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fas-bogota-presentation

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									  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
                                                      Livestock
• 51 million hectares - 45% total
Colombian area.
     • 77 % Livestock (39.2 mil)
           • 81 % Pastures (31.8 mil)    Forests

     • 14 % Forests
           • 95% Natural
                                        Agriculture
           • 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.
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


                                                                  Trade Surplus
                                                 Imports
                 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             +16.5         +4.2      +24,949     +1,082
 Chicken Meat (MDC)
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)
                              Basic Duty        U.S.           Under Trade Promotion Agreement
                                                              Out-of-TRQ    TRQ - Duty Phase out
Main Ag Products                           Current Duty         Duty                       period
Yellow Corn                     15 1/        5% 1/ 3/           15 1/       2.1 Mil. MT   12 years
Poultry meat - leg quarters     70 1/           70               127         27,040 MT    18 years
Dry beans                        60             60                60         15,750 MT    10 years

Beef Standard Quality            80                               80            2,100 MT    10 years

Variety Meats                  70 - 80                          70 - 80         4,664 MT    10 years

Powdered Milk                   98 1/                             33            5,500 MT    14 years
Cheese                          20 1/                           20 - 33         2,310 MT    15 years
Whey                             94                               94
Eggs                             20                               20                        5 years
Pork Meat                       20 /1                             30                        5 years

Value Added food
Products                         15-20          15-20                                      Immediate
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
Colombians Household Expenditures
 Colombians Hypermarkets - Supermarkets
  Name of Retailer                       Ownership                  # of                     Location          Type of
                                                                   Outlets                                  Purchasing
                                                                                                             Agent(s)
Carrefour                            100 % France                       60        Bogota, Cali, Pereira, Importer, direct,
                                                                                  Medellín, Ibague,      local
                                                                                  Barranquilla
Alkosto                              100% Local                          9        Bogota, Villavicencio, Importer, direct,
                                                                                  Pasto, Ipiales,        local, producers,
                                                                                  Tuquerres              distributors
Makro of Colombia                    100%                               14        Bogota, Cali           Importer, direct,
                                     SHVHolding                                   Pereira,MedellinBarra local, producers,
                                     (Dutch Holding)                              nquilla, Ibague,       distributors
                                                                                  Cartagena
Almacenes Éxito                      62% Casino –                      261        Medellin, Bogota,      Importer, direct,
Pomona, Carulla-                     France                                       Cali,                  local, producers,
Vivero, Surtimax                     38% Others                                   Other Main Cities      distributors
Supertiendas                         100% Local                        153        Main/Middle Cities     Importer, local,
Olimpica                                                                                                 producers,
                                                                                                         distributors
Cacharreria La 14                    100% Local                         19        Cali, Pereira.         Importer, direct,
                                                                                  Manizales,             Local, producers,
                                                                                  Buenaventura           distributors
Colsubsidio *                        100% Local                         20        Regional Bogota        Local producers,
                                                                                                         distributors
Cafam*                               100% Local                         42        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.

								
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