Market Trends of Colombia Grains Industry
Increase in Demand for Animal-based Protein Sources
Colombia's increasing population, rising incomes, and urbanization have led to a surge in animal-based protein consumption. This growth in demand for milk, meat, and eggs has intensified pressure on the meat industry, consequently increasing the need for grains in animal feed production. According to the National Administrative Department of Statistics (DANE) and Porkcolombia, pork consumption in 2023 reached 703 thousand metric tons, a 5.3% increase from the previous year's 667.7 thousand metric tons. The USDA Grain and Feed Update Report 2024 indicates that approximately 95% of corn imports are used for animal feed, with only 5% allocated for human consumption. This heightened demand for animal feed has encouraged farmers to expand their cultivation areas, resulting in increased grain production within the country.
The USDA Grain and Feed Update Report 2024 reveals that the area under corn cultivation grew from 380 thousand hectares in MY2022-2023 to 390 thousand hectares in MY2023-2024. This expansion led to a production increase from 1.5 million metric tons to 1.6 million metric tons. Consequently, the growth in both domestic production and imports of grains is primarily driven by the expanding animal feed sector in Colombia, reflecting the country's changing dietary patterns and agricultural landscape.
Rice holds a Significant Share by Production
Colombia stands as a prominent rice producer in South America. The country's rice production has increased significantly compared to other major grains, driven by growing domestic and global demand. According to FAOSTAT, Colombia's rice production in 2022 reached 2.6 million metric tons, surpassing other grain crops such as maize (1.9 million metric tons), wheat (12.9 thousand metric tons), barley (6.9 thousand metric tons), and sorghum (4.2 thousand metric tons). Government initiatives, such as Plan Colombia Siembra, have contributed to improved rice production by focusing on increasing productive agriculture for specific commodities. Additionally, the development of new rice varieties continues to enhance the sector. In August 2023, a new variety named Grandiosa was introduced, featuring improved tolerance to diseases and pests.
Rice remains a staple food in Colombia, with high per capita consumption compared to neighboring countries. The USDA estimates the average per capita consumption at 43 kg per person. Total rice consumption in MY 2023-2024 is 2 million metric tons, an increase from the previous year's 1.9 million metric tons. This upward trend in consumption underscores the importance of rice in the Colombian diet and the growing demand for this essential grain.
