4. 4
Productivity and resource use indicators for the three main oilseeds
3,62
0,79
0,3
Palma Colza Soya
47
99
315
Palma Colza Soya
2
11
29
Palma Colza Soya
0,5
0,7
2,9
Palma Colza Soya
Land yield
Tons of oil produced per
hectare
Fertilizer
Kg to produce one ton of
oil
Pesticides
Kg to produce one ton of oil
Energy input
Gigajoule to produce one
ton of oil
Source: Oil World, 2017
Oil palm requires less use of productive inputs per ton: less fertilizers,
pesticides, energy and land
5. 5
Crop area requirement by product to meet global demand for oils and fats
(millions of hectares)
492
317
276
51
-
100
200
300
400
500
600
Soya Sunflower Rapeseed Palma
Millions
of
hectares
Source: Oil World, 2017
Palm oil stands out for being more productive using less area planted than
other oilseeds
6. 6
Colombia is the fourth largest producer of palm oil in the world and the first
in Latin America
61,8 58,9
65,3 70,5 73,5 75,7
7,3
7,0
7,6
8,3
8,6 8,8
69,1
65,9
72,9
78,8
82,1 84,5
-
10
20
30
40
50
60
70
80
90
2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020
Palm Palm Kernel
Source: World Markets and Trade USDA,2020
Major palm oil producing countries
(million tonnes)
2017/18 โ 2018/19
World production of palm oil and palm kernel
(million tonnes) 2014/15 - 2018/19
Country 2018/19 2019/20
Growth
(%)
Share
(%) 2018
Indonesia 41,5 42,5 2,4% 58,8%
Malasia 20,5 18,5 -9,8% 25,6%
Tailandia 2,9 2,8 -3,4% 3,9%
Colombia 1,6 1,5 -6,7% 2,1%
Nigeria 1,0 1,0 0% 1,4%
Others 5,9 5,9 0,3% 8,2%
Total 73,4 72,2 -1,7% 100%
7. 7
39
30 30 31
28
25
31
26 27 27
26
23 24
26
41
33 33 32
29 29 28 28 28 28 27
26 26 26
0
5
10
15
20
25
30
35
40
45
USA Chile Malaysia Turkey Russia Indonesia Norway China Pakistan Canada Colombia Iran Egypt European
Union
2018 2027
Per capita consumption of vegetable oils
(kilos per person) 2018 - 2027
By 2027, per capita vegetable oil consumption is expected to increase
by 5.1% in the following years
Source: World Markets and Trade USDA,2020
9. 9
Source: Euromonitor International (2020). ProColombia calculations, 2020
Global palm oil sales by region, 2019
North America
2019: USD 1.6 million
2024: USD 1.9 million
CAGR: +3.5%.
Latin America
2019: USD 519.5 millions
2024: USD 569.4 millions
CAGR: 1,9%
Western Europe
2019: USD 16 millions
2024: USD 12.5 millions
CAGR -4,8%
Eastern Europe
2019: USD 16.3 millions
2024: USD 21.8 millions
CAGR: 6,0%
Africa
2019: USD 276.9 millions
2024: USD 350.7 millions
CAGR: 4,8%
Asia
2019: USD 11,928 millions
2024: USD 18,337 millions
CAGR: 9,3%
It is estimated that global sales of palm oil in the retail channel will reach
USD 19,574 million in 2024; that is, a compound annual growth of 10.8%
Oceania
2019: USD 0,1 millones
2024: -
10. 10 Source: Trademap - 2020
In 2019, world palm oil imports reached USD 24.425 billion, with India
importing 22% of the total
22.611
19.612 18.942
22.951 22.530
15.636
12.706
10.911
9.220
10.834
8.947
8.789
35.318
30.523
28.162
33.785
31.476
24.425
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
2014 2015 2016 2017 2018 2019
USD
millons
Processed Gross
World palm oil imports
(USD million)
2014 - 2019
India
Amount: 5.362
Share.: 22%
Indonesia
Amount: 10.355
Share: 44,8%
China
Amount:4.108
Share.: 16,8%
Malaysia
Amount: 8.332
Share: 36,1%
The Netherlands
Amount: 1.687
Share: 6,9%
The Netherlands
Amount: 1.020
Share: 4,4%
Spain
Amount: 1.188
Share: 4,9%
Papua N. Guinea*
Amount: 423
Share: 1,8%
Italy
Amount: 1.057
Share: 4,3%
Guatemala
Amount: 393
Share: 1,7%
Top 5 world exporters
(2019) (USD million)
Top 5 world importers
(2019) (USD million)
11. 11 Source: Trademap - 2019
In 2019, world palm oil imports reached USD 2.419 billion, 32% less than in
2018.
