Required Report - public distribution

**Date:** 2/25/2009

**GAIN Report Number:** CO9006

CO9006

**Colombia**

**Grain and Feed**

**Annual**

**2009**

**Approved by:**

![](media/image1.wmf)R Todd Drennan, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Leonardo Pinzon, Agricultural Specialist and Elizabeth Mello,
Agricultural Attaché

**Report Highlights:**

Colombian imports of corn from the United States are expected to decline
by 346,000 tons due to the economic slowdown. Wheat imports from the
United States will maintain relatively stable at 950,000 tons and paddy
rice imports from the United States will reach 75,000 tons under a
zero-duty TRQ. The Andean Community floor and ceiling price of the price
band duty mechanism will increase starting on April 1st, 2009, which
will reduce competitiveness of U.S. exports against imports from
Mercosur countries.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Bogota \[CO1\]

\[CO\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#__RefHeading___Toc224371233)

[Consumption 4](#consumption)

[Trade 4](#__RefHeading___Toc224371235)

[Stocks 5](#stocks)

[Policy 6](#__RefHeading___Toc224371237)

[Andean Community - Mercosur Agreement
6](#andean-community---mercosur-agreement)

[Colombian Trade Promotion Act (CTPA)
7](#colombian-trade-promotion-act-ctpa)

[Other Relevant Reports 7](#other-relevant-reports)

[Tables 8](#tables)

[Colombia: Wheat PSD 8](#colombia-wheat-psd)

[Colombia: Wheat Imports 9](#colombia-wheat-imports)

[Colombia: Wheat Prices to Grower 10](#colombia-wheat-prices-to-grower)

[Colombia: Corn PSD. 11](#colombia-corn-psd.)

[Colombia: Corn Imports 12](#colombia-corn-imports)

[Colombia: Corn Prices to Grower 13](#colombia-corn-prices-to-grower)

[Colombia: Milled Rice PSD. 14](#colombia-milled-rice-psd.)

[Colombia: Rice Imports 15](#colombia-rice-imports)

[Colombia: Rice Prices to Grower 16](#colombia-rice-prices-to-grower)

# Executive Summary

Colombian corn imports from the United States are expected to decline by
346,000 tons in MY 2008/2009 to 2.6 million tons due to the economic
slowdown, while wheat imports from the United States will increase
slightly. Up to 75,000 tons of U.S. paddy rice is expected enter under a
tariff-rate-quota (TRQ) with zero duty after 5 years of no commercial
rice imports from the United States.

Colombian policy support and duty protection remains in place with the
objective of encouraging national grain production, however, high
production costs still make locally produced grain prices higher
relative to the price of imported grains.

The floor and ceiling prices of the Andean Community price band system
will significantly increase starting on April 1^st^, 2009. This will put
U.S. grains at a greater disadvantage relative to Mercosur countries,
which have started receiving higher import duty preferences under the
Andean Community (CAN)-Mercosur trade agreement.

The U.S.-Colombian Trade Promotion Agreement (CTPA) provides for a TRQ
of 2.1 million tons for U.S. yellow corn, 136,500 tons for U.S. white
corn, and 79,000 tons for U.S. rice to enter Colombia duty free. Wheat
imports from the United States will receive immediate duty elimination
upon implementation of the CTPA.

# Production

Colombian **Corn** production is expected to decline by 20,000 tons in
2008/2009 compared to 2007/2008, and is forecast to recover in 2009/2010
to reach 1.7 million tons. Colombia suffered from higher than average
rainfall in 2008, which caused a small reduction in planted area and in
lower yields. Forty percent of the corn produced in Colombia is white
corn for human consumption, while 1.0 million tons of yellow corn
production goes into the feed industry. Corn production costs are still
high relative to imported corn prices and the prospect for increased
corn production in the short term is relatively small.

Under the "Secure Agriculture Income" (SAI) program, the government of
Colombia (GOC) continues to support producers granting a US\$20 per ton
subsidy for corn produced and sold during 2009. If not for the
government support, the reduction in planted area would have been much
greater. In the long run, continued support from the government to
stimulate mechanized corn production and the introduction of GMO seeds
are helping to improve production.

**Wheat** production area in Colombia is expected to decline by 4,000
hectares in 2008/2009 setting production at 30,000 tons. This figure is
projected to remain unchanged in 2009/2010. Reduction in planted area
reflects the high costs of production that shifted small farm production
and land uses to livestock and other more profitable crops. According to
Colombian wheat millers, which buy all the available locally produced
wheat, the supply from Colombian growers located in the country's
southern production area has significantly decreased. Colombia, under
the free trade agreement signed with the United States (CTPA), will
immediately eliminate the duty on U.S. wheat imports.

