Palm oil in Colombia: why it continues to grow – Sectors – Economy

Palm oil in Colombia: why it continues to grow – Sectors – Economy

Although the La Niña phenomenon has affected the harvests of a large part of Colombian agriculture, andthe palm sector It has benefited in recent months from the rains that have been distributed in the areas where there are oil palm crops.

The abundant rainfall that the crop requires plus the good international prices that the palm had last year led production to close 2022 with the historical figure of 1.77 million tons, which represented an increase of 1.26 percent. compared to 2021. In total, the harvest that totaled 9.71 billion pesos.

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«We had a year where the climatic conditions were favorable and thanks to the fact that we have been with good prices for a year and a half, palm growers can fertilize properly and work on their cultivation,» he said. Nicolás Pérez Marulanda, executive president of the National Federation of Oil Palm Growers (Fedepalma).

For this 2023, expectations remain high. The union is expecting to close the year with 1.8 million tons, which would mean another new record.
However, Pérez named some challenges ahead for the sector, such as the blockades that continue to occur on the roads of different departments of the country.

The internal market grows

Of that total, 74 percent went to the local market where 1.3 million tons were sold in 2022, 9 percent more than in 2021.

What is most used for is human consumption, from edible uses such as oil for frying, mixtures for baking cakes and producing condensed milk, even inedibles such as household soaps and detergents, rubber, candles, cosmetics, printing inks, and fuels. More than 612,350 tons were for this item last year.

Another 573,075 tons were for the production of biodiesel and 88,503 for the concentrated food industry. According to Pérez, the latter has high potential.

Fedepalma leads the Sustainable Palm Oil Program in Colombia.

Where does the Colombian palm come from?

The remaining 26 percent of the total Colombian production was exported in 2022 and the value reached 999 million dollars.

This means that oil palm It is the fourth line of Colombian exports, behind coffee, flowers and bananas.

The most relevant market is the European one and the entry door is through Spain, Italy and the Netherlands. In addition, other countries in the region such as Mexico and Brazil are also relevant, which despite being producers are in deficit of this product.

«The European market is perhaps the most demanding in terms of quality and sustainability standards,» explained the trade union leader.

Nicolás Pérez, executive president of Fedepalma.

The males of the sector

The growth of the sector has not been free of questioning in recent years, especially in environmental and human rights matters, especially since an important part of the areas dedicated to cultivation in Southeast Asia brought with it deforestation and impact on biodiversity. Additionally, in some countries questionable labor practices have been identified that have cast doubt on the sustainability of this agro-industry.

Hence, in terms of sustainability, Fedepalma assures that they have great challenges. Perhaps one of the most critical -says Pérez- is that any and growth of the marine sector without deforestation, with respect for human rights, with a more efficient use of resources and conserving biodiversity.

«This is the opportunity that producing countries in America have: to demonstrate that the growth and consolidation of this agribusiness can be done in a different way, through compliance with the highest environmental and social standards,» said the union leader.

However, he assures that at this moment, 99.9 percent of the area cultivated in oil palm in Colombia is free of deforestation.

By Mitchell G. Patton

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