2.138 1.944
2.252
2.834
2.271
1.574
1.191
1.256
1.149
1.359
1.292
845
3.328
3.200
3.401
4.193
3.563
2.419
-
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2014 2015 2016 2017 2018 2019
USD
millons
Processed En bruto
World imports of palm kernel oil
(USD million)
2014 - 2019
China
Amount: 646
Share: 26,7%
Indonesia
Amount: 1.431
Share: 62,4%
United States
Amount: 293
Share: 12,1%
Malasia
Monto: 448
Part.: 19,5%
Germany
Amount: 246
Share: 10,2%
Colombia
Amount: 60
Share: 2,6%
The Netherlands
Amount: 193
Share: 8%
The Netherlands
Amount: 60
Share: 2,6%
Malaysia
Amount: 187
Share: 7,7%
Thailand
Amount: 59
Share: 2,6%
Top 5 world exporters
(2019) (USD million)
Top 5 world importers
(2019) (USD million)
13. 14
Guilds and support entities
Fedepalma: National Federation of Palm Growers, supports palm growers in defending their
interests and achieving competitiveness in the oilseed agro-industry.
www.fedepalma.org
Asograsas: guilds companies producing liquid oils, margarines and fats, fats for bakery,
pastry, confectionery and biscuits, sauces and emulsifiers, among others.
www.asograsas.com
Cenipalma: a non-profit scientific and technical corporation, with the purpose of
generating, adapting, validating and transferring technology in oil palm cultivation,
processing and consumption.
www.cenipalma.org
Colombia Productiva: Colombia Productiva, aims to be one of the executing arms of
the country's Industrial Policy, helping industry and its companies to produce more,
with better quality and greater added value, to be more productive and competitive,
with the ability to respond to the demands of global demand.
14. 15
Ministry of Agriculture and Rural Development: formulates, coordinates and evaluates
policies that promote competitive, equitable and sustainable development of rural
development processes. www.minagricultura.gov.co
Ministry of the Environment and Sustainable Development: defines national environmental
policy and promotes the recovery, conservation, protection, regulation, management, use
and exploitation of natural resources. http://www.minambiente.gov.co
National Environmental Licensing Authority: responsible for projects, constructions and activities
subject to environmental licenses, permits or processes that comply with environmental regulations, in
order to contribute to the country's sustainable environmental development. www.anla.gov.co
Agricultural Rural Planning Unit: It plans the efficient use of the land, defines the criteria and
creates the instruments required for the effect, previous approval of the Technical Direction
Council, foreseeing the respective risk panorama, and a greater competitiveness of the
agricultural production in the internal and external markets, among others. www.upra.gov.co
National Land Agency: As the highest territorial authority, it consolidates and maintains the social order of
rural property, to improve the living conditions of the population. By the year 2030, the National Land
Agency will have socially ordered the entire rural territory of the country. www.agenciadetierras.gov.co
Supporting entities
15. 16
Palm oil sales in the retail channel in Colombia are estimated to reach USD
80.8 million in 2024, USD 10.4 million more than in 2019
Source: Euromonitor International (2020)
70,4
73,9
74,7
76,5
78,5
80,8
64
66
68
70
72
74
76
78
80
82
2019 2020 2021 2022 2023 2024
Palm oil sales USD million (2019-2024)
16. 17
It is expected that
certified and
environmentally
friendly palm oil will
be better received
in the international
market
Colombia hopes to increase the number of
hectares planted and production with
certifications that guarantee its sustainability as
a RSPO, among others.
Various organizations promote the use of palm
oil thanks to its health benefits and the
nutritional contribution it provides, which
projects the industry to obtain greater sales.
Thanks to its contribution to the generation of
formal employment in the country, it is
expected that government support through
public policies will continue to increase and
consequently the sector will also report growth.
It is expected that, following the trend in Latin
America, oil palm cultivation will continue to
grow as it is perceived as a profitable product.
.
