Palm kernel or babassu oil and fractions market in Colombia

Earlier Report Observations

The market volume for palm kernel or babassu oil and fractions in Colombia began the period at 62.9 thousand tons in 2018. Regulatory initiatives like Resolution 0316 of 2018, which promoted a circular economy for used cooking oils in biodiesel and other products, along with active government policies to substitute illicit crops with oil palm and bolster the domestic biodiesel market, set the initial framework for the sector. Continued growth in cultivated area and production through 2019, however, coincided with a decline in market volume to 42.7 thousand tons, as increased output likely supported greater export volumes.

Market volume recovered to 47.8 thousand tons in 2020 and rose further to 54.2 thousand tons in 2021. This expansion was supported by the Colombia Buys Sustainable Palm Oil agreement signed in 2021, which encouraged sustainable procurement practices, while the domestic market remained heavily oriented toward the food industry and biodiesel production, together accounting for 95% of national sales.

The market stabilized at 52.6 thousand tons in 2022, influenced by new front-of-pack food labeling regulations introduced via Resolutions 810 of 2021 and 2492 of 2022, requiring warning octagons for saturated fats and potentially moderating food-sector demand. A sharp contraction to 30.6 thousand tons occurred in 2023, as record palm oil production and significantly lower international prices enhanced export competitiveness, with the sector simultaneously preparing for the European Union's Deforestation Regulation (EUDR) taking effect in late 2023.

Production palm kernel or babassu oil and fractions in Colombia

In kind, 2017-2020, K t

Between 2017 and 2020, Colombia ranked as the world's fifth-largest producer of palm kernel or babassu oil and fractions.

Top producers of palm kernel or babassu oil and fractions, 2017-2020

World map of production of palm kernel or babassu oil and fractions, 2017-2020

Colombia's production of palm kernel or babassu oil and fractions fell for the third year in a row. In 2020, the country produced 109.7 thousand tonnes, a 5.5% drop from the previous year. Over the 2017-2020 period, production declined by 18%, with an average annual decrease of 6.4%.

Annual dynamics of production in Colombia in kind, 2017-2020, K t

Exports palm kernel or babassu oil and fractions from Colombia

Exports in kind, t

After rising for two years, Colombia's exports of palm kernel or babassu oil and fractions declined. In 2020, export volume reached 70 001 tonnes, down 19.2% from 2019. Over 2017-2020, exports grew by 2.8%, with an average annual increase of 0.9%. The highest volume was recorded in 2019 at 86 609 tonnes, while the largest year-on-year growth occurred in 2018 at 18.9%.

Annual dynamics of product's exports from Colombia in kind, 2017-2020, t

From 2017 to 2020, three key markets—the Netherlands, Mexico, and Brazil—accounted for 62.9% of Colombia's total exports of palm kernel or babassu oil and fractions by volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Colombia in kind, 2017-2020

Exports in value, K $ US

Colombia's export value of palm kernel or babassu oil and fractions dropped for the second consecutive year. In 2020, exports totaled 53 801 thousand US dollars, a 6.3% decrease year-over-year. Over the 2017-2020 period, export value fell by 36.3%, with an average annual decline of 14.0%. The peak value was in 2018 at 85 215 thousand US dollars, with the largest decrease in 2019 at 32.6% and the largest increase in 2018 at 0.9%.

Annual dynamics of product's exports from Colombia in value, 2017-2020, K $ US

From 2017 to 2020, the top destinations for Colombia's palm kernel or babassu oil and fractions exports by value were the Netherlands (34.1% of total value), Mexico (14.7%), and Brazil (14.2%). Together, these three markets made up 63.1% of all export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Colombia in value, 2017-2020

Imports palm kernel or babassu oil and fractions to Colombia

Imports in kind, t

Colombia's imports of palm kernel or babassu oil and fractions decreased for the second year in a row. In 2020, imports amounted to 8 107 tonnes, a sharp 38.7% fall from the previous year. Between 2017 and 2020, imports dropped by 35.5%, equivalent to an average annual rate of 13.6%. The highest volume was in 2018 at 18 859 tonnes, with the largest year-on-year increase also in 2018 at 50.1%.

Annual dynamics of product's imports to Colombia in kind, 2017-2020, t

During 2017-2020, Colombia's imports of palm kernel or babassu oil and fractions by volume were primarily sourced from Ecuador and Venezuela, which together represented 86.2% of total flows, while other origins played a minor role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Colombia in kind, 2017-2020

Imports in value, K $ US

Colombia's import value of palm kernel or babassu oil and fractions fell for the third consecutive year. In 2020, imports totaled 53 801 thousand US dollars, marking a significant 22.4% year-over-year decline. Between 2017 and 2020, import value decreased by 62.7%, translating to an average annual drop of 28.0%.

Annual dynamics of product's imports to Colombia in value, 2017-2020, K $ US

From 2017 to 2020, Ecuador dominated Colombia's import structure by value, accounting for 77.2% of total flows, with other sources contributing relatively little.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Colombia in value, 2017-2020