Invest in Beef and Livestock Sector 2016

COLOMBIA, A PRODUCTION CENTER
AND OUTSTANDING LOGISTICS
HUB IN THE AMERICAS
INVESTMENT IN THE BEEF AND
LIVESTOCK SECTOR
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With a production of 947,000 tons of beef carcass equivalent¹, Colombia was the fourth largest producer of beef in
Latin America in 2014. (FEDEGAN, Federación de Ganaderos de Colombia,[Colombian Livestock Federation], 2014).
Its location in the tropics and the topographical characteristics
of the various Colombian regions provide Colombia with
access to pastures of excellent quality year-round, which
guarantees enough food for cattle during the entire fattening
process. (FEDEGAN, 2014).
In 2014, over 4.3 million head of cattle were slaughtered in
Colombia, a growth of 1.9% over 2010. (FEDEGAN, 2014).
Colombia’s cattle inventory reached 23 million heads in
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Casanare, Cesar and Santander account for around 50% of
Colombian cattle inventory. (FEDEGAN, 2014).
(OIE) provided the certification that completes Colombia’s
map and establishes it as a country free of foot-and-mouth
disease through vaccinations.
Of the total number of hectares dedicated to raising
livestock, more than 60% are located at altitudes below
1,000 meters above sea level with temperatures that
oscillate between 23ºC and 32ºC for all bovine specimens,
of which at least 95% are Zebu or have Zebu genes.
(Asocebu, Asociacion de criadores de ganado Cebú [Zebu
Cattle Breeding Association] 2012).
b r tad
Li e
yO d
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REGIONS WITH AVAILABLE
RAW MATERIAL
REGION 1
REGION 2
REGION 1 is mainly made up of the departments whose cattle
REGION 3
in this region are: Antioquia, Cordoba, Casanare, Meta, Cesar,
Santander, Caqueta, Magdalena, Cundinamarca and Arauca.
(Bovine Census-FEDEGAN, 2012).
REGION 2 on the other hand, covers the departments
departments in this region are: Bolivar, Sucre, Boyaca,
Tolima, Huila, Valle del Cauca, Norte de Santander, Nariño,
La Guajira, Caldas, Cauca, Vichada and Atlantico. (Bovine
Census-FEDEGAN, 2012).
Finally, REGION 3 , is made up of the departments that
have the lowest concentration of cattle herds in Colombia.
heads of cattle.
Putumayo, Choco, Quindio, Guaviare, Risaralda, Amazonas,
Guainia, San Andres and Providencia and Vaupes are the
departments that make up this region. (Bovine CensusFEDEGAN, 2012).
Source: (Bovine Census-FEDEGAN).
BUSINESS NETWORKS
are 428 companies in Colombia’s beef sector. More than
a half are located in Bogota, Antioquia, Valle, Atlantico,
Santander and Cundinamarca.
companies focused on the production, transformation,
and commercialization of meat products that have
knowledge of consumption patterns and national
distribution.
IMPORTANT COMPANIES IN BEEF SECTOR
INDUSTRY
CARIBBEAN REGION
ANDEAN REGION, SANTANDER - LLANOS
CARIBBEAN REGION
Atlantico: Camaguey.
COFFEE-GROWING REGION
ANDEAN REGION, SANTANDER - LLANOS
Cárnica.
Sucre: Friogan- Headquarters in Corozal.
North Santander: Friogan - Headquarters in North
Santander:
Meta: Friogan - Meta Plant.
COFFEE-GROWING REGION
Antioquia: Frigo - Colanta.
Caldas: Friogan, Headquarters in La Dorada, Caldas.
CATTLE SLAUGHTER AND BEEF PRODUCTION
In 2015, over 4.3 million head of cattle were slaughtered in Colombia
(a growth of 1.1% over 2011). (FEDEGAN, 2015)
CATTLE SLAUGHTERED IN COLOMBIA,
4.0
Source: BPR Benchamrk [sic].