Palm oil trends in Colombia
Source: Fedepalma (2020)
17. 18
Colombia leads palm oil production in the Americas, reaching 560,000
hectares planted in 2019, 4.2% more than in 2018
Source: Fedepalma, 2020
Palm oil production in Colombia
(thousands of tonnes and thousands of hectares)
2013 - 2019
3,07 3,14
3,38
2,87
3,78
3,51
3,1
0
1
2
3
4
2013 2014 2015 2016 2017 2018 2019
Palm Oil Yield in Colombia (Ton/ha) (2013 - 2019)
1.041 1.111
1.275
1.146
1.628 1.630
1.529
462
481
499 512 517
537
560
-
100
200
300
400
500
600
-
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2013 2014 2015 2016 2017 2018 2019
Tons Hectares
18. 19
Palm kernel oil production in Colombia
(thousands of tons and thousands of hectares)
2013 - 2019
226
242
270
238
327
329
306
200
220
240
260
280
300
320
340
2013 2014 2015 2016 2017 2018 2019
thousands
of
tons
Toneladas
0,67 0,68
0,72
0,6
0,76
0,71
0,63
0
0,2
0,4
0,6
0,8
2013 2014 2015 2016 2017 2018 2019
Source: Fedepalma - 2020
Between 2013 and 2019, palm kernel oil production in Colombia increased
by 35%.
Palm Kernel Oil Yield in Colombia (Ton/ha) (2013 - 2019)
19. 20
North Zone
Palm: 365,558
Palm Kernel: 92,793
Centre Zone
Palm: 474.959
Palm Kernel: 106.917
Southwest Zone
Palm: 49,016
Palm kernel: 768
East Zone
Palm: 639.217
Palm Kernel: 105.237
Source: Fedepalma,2020
Palm oil production by production centres in Colombia (tonnes)
2019
The northern and central areas produced 1.04 million tonnes of palm oil and
palm kernel oil in 2019, their proximity to major seaports offers great export
potential
20. 21
Aptitude
Area
(hectares)
Share
(%)
High 5.174.700 22,3%
Medium 10.830.471 46,8%
Low 2.861.841 12,4%
Very Low 4.288.926 18,5%
Total 23.155.939 100%
High
22,3%
Medium
46,8%
Low
12,4%
Muy baja
18,5%
Source: UPRA - 2018
Only 2.4% of the
total number of
hectares in use
559.000 has
In production
23.155.939 has
Areas suitable for oil
palm cultivation in
Colombia
Colombia has more than 5.2 million hectares with high potential for oil
palm planting
21. 22
Oil palm cultivation
Refined oils and fractions
Derivatives
(vitamins, acids, etc)
Biofuels
Each of these markets has different industry structures and challenges.
However, they are all part of the same ecosystem
Pastry Bakery
Confectionery Ice Cream
Concentrate
for animals
Cooking
Detergents Personal Care
Paintings Medicine
Public and freight transport
Source: Fedepalma
Oil Palm Ecosystem
22. 23
Stage
Products
Agribusiness Industrial transformation
Agricultural phase
Cultivation Benefit
Palm fruit
Raw palm oil
Palm kernel
Raw palm kernel oil
Palm Kernel Cake
Industrial processing of oils and fats
Processing of raw
materials and
intermediate industrial
products
Processing of basic
consumer goods and
inputs for other industries
Palm oil RBD
Palm oil RBD
Palm stearin RBD
Fatty acids
Palm kernel oil RBD
Palm kernel oil RBD
Palm kernel stearin RBD
Edible liquid oil
Butter
Margarine
Frying fat
Baking grease
Grease for
confectionery
Ice cream grease
Soaps
Vanaspati
Concentrated food
mixes
Raw material
Fatty alcohols
Emulsifiers
Methyl esters
Glycerol
Finished product
Fuels
Lubricants
Paintings
Sulfactants
Production of products and
raw materials for other
processes
Oleochemical industry
The different stages of the palm oil production chain result in a wide
variety of products with diverse applications
23. 24
Education
+ 2,08%
educational coverage
secondary to others
municipalities.
Health
+ 1,99%
health affiliates / 1,000
inhabitants versus others
municipalities.
Replacement
coca crops
14%
cultivated hectares
Impact of increasing the area by 1%.
oil palm cultivation
82% labor formality
184 direct jobs
a thousand or so.
