EMIS Insights - Colombia Agriculture Sector Report 2019 - 2020

COLOMBIA
AGRICULTURE
SECTOR 2019/2020
An EMIS Insights Industry Report
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ABBREVIATIONS
ASOCANA Colombian Association of Sugarcane Growers
ASOHOFRUCOL Fruit and Vegetable Growers’ Association of Colombia
AUGURA Association of Banana Producers in Colombia
COP Colombian Peso
DANE National Administrative Department of Statistics
DNP National Planning Department
ENA National Agriculture Survey
FARC Revolutionary Armed Forces of Colombia
FEDEARROZ National Federation of Rice Growers
FEDECAFE National Federation of Coffee Growers
FEDEPALMA National Federation of Palm Oil Growers
FEDEPAPA National Federation of Potato Producers
FENALCE National Federation of Grain Growers
FENAVI National Federation of Poultry Producers
FINAGRO Fund for Agriculture Financing
GVA Gross Value Added
INCODER Colombian Institute of Rural Development
MADR Ministry of Agriculture and Rural Development
MCIT Ministry of Commerce, Industry and Tourism
OECD Organisation for Economic Co-Operation and Development
SAC Colombian Farmers Association
USDA United States Department of Agriculture

CONTENTS 01 EXECUTIVE SUMMARY
Sector in Numbers
Sector Overview
Sector Snapshot
Sector Outlook
p.5
Driving Forces
Restraining Forces
02 SECTOR IN FOCUS p.13

Main Economic Indicators
Main Sector Indicators
Gross Value Added
Land Use
Global Positioning
External Trade
Foreign Direct Investment
Enterprises and Employment
03 COMPETITIVE LANDSCAPE p.23

Timeline Colombia Agriculture
Competitive Landscape
Top Companies
M&A Deals
M&A Activity, 2018-H1 2019
04 COMPANIES IN FOCUS p.30

Industria Colombiana de Cafe SAS
Pollos el Bucanero SA
Operadora Avicola Colombia SAS
Agroguachal SA
Inversiones, Equipos y Servicios SA
05 REGULATORY ENVIRONMENT p.41

Key Regulatory Bodies
Government Policy
Main Policy Instruments

CONTENTS 06 CROP PRODUCTION
Highlights
Main Events
Land Use
Production and External Trade
p.45
Cereals
Rice
Maize
Fruits and Vegetables
Bananas and Plantains
Potatoes
Coffee
Focus Point – Coffee Planted Area by
Department
Palm Oil
Sugarcane
07 LIVESTOCK PRODUCTION p.66

Highlights
Main Events
Land Use
Inventory and External Trade
Poultry
Beef Cattle
Hogs and Pigs

COLOMBIA AGRICULTURE SECTOR 2019/2020
An EMIS Insights Industry Report CONTENTS
01
EXECUTIVE
SUMMARY

Copyright © 2019 EMIS, all rights reserved. 5
O1 EXECUTIVE SUMMARY CONTENTS
Sector in Numbers
COP
No. 3 No. 4 61.4tn
Coffee Producer and Palm Oil Producer Agriculture Sector
Exporter Globally Globally GVA
13.6mn 1.6mn 25mn

60kg bags tonnes tonnes
Coffee Palm Oil Sugarcane
Production Production Production
USD USD 17.2%

2,105mn 2,615mn Share of Agriculture
Agriculture and Coffee Export and Livestock in
Livestock Trade Value Total Employment
Surplus
Note: Data for 2018.

Source: USDA, DANE, FEDECAFE, FEDEPALMA, ASOCANA
COLOMBIA AGRICULTURE SECTOR 2019/2020 6

01 EXECUTIVE SUMMARY CONTENTS
Sector Overview
In 2018, Colombia’s agriculture, livestock, forestry, hunting and fisheries sector accounted for 6.3% of
the country’s GDP. Between 2013 and 2018, the sector’s GVA rose at a CAGR of 4.2% in real terms,
supported by the Colombia Siembra government supported programme adopted in 2015, and the
peace agreement with the biggest guerrilla group, the Revolutionary Armed Forces of Colombia
(FARC), signed in November 2016. These positive developments led to an increase in both planted area
and production volume. The best-performing segment during 2013-2018 was coffee production, whose
GVA grew at a CAGR of 4.5% in real terms. Overall, the sector is among the leading exporters in the
domestic economy, accounting for 12.4% of Colombia’s total export value and for 17.2% of total
employment.
Entry modes
Colombia’s agricultural sector is dominated by small and medium-sized farms with relatively low
levels of technological adoption. Market concentration is low, and the sector presents few entry
barriers to new investors. The major obstacle for the entry of small producers into the sector relates
to the difficulty in obtaining external financing. Despite the ongoing peace process with the guerrilla
groups, FDI in Colombia has been decreasing since 2016. This negative trend was observed in the
agriculture sector as well, where FDI inflows fell in both 2017 and 2018. The most attractive segment
for investment remains poultry production, as a result of the growing domestic demand for this type
of animal protein during the last decade.
Segment Opportunities
Coffee and palm oil remain Colombia’s most important crops. The country has a well-established
tradition and reputation on the global markets, being the world’s third largest coffee producer and
exporter in the 2018/2019 season and the fourth largest producer of palm oil globally. Growth
opportunities exist in the fruits and nuts segment, as Colombians increasingly choose healthier diets.
Bananas and plantains, in particular, remain the leading export crops, with export value reaching USD
866mn in 2018. The rising middle class and higher disposable income of the population – due to
improved macroeconomic conditions in Colombia in the last few years – have created strong demand
for livestock products, leading to significant opportunities for poultry and pork meat production.
Government Policy
The level of government support for Colombia’s agricultural producers remains low. The main
instrument is market price support, which accounted for more than 87% of the overall resources
targeted towards agriculture support over the 2016-2018 period. In 2018, budgetary transfers remained
unchanged in comparison to 2017. In addition, the recently launched National Development Plan
(Pacto por Colombia), which focuses on the 2018-2022 period, includes a special chapter with
initiatives oriented towards the development of the agriculture sector, such as different stimuli to
enhance the sector’s competitiveness, as well as modernisation, digitalisation and consolidating the
sector’s institutions.
Source: DANE, Central Bank of Colombia, OECD

Sector Snapshot
Colombia Agriculture
Sector
GROSS VALUE ADDED*
AGRICULTURE, LIVESTOCK, FORESTRY AND

EXPORTS FISHERIES GVA:* COP 53,294.6bn
Total: USD 5,201.1mn Cereal: 4.1mn tonnes
Agriculture: USD 5,001.4mn *Constant prices
Livestock: USD 199.7mn
Coffee: USD 2,614.6mn

Bananas and Plantains: USD 866mn
Palm Oil: 0.742mn tonnes
PRODUCTION
Cereal: 4.1mn tonnes
Fruits and Vegetables: 10.78n tonnes
Coffee: 13.6mn 60kg bags
Palm Oil: 1.6mn tonnes
IMPORTS Sugarcane: 25mn tonnes
Poultry: 1.6mn tonnes
Total: USD 3,095.7mn Beef Cattle Inventory**: 24.3mn heads
Agriculture: USD 2,617.1mn Hog and Pig Inventory**: 0.9mn heads
Livestock: USD 478.5mn
**Refers to 2017
Maize : 5.4mn tonnes
Rice: 0.324mn tonnes
KEY PLAYERS BY OPERATING REVENUE

1. Avidesa Mac Pollo SA: COP 1,131bn
2. Orf AS: COP 1,092bn
3. Pollos el Bucanero SA: COP 775.9bn
4. Avidesa de Occidente SA: COP 620.3bn
5. Operadora Avicola Colombia SAS: COP 568.8bn
Note: Data for 2018.

Source: DANE, FEDECAFE, FEDEARROZ, ASOCANA, ASOHOFRUCOL, FENALCE, UN Comtrade, EMIS Insights
ARGENTINA AGRICULTURE SECTOR 2019/2020 8

Sector Snapshot
Colombia Agriculture Sector
In 2018, the gross value added (GVA) of the agriculture, livestock, forestry, hunting and fisheries
sector in Colombia stood at COP 61,421bn, accounting for 6.3% of the country’s GDP, compared to 6.4%
in 2017. Sector growth was 2.1% y/y in real terms in 2018, below that of the overall economy, which
grew by 2.6% y/y.
In 2017, the National Administrative Department of Statistics (DANE) expanded the geographic
coverage of its agricultural data in an attempt to improve reporting in the sector. As a result, the
number of departments participating in the country’s agricultural survey rose from 26 in 2016 to 32.
Coffee remains one of the leading agricultural segments in Colombia. In 2017, coffee production
volume reached 14.19mn 60kg bags, while in 2018 coffee output fell to 13.57mn, 4.4% less y/y. This
negative performance reflects the low international coffee prices observed in 2018, which couldn’t
cover production costs and led to reduced profits for coffee growers. In terms of production value,
coffee output registered a fall of 17% y/y, dropping to COP 6,235bn in 2018 in comparison to COP
7,513bn in 2017.
Palm oil production is another important segment for Colombia’s agriculture. In 2017, palm oil
production volume reached a peak of 1.6mn tonnes, registering a jump of 42% y/y. This atypical rise
was driven by the favourable weather, which led to a recovery in palm oil yields. In 2018, however, no
significant movement in production volume was observed, mainly due to the high base of comparison.
In 2017, Colombia’s livestock production inventory registered a 1.7% y/y rise, reaching 841mn heads.
This result was driven by a 6.1% y/y increase in beef cattle herd and a 1.7% y/y increase in poultry
inventory. Poultry and pig meat production remain the most important segments, as domestic
demand for these types of protein continues to grow. Poultry production rose by 5.7% y/y in 2017,
followed by an uplift of 4.2% y/y in 2018. The number of pigs slaughtered in 2017 grew by 1.7% y/y,
while in 2018 it jumped to 4.4mn heads, up 7.3% y/y.
In 2017, the crop-growing and livestock sector’s trade surplus rose by 13.4% y/y, driven by an increase
of 6.5% y/y in the value of exports (to USD 5,364mn) and a slight growth of just 0.8% y/y in imports (to
USD 2,764mn). The sector’s exports fell to 14.2% of Colombia’s total exports in 2017, in value terms,
compared to 16.2% in 2016. In 2018, this share fell even further, to 12.4%, following the 3% y/y drop in
export value during the period. Coffee remains the most exported product with a share of 45.16% of
the total agricultural export value in 2018. Colombia remains highly dependent on imports of cereals,
the trade deficit of which in 2017 amounted to USD 1,505mn. The segment deficit grew even further in
2018, reaching COP 1,664mn, driven by the 10.4% y/y increase in imports and the drop of
approximately 40% y/y in export value. Colombia imports significant amounts of rice, maize, wheat
and soybean, among others.
Source: Central Bank of Colombia, FEDEPALMA, FEDECAFE, FENAVI, PorkColombia, DANE, UN Comtrade

Sector Outlook
2019f 2020f 2021f 2022f 2023f
Maize Production, thou tonnes 1,600 1,679 1,745 1,787 1,801
Maize Production, y/y change, % 0.9 4.9 3.9 2.4 0.8
Coffee Production, thou 60kg bags 14,300 14,789 15,328 15,987 16,274
Coffee Production, y/y change, % 3.4 3.4 3.6 4.3 1.8
Sugar Production, thou tonnes 2,400 2,512 2,576 2,625 2,651
Sugar Production, y/y change -4.0 4.7 2.5 1.9 1.0
Palm Oil Production, thou tonnes 1,727.7 1,817.6 1,890.3 1,937.5 1,999.5
Palm Oil Production, y/y change, % 5.8 5.2 4.0 2.5 3.2
Poultry Production, thou tonnes 1,730 1,787 1,831 1,893 1,955
Poultry Production, y/y change, % 2.7 3.3 2.5 3.4 3.3
Pork Production, thou tonnes 395.0 411.0 427.0 441.0 452.9
Pork Production, y/y change, % 5.3 4.1 3.9 3.3 2.7
Beef and Veal Production, thou tonnes 780.0 780.0 754.9 734.5 718.2
Beef and Veal Production, y/y change, % 2.0 0.0 -3.2 -2.7 -2.2
Milk Production, thou tonnes 7,360 7,233 7,350 7,467 7,584
Milk Production, y/y change, % 0.9 -1.7 1.6 1.6 1.6
The outlook for Colombia’s agriculture over 2019-2023 is positive, based on expectations for growing
domestic demand and good export opportunities. Palm oil production is projected to be the best
performer between 2019 and 2023, with output volume growing at a CAGR of 3.7%, according to Fitch
Solutions’ predictions from Q3 2019. Coffee will continue to be the country’s agricultural powerhouse,
expected to register an average annual growth of production of 3.3% over the next four years,
reaching 16.3mn bags in 2023. The segment has benefited significantly from the replanting
programmes that took place after 2012, while research and use of modern technologies have boosted
coffee yields in Colombia over the last few years, resulting in higher productivity and coffee quality.
The outlook for the livestock subsector over the next four years is also positive, with poultry and pork
production expected to register the highest growth rates. Poultry output is projected to reach 2mn
tonnes in 2023, growing at a CAGR of 3.1% between 2019 and 2023, while pork production is expected
to expand to 452,900 tonnes at the end of the same period, driven by growing domestic demand for
animal protein. The beef segment, on the other hand, will decrease in importance in the next four
years, registering a negative CAGR of 2% through 2023.
Source: Fitch Solutions

