Colombian – U.S.
Trade in Agriculture
Elizabeth Mello
Agricultural Attaché
American Embassy
Bogotá, Colombia
Basic Facts
Population:
44.9 million
50.6% women 49.4% men
Bogota 7.7 million
Medellin 2.1 million
Area: Size of Texas and
California combined
Major Ag Exports: Coffee, cut
flowers, and bananas
Major Imports: Corn,
soybeans and soybean meal,
wheat, cotton
GDP per capita (PPP): $4.964
(2009e)
GDP growth (2009): 0.5 %
Agricultural Land Use
• 51 million hectares - 45% total
Colombian area.
• 77 % Livestock (39.2 mil)
• 81 % Pastures (31.8 mil)
• 14 % Forests
• 95% Natural
• 5% Commercial
• 7% Cropland - 3.6 million
hectares (Red)
• Permanent crops
• 2.1 million ha
• Transitory crops
• 1.4 million ha
•Available land for Agriculture: 4.5
million ha could be converted to
agricultural use without the need for
deforestation.
Livestock
Forests
Agriculture
Let us know if you may have further questions.
Colombia’s Agricultural Trade
Colombia has exhibited dynamic economic growth but was halted by the
recent world crisis which negatively affected total agricultural trade in 2009.
Exports
Imports
Trade Surplus
Two-Way Agricultural Trade
The United States was Colombia’s #1 trading partner. In 2010, Colombian
exports to the US valued $2 billion and Imports from the US fell to $846 million.
Exports
Imports
Trade Surplus
Two-Way Trade: Agricultural Market Share
Imports of US products gained market share between 2001 and 2008 as Colombia
increased Imports of corn, wheat, cotton, soybeans, and soybean meal. But in
2009-2010, US products, mainly corn and soybeans, lost market against Mercosur
countries.
Exports
Imports
In 2009-2010 U.S. Ag Export Values to Colombia
Fell after Reaching Record Levels in 2008
Total Ag Export Value to Colombia
Export Value, CY 2008 – 2010
CY 2001-10 ($ Millions)
($ Millions)
Value added
products
In 2009-2010 U.S. Ag Export Values to Colombia
Fell after Reaching Record Levels in 2008
Colombian Agricultural Imports from United States
Changes
Value (Millions $)
Volume (Tons.)
2005-2008
2008-2010
2005-2008
2008-2010
Corn
+453.6
-606.5
+479,836
-1,941,516
Wheat
+222.5
-221.9
+172,263
-382,192
Soybeans
+58.0
-41.0
+29,820
-51,762
Soybean Meal
+85.7
-127.1
+103,654
-291,558
Cotton
+23.0
+34.8
+5,232
+5,502
Food Ingredients (ch 21)
+40.6
+6.9
+1,155
+1,374
Flour, starch, pasta (ch 19)
+60.6
+0.6
+22,314
-74
Mechanically Deboned
Chicken Meat (MDC)
+16.5
+4.2
+24,949
+1,082
Trade Developments
Ag Imports from the US lost market share Against Mercosur
Countries and this trend may continue in 2010.
Colombia expanded preferences to Mercosur countries.
Colombia Signed and Agreement with Canada and is under negotiation with the
European Union.
Colombia continues to pursue free trade agreements with different countries.
The implementation of the CTPA will level the playing field for US products.
Most value-added food products and ingredients will enter duty-free immediately.
In spite of an expected recovery for US Ag Exports to Colombia in 2010, the US
will continue to lose market share due to the preferential import duties for
competing countries if the CTPA is not signed.
Colombia - U.S. Trade Promotion Agreemet (CTPA)
Main Ag Products
Yellow Corn
Poultry meat - leg quarters
Dry beans
Beef Standard Quality
Basic Duty
U.S.
15 1/
70 1/
60
Current Duty
5% 1/ 3/
70
60
Under Trade Promotion Agreement
Out-of-TRQ
TRQ - Duty Phase out
Duty
period
15 1/
2.1 Mil. MT
12 years
127
27,040 MT
18 years
60
15,750 MT
10 years
80
80
2,100 MT
10 years
Variety Meats
70 - 80
70 - 80
4,664 MT
10 years
Powdered Milk
Cheese
Whey
Eggs
Pork Meat
98 1/
20 1/
94
20
20 /1
33
20 - 33
94
20
30
5,500 MT
2,310 MT
14 years
15 years
Value Added food
Products
15-20
15-20
Note: The CTPA remove the Price Band variable duty for imports from the United States.
1/ Under the Andean Community Price Band System variable duty
2/ Under CAN-Mercosur Free Trade Agreement
3/ Subject to a TRQ into a special Importing Mechanism Administration MAC
5 years
5 years
Immediate
Colombians Household Expenditures
Colombians Hypermarkets - Supermarkets
Name of Retailer
Ownership
# of
Outlets
Carrefour
100 % France
60
Alkosto
100% Local
Makro of Colombia
100%
SHVHolding
(Dutch Holding)
Almacenes Éxito
Pomona, CarullaVivero, Surtimax
Supertiendas
Olimpica
62% Casino –
France
38% Others
100% Local
Cacharreria La 14
100% Local
19
Colsubsidio *
100% Local
20
Cafam*
100% Local
42
9
14
261
153
Location
Type of
Purchasing
Agent(s)
Bogota, Cali, Pereira, Importer, direct,
Medellín, Ibague,
local
Barranquilla
Bogota, Villavicencio, Importer, direct,
Pasto, Ipiales,
local, producers,
Tuquerres
distributors
Bogota, Cali
Importer, direct,
Pereira,MedellinBarra local, producers,
nquilla, Ibague,
distributors
Cartagena
Medellin, Bogota,
Importer, direct,
Cali,
local, producers,
Other Main Cities
distributors
Main/Middle Cities
Importer, local,
producers,
distributors
Cali, Pereira.
Importer, direct,
Manizales,
Local, producers,
Buenaventura
distributors
Regional Bogota
Local producers,
distributors
Regional Bogota
Local producers,
distributors
* Entities funded by the employers as a way to provide workers with fringe benefits. They are mandated by the Colombian Labor legislation.
Market Developments
Colombia is a growing market for value-added food products. Economic
recovery will be a driving force that will foster demand for new products at
reasonable prices.
Healthy and ethnic food categories are a new trend in the market and their
acceptance and preference are growing fast.
Gourmet products are penetrating the market with excellent results.
Consumption of international wines has been increasing. Hypermarkets
and supermarkets are actively working to promote wines from different
sources as well as to educate Colombian consumers.
Surveyed retailers and producers feel there is significant potential for new
products in almost all food product categories.