8% PIB agricultural
USD 1.2 billion
Production value.
50% of the production
is exported.
More than 80% of the work generated in
the palm sector is formal, being a
reference for the agricultural sector.
Source: Fedepalma
Palm oil production is positioned as an agent of social transformation in
Colombia
24. 25
83%
of the growers are small-
scale, owning less than
50 hectares.
82% of producers belong to
associative schemes and
alliances. Which allows
small producers to access
financial services, revolving
credit, security
social, improve their
housing, etc.
Greater institutional
presence.
Being a highly formal crop,
the oil palm is associated
with a greater presence of
public and private entities
and institutions providing
services.
The palm sector in Colombia has a robust macro-structure and
organization, being a reference in the Colombian industry
Source: Fedepalma
25. 26
Equivalent to
22,2%
384,000 tons of Colombian palm oil certified with RSPO in 2019,
equivalent to 23.5% of total production
17 certified companies
18 In process
3 certified companies
19 certified companies
Source: Fedepalma ,2019; RSPO,2020
RSPO certified palm oil in 2019
340.000
Tons
Of the total production of
palm oil in Colombia
By 2020
Fedepalma is a member of
the Bureau
Sustainable Palm Oil Round
(RSPO).
27. 28
The Colombian oil
palm sector is
committed to
sustainability
Colombian palm oil stands out for its sustainability, which
is the result of responsible management of social and
environmental work. The National Federation of Palm
Growers in Colombia (FEDEPALMA) develops programs
that seek to preserve ecosystems and protect the
biodiversity of flora and fauna.
Colombia leads the production of palm oil in the
Americas and is the fourth largest producer worldwide
and possess potential for expansion.
Colombia's offer includes the development of solutions
tailored to the needs of the industry from palm oil
derivatives.
Palm oil is naturally free of trans fats, rich in vitamin A
and a source of vitamin E. It reduces cholesterol levels
and is ideal for frying due to its resistance to high
temperatures.
The oil palm in Colombia involves more than 6,000 palm
growers, of which it is estimated that 97% correspond to
small and medium producers.
Source: Fedepalma
28. 29 Source: DANE - 2020
The European Union was the most important destination for Colombian
exports of crude palm oil in 2019, participating with more than 75% of
total exports.
232,5
270,8 245,5
381,7
446,2
350,3
246
404
373
554
703
637
-
100
200
300
400
500
600
700
800
-
50
100
150
200
250
300
350
400
450
500
2014 2015 2016 2017 2018 2019
Toneladas
USD
millions
USD Tons
7,5
7,8
17,2
22,8
23,1
27,1
29,0
34,0
43,2
114,2
Panama
Chile
Venezuela
Italy
Brazil
Germany
Ecuador
Mexico
Spain
Netherlands
Colombian palm oil exports
(USD million and thousand tons)
2014 - 2019
Main destinations of Colombian palm oil exports (USD million)
2019
29. 30 Source: DANE - 2019
In 2019, Colombian exports of palm kernel oil reached USD 57.4 million,
accounting for 87,000 tons.
68,4 68,2 70,7
84,5 85,2
57,4
59
76 63
68 81 87
-
10
20
30
40
50
60
70
80
90
-
10
20
30
40
50
60
70
80
2014 2015 2016 2017 2018 2019
Toneladas
USD
millions
USD Toneladas
1,4
1,7
1,9
2,0
5,1
5,1
7,3
7,3
11,0
12,8
- 5 10 15
Uruguay
Chile
United States
Spain
Argentina
Italy
Germany
Brazil
Mexico
Netherlands
USD millions
2019
Colombian exports of palm kernel oil
(USD million and thousand tons)
2014 - 2019
Main destinations of Colombian exports of crude palm kernel
oil (USD million)
2019
30. 31
Source: DANE - 2019
39 companies exported palm oil and palm kernel in Colombia in 2019
reaching a total of USD 408 million
31. 32
Colombia has potential opportunities for export growth in the sector in
multiple destinations
Shortenings palm oil
Palm Oil
Germany
Brazil
China
Costa Rica
India
Mexico
Netherlands
Paraguay
Russia
United States
Peru
Panama
Costa Rica
Ireland
El Salvador
Chile
Source: ProColombia,2020
32. 33
The palm sector stands
out for companies
whose
internationalization
strategies position
Colombia at a global
level
Source: ProColombia (2020)
It made its first export of shortenings to Panama
establishing a distribution center in this country
in June 2019 and consolidating its exports to
several countries in America
33. 34
F O R E I G N I N V E S T M E N T
I N C O L O M B I A
34. 35
Why invest in the
sector? Colombia leads the production of palm oil in the
Americas and is the fourth largest producer in the world
and having potential for expansion.