Driving Forces
External
Colombia’s land area, biodiversity and favourable climate are the main drivers of agricultural and
livestock production. The country is the second most biodiverse in the world after Brazil and has five
different eco-regions, enabling it to grow an extensive range of crops and develop animal farming.
The peace agreement signed with the guerrilla group FARC in 2016 has led to an expansion of the area
used for agricultural and livestock production and is expected to continue assisting the development
of the sector in the near future. Moreover, in 2018, the newly elected government of Ivan Duque
introduced the National Development Plan 2018-2022 (Pacto por Colombia), an important milestone
for the development of Colombia’s agriculture, as the sector is a keystone of the president’s Plan. The
initiative relates to the productivity of the country’s agricultural production, and defines a roadmap
for the next four years. Some of the aspects discussed in the Plan relate to the inclusion of women in
the process of land formalisation and consolidation, the efficient use of rural land, the development
of a health and sanitary plan for livestock production, easy access to external financing and credit,
and improving the market access of rural areas, among others.
Internal
The main internal driver behind Colombia’s agriculture is coffee production, due to the country’s
competitive advantage based on longstanding traditions, developed infrastructure and supply chains,
environmentally-friendly production processes, a globally-recognised brand, and a reputation for high
quality. The segment is the largest contributor to Colombia’s trade surplus in agriculture. Other areas
where the country performs well are palm oil and sugarcane production. The growing yields of these
crops (following the use of modern technology in the production process) has contributed to their
development over the last decade. Colombia is the fourth biggest producer of palm oil in the world,
while domestic demand for this product is increasing, especially following the rise in the biofuel
blending mandate in the country in March 2018. Market players have invested more in new
technologies, implementing solutions for crop monitoring and management. Moreover, the existing
network of relatively efficient industry associations that represent the interest of domestic growers of
coffee (FEDECAFE), oil palms (FEDEPALMA), rice (FEDEARROZ), potatoes (FEDEPAPA) and sugarcane
(ASOCANA), remain another important driver of Colombia’s agriculture sector. In terms of livestock
production, the growing disposable income of the population in the last decade has made animal
protein an important part of the everyday diet, boosting domestic demand, especially for poultry and
pork.
Source: DANE, Fitch Solutions, EMIS Insights, OECD

Restraining Forces
External
Colombia’s agriculture and livestock production remains highly vulnerable to weather conditions.
Extreme temperatures, prolonged droughts and excess rain can cause lower yields, negatively
affecting the harvest. Moreover, the sector depends on the country’s economic development, as
positive economic growth leads to higher demand and more investment, while economic slowdown
has the opposite effect. At the same time, the sector is largely exposed to fluctuations in
international agricultural commodities prices and exchange rate volatilities, given its role as a leading
global coffee exporter and a net importer of cereals and animal protein. Notably, the low international
coffee prices in 2018 affected the profitability of domestic coffee growers. According to the
International Coffee Organization (ICO), the composite coffee price index dropped by more than 10%
y/y in 2018. Another challenge facing Colombia’s agriculture sector is the lack of long-term
government policy in terms of tax incentives, easy access to financing, and investment incentives. The
government has focused on short-term solutions for the problems faced by domestic farmers and
producers, as illustrated by the Colombia Siembra programme, which had a duration of four years and
expired in 2018. According to the Ministry of Agriculture and Rural Development (MADR), the
programme led to an increase in planted area and production volumes, but this increase also related
to the higher number of departments included in the official statistics in 2017 and 2018. Moreover, the
conflict with the guerrilla groups in the country continues to jeopardise the domestic economy,
despite the peace agreement signed in 2016. Notably, at the end of August 2019, the former
commander of FARC, Ivan Marquez, accused the government of betraying the peace agreement in a
video released online and called for a return to arms. In response, the president offered a monetary
reward for capturing the rebels. A possible revival of the armed conflict would have significant
negative consequences on Colombia's economy and reduce the country's attractiveness to foreign
investors.
Internal
Colombia’s agriculture sector faces significant challenges related to its high degree of informality,
especially in the livestock segment. The majority of producers are unwilling to pay taxes, to register
their farms and to vaccinate their cattle, due to the higher production costs of certified products.
These practices have led to decreased competitiveness of the country’s livestock production, to risks
related to public health and low access to international markets. According to the Colombian
Federation of Cattle Breeders (FEDEGAN), in 2017 700,000 animals were illegally slaughtered in the
country, generating annual losses of COP 1.2bn for producers. Moreover, the lack of adequate
infrastructure significantly increases production costs, making Colombian agriculture inefficient and
less competitive in comparison to its foreign equivalents. The country remains highly dependent on
cheaper imports of cereals (mainly maize and rice), especially from the US under the preferential
treatment of the Trade Promotion Agreement (CTPA) signed between the two countries in 2012. The
recent rise in domestic demand for poultry and pork meat has led to elevated imports of these types
of animal protein, as the country’s supply remains insufficient.
Source: USDA, Fitch Solutions, EMIS Insights, MADR

02
SECTOR
IN FOCUS

02 SECTOR IN FOCUS CONTENTS
Main Economic Indicators

2013 2014 2015 2016 2017 2018
GDP, current prices, COP bn 713,627 762,903 804,693 863,782 920,194 978,477
GDP, constant prices 2015, y/y change, % 4.6 4.7 3.0 2.1 1.4 2.6
GDP per Capita, USD 8,104 7,999 6,089 5,800 6,326 6,625
Consumer Price Index, y/y change, % 1.9 3.7 6.8 5.8 4.1 3.2
Exchange rate USD/COP, year-end 1,926.8 2,392.5 3,149.5 3,000.7 2,984.0 3,249.8
Monetary Policy Rate, % pa, year-end 3.25 4.50 5.75 7.50 4.75 5.25
GVA Agriculture, Livestock, Forestry and

38,509 41,555 48,124 57,065 58,781 61,421
Fisheries, current prices, COP bn

5.4 5.4 6.0 6.6 6.4 6.3
Fisheries, current prices, % of GDP

7.5 2.9 4.3 2.7 5.5 2.1
Fisheries, constant prices 2015, y/y change, %
Agriculture and Livestock Export Value, USD

4,745 5,080 4,993 5,035 5,364 5,201
mn
Agriculture and Livestock Export Value, % of

8.1 9.3 14.0 16.2 14.2 12.4
total exports
Agriculture and Livestock Import Value, USD

2,953 2,967 2,751 2,742 2,764 3,096
mn
Agriculture and Livestock Import Value, % of

5.0 4.6 5.1 6.1 6.0 6.0
total imports
Foreign Direct Investment in Agriculture,

Livestock, Forestry, Hunting and Fisheries, 293 202 211 299 238 214
USD mn
Foreign Direct Investment in Agriculture,
Livestock, Forestry, Hunting and Fisheries, % 1.8 1.2 1.8 2.2 1.7 1.9
of total
Source: Central Bank of Colombia, IMF, CEIC, UN Comtrade
COLOMBIA FOOD AND BEVERAGE SECTOR 2019/2020 14

Main Sector Indicators

2013 2014 2015 2016 2017 2018
Agriculture Planted Area, thou ha 2,260.3 2,287.1 2,322.6 4,618.6 5,099.8 n/a
Agriculture Production Volume, thou tonnes 10,389.6 10,770.4 10,804.6 23,363.3 50,354.0 n/a
Cereal Planted Area, thou ha 937.7 850.0 829.0 1,036.4 1,002.9 907.0
Cereal Production Volume, thou tonnes 3,669.8 3,503.9 3,315.5 4,240.3 4,255.9 4,054.7
Fruits and Vegetables Planted Area, thou ha,

895.9 910.6 931.7 1,008.2 1,034.0 1,074.3
excluding bananas
Fruits and Vegetables Production Volume, thou

9,564.2 9,460.1 9,674.7 10,609.9 10,725.4 10,843.4
tonnes, excluding bananas
Coffee Planted Area, thou ha 974.0 948.5 940.9 931.8 904.0 877.1
Coffee Production Volume, thou 60kg bags 10,886 12,140 14,175 14,232 14,194 13,566
Palm Oil Planted Area, thou ha 461.9 480.8 499.2 512.4 523.9 540.7
Palm Oil Production Volume, thou tonnes 1,040.8 1,111.4 1,275.0 1,146.0 1,627.0 1,629.0
Sugarcane Planted Area, thou ha 225.6 230.3 232.1 238.2 243.2 238.1
Sugarcane Production Volume, thou tonnes 21,568.2 24,283.2 24,205.1 23,221.9 24,380.6 25,036.2
Bananas for Internal Consumption Production

106.5 129.0 136.2 141.9 2,020.9* n/a
Volume, thou tonnes
Plantain Production Volume, thou tonnes 1,066.9 816.8 963.0 911.7 1,312.7 n/a
Livestock Inventory, thou heads 712,858.4 761,339.6 796,372.0 826,792.3 840,978.3 n/a
Number of Employees in Agriculture Sector,

3,698.9 3,646.6 3,816.9 3,727.9 3,915.5 3,957.0
thou, year-end
Number of Employees in Agriculture Sector, %

17.1 16.7 17.1 16.6 17.3 17.2
of total
* For 2017 statistics, DANE presented also the output oriented towards the external market
Source: DANE, ASOHOFRUCOL, ASOCANA, FEDEARROZ, FEDECAFE, FENALCE
COLOMBIA FOOD AND BEVERAGE SECTOR 2019/2020 15

Gross Value Added
Comments Agriculture, Livestock, Forestry, Hunting

and Fishing GVA, COP bn, current prices
The GVA of the agriculture, livestock, forestry,
hunting and fisheries sector in Colombia
61,421
registered a rise of 2.1% y/y in 2018, below the 58,781
57,065
overall GDP growth of 2.6% y/y. The slowdown in
the performance of the sector reflects the 48,124
moderate increase of the crop-growing segment’s 41,555

38,509
GVA, up by just 1.6% y/y in 2018. The significant
drop in coffee prices during the period negatively
affected the performance of the coffee segment,
which is one of the drivers of Colombia’s crop
production. Livestock production performed
better, with its GVA rising by 3.6% y/y. The
sector’s participation in the country’s GDP
remained stable in 2018 at 6.3%, according to 2013 2014 2015 2016 2017 2018
Colombia’s Central Bank.
Agriculture, Livestock, Forestry, Hunting Agriculture, Livestock, Forestry, Hunting

and Fishing GVA, share of GDP and Fishing GVA vs GDP, y/y change
6.6% 7.5%
6.4% 6.3%
6.0%
5.4% 5.4%
5.5%
4.6% 4.7%
4.3%
2.9% 3.0% 2.6%

2.7%
2.1%
2.1%
1.4%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Agriculture, Livestock, Forestry, Hunting and Fishing GVA
GDP
Source: Central Bank of Colombia, DANE

Land Use
Comments Total Agricultural and Forestry Land Use

by Activity, thou ha
In 2017, for a second consecutive year, DANE
expanded the number of departments included in 47,248
52,234
its national agriculture survey as a step towards 37,816 37,746 37,733 7,542
improving reporting in the sector. The total 6,437
number of departments rose to 32, up from 26 in 4,698 4,544 4,663

2016, leading to a double-digit growth in the land
area used for both crop-growing and livestock 37,491
40,873
activities. Once again, in 2018 most of the land 30,362 30,303 30,200
used by the sector was dedicated to livestock
activities, while crop production occupied just
2,755 2,899 2,870 3,321 3,820
7.3% of the area (the rest being used mainly for
2013 2014 2015 2016 2017
forestry). Permanent crops accounted for 66.2% of
the total area used for crop-growing, while
Crop-G rowing Livestock Other Uses Total
pastures and forage grass totalled 60.1% of the
land dedicated to livestock activities.
Total Land Use by Activity, y/y change Total Land Use Distribution, 2017
Forests
24.1%
11.9%
15.7% 15.0%
9.0%
5.2%
1.2% -0.3%
-0.2% Livestock
-1.0%
78.3%
Agriculture
-7.0%
7.3%
2013 2014 2015 2016 2017
Other Uses
Crop-G rowing Livestock 2.5%
Source: DANE

Global Positioning
Comments Top 10 Global Coffee Producers,

2018/2019
According to estimates published by the USDA in
March 2019, Colombia was the world’s third Ranking Country
Production Volume,
thou 60kg bags
largest coffee-producing and exporting country in
the 2018/2019 season after only Brazil and 1 Brazil 64,800
Vietnam, responsible for 8.19% of global output 2 Vietnam 30,400

and for 9.7% of global exports. Another product 3 Colombia 14,300
for which the country is well known is palm oil. In 4 Indonesia 10,600
2018/2019, Colombia was the fourth largest palm
5 Ethiopia 7,250
oil producer in the world, with a share of 2.2% of
6 Honduras 7,000
global output, again according to the USDA. The
country has gained importance in terms of 7 India 5,170
poultry meat production as well, and was 8 Uganda 4,800

positioned in tenth place globally by the USDA in 9 Peru 4,380
2018, with a share of 1.8% of total global output. 10 Mexico 4,050
Top 5 Global Palm Oil Producers, Top 10 Global Chicken Meat Producers,
2018/2019 2018
Production Volume, mn Production Volume,