2010
BEEF PRODUCTION IN COLOMBIA,
2010-2015
2010-2015
(millions of animals)
(thousands of tons; Beef carcass equivalent)
4.3
4.5
2011
2012
4.4
2013
4.3
4.3
2014 2015
864
929
979
969
947
944
2010 2011 2012 2013 2014 2015
BEEF CONSUMPTION IN COLOMBIA, 2006-2014 (kg/inhabitant/year)
BEEF CONSUMPTION
IN COLOMBIA
18.88
17.81
17.38
17.67
18.94
20.01
20.76
19.70
2006
2007
2008
2009
2010
2011
2012
2013
19.30
In 2015, per capita consumption beef in Colombia surpassed
19.1 kilograms per inhabitant per year. (FEDEGAN, 2015)
Over the last 6 years, per capita consumption of beef in
Colombia has grown at a compound rate of 0.3% since 2006
(when reached 18.8 Kg/hab/year).(FEDEGAN, 2015)
COMMERCIAL TRADE BALANCE - BEEF
PRODUCTS, 2014-2015 (US $ Million FOB)
2015
COMMERCIAL TRADE BALANCE AND USE OF
FREE TRADE AGREEMENTS
a decrease of US $ 447 million is presented. (DANE - 2014)
273.6
211.2
104.6
In 2015, exports of beef products exceeded US$82.7 million. (DANE, 2015)
82.7
2014
Imports increased by 29.8%, going from US$210.8 million in 2014 to US$273.6
million in 2015. (DANE, 2015)
2015
-169.0
EXPORTS
2014
19.10
IMPORTS
-128.5
COMMERCIAL TRADE BALANCE
Source: DANE (Departamento Administrativo Nacional de Estadística [National Administrative
Department of Statistics])- DIAN (Dirección de Impuestos y Aduanas Nacionales de Colombia
[National Directorate of Taxes and Customs])
Includes live animals (livestock cattle), beef and edible
waste products.
Exports other than livestock (live animals) was mainly concentrated on frozen,
de-boned beef, with a 55 % share of total exports, followed by de-boned and
frozen fine cuts of beef.
Lebanon ranked as the largest exporter of live cattle, and Venezuela as the
main destination of chilled and frozen meat without bones. (DANE-2015)
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Lebanon, Russia and Peru, which contributed with purchases above US $70
millions in 2015 (DANE,2015)
EXPORTS OF MEAT PRODUCTS BY DESTINATION COUNTRY,
2015 (US$ MILLIONS FOB)
Currently, Colombian beef products can be o cially exported
to the following markets: Peru, Venezuela, Curaçao, Egypt,
Russia and Angola.
Vietnam 3%
Other Countries 7%
United States 3%
Jordan
6%
Peru
6%
Curacao
12%
Lebanon
100%
LIVESTOCK EXPORTS, 2015.
Total exported
US$45.6 millones
EXPORTS OF DEBONED, FROZEN AND
REFRIGERATED BEEF,
2015.
Source: DANE-DIAN.
Russia 62%
Total exported:
US$36.9 millones
INCENTIVES AND INVESTMENTS IN THE BEEF SECTOR
Among the main benefits that Colombia o ers to promote investment in projects
in the beef sector, the following stand out:
that enjoy the same benefits, but to which di erent requirements apply in
regard to investment and employment:
Multi-use Free Trade Zone: companies should present projects to the
operator/user of the Free Trade Zone and comply, within three years
following its declaration, with the following requirements for investment
and employment based on the total amount of its assets.
Individual Business Free Trade Zone regime allows for the recognition of a
Free Trade Zone in any part of the country for a new legal entity for developing
investment projects of high economic and social impact. Some specific
agro-industrial sub-sectors, including the beef sector, have more flexible
requirements on matters of investment and employment.
VALLEJO PLAN: by virtue of this program, capital assets and
replacement parts or raw materials and supplies can be imported
under total or partial suspension of customs duties (VAT and tari s).
procedures.
JOIN T V EN TUR E WI T H LOC AL PAR TNER S OR
GR EENFIELD PROJECT S: improvement of the cold chain, from
refrigerators into the chains.
ACCESS TO INTERNATIONAL MARKET: Establish refrigeration
chambers close to production centers in order to obtain admissibility in
international markets with high standards of quality.
JOINT VENTURE WITH A LOCAL PARTNER OR GREENFIELD
PROJECTS: the manufacture of products derived from the cattle
industry , such as fertilizers and leather, among others.
PROCESSED FOODS: Joint Venture with local partners or Greenfield
projects in the processed meat industry.
LARGE COMPANIES HAVE CHOSEN
COLOMBIA AS A PLACE TO INVEST
SUPPORT FROM PUBLIC ENTITIES
FOR SECTOR DEVELOPMENT
PRODUCTIVE TRANSFORMATION PROGRAM: seeks to develop worldclass sectors via the formulation and execution of sectoral business plans
that favor economic growth and strengthen the national productive
apparatus via public-private alliances.
PRONAC A , ECUADOR :beef company that came to Colombia in
2005 with the Mr. Cook line of prepared products: breaded, marinated,
pre-cooked and pre-seasoned. Additionally, it is the provider for the
McDonald’s fast food restaurant chain.
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Or de
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PROCOLOMBIA: entity in charge of promoting investment, exports and
tourism in Colombia.