Colombian production is a strong driving force in the
national economy, contributing to employment and
generating foreign exchange. Colombia's domestic
consumption of palm oil and palm kernel oil has shown
positive growth in recent years and its sales are raw
material for various industries.
The Colombian oil palm sector is committed to
sustainable development and the preservation of
biodiversity.
35. 36
Colombia's palm oil production rose by 1.5 million
tons in 2019 (Fedepalma) and according to the
U.S. Department of Agriculture is the fourth largest
producer worldwide only behind Indonesia,
Malaysia and Thailand.
Palm is the most productive oilseed in the world; it
produces between 6 and 10 times more oil per
hectare than the rest (Fedepalma), in 2019 it
reached a yield of 3.1 tons per planted hectare.
In Colombia, by 2019, about 559,000 hectares had
been cultivated out of a total of 23 million hectares
suitable for palm production; that is, only 2.4% is in
use. Well, by the same year, 5.2 million hectares are
highly suitable for palm production. As a result, the
country has the potential to multiply its production
and reach production levels that position it above
other countries worldwide, taking into account
factors such as yield and area for production.
Colombia leads the
production of palm
oil in the Americas
and is the fourth
largest producer in
the world, having
potential for
expansion
36. 37
More than 6,000 producers in more than 161
communes in 24 departments contribute to the
development of the regions.
The oils and fats sector occupied the 4th line of
agricultural exports, reaching US$408 million
The palm oil industry contributes actively to
employment generation; in 2019 it generated
184,875 jobs and it is estimated that a 10% increase
in the planted area translates into 3.3% additional
jobs.
Colombian
production is a
strong driver of the
national
economy,
contributing to
employment and
generating foreign
exchange
Traditional companies accounted for 52% of palm
oil sales in the industry. The second most
demanded industry is biodiesel (43%), followed by
food focused (4%).
During 2019, domestic consumption of palm oil in
Colombia amounted to 1,155 million tons,
representing a growth of 6.5% over the previous
year.
On the other hand, palm kernel oil consumption in
2019 amounted to 82,000 tons, with a 7.9% growth
over the previous year.
37. 38
The Colombian oil
palm sector is
committed to
sustainable
development and
the preservation of
biodiversity
Under the auspices of the Ministry of Environment,
Fedepalma and several palm companies signed the
Zero Deforestation Agreement in the Palm Oil Chain
in Colombia. Between 2011 and 2017, deforestation
associated with oil palm cultivation in Colombia was
1.5% of the country's total deforestation, according to
IDEAM data. Oil palm has not been a significant
driver of deforestation in Colombia.
Oil palm plantations in Colombia have been carried
out in areas previously transformed, dedicated to
other crops or with pastures.
In Colombia it can grow in agricultural production
areas without deforestation.
38. 39
INVESTMENT OPPORTUNITIES
IN COLOMBIA
New oil palm crops: Colombia has more than 23.1
million hectares suitable for this crop, of which only
2.3% are in use.
Joint Venture with Colombian companies for the
refining and fractionation of palm oil for export.
Biofuels: the country currently has a production
capacity of around 906,000 tons of biodiesel, where
production could easily be doubled. This in order to
satisfy both a domestic and export market.
Generation of renewable energy (biomass): the
national government aims to generate 1,600
megawatts of renewable energy, of which the palm
sector can generate 340.
The more than 559 thousand hectares make up a
potential for energy generation from biomass of 340
MW, a figure equivalent to that generated by a
hydroelectric plant. 27% of the production is destined
to the local market of biodiesel, a biofuel that
reduces up to 84% of greenhouse gases.
39. 40
The palm sector
stands out for
attracting foreign
direct investment to
the country, being an
engine of
development
Acquisition of rural and urban land in the municipality
of Mapiripรกn (Meta), for oil palm production In
addition to the generation and distribution of
electricity in the region.
Source: ProColombia (2020)