Ranking Country Ranking Country
tonnes mn tonnes
1 Brazil 13.36
1 Indonesia 41.50
2 European Union 12.20
3 China 11.70
2 Malaysia 20.50
4 Russia 4.87
5 India 4.86
3 Thailand 2.90
6 Mexico 3.49
7 Thailand 3.17
4 Colombia 1.63
8 Turkey 2.23
9 Argentina 2.11
5 Nigeria 1.02
10 Colombia 1.68
Source: USDA

External Trade
Comments
Colombia’s agriculture and livestock sector has a history of trade surpluses. In 2018, the sector’s
export value registered a decrease of 3% y/y to USD 5.2bn, mainly due to the fall in coffee export
value by 6.9% y/y, as a result of the weak international prices of the commodity during the period.
Another important segment for Colombia’s external agriculture trade – bananas and plantains – also
registered a drop in export value of 5.7% y/y, which had a negative impact on the sector’s export
performance. Meanwhile, Colombia’s agriculture and livestock import value grew by 12% y/y in 2018 to
USD 3.1bn. The country remains highly dependent on imports of cereals, which increased by 10.4% y/y
in value terms, driven by growing demand for cereal crops for animal feed. The US is the major
supplier of cereals to Colombia, responsible for 69.8% of total cereal import value in 2018, followed by
Canada at 19%. The livestock subsector experienced a rise in import value as well, up 15.8% y/y in
2018, driven by higher imports of pork and poultry meat. In 2018, the meat and edible meat offal
category recorded a trade deficit of USD 240mn. The US remained the major supplier of both poultry
and pork meat to Colombia in 2018, due to the preferential treatment of these products under the US-
Colombia Trade Promotion Agreement (CTPA) and the geographic proximity of the two countries.
External Trade in Agriculture and External Trade in Agriculture and

Livestock,* USD mn Livestock, share of total
16.2%
2,600
14.0% 14.2%
2,242 2,293
2,113 2,105 12.4%
1,792
9.3%
8.1%
5,364
5,201
5,080
5,035
4,993
4,745
6.1% 6.0% 6.0%

5.0% 4.6% 5.1%
3,096
2,967
2,953
2,764
2,751
2,742
2013 2014 2015 2016 2017 2018

2013 2014 2015 2016 2017 2018
Exports Imports Trade Balance Exports Imports
* HS codes: 01,02, 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14
Source: UN Comtrade

External Trade (cont’d)
Trade Balance by Product,* 2018, USD mn
2,229 Coffee, Tea, Mate, and Spices
1,441 Trees and Other Plants
0 Fruits and Nuts
34 Live Animals
1 Pr oducts of the Milling Industry
-116 Vegetables and Certain Roots and Tubers
-239 Meat and Edible Meat Offals
-294 Oil Seeds and Olegeanous Fruits
-1,642 Cer eals
Export Value by Product,* 2018 Import Value by Product,* 2018
Meat and Oil Seeds

Edible Meat and
Trees and Offals 10.7% Olegeanous
Other Plants Fruits and Fruits 10.7%
28.4% Nuts 20.3% Fruits and
Nuts 7.6%
Meat and
Edible Meat Vegetables
Offals 1.8% and Certain
Roots and
Products of Tubers 4.9%
the Milling
Industry
Coffee, Tea,
1.0%
Mate and
Live Animals Spices 3.9%
1.0%
Oil Seeds Cereals Dairy
Coffee, Tea, Products
and 53.9%
Mate, and Oleaginous 3.6%
Spices Fruits 0.7%
45.2% Others 1.7% Others 4.7%
* HS codes: 01,02, 04, 05, 06, 07, 08, 09, 10, 11, 12, 13, 14
Source: UN Comtrade

Foreign Direct Investment
Comments
In 2018, Colombia received a total of 185 investments from 39 countries, distributed among 56
municipalities in 22 departments. The main source country for these investments was the US with 41
projects, according to the Ministry of Commerce, Industry and Tourism. Of the 185 investments, 27
were fund initiatives focused on agriculture and food, real estate, Industry 4.0, fashion, infrastructure
and energy. Despite the optimistic figures from the ministry, investment inflows in agriculture,
livestock, forestry, hunting and fisheries as a percentage of total FDI remain low, standing at 1.9% in
2018. FDI inflows into the sector registered a decrease of 19% y/y in 2018 for a second consecutive
year and stood at USD 214mn. This negative performance was in line with the decreasing trend in
total FDI inflows towards Colombia, which fell by 18% y/y in 2018, reflecting the overall lack of
attractiveness of the country to foreign investors. In 2018, Canada was the major foreign investor in
Colombia’s agriculture sector, participating in the acquisition of some major producers of medical
cannabis, as it legalised cannabis use in October 2018. On 11 August 2017, the Colombian government
finalised the regulatory process for the manufacture, use of seeds and cultivation of cannabis for
medicinal and scientific purposes in the country. The lower operating costs related to growing
cannabis in Colombia make the sector attractive for foreign investors.
FDI Inflows in Agriculture, Livestock, FDI Inflows in Agriculture, Livestock,

Hunting, Forestry and Fishing, USD mn Hunting, Forestry and Fishing, share of
total
293 299
2.2%
1056.6% 238 1.9%

1.8% 1.8%
214 1.7%
202 211
1.2%
4.7% 41.3%
-31.8% -19.2% -19.2%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
FDI Inflows, USD mn y/y change
Source: Central Bank of Colombia, Sociedad de Agricultores de Colombia, Minsalud, El Pais

Employment
Comments Number of Employees in Agriculture,

thou, year-end
The agriculture sector is among the leading
employers in Colombia’s economy, responsible 3,957.0
for 17.2% of total employment in the country. 3,915.5
After a strong expansion of 5% y/y in the number
of employees engaged in agricultural production 3,816.9
in 2017, the growth rate slowed to just 1.1% y/y in
2018. This can be attributed to the higher level of 3,727.9
3,698.9
automation in the production processes of
3,646.6
agricultural producers in recent years. In addition,
the lower output and decreased competitiveness
of some segments, such as rice and coffee
production, in 2018 can also be linked with the
lower growth rates of employment in the sector.
2013 2014 2015 2016 2017 2018
Number of Employees in Agriculture, y/y Number of Employees in Agriculture, share

change of total
5.0% 17.3%
4.7% 17.2%
17.1%
17.1%
1.1%
16.7%
16.6%
-1.4%
-2.3%
-3.1%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Source: DANE, EMIS Insights

03
COMPETITIVE
LANDSCAPE

CONTENTS
Timeline 1871 Development Milestones
Creation of the Colombian Farmers Association SAC.

Colombia
Agriculture 1927
Sector FEDECAFE is founded.
1959 Development Milestones
First National Agriculture Census.
Development Milestones
1969 Market Players
Avidesa Mac Pollo SA is founded.

1976 Market Players
Agroguachal and INESA are founded.
1986 Market Players
Pollos el Bucanero is founded.

1993
Enactment of the National Plan to
Reactivate the Agriculture Sector.
Development Milestones 1994 Development Milestones
Law 160 – a subsidised land market

programme – is proposed by the World Bank.
Free Trade Agreement with the US.
Free Trade Agreement with the EU.
Launch of the Colombia Siembra programme.

2016
Peace agreement with FARC.
Development Milestones
2017 Market Players
Cargill acquires Bucanero.
2018 Market Players 2018 Market Players
Grupo Nutresa acquires Productos Naturela SAS Cargill acquires Campollo AS
Source: MADR, SAC, Company Data
COUNTRY SECTOR 2017/2018 24

03 COMPETITIVE LANDSCAPE CONTENTS
Highlights
Highlights
One of the major challenges facing Colombia’s agriculture and livestock sector is the unequal
distribution of arable land. The existing restrictive legislation for land distribution, which limits the
area owned by family farms up to 900 ha, reduces growth opportunities for small agricultural
producers, negatively affecting investment. As a result, the sector remains highly fragmented, with a
low level of technological development. Nevertheless, growing domestic demand and export
opportunities, coupled with the peace agreement with the FARC, are expected to attract more
investment to the sector by 2022/2023, according to Fitch Solutions.
Market Structure
Colombia’s agriculture and livestock sector is dominated by small and medium-sized firms with low
levels of technological development. Most of the sector’s companies are traditional family businesses
– about 55% of the area planted with maize in Colombia is in the hands of small-scale farmers with
less than 5 ha of land, according to Fitch Solutions. These small producers, however, are responsible
for just 35% of maize output, while larger producers account for the remaining 65%. As a result, the
majority of the production remains resistant to the implementation of the latest technologies and
production techniques, lacking investment and scale.
Market Players
The top three companies in Colombia’s crop-growing segment in terms of operating revenues are the
rice producer Orf SA, and the banana farming producers CI Union de Bananeros de Uraba SA, and
Comercializadora Internacional Banacol de Colombia SA. Their combined operating revenues totalled
COP 2,171bn in 2018. The country’s livestock segment is dominated by firms from the poultry sub-
segment. The top three livestock market players in 2018 were the poultry and egg producers Avidesa
Mac Pollo SA, Pollos el Bucanero SA, and Avidesa de Occidente SA. Their combined operating revenues
amounted to COP 2,527bn in 2018.
Market Entry
In 2018, the agriculture, fisheries, hunting and forestry sector accounted for just 1.9% of total FDI
inflows to the country. The major M&A deal in the sector in 2018 was the acquisition of the Colombian
poultry processor Campollo in November by the US-based food conglomerate Cargill for an
undisclosed amount. The deal followed the acquisition of the Colombian poultry producer Pollos el
Bucanero SA in June 2017 and is part of Cargill’s strategy to expand its presence in the segment.
Moreover, growing cannabis for medicinal purposes has become another attractive area for FDI. Most
M&A deals in the agriculture sector in 2018 and H1 2019 were related to cannabis growing activities
acquired by North American companies, according to the EMIS DealWatch database.
Source: Fitch Solutions, EMIS Insights, EMIS DealWatch

Top Companies
Top 15 Agriculture Companies in Colombia by Net Revenues,* 2018
Ranking Company Main Economic Activities Net Revenues, COP bn, 2018 y/y change, 2017/2018
1 Orf SA Rice Farming 1,086.59 -10.7%
2 CI Union de Bananeros de Uraba AS Uniban Banana Farming 548.20 3.3%
Comercializadora Internacional Banacol de

3 Banana Farming 508.60 -4.0%
Colombia SA
Comercializadora Internacional Sunshine Greenhouse, Nursery and

4 455.60 14.5%
Bouquet Colombia SAS Floriculture Production
Floriculture Production; Farm

5 The Elite Flower SAS CI Product Raw Material Merchant 442.90 7.9%
Wholesalers
6 Agropecuaria Aliar SA Crop Production 380.00 17.8%
7 360 Inversiones SAS Floriculture Production 375.80 221.1%
8 Cooperativa de Caficultores del Huila Ltda Coffee Farming 332.80 -20.4%
9 Agroindustrial Molino Sonora AP SAS Other Crop Farming 281.80 4.5%
10 Aceites Manuelita SA Oil Palm Tree Farming 275.50 -13.8%
Greenhouse, Nursery and

11 Flores Ipanema SAS 207.40 -1.4%
Floriculture Production
12 Inversora La Paz SAS Oil Palm Tree Farming 201.30 29.8%
13 Torrecafe Aguila Roja & Cia SA Coffee Farming 173.70 2.7%
14 Agricola el Retiro SAS Fruit and Tree Nut Farming 165.50 0.1%
15 Elite Flower Farmers SAS Floriculture Production 151.90 2.3%
* NAICS codes: 11
Source: EMIS Insights

Top Companies (cont’d)

Top 15 Livestock Companies in Colombia by Net Revenues,* 2018
Net Revenues, COP bn, y/y change,

Ranking Company Main Economic Activities
2018 2017/2018
1 Avidesa Mac Pollo SA Meat Markets; Poultry and Egg Production 1,124.4 8.4%
2 Pollos el Bucanero SA Meat Processed from Carcasses 762.0 0.7%
3 Avidesa de Occidente SA Meat Processed from Carcasses 620.3 10.0%
4 Operadora Avicola Colombia SAS Meat Processed from Carcasses 567.5 7.2%
5 Campollo AS Meat Processed from Carcasses 455.6 13.1%
Animal Food Manufacturing; Poultry and Egg

6 Incubadora Santander 439.6 8.7%
Production
7 Avicola el Madrono SA Poultry and Egg Production 341.8 4.1%
8 Alimentos Concentrados del Caribe SA Meat and Meat Product Merchant Wholesalers 321.4 11.3%
9 Agroavicola San Marino SA Poultry and Egg Production 306.6 14.5%
10 Distribuidora Avicola SAS Poultry and Egg Production 301.3 12.9%
11 Cerdos de Valle SA Animal Slaughtering and Processing 257.7 1.5%
12 Avicola los Cambulos SA Poultry and Egg Production 247.7 12.5%
13 Pollo Fiesta SA Poultry and Egg Production 229.4 9.3%
14 Pollo Andino SA Poultry and Egg Production 227.4 14.3%
15 Santa Anita Napoles SA Poultry and Egg Production 225.2 5.4%
*NAICS codes: 112

Source: EMIS Insights

M&A Deals
M&A Deals in Colombia’s Agriculture Sector,* 2018 – H1 2019
Country of Deal Value, Stake,

