethanol.
  • Colombia sugar miller’s association maintains close relationship with government; policies are set to protect local biofuels production.

Market Snapshot 2018 - Colombia - Chart