Colombia's **Rice** production is projected to increase by 15,000 tons
to 1.5 million tons in 2009, due to high prices in 2008, when average
rice prices reached historical levels. In 2008, high prices and a poor
harvest provoked the Ecuadorian government decision to stop rice exports
to Colombia, which caused the industry's working inventories to reach
new lows. This tight market situation also forced the Colombian
Government to suspend the rice storage subsidy, traditionally granted to
local rice producers to alleviate downward pressures on local production
prices (see policy below). However, prices did not decrease as much as
the GOC wanted, forcing it to creates an import quota of 75,118 tons to
be imported duty free. Colombia normally imposes a flat 80 percent
import duty on rice, which effectively prohibits imports from third
countries. Rice under the quota will be imported during the months of
March and April 2009 (see CO9005 Quota Tender Update).

# Consumption

Colombia's economic growth and increase in poultry consumption have
caused feed consumption to expand, resulting in an increase in **corn**
demand. However, in 2008/2009, it is expected that corn consumption will
drop dramatically by 500,000 tons due to the economic downturn and the
poultry price increase announced by the poultry industry. Also, the
shrinking demand for poultry and products from neighboring countries is
expected to affect corn demand in Colombia. Lower per-capita poultry
consumption is also likely to happen along with all meat consumption as
a result of weaker economic growth. The forecast for the 2009 marketing
year is for a recovery in corn demand as economic growth stabilizes and
begins to recover.

Colombia's **rice** consumption has steadily increased over the past
several years, more along with population growth than a change in tastes
and preferences. In fact, the Colombian rice industry considers
consumption almost stagnant at 40 kg per-capita. High local rice prices
protected with an import duty of 80 percent also prevent expansion in
consumption.

The **wheat** industry continues to promote value-added wheat products
such as pastas and ready-to-eat pasta products to expand consumption.
The more dynamic wheat consumption continues to be led by the cookie
industry, which has oriented its marketing efforts to exporting and has
experienced success in doing so. In the 2008 marketing year, wheat
consumption will decline slightly due to the economic downturn and will
likely recover in 2009.

# Trade

Total **corn** imports decreased in MY 2007/2008 by 156,000 tons to 3.2
million tons. Under the new situation of lower international corn prices
and a slower economy it is expected that total corn imports will sharply
decline by 400,000 tons to 2.8 million in the 2008/2009 MY. Corn imports
are forecast to increase by 300,000 tons in 2009/2010 MY as local demand
is expected to recover and international prices stabilize. Corn imports
supply above 70 percent of total Colombian corn demand. Imports of U.S.
corn in 2008 reached 2.9 million tons, 197,000 tons lower than a year
earlier, but still representing 90 percent of total imports. In 2008,
the Andean Community price band variable import duty was zero because of
high international corn prices. However, the new price floor and ceiling
levels, which enters into force in April 2009, have increased, and with
the reduction in international corn prices, the price band duty for corn
will increase to 15 percent, up from 5 percent on U.S. corn in 2008 for
corn imports from the United States.

The increase in international prices that occurred in 2007 and 2008 is
now affecting the price band floor and ceiling prices. This means for
trade purposes that if the international reference price for yellow corn
is below \$267 per ton, corn imported from the United States will pay no
less than a 15 percent duty. This duty applies for imports out-of quota
of 3.05 tons (See policy below).

+--------------+-------------+------------+-------------+-------------+
| **Andean     |             |            |             |             |
| Price Band   |             |            |             |             |
| -- Prices    |             |            |             |             |
| per Ton\***  |             |            |             |             |
+--------------+-------------+------------+-------------+-------------+
|              | **          |            | **          |             |
|              | 2008/2009** |            | 2009/2010** |             |
+--------------+-------------+------------+-------------+-------------+
|              | **Floor     | **Ceiling  | **Floor     | **Ceiling   |
|              | Price**     | Price**    | Price**     | Price**     |
+--------------+-------------+------------+-------------+-------------+
| **Yellow     | 146         | 169        | 169         | 267         |
| Corn**       |             |            |             |             |
+--------------+-------------+------------+-------------+-------------+
| **White      | 155         | 189        | 168         | 220         |
| Corn**       |             |            |             |             |
+--------------+-------------+------------+-------------+-------------+
| **Wheat**    | 197         | 236        | 220         | 299         |
+--------------+-------------+------------+-------------+-------------+
| **Milled     | 304         | 346        | 337         | 502         |
| Rice**       |             |            |             |             |
+--------------+-------------+------------+-------------+-------------+
| Source:      |             |            |             |             |
| Andean       |             |            |             |             |
| Community    |             |            |             |             |
|              |             |            |             |             |
| \*           |             |            |             |             |
| Calculated   |             |            |             |             |
| prices on    |             |            |             |             |
| 5-years      |             |            |             |             |
| rolling      |             |            |             |             |
| average of   |             |            |             |             |
| i            |             |            |             |             |
| nternational |             |            |             |             |
| prices.      |             |            |             |             |
+--------------+-------------+------------+-------------+-------------+