Date Target Company Deal Type Buyer
Buyer USD mn %
Latin American and Caribbean assets of

Jul 2018 Acquisition Aphria Inc Canada 148.6 (Official) 100.00
Scythian
Jul 2018 Spectrum Cannabis Colombia SAS Acquisition Canopy Growth Corp Canada 53.5 (Official) 100.00
Apr 2018 ColCanna SAS Acquisition Scythian Biosciences Corp Canada 31.3 (Official) 90.00
Undisclosed investor(s); Company

Feb 2019 Khiron Life Sciences Corp Minority stake n/a 21.9 (Official) 17.47
manager(s)
May 2019 Khiron Life Sciences Corp Minority stake Undisclosed investor(s) n/a 18.6 (Official) 10.30
Nov 2018 Colma Pharmaceutical SAS Acquisition Maricann Group Inc (Wayland Group) Canada 16.8 (Official) 100.00
Aug 2018 Sativa Nativa SAS Acquisition Pure Global Cannabis Inc. Canada 14.4 (Official) 60.00
Apr 2019 Verdemed Holdings Inc. Minority stake Undisclosed investor(s) n/a 12.7 (Official) n/a
Nov 2018 La Finca Interacviva-Arachna Med SAS Acquisition Chemesis International Inc Canada 10.3 (Official) 100.00
United
Jun 2019 Green Equity SAS Acquisition Medicine Man Technologies Inc 5.4 (Official) 100.00
States
Jun 2019 Lifeline Pharma SAS Acquisition Biocannabix Health Corp (BCX) Canada 4.5 (Official) 100.00
Jun 2019 Varianz Corp Acquisition Savanna Capital Corp Canada 3.5 (EMIS est.) 100.00
Jul 2018 MED Colombia SAS Acquisition MedReleaf Corp Canada 3.2 (Official) 100.00
Jul 2018 Colombia Organica Minority stake MYM Nutraceuticals Inc Canada 1.9 (Official) 49.00
Jun 2019 Cerro Prieto Colombia SAS Acquisition Agricola Cerro Prieto SA Peru n/a 100.00
* NAICS codes: 11
Source: EMIS DealWatch

M&A Activity 2018 – H1 2019
Number and Value of Deals in Colombia’s Deals by Deal Type

Agriculture Sector,* 2018 – H1 2019
4 Acquisition
221.6 82.6%
Minority
2 2 Stake
1 Purchase
17.4%
0.0 31.3 27.1 21.9 44.8
Q1 Q2 Q3 Q4 Q1 Q2
2018 2019
Value of Deals, USD mn Number of Deals
* NAICS codes: 11
Deals by Region of Investor Deals by Deal Value, USD
Europe Undisclosed;
13.0% 39.1%
Undisclosed
13.0%
Colombia 50.1-100m;
North 4.3% 4.3%
America
65.2% 0-50mn;
South 52.2%
America 100.1-
4.3% 500mn; 4.3%
Source: EMIS DealWatch

04
COMPANIES
IN FOCUS

04 COMPANIES IN FOCUS CONTENTS
Industria Colombiana de
Cafe SAS
Highlights Income Statement, Individual, COP bn

Industria Colombiana de Cafe SAS (Colcafe),
founded in 1950, specialises in the industrial
15.3%
processing of coffee and its derivatives.
At present, Colcafe operates as a subsidiary of 10.2%
the Colombian group Nutresa, which is one of the 7.3%
largest food companies in Latin America. Its main
775.8
763.9
712.1
products include roasted, ground and instant

coffee, as well as coffee mixes such as
109.2
cappuccinos, coffee creamers and three-in-ones.

79.5
55.8
39.9
21.4
15.2
Colcafe exports its products to 45 countries on
five continents, with its most valuable brand, 2016 2017 2018
Colcafe, present in 36 of them. Net Revenues EBITDA
Net Pr ofit EBITDA Margin
The company has two plants in Colombia. The
first is located in the city of Medellin, as is the
administrative office of the company, and
specialises in the production of roasted, ground Balance Sheet, Individual, COP bn
and instant coffee and coffee mixes. The second
factory is located in the city of Bogota and is
10.7
devoted to roasted and ground coffee production.
Colcafe owns an R&D centre for the development

1,327.1
7.6
of new coffee products. The company conducts
basic and applied research in five areas – coffee
1,350.4
5.5
1,336.3
aromas, coffee chemistry, processes, antioxidants

and coffee roasting. The centre is recognised by
602.2
619.3
605.7
597.0
572.6
562.7
the Administrative Department of Science,

Technology and Innovation (Colciencias) under
the National System of Science, Technology and 2016 2017 2018
Innovation (SNCTI) in Colombia. Total Assets Shareholders' Equity
Net Debt Net Debt/EBITDA
Source: Company Data, EMIS Company Database

Industria Colombiana de
Cafe SAS (cont’d)
Highlights Financial Ratios

2018 was a challenging period for Colombia’s
6.4%
coffee segment due to a drop in international
5.6%
coffee prices, which jeopardised the profitability
of domestic growers and producers. Colcafe
3.8%
experienced difficulties during the financial year,
3.0%
reflected in a fall in its financial indicators. Net
2.8%
2.7%
revenues stood at COP 764bn, down 1.5% y/y,
2.0%
1.6%
while EBITDA plunged by 30% y/y, and net profits
1.1%
registered a decrease of 29% y/y. A negative trend
was also observed in the performance of the
return on assets, return on equity and return on 2016 2017 2018
sales of the company.
Return on Assets Return on Equity Return on Sales
Despite the difficulties related to weak coffee
prices, in 2018 Colcafe introduced a new product
to the market called Cafe Sello Rojo Vive. The new
product is part of the company’s strategy to Net Revenues Growth, y/y change
develop products with health benefits for
consumers and was a result of three years of
research. The coffee is roasted and grinded using
8.9%
processes that preserve its natural antioxidants.
As a result, it contains four times more
6.2%
antioxidants than traditional blends and helps to
prevent cardiovascular diseases.
Moreover, in 2018, Colcafe requested the

registration of the M trademark from the
Superintendence of Industry and Commerce in -1.5%
Colombia (SIC), which was opposed by the energy
drink producer Monster Energy Company. The SIC
2016 2017 2018
Directorate found the opposition arguments
insufficient and granted the registration of the M
trademark to Colcafe.


Pollos el Bucanero SA (Bucanero) specialises in
the production and sale of poultry products. The
company was founded in 1986 in Candelaria
9.3%
(Valle del Cauca department). Currently, Bucanero
is the second major player in the poultry segment
in Colombia after Avidesa Mac Pollo in terms of 3.3%
756.4
market share and total operating revenues.
702.4
0.1%
Bucanero follows a vertically-integrated business
65.1
model encompassing all the processes in the
25.2
762.0
17.3
1.1
value chain. It operates two breeding farms, an
incubation plant, a flour plant, a balanced food
-8.4
-47.4
plant and a processing plant, employing a total of 2016 2017 2018
4,741 people as of 2019. Net Revenues EBITDA
Net Pr ofit EBITDA Margin
The first breeding farm is located in Restrepo
(Meta department), occupies 148 ha and has a
capacity of 200,000 birds. The other is in the
municipality of Yotoco (Valle del Cauca Balance Sheet, Individual, COP bn
department) and has a capacity of 50,000 birds.
The incubation infrastructure of Bucanero allows
the production of 51.5mn birds per year.
217.9
The company also owns a food processing plant

in El Carmelo, Valle del Cauca department, with
capacity to produce 17,000 tonnes of feed per
819.6
month, based on raw materials such as maize

302.5
and soybean, directly imported by the company.

174.7
477.9
455.3
The plant has a veterinary diagnostic and quality

108.4
control laboratory, ensuring the safety and

228.8
210.6
208.1
quality of its products. Bucanero’s processing 3.2 8.3

plant in Villagorgona, Valle del Cauca 2016 2017 2018
department, has an installed capacity to process Total Assets Shareholders' Equity
9,000 birds and freeze 1.5 tonnes of poultry meat Net Debt Net Debt/EBITDA
per hour.
Source: Company Data

(cont’d)

In June 2017, the US-based agribusiness group
Cargill acquired the total capital of Bucanero for
15.9%
an undisclosed amount. This was Cargill’s first
investment in Colombia’s animal protein
production segment. In December 2018, Cargill
3.8%
2.5%
acquired another big player in the poultry
segment – Campollo. The two acquisitions are
part of Cargill’s plan to invest USD 500mn in -1.8% -1.1%
-4.8%
Colombia’s poultry industry by 2022, to improve -5.8% -6.2%
the efficiency and increase the production
capacity of its production plants. -15.7%
2016 2017 2018
In 2018, Bucanero’s net revenues stood at COP
762bn, a slight increase of 0.7% y/y. Its EBITDA,
Return on Assets Return on Equity Return on Sales
however, registered a significant drop of 95.8%
y/y and stood at COP 1.05bn. The decline in
EBITDA was accompanied by a net loss of COP
47.4bn, much higher than the loss of COP 8.4bn
observed in 2017. The negative performance was Net Revenue Growth, y/y change
the result of higher production costs and selling
expenses. Nevertheless, the company’s assets
increased by 71.5% y/y, while its shareholder 32.2%
equity rose by 73.2% y/y.
In September 2018, Bucanero received the Poultry

Sustainability Award for educational development
programmes during the National Poultry
Congress. Through its educational programmes
the company has already invested USD 3.8bn and 7.7%
helped 600 graduates in Colombia. Bucanero
provides not only training, but also the possibility 0.7%
to receive employment in the company. Under 2016 2017 2018
this model, 198 graduates have been hired in the

last two years.

Operadora Avicola
Colombia SAS

Operadora Avicola Colombia SAS (OPAV) is a
holding company specialising in the production,
distribution and sale of poultry meat and derived 11.1%
products. In 2018, the company ranked fourth
among Colombia’s livestock producers in terms of
5.8%
operating revenues and production volume.
550.4
529.6
567.5
OPAV dates from 2011, when three of the main
0.1%
companies in the poultry segment – Friko,
62.9
Pimpollo and Superpollo – were integrated,
30.5
11.4
resulting in the birth of the largest group in the
0.6
Colombian poultry segment, Operadora Avicola

-9.1
-11.5
SAS. The aim of the deal was the operational

2016 2017 2018
integration of the three companies. In December
Net Revenues EBITDA
2015, the three companies merged and Net Pr ofit EBITDA Margin
announced the creation of Operadora Avicola
Colombia SAS. However, the Pimpollo, Superpollo
and Friko brands were preserved, as they were Balance Sheet, Individual, COP bn
already widely recognised by consumers.
OPAV is part of the BIOS Business Group – a

489.0
161.7
leading company in Colombia’s agriculture sector
387.0
374.6
directly controlling other livestock producers,

including the balanced food strategic units
Contegral SA and Finca SAS, the egg producer
214.3
203.3
Avicola Triple A SAS, the swine genetics unit PIC

185.1
Colombia SA, and the service unit Servicios Grupo

97.0
81.1
BIOS SAS. In addition, the Group is active in the

46.6
cat and dog food market. Through OPAV, BIOS

2.7 0.7
Group manages its strategic poultry meat
production unit. 2016 2017 2018
Total Assets Shareholders' Equity

Operadora Avicola
Colombia SAS
(cont’d)
OPAV is a vertically-integrated company with the 5.3%
capacity to produce 10,000 tonnes of chicken
meat per month. It owns three processing plants 3.0%
2.0%
in Bucaramanga (Santander department), Caldas
(Antioquia department) and Pereira (Risaralda
department), as well as a value-added plant in
the municipality of Copacabana (Antioquia -1.7%
-2.4% -2.1% -2.4%
department). Moreover, the company has 40
points of sale that also offer delivery. -4.5%
-6.2%
The company has two brands on the Colombian
2016 2017 2018
poultry market – Friko and Pimpollo – which are
recognisable and already established among
consumers. In 2018, OPAV launched the new Friko Return on Assets Return on Equity Return on Sales
Chicken Light line, which contains higher protein

levels, is lower in fat, and is vacuum-packed for
better preservation. Net Revenue Growth, y/y change
2018 was positive for Operadora Avicola thanks to
the elevated demand for poultry meat among
7.2%
Colombian consumers. The company’s net 6.5%
revenues registered an increase of 6.5% y/y,
reaching COP 569bn, while its EBITDA surged by
106% y/y and stood at COP 63bn. After registering
a net loss of COP 9bn in 2017, OPAC’s net result
turned positive in 2018, amounting to COP 11.4bn. -3.5%
The company’s total assets and shareholders’
equity registered a 3.3% and 5.4% y/y rise in 2018,
respectively.
2016 2017 2018

Agroguachal SA

Agroguachal SA, founded in 1976 in Valle del
Cauca department, specialises in the growing, 40.9% 41.2%
production and sale of sugarcane.
Agroguachal is listed on the Bogota Stock

Exchange. Its market capitalisation stood at COP
93.9bn at the end of July 2019.
15.4
15.3
6.3
6.3
The operations of the company are concentrated 16.7%
4.4
4.4
in two farms – Cantarrana and San Pablo – both
8.4
located in the municipality of Palmira, Valle del
1.03
1.4
Cauca department. In 2018, Cantarrana accounted
for 59.8% of the total harvested land by
2016 2017 2018
Agroguachal (300.36 ha); the remaining 40.2%
(201.92 ha) was located in San Pablo, reflecting an Net Revenues EBIT
Net Pr ofit EBIT Margin
increase in San Pablo’s participation in the
company’s harvested area.
In 2018, Agroguachal’s harvested area stood at Balance Sheet, Individual, COP bn

502.28 ha, a decrease of 12.1% y/y. This led to a
fall in output by 19.7% y/y to 56,662 tonnes. The
drop in production volumes was also associated
with a plunge in sugarcane productivity by 8.8%
96.3
y/y to 112.6 tonnes/ha. Moreover, volatility in the

93.9
104.5
international sugar price had an additional

109.4
63.3
negative impact on the company’s results.

