The Colombia Grain Market is projected to register a CAGR of 4.5% during the forecast period (2020-2025). Some of the major grains produced in the country are corn and rice. Despite corn being one of the major produced crops in the country, Colombia is not self-sufficient in terms of production of corn, it imports from other countries to fulfill its domestic demand. According to the Food and Agricultural Organization (FAO), Rice is the most widely cultivated cereal in the country with a production of 3.3 million metric tons, in 2018. Corn and sorghum are the second and third largest produced cereals in the country with a production quantity of 1.3 million metric tons and 0.01 million metric tons, respectively.Rising production of livestock and demand growing population will drive the production of grains in the country. Increasing imports is another driver that indicates the growth of the market.
Key Market Trends
Increase in the Imports of Grains
Colombia is a net importer of corn, as domestic production can satisfy only about 30% of the total domestic consumption and represented about 51% of the total agricultural volume of grain imports, according to the ITC Trade, in 2016, the value of USD 871.4 million of maize was imported that has increased to USD 1049.96 million in 2018. Additionally, in 2018 the country imported wheat and rice amounting to 1,722 thousand metric tons and 164.8 thousand metric tons with an import value of USD 431.65 million and 79.31 million respectively. The United States is the main supplier of corn with a value of USD 994.85 million in 2019 with a share of 94.8% of total maize imports from the country. It is followed by Argentina and Brazil with a minor share of 3.1% and 1.5% respectively in 2018.
Demand from Animal Feed Industry Drives Production
The upward trend in the grain market is driven by growing demand from the animal feed industry that has been steadily increasing in the past years. 95% of corn imports are destined for animal feed with the remaining 5% for human consumption. The demand for animal feed will continue to grow, primarily in the poultry sector, as Colombia’s economy remains strong and dietary shifts adjust to populations moving out of poverty into the low and middle-income classes. According to the Organisation for Economic Co-operation and Development(OECD), poultry meat is the most consumed meat type, in 2016 per capita consumption was 28.3 Kg that has increased to 31.1 kg in 2019. In order to meet the consumption requirement, livestock production is also growing. The demand for meat will continue to rise as sustained economic growth and the increase in household incomes boost animal protein consumption and the demand for feed as well. This will, in turn, drive the market for grains in the country.
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Key Market Trends
Increase in the Imports of Grains
Colombia is a net importer of corn, as domestic production can satisfy only about 30% of the total domestic consumption and represented about 51% of the total agricultural volume of grain imports, according to the ITC Trade, in 2016, the value of USD 871.4 million of maize was imported that has increased to USD 1049.96 million in 2018. Additionally, in 2018 the country imported wheat and rice amounting to 1,722 thousand metric tons and 164.8 thousand metric tons with an import value of USD 431.65 million and 79.31 million respectively. The United States is the main supplier of corn with a value of USD 994.85 million in 2019 with a share of 94.8% of total maize imports from the country. It is followed by Argentina and Brazil with a minor share of 3.1% and 1.5% respectively in 2018.
Demand from Animal Feed Industry Drives Production
The upward trend in the grain market is driven by growing demand from the animal feed industry that has been steadily increasing in the past years. 95% of corn imports are destined for animal feed with the remaining 5% for human consumption. The demand for animal feed will continue to grow, primarily in the poultry sector, as Colombia’s economy remains strong and dietary shifts adjust to populations moving out of poverty into the low and middle-income classes. According to the Organisation for Economic Co-operation and Development(OECD), poultry meat is the most consumed meat type, in 2016 per capita consumption was 28.3 Kg that has increased to 31.1 kg in 2019. In order to meet the consumption requirement, livestock production is also growing. The demand for meat will continue to rise as sustained economic growth and the increase in household incomes boost animal protein consumption and the demand for feed as well. This will, in turn, drive the market for grains in the country.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
Methodology
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