Oil palm industry
The oil palm industry in Colombia has been positioning itself as one of the leading sectors within the country’s agribusiness due to its productivity dynamics, great potential, versatility, and growing commitment to environmental and social sustainability.
Why invest in the palm oil sector?
Colombian palm oil is sustainable:
- The palm oil sector in Colombia is committed to sustainable development and biodiversity conservation. With the support of the Ministry of Environment and the National Federation of Oil Palm Growers of Colombia (FEDEPALMA, as per its Spanish acronym), several companies signed the Zero Deforestation Agreement for the Palm Oil Supply Chain in Colombia. A portion of the Colombian supply is RSPO certified. http://web.fedepalma.org/
Colombia’s important role in global palm oil production:
- Colombia leads the palm oil production in the Americas and is the world’s fourth largest producer, with high yields and potential for sustainable expansion. https://www.fas.usda.gov/data/grain-world-markets-and-trade
Growth potential of oil palm cultivation in Colombia:
- According to the Rural Agricultural Planning Unit (UPRA, as per its Spanish acronym), Colombia has 23.1 million hectares with high or medium suitability for oil palm cultivation, which shows the high potential for a sustainable growth. https://www.upra.gov.co/
Impact of the palm oil industry on the country:
- Palm oil production is a strong economic driver - fourth within agricultural exports- in Colombia, contributing to job creation and foreign currency earnings. In 2019, 177,400 jobs were created across more than 161 municipalities. http://web.fedepalma.org/
Demand for Colombian palm oil:
- Domestic consumption of Colombian palm oil and palm kernel oil has shown positive growth in recent years and they are also used as raw materials in different industries such as biofuel, cosmetics and food. Furthermore, it is one of Colombia’s most exported agricultural products, reaching different markets in Europe and the Americas.http://web.fedepalma.org/
Investment opportunities in the palm oil sector:
- Joint ventures with Colombian companies for refining and fractionation of palm oil to be exported.
- New oil palm plantations: Colombia has more than 23.1 million hectares suitable for this crop, only 2.4% of which are in use.
- Generation of renewable energy (biomass): The Colombian government aims to generate 1,600 MW of renewable energy, 340 of which could be generated by the oil palm sector.