72.2
Reflecting the lower yields and volumes

0.0
produced, in 2018 the company’s net revenues fell

by 45% y/y. Both the EBIT and the net profit
0.0
-0.3
registered a significant drop of 77.8% y/y and

2016 2017 2018
76.6% y/y, respectively, despite a 24% y/y
Total Assets Shareholders' Equity Net Debt
decrease in costs.
Source: EMIS Company Database, Company Data, Bolsa de Valores de Colombia

Agroguachal SA
Comments Sugarcane Harvested Area, ha

In 2018, Agroguachal’s assets fell, as a result of
lower investment, reduction in the agricultural
area and valuation of investments. In 2018,
Agroguachal renovated 59.38 ha of its area.
Moreover, in the last few years the company has
consistently increased the share of mechanically
harvested land. In 2018, 99.3% of its land was
693.4
harvested mechanically, while in 2012 this share
571.4
was just 90.7%. Nevertheless, there was a
502.3
slowdown in the mechanisation of the harvesting
processes of the company in comparison to 2017,
when 100% of the area was harvested
mechanically.
2016 2017 2018
Total Harvested Sugarcane, tonnes Sugarcane Productivity, tonnes/ha

75,423
123.5
70,559
56,662
112.6
108.3
2016 2017 2018 2016 2017 2018

Inversiones Equipos
y Servicios SA

Inversiones Equipos y Servicios SA (INESA) was
founded in 1976 in the Valle del Cauca
department. It specialises in the production and 97.2%
sale of sugarcane.
INESA has been listed on the Bogota Stock

Exchange since 1984. Its market capitalisation
14.5
13.7
stood at COP 120.2bn at the beginning of August
10.7
10.4
2019. 34.3%
9.2
33.1%
5.1
INESA’s operations are concentrated on two
4.8
4.7
4.5
farms, both in the Valle del Cauca department –

Hacienda Venecia and Hacienda La Esperanza. In 2016 2017 2018
2018, Hacienda Venecia accounted for 50.6% of Net Revenues EBITDA
the total harvested area by INESA, the remaining Net Pr ofit EBITDA Margin
49.4% being located at Hacienda La Esperanza.
In 2018, INESA’s harvested area increased by

12.4% y/y to 613.55 ha. As a result, sugarcane Balance Sheet, Individual, COP bn
output experienced a rise of 4.7% y/y, reaching
69,661 tonnes, despite the drop in sugarcane
0.1
productivity from 121.85 tonnes/ha in 2017 to
113.54 tonnes/ha in 2018.
0.0
142.1
135.4
126.4
121.8
105.8
96.1
0.7
0.1
-3.7
2016 2017 2018

Total Assets Shareholders' Equity
Source: Company Data, EMIS Company Database, Bolsa de Valores de Colombia

Inversiones Equipos
y Servicios SA
(cont’d)
Highlights Total Harvested Area, ha
INESA’s positive operational performance in 2018
triggered a surge of 80.4% y/y in the net profits
of the company, which reached COP 9.2bn. The
EBITDA registered record growth rates as well,
reaching COP 10.4bn, up by 116.7% y/y. This
positive financial result was achieved despite a
26.2% y/y fall in net revenues, which can be
explained by the international sale price of
622.3
613.6
sugarcane, which remained rather volatile during
the financial year. At the same time, the
company’s costs in 2018 fell by 11% y/y. 546.0
INESA’s shareholder’s equity registered a fall of

3.6% y/y in 2018, driven by the withdrawal of the
2016 2017 2018
shares of the Colombian agro industrial company
Central Tumaco SA, which entered into
liquidation. In 2018, INESA rehabilitated 15.3% (or
Total Harvested Sugarcane, tonnes
93.58 ha) of its harvested area, compared to 8.1%
(or 44.48 ha) in 2017. Mechanised harvesting was
used on 93% of the area in 2018, in comparison to
92% in 2017.
INESA’s forecast for 2019 is for a positive

financial performance despite the projected
challenges related to international sugar price
volatility, legal insecurity related to land
ownership in Colombia, climate variability, and
69,661
instability of the domestic biofuel market. The

66,526
consolidation of the company’s administrative

62,910
team is expected to strengthen its core business

and help improve internal processes. INESA
forecasts a harvested area of 591.2 ha in 2019 and
production volumes of 69,550 tonnes of 2016 2017 2018
sugarcane.

05
REGULATORY
ENVIRONMENT

05 REGULATORY ENVIRONMENT CONTENTS
Key Regulatory Bodies

Ministry of Agriculture and Rural Development (MADR)
Colombia’s Ministry of Agriculture and Rural Development (MADR) is responsible for formulating,
coordinating and evaluating policies related to the development of the agriculture, livestock, forestry,
hunting and fisheries sector. The ministry is responsible for implementing the Colombia Siembra
programme and, together with the Ministry of Foreign Affairs, it participates in international
negotiations related to the agricultural sector. MADR has a number of decentralised agencies and
public institutes that are in charge of preventing, controlling and reducing health, biological and
chemical risks for animal and plant species.
National Administrative Department of Statistics (DANE)

In October 1953, the National Administrative Department of Statistics (DANE) was created. It is
responsible for the planning, gathering, analysis and dissemination of official statistical information
in Colombia, including all relevant data regarding the agriculture, livestock, forestry, hunting and
fisheries sector. DANE is in charge of conducting the National Agricultural Census, which indicates the
competitive landscape of the agriculture sector in Colombia. DANE is constantly increasing the reach
of its data collection, including six more departments in its agriculture sector reporting in 2017,
reaching a total of 32 departments.
Colombian Farmers Association (SAC)

The Colombian Farmers Association (SAC), founded in 1871, is the largest professional organisation for
the agriculture, livestock, forestry, hunting and fisheries sector in Colombia. It unites 31 sectoral
organisations, such as ASOCANA, ASOHOFRUCOL, AUGURA, FEDEARROZ, FEDECAFE, FEDEPALMA,
FEDEPAPA, FENALCE, to name just a few. SAC prepares studies and reports on issues related to the
domestic and international economic environment; the performance and outlook of the agricultural
sector; foreign trade; employment; and production costs. It also provides technical advisory services
and training for the development of agribusiness projects.
Rural Development Agencies

After the dismantling of the Institute for Rural Development and Land Issues (INCODER) in December
2015, its functions were divided between three newly-created state agencies in 2016, attached to the
Ministry of Agriculture and Rural Development. The first of these is the National Land Agency (Agencia
Nacional de Tierras, ANT), which is the highest authority in the country on land matters and is
responsible for the execution of policies on land ownership formulated by the MADR. The second is
the Rural Development Agency (Agencia de Desarrollo Rural, ADR), in charge of the execution of rural
development projects aimed at improving the living conditions of the rural population. Third, the
Agency for Renovation of the Territory (Agencia de Renovacion de Territorio, ART), is responsible for
territories affected by internal armed conflicts.
Source: MADR, DANE, SAC, OECD

Government Policy
National Development Plan 2018-2022 (Pacto por Colombia)

The new Colombian government of president Ivan Duque, which took office in 2018, established a new
National Development Plan for the period 2018-2022 (Pacto por Colombia), which includes a segment
devoted to the agriculture sector and its development over the next four years (Campo con Progresso).
The objective of the government with the new agriculture policy is to increase the competitiveness of
the sector and to boost its development through incentivising the provision of public goods and
services, investment, technology adoption, innovation and entrepreneurship. The initiative involves
three action plans – promoting rural development; improving the sector’s competitiveness; and
modernisation, digitalisation and consolidation of the sector’s institutions.
The Plan defines seven major pillars for promoting the development of the agriculture and livestock
sector over the next four years. The first pillar relates to the inclusion of women in the process of land
formalisation and consolidation related to Social Property Planning initiatives, which include
activities that aim at clarifying, consolidating and protecting rural property rights in Colombia. The
second pillar involves strategies for encouraging the efficient use of rural land and promoting
climate-smart agriculture models. Third, the Plan advocates the better management of sanitary,
phyto-sanitary and food safety risks, and the adoption of good agriculture practices. The fourth pillar
advocates the better provision of public goods and services, which includes measures for better
connectivity and access to productive assets of the remote rural areas. The fifth element of the Plan
focuses on improving financing and risk management for agricultural activities through easily
accessible credit instruments at reasonable costs, while the sixth pillar is associated with refining
rural activities not related to the sector. This pillar includes promoting responsible and sustainable
tourism that generates non-agricultural income to rural citizens and the assistance of the Colombian
National Apprenticeship Service (Sena), which offers skilled labour to the field. The last element of the
new policy seeks an institutional reform of the major agencies related to the sector, including the
creation and implementation of a national system for agricultural information.
The Plan for the agriculture sector has a number of specific aims, including: 550,000 producers are
expected to benefit from access to new technologies, training and other government support services;
an increase in agricultural production in prioritised segments, including avocado, cotton, rice, onion,
maize, milk, potatoes, fishing and fish farming, from 10.7mn tonnes to 13mn tonnes; an uplift in non-
traditional agriculture exports, including fish by 22% between 2017 and 2022; and inclusion of 48 new
products from Colombia’s countryside in the list of accepted goods for external trade.
Source: DNP, OECD, EMIS Insights

Main Policy Instruments

Market Price Support
Market price support (MPS) remains the main instrument used by the Colombian government to assist
the country’s agricultural sector, accounting for more than 87% of the total support offered to farmers
between 2016 and 2018, according to OECD. Along with import tariffs, which include those under the
Andean Price Band System (SAFP), the MPS serves as a tool for protecting the domestic market of
several agricultural products (rice, barley, yellow and white maize, soybean, wheat, unrefined soybean
oil, unrefined palm oil, unrefined and refined sugar, milk, chicken cuts and pig meat). When the
international price of the above commodities falls below that established by the policy floor price, for
instance, an additional import duty is imposed. Products with particularly high levels of Single
Commodities Transfers (SCTs) in 2018 included rice (54% of commodity gross farm receipts), maize
(43%), milk (28%) and pig meat (23%).
Credit Subsidies
The Agriculture Sector Financing Fund (FINAGRO) is a second-tier funding institution that grants
financial resources to other financial institutions, which, in turn, provide loans to agricultural projects.
The Fund also manages the Agricultural Guarantee Fund (FAG), whose function is to provide collateral
to small agricultural producers. FINAGRO offers specific credit lines for working capital and marketing,
investment and debt rescheduling. The Fund offers a specific credit line for acquisition of agricultural
machinery (A Toda Maquina), which received an increase of COP 200bn in its quota in January 2018.
The credit line that was initiated in October 2017 with a budget of COP 100bn has been very well
received among small and medium-sized producers. In just 69 days after the launch of the line about
1,400 credits were granted, reaching 496 municipalities across the country. According to the latest
available information, in November 2018, the credit line has a budget of COP 400bn and has benefited
11,161 projects.
Trade Policy
Colombia is one of the most open markets in Latin America, and globally, with 13 free trade
agreements (FTAs) currently in force. According to the OECD, about 72% of the country’s exports
between 2015 and 2017 were shipped to partners with FTAs. The share of agricultural exports to
Colombia’s FTA partners is even higher, averaging 87% of total agricultural exports between 2015 and
2017.
No significant changes were observed in the trade policy regarding the agriculture sector in 2018. The
government is participating in negotiation processes with Japan and Turkey for the establishment of
new trade agreements. In 2018, Argentina’s Food and Agriculture Sanitary and Quality Control Service
(SENASA) allowed the import of Colombian bananas and pineapples. Moreover, foot-and-mouth free
beef can be currently exported from Colombia to China. In March 2018, Israel’s Sanitary Authority
confirmed the approval of the official inspection system of Colombian meat, which authorised
Colombian beef producers to export meat products to this market.
Source: OECD, FINAGRO, El Espectador, El Colombiano

