Increasing feed needs boost Colombian imports of US corn

Growing poultry and swine production and related feed requirements are boosting imports of US corn to Colombia, say analysts.

The US Department of Agriculture (USDA) released details of corn and grain production and trade in Colombia in a Foreign Agricultural Service report​​ earlier this month.

Overall, domestic production of corn in Colombia is forecast to remain flat compared to previous years, said the report authors said. However, imported feed grains are forecast to increase to support rising demand.

“Colombian corn and rice production to remain stagnant at 1.6m and 2.4m metric tons (MT), respectively, as there are no incentives for growers to increase area planted,”​ the agricultural attaché and agricultural specialist said. “Wheat production is expected to continue decreasing and fall to 7,000 MT due to uncompetitive production systems and unfavorable climatic conditions in Colombia.”​

The US remains the primary option for grain importers sourcing corn and rice based on trade preferences from the US Colombian Trade Promotion Agreement (CTPA), they said. But, in marketing year (MY) 2019/20 the US market share could see challenges from South American imports through the Andean Community of Nations (CAN) and Mercosur agreements.

“Corn imports have shown an upward trend as feed demand continues to grow while domestic corn production remains flat,”​ they added.

Corn, wheat production ​

Production of corn in Colombia in MY 2019/20 is anticipated to stay at about 1.6m MT, the report authors said.

Total area planted is expected to drop slightly based on low prices for growers and high production expenses, they said. However, weather conditions are anticipated to be favorable for crop development and reduction in the planted area has been partially offset by improving yields.

Corn production is split between medium- and large-scale industrial farms, which tend to use better seed, inputs and machinery, they said. However, smaller landholders also raise corn along with other crops.

“In 2018, industrial corn farming grew to reach about 55% of the total corn area harvested,” ​the authors said. “Colombia’s average yield is 3.7 tons per hectare; however, according to the Colombian Grains Association (FENALCE), the country can achieve a potential corn yield of 10 tons per hectare.”​

Production improvement efforts have been ongoing and FENALCE is working with the International Maize and Wheat Improvement Center (CIMMYT) and the International Center for Tropical Agriculture (CIAT) to boost corn yields by 2030, they said.

“In 2018, Colombia planted 76,014 hectares of genetically engineered (GE) corn,” ​they said. “Although Colombian farmers continue to adopt GE technology, there was an overall decrease in corn plantings (GE and nonGE) since 2017.” ​

Wheat production in Colombia is expected to be about 7,000 metric tons in MY 2019/20, the report authors said. Planted area continues to shrink as production is noncompetitive and many wheat producers have shifted to alternative crops like barley and legumes.

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