06
CROP
PRODUCTION

06 CROP PRODUCTION CONTENTS
Highlights
Overview
In 2017, six new departments were included in Colombia’s official statistics on crop-growing and
livestock production, resulting in 32 departments in total. This led to a two-digit expansion of both
planted area and crop production volumes. In 2018, however, the area planted with cereals fell by
9.6% y/y, driven mainly by the drop in area planted with rice, as a result of the FEDEARROZ campaign
to reduce the country’s planted area and stocks, in order to protect rice growers’ profits. Both coffee
and sugarcane planted areas decreased in 2018, falling by 3% y/y and 2.1% y/y, respectively. In terms
of production, in 2018, cereal output was negatively affected by the reduction in the planted area. The
worst-performing sub-segment was coffee, reporting a 17% y/y reduction in production value, caused
by falling international prices.
Challenges
A major challenge facing Colombia’s agriculture production relates to its high dependence on imports
of cereals such as rice, soybean and maize. Domestic supply remains insufficient to meet demand,
while the existing preferential treatment of cereal imports under the Trade Promotion Agreement
(CTPA) between Colombia and the US, as well as the geographic proximity between the two countries,
makes it cheaper for Colombia to import rice, maize and wheat from the US. The main challenge that
the coffee producers faced in 2017 and 2018 was the falling international price of their product, which
affected significantly the profitability of domestic growers, who couldn’t cover their production costs.
Moreover, the weather conditions, especially the extreme droughts related to the El Nino
phenomenon, represent another impediment to Colombia’s agriculture production.
Outlook
According to Fitch Solutions’ predictions from Q3 2019, Colombia’s agriculture sector will be
characterised by positive performance over the 2019-2023 period. The highest growth is expected for
the palm oil segment, projected to rise at a CAGR of 3.7%. Among the main drivers for production
growth will be stable demand from the biofuels-producing sector. Despite current troubles, coffee is
expected to remain Colombia’s agricultural powerhouse over the next four years. Maize output is
projected to register a CAGR of 3% between 2019 and 2023 but it will remain unable to meet
accelerated demand for animal feed in the country, with Colombia not likely to change its status as a
net importer of maize by 2023. According to Fitch Solutions estimates, the country will remain the
second largest importer of the commodity in Latin America with a deficit reaching 6.23mn tonnes in
2023.
Source: DANE, FENALCE, FEDEARROZ, FEDECAFE, Fitch Solutions

Main Events
§ In November 2018, the Colombian branch of the Spanish telecommunications company Telefonica
and the Food and Agriculture Organization of the United Nations (FAO) presented the project Smart
Agro and its first pilot conducted in Ventaquemada, Boyaca department. The project intends to
promote the innovation, digitalisation and data analysis of Colombia’s agriculture. Three other
pilots will be installed in Colombia at Ovejas, Morroa (both in Sucre department) and Zona
Bananera (Magdalena department). In the particular case of Ventaquemada, potato producers will
benefit from training provided by Telefonica and the FAO in order to understand the newest
technological developments in crop protection, production processes, weather monitoring and
water management. The project also includes the installation of meteorological stations, soil
moisture sensors and a yield-index monitoring centre specifically designed for that crop.
§ In October 2018, FEDEPALMA, in collaboration with its research unit CENIPALMA, launched a
research centre in the department of Magdalena. The initial investment required for the new
facility is valued at COP 16bn and an additional investment of COP 13bn will be necessary in the
medium-term. The centre features 410 ha of plantations where research will be conducted on water
management, irrigation and palm oil productivity.
§ In July 2018, FEDEARROZ inaugurated its third plant for drying, storing and threshing rice in the
municipality of Puerto Lopez, Meta department. The facility occupies a land area of 20 ha and has
capacity to process up to 500 tonnes of rice per day and a storage capacity of approximately
20,000 tonnes of dry paddy rice. The resources for the construction of the plant were acquired from
import duties and rice quotas on imports from the US within the FTA.
§ In June 2018, the logistics arm of the National Federation of Coffee Growers in Colombia, Almacafe,
inaugurated the largest logistics and industrial coffee complex in the world, with a monthly
storage capacity of 200,000 bags. This new complex offers optimal conditions for storage,
maintaining a temperature between 10 and 16 degrees. The logistics centre is situated in the
municipality of Soacha, Cundinamarca department.
§ In March 2018, the Colombian rice producer Organizacion Roa Florhuila (ORF) inaugurated its ninth
plant in the country in the Casanare department, which involved an investment of approximately
COP 182bn. The company already has two plants in Huila, three in Tolima, two in Meta and two in
Casanare department, including the one newly opened. Moreover, it owns 13 commercial divisions
and nine supply stores, which offer fertilisers, agrochemicals and seeds to producers at
competitive prices.
Source: La Republica, FEDEPALMA, LATINPYME, Portafolio

Land Use
Comments Agriculture Land Use

In 2017, with the increased coverage of the areas
examined by the National Agriculture Survey 3,819.7
(ENA), the total number of producing 3,320.8
departments included in the survey rose to 32. As 2,898.5
2,755.3 2,869.9
15.7%
a result, the area used for agricultural crops in 15.0%
the country registered an increase of 15% y/y,
while planted area recorded a rise of 10.4% y/y.
5.2%
Official statistics also reported agriculture output
at 50.4mn tonnes, following the significant -1.0%
increase in the planted area. Most of the area in
-7.0%
use for agriculture in the country is covered with
permanent crops with a share of 66.2%.
2013 2014 2015 2016 2017
Temporary crops were responsible for 12.8% of
Land Use, thou ha y/y change
total agricultural land use in 2017.
Land Use by Type of Product, 2017 Agriculture Planted Area
Temporary
5,099.8
Crops 12.8%
4,618.6
98.9%
2,260.3 2,287.1 2,322.6
Fallow 16.0%
10.4%
Permanent 0.9% 1.2% 1.6%
Crops 66.2% 2013 2014 2015 2016 2017
Planted Ar ea, thou ha y/y change

Rest 5.0%
Source: DANE

Production and External Trade
Crops Production Volume
50,354.0
116.2% 115.5%
23,363.3
10,389.6 10,770.4 10,804.6
4.9% 3.7% 0.3%

2013 2014 2015 2016 2017
Pr oduction Volume, thou tonnes y/y change
External Trade in Agriculture and Horticulture Products,* USD mn
2,842
2,547
2,370 2,418
2,384
1,512
5,192
5,001
4,942
4,916
4,865
4,192
2,680
2,617
2,571
2,447
2,369
2,350
2013 2014 2015 2016 2017 2018
Exports Imports Trade Balance
* HS codes: 06 to 14
Source: DANE, UN Comtrade

Cereals
Comments
Between 2013 and 2018, the area planted with cereals declined at an annual average of 0.7%, while
output grew at a CAGR of 2% over the same period. In 2018, the area planted with cereals reached
907,032 ha, down 9.6% y/y. About 55% of this area was planted with rice, reflecting the importance of
the crop to Colombia’s agriculture. FEDEARROZ, however, initiated a campaign in 2017 to decrease the
rice planted area in order to secure producers’ profitability, boost prices and reduce stocks. In terms
of output, cereals production volume stood at 4.1mn tonnes in 2018, a reduction of 4.7% y/y, driven
mainly by a decrease in the planted area. Rice production was responsible for 62% of total cereal
output.
Colombia remains highly dependent on cereal imports and reports chronic trade deficits in this
segment. In 2018, the country’s cereals trade deficit stood at USD 1,664mn, an increase of 10.6% y/y.
The country imports significant amounts of rice and maize to satisfy growing domestic demand,
especially from the livestock segment for animal feed. The major import source countries for these
crops are the US, with a share of 69.8% in total cereal import value in 2018, followed by Canada with
19% and Argentina with 8.2%.
Cereals Planted Area Cereals Production Volume

4,240.3 4,255.9
4,054.7
1,036.4
1,002.9 3,669.8
937.7 3,503.9
25.0% 907.0 3,315.5 27.9%
850.0 829.0
-2.5% -3.2% 0.4%

-4.6%
-4.9% -4.5% -5.4% -4.7%
-9.4% -9.6%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Planted Ar ea, thou ha y/y change Pr oduction Volume, thou tonnes y/y change
Source: DANE, FENALCE, FEDEARROZ

Cereals (cont’d)
Cereals External Trade,* USD mn

1,852.2
1,689.7
1,667.5
1,649.8
1,555.2
1,510.8
11.8
21.9
16.4
15.1
6.1
3.7
2013 2014 2015 2016 2017 2018
-1,540.1 -1,504.7
-1,667.8 -1,633.4 -1,663.8
-1,840.4
Cereals Import Value by Country,* 2013 Cereals Import Value by Country,* 2018
United States
25.8%
Canada
Canada
19.0%
12.5%
Argentina
8.2%
Brazil 11.4%
Ecuador
United States
1.1%
69.8%
Brazil 0.9%
Argentina
44.3% Others 1.0%
Others 6.0%
* HS code 10
Source: UN Comtrade

Rice
Comments Rice Planted Area

In 2018, Colombia’s rice planted area decreased
by 15.9% y/y, due to the lack of incentives for 595.4
570.8
growers to plant more. In addition, the active
500.9
campaigns initiated by FEDEARROZ since 2017 to 462.1
438.4
decrease the planted area in order to improve
372.8
producer profitability following the record-high 24.0% 23.5%
production levels in 2016 have led to a drop in the
rice planted area. As a result, production volumes
5.4% 4.3%
fell by 4% y/y in 2018 to 2.5mn tonnes, despite
the surge in rice yields by 8.8% y/y, following the
adoption of new technologies in the production -15.0% -15.9%
process. The reduction of rice output in 2018 led
2013 2014 2015 2016 2017 2018
to a 20.4% y/y increase in imported volumes.
Rice Production Volume Rice Imports in Volume Terms
2,553.6 2,619.0 680.0

2,514.0 608.5
2,096.0
1,925.7 369.3
324.4
1,758.8 218.2 269.5
21.8% 397.8
19.2% 332.4
219.5
2.6% 190.6
0.2% 159.4
-4.0% 127.7 282.2 276.1
-8.7% 149.8 133.9
90.5 110.1
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Pr oduction Volume, thou tonnes y/y change White Rice Dry Paddy Total
Source: FEDEARROZ

Maize
Comments Maize Planted Area

In 2018, Colombia’s maize production fell by 5.6%
y/y, as the area planted with the commodity
remained almost stagnant compared to 2017,
479.0
while the yield fell by 6.8% y/y, due to the 460.6 451.5
unfavourable weather, especially in the Cesar 398.6 399.5
department, and the lack of rain. Low producer 355.4 27.0%
prices, in combination with high production costs,
made it unattractive for maize growers to
increase the planted area. As a result, domestic
output remained insufficient to satisfy domestic 0.2%
-3.8%
demand and maize imports rose for a second
-11.6% -11.7%
consecutive year. In 2018, import volumes grew
by 9.8% y/y, led by yellow maize (+9.8% y/y). The -22.8%
US is the major import source country for maize
2013 2014 2015 2016 2017 2018
to Colombia, due to it competitive price explained
by the CTPA and the geographical proximity Planted Ar ea, thou ha y/y change
between the two countries.
Maize Production Volume Maize Imports in Volume Terms, thou

tonnes
1,683.9 1,696.9
1,643.9 1,615.0
1,525.0 5,389.4
4,700.2 4,562.3 4,909.8
3,943.2 285.7
1,192.3 37.9% 3,620.6 260.7
219.5 268.0
179.3
112.6
0.8% -1.8%
-5.6% 5,103.7
-10.0% 4,480.7 4,294.3 4,649.1
3,508.0 3,763.9
-29.7%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Pr oduction Volume, thou tonnes y/y change Yellow Maize White Maize Total
Source: FENALCE

Comments
The production volume of the fruits and vegetables segment in Colombia grew at a CAGR of 2.5%
between 2013 and 2018, following an annual average rise of 3.7% in the planted area over the same
period, boosted by government programmes such as Colombia Siembra, and the implementation of
the 2017 phase of the National Plan for Fruit and Vegetable Development. In 2018, the total planted
area of the segment registered an increase of 3.9% y/y. The most important products in terms of
planted area in Colombia in 2018 were plantains, citrus fruits, pineapple, yam and tomato, together
responsible for 68% of the total area planted with fruits and vegetables.
In terms of production volume, the fruits and vegetables segment registered an increase of 1.1% y/y in
2018, driven mainly by a rise in the output of mango (15% y/y), yam (11% y/y), avocado (10% y/y) and
guava (9% y/y). Moreover, the adoption of improved technological packages in the production
processes of the segment led to higher yields in 2018 for papaya (45% y/y), pineapple (13% y/y) and
yam (9% y/y).
Colombia exports mainly bananas, dates, figs, pineapple, citrus fruits, melons, apples and pears and
imports mainly dried vegetables, onions and shallots.
Fruits and Vegetables Planted Area* Fruits and Vegetables Production

Volume*
10,843.4
1,074.3 10,725.4
10,609.8
1,034.0
1,008.2
9,674.7
931.7 9,564.2
910.6 9,460.1
8.2% 9.7%
895.9 8.1%
3.9% 2.3%
1.1% 1.1%
2.3% 2.6% -1.1%
1.7% 1.6%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Planted Ar ea, thou ha y/y change Pr oduction, thou tonnes y/y change
*Excludes bananas
Source: ASOHOFRUCOL


(cont’d)
Comments Vegetables, Roots and Tubers External

Trade,* USD mn
Colombia has a history of trade surpluses in
195.8
fruits and nuts but has run a chronic deficit in
176.4
163.8
151.2
151.6
151.1
external trade with vegetables. In 2018, fruit and
nut exports fell by 2% y/y in value terms, driven
by the drop in the export value of bananas and
25.2
plantains, while imports increased by 6.9% y/y.
20.7
19.3
15.4
15.2
The major importer of Colombian fruits and nuts 14.8
in 2018 was Belgium, with a share of 20.4%. The

export value of the vegetables, roots and tubers
segment, on the other hand, grew by 21.7% y/y in -135.8 -136.3 -126.4
-148.6 -155.7
2018, while the import value fell by 14% y/y, -176.5
which had a positive impact on the trade deficit
2013 2014 2015 2016 2017 2018
of the sub-segment. Canada was responsible for
35% of Colombia’s import value in vegetables in
2018. Codes: 07
Fruits and Nuts External Trade,* USD mn Fruits and Nuts Export Value by Product,*
2018
Dates, Figs,
Pineapples,
859.4 Avocados,
827.4 822.9
Bananas and Guavas, Mangoes
Plantains and
661.3 81.9% Mangosteens,
631.6
565.6 Fresh or Dried
7.2%
1,079.1
1,057.8
1,036.0
918.8
889.8
827.4
Other Fresh
Fruits 7.1%
287.2
261.8
228.5
208.6
219.7
234.9
Citrus Fruits,
Fresh or
2013 2014 2015 2016 2017 2018 Dried 2.8%

Others 1.0%
* HS code 08
Source: UN Comtrade

Comments Bananas Production Volume*

In 2017, DANE included both domestic
consumption and exports in its statistics on 1324.2%
bananas, which resulted in distorted y/y changes.
In 2017, the total area planted with bananas
stood at 87,908 ha, while production reached 2mn
tonnes. The area planted with plantains grew by
22.9% y/y in 2017, boosting production volumes by
2,020.9
44% y/y, while the yield of this crop remained
unchanged at 7.4 tonnes/ha. Bananas and -18.3% 21.1% 5.6% 4.2%
plantains were responsible for 82% of total fruit
106.5
129.0
136.2
141.9
exports in 2018. The major export destinations
remain the EU countries, with a share of 76.6% of
2013 2014 2015 2016 2017
the total exported value of the product in 2018.
Pr oduction Volume, thou tonnes y/y change
Plantains Production Volume Bananas and Plantains Yield,* tonnes/ha

1,312.7
25.3
1,066.9
44.0%
963.0
911.7
816.8
17.9%
-5.3% 8.4 9.6

9.0 8.9
6.9 7.4 7.4
6.7
-23.4% 5.3
-32.0%
2013 2014 2015 2016 2017

2013 2014 2015 2016 2017
Pr oduction Volume, thou tonnes y/y change Bananas Yield Plantains Yield
*Data for the period 2013-2016 includes only bananas for internal consumption, while in 2017 the statistics refer to both
domestic consumption and exports.
Source: DANE, MCIT


(cont’d)
Bananas Planted Area* Plantains Planted Area
232.0
215.3
87.9
197.1
188.8
174.3
314.6% 22.9%
9.2% 8.3%
20.4
-6.1%
21.2
18.5
18.4
39.7%
14.6%
-9.8% 0.5% -19.0%
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Planted Ar ea, thou ha y/y change Planted Ar ea, thou ha y/y change
Bananas and Plantains External Trade, Bananas and Plantains Export Value by
USD mn Country, 2018
910.4 916.5
863.5
830.7
797.1
762.2
United States
19.6%
918.0
915.0
866.0
835.5
802.6
763.9
Puerto Rico
0.2%
EU 76.6%
5.5
4.6
1.7
1.5
2.5
4.8
Japan 0.2%
2013 2014 2015 2016 2017 2018
Others 3.4%
* Data for the period 2013-2016 includes only bananas for internal consumption, while in 2017 the statistics refer to both
domestic consumption and exports
Source: DANE, MCIT

Potatoes
Comments Area Planted with Potatoes

Potatoes are the most popular tuber produced in
165.7
Colombia, responsible for 28.5% of the total area
planted with tubers and plantains in 2017 and for
59.7% of the total output of the sub-segment.
Despite the decrease in the area planted with 16.6%
151.1
potatoes by 5.1% y/y in 2017, production volumes 149.7
grew by 22.2% y/y, driven by the significant jump
in potato yields of 20.6% y/y. The figures for 2.2% 142.1 142.0
planted area and output of potatoes for 2018 are -6.0% -5.1%
still not available, but in April 2019 FEDEPAPA -9.7%
estimated an increase in the area, while
production volume is expected to register a slight
2013 2014 2015 2016 2017
decrease y/y. The main production departments
for the third quarter of 2018 were Cundinamarca,
Boyaca, Narino and Antioquia.
Potato Production Potato Yield
3,706.6 22.8
3,034.0 18.9
2,582.1 15.6
15.2
2,157.6 14.1
2,129.3
22.2% 21.2%
19.7% 20.6%
17.5%
15.3%
12.8%
7.8%
2.6%
1.3%
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Pr oduction, thou tonnes y/y change Yield, tonnes/ha y/y change
Source: DANE, FEDEPAPA

Coffee
Comments
In 2012, a replanting programme was initiated in Colombia, leading to higher productivity and a lower
average age of coffee trees from 15 to seven years. From the beginning of the initiative up to May
2019, 500,000 ha of coffee have been replanted, corresponding to 53% of Colombia’s coffee planted
area. The success of the programme was reflected in record-high coffee production between 2014 and
2016. In 2017, production volume remained above the 14mn bags mark. In 2018, however, coffee output
fell by 4.4% y/y to 13.6mn bags, while production value dropped by 17% y/y, reflecting falling coffee
prices. The observed lower international coffee prices in 2018 severely affected domestic prices.
Producers’ income fell significantly, amidst claims that prices were lower than production costs. If the
decreasing trend in prices continues, Colombian producers are expected to turn to other more
profitable crops, such as avocadoes and fruits, according to FEDECAFE. The price drop affected
external trade too. Colombian coffee exports fell by 6.9% y/y in value terms in 2018, while export
volumes registered a decrease of 1.8% y/y. The major export destination for Colombian coffee remains
the US with a share of 44.9% of total export volume in 2018. Japan, Germany and Canada are the other
leading importers of Colombian coffee. Despite being among the top five global coffee producers in
the 2018/2019 season, Colombia still has to import small volumes of coffee, mainly from Peru,
Honduras, Ecuador and Brazil, in order to satisfy growing domestic demand.
Coffee Production Value Coffee Production Volume
7,512.6
7,109.3 14,175 14,232 14,194
13,566
6,242.2 6,235.2 12,140
10,886
5,197.3
40.6%
53.9%
3,376.0
20.1% 16.8%
13.9%
5.7% 11.5%
-0.8%
0.4% -0.3%
-17.0% -4.4%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Pr oduction Value, COP bn y/y change Pr oduction Volume, thou 60kg bags y/y change
Source: FEDECAFE

Coffee (cont’d)
Coffee Planted Area
974.0
948.5
4.6% 940.9
931.8
904.0
877.1
-0.8% -1.0%
-2.6%
-3.0% -3.0%
2013 2014 2015 2016 2017 2018
Coffee Planted Area by Method,* 2018 Coffee Planted Area by Sun Exposure,
2018
Without
Exposure
37%
Aged
Technified
13%
Technified
86%
With
Traditional Exposure
2% 63%
* The “traditional method” involves growing plants either without traces or with a density of less than 2,500
plants/ha. The “technified method” involves growing either plants less than nine years old in the sun or plants less
than 12 years old in total or partial shade. The “aged technified method” involves growing either plants over nine
years old in the sun or plants over 12 years old in total or partial shade.
Source: FEDECAFE

Coffee (cont’d)
Coffee Export Value Coffee Export Volume
2,787.6 2,807.4 12,845 12,982 12,751

2,685.2 12,714
2,591.5 2,614.6
10,957
2,158.3
9,672
34.9%
24.4%
16.0%
8.3% 13.3%
3.8%
1.1%
1.0% 1.1%
-1.8%
-7.0% -6.9%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Export Value, USD mn y/y change Export Volume, thou 60kg bags y/y change
Coffee Export Volume by Country, 2013 Coffee Export Volume by Country, 2018
Germany Belgium Canada 7.3%

7.6% 6.9% Germany
Canada
8.0% Belgium
Japan 11.4% 6.3%
4.7% South Korea
United Japan 8.4% 3.7%
Kingdom
3.5% Italy 2.3%
United
South Korea Kingdom
2.5% 2.2%
Others
Others 18.5%
18.1%
United States United States

43.7% 44.9%
Source: FEDECAFE

FOCUS POINT
Coffee Planted Area, 2018
Total Planted Area

877,141 ha
Rest of Colombia
14.3 %
Number of Coffee Farms

660,000
Antioquia
Santander
13.8% 5.8%
Planted Area with
Sun Exposure Risaralda Caldas
5.3% 7.5% Cundinamarca
550,534 ha
3.7%
Tolima
Valle
6.3% 12.7%
Cauca Huila
10.6%
Planted Area with 16.7%
Semi-Sun Exposure Nariño
285,697 ha 4.2%
Planted Area without

Sun Exposure
40,909 ha
Non-Productive Area
(coffee trees younger
than two years)
157,018 ha
Source: FEDECAFE

Palm Oil
Comments Palm Oil Planted Area

Colombia is among the major global producers of
palm oil, according to the USDA. In 2018, the area 540.7
planted with oil palms stood at 540,700 ha, up 523.9
3.2% y/y. Domestic production reached 1.6mn 512.4
8.4%
tonnes, registering a slight increase of 0.12% y/y, 499.2
despite the rise in planted area. The lack of
480.8
significant upward movement in the sub-
segment’s output was the result of atypical 461.9 4.1% 3.8%
growth observed in the previous year and the 3.2%
2.6%
lagged negative impact of the El Nino 2.2%
phenomenon of 2016. The main palm oil

producing regions remain Eastern and Central
2013 2014 2015 2016 2017 2018
Colombia, responsible for a combined 71.8% of
total output in 2018.
Palm Oil Production Volume Palm Oil Production by Region, 2018
1,627.0 1,629.0
Central
30.6%
1,275.0 42.0% North 25.9%
1,111.4 1,146.0
1,040.8
14.7%
11.0%
6.8%
0.1%
-10.1%
Southwestern
2013 2014 2015 2016 2017 2018 2.3%
Eastern
Pr oduction Volume, thou tonnes y/y change 41.2%
Source: FEDEPALMA/SISPA

Palm Oil (cont’d)
Palm Oil Export Value
618,949
583,641
458,336
418,362
385,899
41.5% 39.5%
272,642
18.8%
6.0%
2.0%
-8.7%
2013 2014 2015 2016 2017 2018
Export Value, USD thou y/y change
Palm Oil Export Volume by Country, Comments

2018
In 2018, palm oil exports reached 742,000 tonnes,
Spain 12.5% Mexico 8.0% 22.6% more than in 2017. In value terms, exports
stood at USD 618.9mn, an increase of 6% y/y. Once
Brazil 13.2% Germany
again, the Netherlands ranked as the leading
6.1% export destination for Colombian palm oil,
responsible for 35% of total exported volume in
Ecuador 2018, followed by Brazil with a share of 13%.
3.2% Although Colombian palm oil enjoys preferential
treatment in the EU countries, the product is
Others facing difficulties in the region, due to campaigns
13.0%
against its edible consumption in some European
countries, such as France, Italy, Spain and
England. These campaigns are associated with
Netherlands sustainability issues related to indirect land use
34.7%
changes (ILUC).
Source: FEDEPALMA/SISPA

Sugarcane
Comments
In Colombia, the available land suitable for sugarcane cultivation is limited, so the harvested area has
not expanded significantly over the past decade. After an increase of 2.1% y/y in 2017, Colombia’s area
planted with sugarcane fell by 2.1% y/y in 2018, establishing itself at 238,134 ha. The major producing
region remains the Cauca department. After two consecutive years of unfavourable weather
characterised by droughts followed by heavy rains caused by the El Nino phenomenon, sugarcane
production recovered in 2017, registering a 5% y/y growth. In 2018, the positive trend continued and
production rose by 2.7% y/y to 25mn tonnes. This positive performance was driven by improved
weather conditions and higher productivity, supported by the implementation of technological
improvements in the production process. Sugar output in the country registered an increase of 4.49%
y/y in 2018, while ethanol production from sugarcane recorded a surge of 15.9% y/y, reflecting growing
domestic demand for ethanol as the mandate for blending conventional fuels with biofuels increased
in March 2018. In terms of external trade, sugar imports fell by 46.2% y/y in 2018, due to higher
domestic production, which was able to satisfy demand. Ethanol imports, on the other hand, surged
by 189% y/y, reaching 196mn litres in 2018 in comparison to 68mn litres in 2017, as a result of higher
domestic demand.
Sugarcane Planted Area Sugarcane Production Volume
243.2
25,036.2
238.2 238.1 24,283.2 24,205.1 24,380.6
23,221.9
232.1
230.3
2.6%
225.6 2.1% 2.1% 21,568.2
12.6%
0.8%
3.6% 5.0%
-0.9% 2.7%
-2.1% -0.3%
-4.1%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Planted Ar ea, thou ha y/y change Pr oduction Volume, thou tonnes y/y change
Source: ASOCANA

07
LIVESTOCK
PRODUCTION

07 LIVESTOCK PRODUCTION CONTENTS
Highlights
Overview
Over the 2013-2017 period, Colombia’s livestock inventory grew at a CAGR of 4.2%, with average annual
growth rates of 4.2% for poultry, 6.2% for hogs and pigs, and just 3.8% for beef cattle. The poultry
segment remains the most important in terms of inventory, responsible for 96.4% of the country’s
total livestock in 2017. In terms of production volume, in 2018 the fastest growing segment was hogs
and pigs, registering an increase of 5.6% y/y, while poultry output rose by 4.2% y/y in terms of meat
production volume. These two segments have been gaining importance and establishing themselves
as the most popular animal protein in Colombia in the last decade, while beef meat has experienced a
decline in the population’s everyday diet. The country remains self-sufficient in beef, but growing
demand for meat from poultry and hogs and pigs still has to be met by imports.
Challenges
One of the major challenges faced by Colombia’s livestock segment is the elevated degree of
informality and issues related to non-compliance with health and sanitary standards. In 2018, 41% of
the plants dedicated to cattle slaughter (or 218 slaughterhouses) were closed following the
implementation of Decree 1,500, which aimed at increasing safety during the process of animal
sacrifice in order to prepare domestic production for the international market. An additional threat to
the segment is its reliance on imported commodities for animal feed, such as maize, soybean and
sorghum, especially considering the vulnerability of grain prices to weather conditions and possible
exchange rate volatilities.
Outlook
According to Fitch Solutions’ predictions from Q3 2019, the livestock segment will outperform other
sectors in Colombia’s economy during the next four years. Poultry and pork output are expected to
grow at a CAGR of 3.1% and 3.5%, respectively. Beef production, on the other hand, is expected to
decrease at an average annual rate of 2% between 2019 and 2023, as Colombians turn mainly to pork
and poultry meat in their everyday diet. In terms of external trade, the country is expected to remain
self-sufficient in the production of beef meat, but to record deficits of poultry and pork meat. The
dairy segment is expected to continue growing over the next four years, although at a slower CAGR of
0.8%, driven by growing domestic demand, as Colombia remains the major dairy consumer in Latin
America on a per capita basis.
Source: FEDEGAN, FENAVI, DANE, Fitch Solutions

Main Events
§ In December 2018, the Latin American animal protein division of the US agriculture and food
producer Cargill announced an investment of USD 500mn in Colombia by 2020. The investment
plan, which started with the acquisition of the Colombian poultry producers Bucanero and
Campollo, considers the allocation of resources to technology, capacity increase and procedure
improvement. Cargill’s goal is to increase the current combined production capacity of the above
companies by 50% by 2020. The two acquisitions gave Cargill a 15% share in Colombia’s poultry
market, making it the second biggest producer after Mac Pollo.
§ In October 2018, Colombian dairy producer Alqueria announced it had invested COP 3bn in social
responsibility projects. These were managed by the company’s foundation, Vavelier Lozeno and
were part of Alqueria’s social responsibility strategy for the promotion of talent development and
education improvement. The resources were used to benefit 25 schools and 25,000 students in the
department of Cundinamarca.
§ In August 2018, Colombian dairy producer El Pomar announced that it had invested COP 11bn in
machinery acquisition aimed at almost tripling production. The company’s production capacity
increased from 6mn litres of milk per month to 16mn litres/month. In addition, the dairy producer
revealed plans to expand its presence in departments other than Cundinamarca in the medium-
term. Currently, El Pomar has a market share of 3% to 4% and aims to increase this to 7% by the
end of 2019.
§ In August 2018, the Bayer Foundation (part of the Colombian subsidiary of the German
pharmaceutical and life sciences company) announced that it had invested COP 18,124mn in
research and development, up 7% y/y. The Foundation offers scholarships for students and young
professionals interested in agricultural sciences for projects related to livestock diseases and
innovation in phytosanitary products.
§ In May 2018, the Colombian dairy producer Alpina announced that it had closed its plant in
Popayan and relocated its production to Caloto, both in the Cauca department. According to the
company, the decision is part of a strategy to contribute to the development of the peripheral
areas of the country. Reactions to the announcement were mixed, due to rising concerns about the
potential negative impact on small producers in the nearby municipalities, as well as on
employment. The new plant in Caloto, however, is much more modern and relies on better
technology, with a production capacity of 6,000 tonnes of milk a day.
Source: La Republica, M-Brain, EMIS Insights

Land Use
Livestock Land Use
40,872.9
37,490.6
30,362.4 30,303.2 30,199.9

24.1%
9.0%
1.2%
-0.2% -0.3%
2013 2014 2015 2016 2017
Land Use, thou ha y/y change
Livestock Land Use by Type, 2017 Comments

Weeds and
Stubble
As a result of the change in the methodology of
22.8% official statistics, the number of departments
included in Colombia’s agriculture and livestock
production grew from 26 to 32 in 2017. For this
reason, reported land use in the livestock sector
reached 40.9mn ha. More than half of the used
land is covered with pasture and forage with a
share of 60.1%. The increase in the land use
supported a 1.7% y/y increase in the country’s
Special total reported livestock inventory to 841mn heads
Vegetation
17.1% in 2017. The beef cattle segment contributed the
Pasture and
Forage most to this increase in numbers, registering a
60.1% rise of 6.1% y/y. In terms of external trade,
Colombia relies heavily on poultry and pork meat
imports, as domestic consumption has steadily
increased in the last decade.
Source: DANE

Inventory and External Trade
Livestock Inventory Livestock Inventory by Segment
0.1% 0.1% 0.1% 0.1%

840,978.3 0.1%
826,792.3
796,372.0
2.9% 2.8% 2.6% 2.9%
761,339.6 2.8%
6.8%
712,858.4
4.6%
3.8%
3.1% 96.7%
96.4% 96.6% 96.4% 96.4%
1.7%
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Livestock Inventory, thou head y/y change Poultry Beef Cattle Hog and Pig
Livestock External Trade,* USD mn Livestock Trade Balance by Product

Group, 2018,* USD mn
552.7
478.5
413.4
396.0
373.2
273.1
303.9
34
Live Animals and Animal Products
199.7
171.6
279.6
138.3
128.2
119.3
18
Other Animar Oriented Products
-175.6 -91
Dairy Products
-257.7 -253.9 -241.8
-278.8
-239
2013 2014 2015 2016 2017 2018 Meat and Meat Products
* HS codes: 01, 02, 04, 05
Source: DANE, UN Comtrade

Poultry
Poultry Production
1,629.6
1,563.6
1,478.9
1,424.4
1,359.2
1,274.3
14.6%
6.7%
5.7%
4.8% 4.2%
3.8%
2013 2014 2015 2016 2017 2018
Poultry Production Volume, thou tonnes y/y change
Egg Production Comments

Poultry has become one of the mainstays of the
14,606.4 country’s livestock sector, as the rising middle
13,827.9 class and the growing disposable income of the
12,817.3
12,029.1 7.9% population has stimulated demand for this type of
11,529.2
11,127.5
animal protein. Domestic consumption of poultry
6.6% almost doubled from 2006 to 2019, as the
5.6% Colombian population has moved out of poverty
4.9%
4.3%
and adopted an increasingly protein-rich diet.
3.6% Since 2016, the segment has achieved record
results in output, reaching 1.63mn tonnes of
poultry meat in 2018, up 4.2% y/y. The production
of eggs has followed the positive performance of
the poultry segment, with the number of eggs
2013 2014 2015 2016 2017 2018 expanding at a strong CAGR of 5.6% over the 2013-
Egg Production, mn units y/y change
2018 period. In 2018, egg production registered
growth rates of 5.6% y/y, at 14.6bn units.
Source: FENAVI

Beef Cattle
Comments Beef Cattle Herd

In 2017, beef cattle inventory in Colombia grew by
6.1% y/y. 2018, however, was a hard year for the
24,328.2
beef segment, due to an outbreak of foot-and-
mouth disease in three producing departments
across the country and structural problems 22,923.8
related to smuggling and clandestine cattle

sacrifice. The formal sacrifice of beef cattle 11.5%
recorded a growth of 3.1% y/y in 2018 in terms of 20,920.4 20,943.3
number of heads and 3.2% y/y in terms of volume, 20,553.5
6.1%
according to data from FEDEGAN. Domestic beef
consumption, on the other hand, remained rather 2.4%
low in 2018 in comparison to other countries in 0.1%
the region. At the same time, milk production -1.9%
registered a positive performance in 2017,

growing by 18.5% y/y, driven by the favourable 2013 2014 2015 2016 2017
climate and growing domestic demand. Beef Cattle Inventory, thou head y/y change
Daily Milk Production Beef Cattle Inventory by Department,

2017
Arauca 4.7% Boyaca 4.5%
19,744.5 Cundinamarca 5.0% Caqueta
4.1%
17,552.6 Santander
16,663.2
15,315.4 5.3%
13,119.5 33.8% Magdalena
5.9%
18.5% Others 27.2%
Cesar 6.4%
8.8%
1.0%
-12.7% Meta 7.5%

Antioquia
2013 2014 2015 2016 2017 Cordoba 11.2%
8.8%
Daily Milk Production, thou liters y/y change Casanare
9.4%
Source: DANE

Hogs and Pigs
Comments Hog and Pig Inventory

The production volume of Colombia’s pig and hog
sub-segment has been growing since 2013, driven
1,124.2
by increased investment and the industrialisation
of production, making it one of the most 921.2
important livestock segments in the country. 848.9 854.1
32.4%
After reaching a record of 1.1mn heads in 2015, 26.6%
670.6
the growth rate of the hog and pig inventory
slowed down, losing 270,100 heads in 2017
compared to 2015. Nevertheless, the number of -7.3%
pigs slaughtered in 2018 reached 4.4mn heads, up -18.1%
7% y/y, according to PorkColombia’s data. The -27.4%
country remains highly dependent on hog and pig
imports, mainly from North America. The US was
2013 2014 2015 2016 2017
responsible for 87.8% of Colombia’s pork meat
imports in 2018, followed by Canada with a share Hog and Pig Inventor y, thou head y/y change
of 5.8%.
Hog and Pig Imports by Product in Pork Meat Imports by Country in Volume
Volume Terms, 2018 Terms, 2018
Meat 90.5% United States

87.79%
Canada
Remains 5.77%
4.6%
Bacon 1.8% Chile 5.57%
Processed Spain 0.64%

1.3%
Portugal
Sausages
0.12%
Salted and 1.3%
Live Animals Denmark
Smoked
Other 0.01% 0.10%
0.1% 0.3%
Source: DANE, PorkColombia

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ASOHOFRUCOL Fruit and Vegetable Growers’ Association of Colombia

AUGURA Association of Banana Producers in Colombia

COP Colombian Peso

DANE National Administrative Department of Statistics

DNP National Planning Department

ENA National Agriculture Survey

FARC Revolutionary Armed Forces of Colombia

FEDEARROZ National Federation of Rice Growers

FEDECAFE National Federation of Coffee Growers

FEDEPALMA National Federation of Palm Oil Growers

FEDEPAPA National Federation of Potato Producers

FENALCE National Federation of Grain Growers

FENAVI National Federation of Poultry Producers

FINAGRO Fund for Agriculture Financing

GVA Gross Value Added

INCODER Colombian Institute of Rural Development

MADR Ministry of Agriculture and Rural Development

MCIT Ministry of Commerce, Industry and Tourism

OECD Organisation for Economic Co-Operation and Development

SAC Colombian Farmers Association

USDA United States Department of Agriculture

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02 SECTOR IN FOCUS p.13

03 COMPETITIVE LANDSCAPE p.23

04 COMPANIES IN FOCUS p.30

05 REGULATORY ENVIRONMENT p.41

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07 LIVESTOCK PRODUCTION p.66

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13.6mn 1.6mn 25mn

USD USD 17.2%

Note: Data for 2018.

COLOMBIA AGRICULTURE SECTOR 2019/2020 6

COLOMBIA AGRICULTURE SECTOR 2019/2020 7

GROSS VALUE ADDED*

AGRICULTURE, LIVESTOCK, FORESTRY AND

Coffee: USD 2,614.6mn

Bananas and Plantains

KEY PLAYERS BY OPERATING REVENUE

Note: Data for 2018.

ARGENTINA AGRICULTURE SECTOR 2019/2020 8

COLOMBIA AGRICULTURE SECTOR 2019/2020 9

2019f 2020f 2021f 2022f 2023f

Maize Production, thou tonnes 1,600 1,679 1,745 1,787 1,801

Maize Production, y/y change, % 0.9 4.9 3.9 2.4 0.8

Coffee Production, y/y change, % 3.4 3.4 3.6 4.3 1.8

Sugar Production, thou tonnes 2,400 2,512 2,576 2,625 2,651

Sugar Production, y/y change -4.0 4.7 2.5 1.9 1.0

Poultry Production, thou tonnes 1,730 1,787 1,831 1,893 1,955

Poultry Production, y/y change, % 2.7 3.3 2.5 3.4 3.3

Pork Production, thou tonnes 395.0 411.0 427.0 441.0 452.9

Pork Production, y/y change, % 5.3 4.1 3.9 3.3 2.7

Milk Production, thou tonnes 7,360 7,233 7,350 7,467 7,584

Milk Production, y/y change, % 0.9 -1.7 1.6 1.6 1.6

Source: Fitch Solutions

COLOMBIA AGRICULTURE SECTOR 2019/2020 10

Source: DANE, Fitch Solutions, EMIS Insights, OECD

COLOMBIA AGRICULTURE SECTOR 2019/2020 11

Source: USDA, Fitch Solutions, EMIS Insights, MADR