The TRQ's allocation mechanism sets a duty discount for in-quota imports
of 10 percentage points on the Price Band duty with a minimum duty of 5
percent. Duty for out-of-quota U.S. corn imports pays the highest duty
among 5 percent and the Price band Duty. White corn imports paid a 30
percent duty for imports over the tariff-rate quota. Imports of U.S.
white corn represented 100 percent of total white corn imports in
2007/2008, but only 6 percent of the total market.

Colombia depends heavily on **wheat** imports, and in 2007/2008 MY,
wheat imports accounted for 98 percent of Colombia's total wheat demand.
Total Colombian wheat imports reached 1.32 million tons, and imports
from the United States accounted for 71 percent of the total, increasing
its market share by 25 percent in the marketing year. Canada and
Argentina followed with 23 and 9 percent market share respectively. The
wheat import forecast is for a reduction of 16,000 tons to 1.3 million
tons in MY 2008/2009 impacted by a reduction in cookie and cracker
exports and lower local consumption.

The import duty on **rice** (80 percent) makes rice imports from
non-Andean Community countries virtually impossible. Imports of milled
rice from Ecuador and Venezuela enter duty free and traditionally cover
Colombia's rice import demand. However, in 2008 the Government of
Ecuador banned rice exports to Colombia which resulted in a price
increase and a reduction in working inventories. To address this problem
the Colombian Government created a quota of 75,118 tons for paddy rice
that is expected to enter Colombia between March and April 2009 (see
Gain reports CO8018, CO8020 and CO9005). Imports from the United States
only accounted for 300 tons in 2007, which covered some specialty
quality short grain rice demand mainly for sushi preparation.

The Ministry of Social Protection's Food Safety Technical Committee (CTN
Salud) has approved LL601 and LL060 rice varieties for human
consumption. While the Ministry has yet to publish its import policy,
INVIMA, the Ministry's food safety agency will not reject shipments if
traces of these GMO events are found. INVIMA has reported it will take
samples of all imported rice to tests for GMO events and hold the
shipment until the results are known.

# Stocks

The Colombian government subsidizes rice storage that is used whenever
the seasonal rice production does not meet demand, which usually happens
during the second half of the year. In 2008, the storage support was
suspended and the amount of rice for working inventory was calculated at
274,000 tons at the end of 2008.

The Industry's corn inventory for food processing is expected to rise to
913,000 tons by the end of MY 2008/2009. This amount would supply two
months of total consumption. Wheat stocks, which are the millers working
inventory, are expected to reach 128,000 tons and cover one month of
consumption.

# Policy

The Ministry of Agriculture continued supporting the agricultural sector
through the "Secure Agriculture Income" (SAI) program to promote local
production and to enhance local agricultural competitiveness. Growers
will receive support through credits at low interest rates and direct
payments to protect farmer income.

In November 2008, the GOC established a tariff-rate quota of 3.05
million tons for yellow corn and 50,000 tons for white corn to be
auctioned between December 2008 and November 2009. The tariff-rate quota
is allocated via a public auction that is operated by the National
Agricultural Commodity Exchange (BNA). Imports under the tariff-rate
quota pay a reduced duty with the condition of purchasing local
production. Thus, companies that receive an import quota have to buy
local production certified by the BNA. This mechanism creates a premium
price for domestic corn.

The Ministry of agriculture also established a direct payment subsidy
for corn of US\$20 per ton produced and sold in 2008 and announced it
will continue the subsidy for 2009 corn production. The Ministry of
Agriculture established a storage subsidy for 130,000 tons of locally
produced rice. However the tight rice supply created by the Ecuadorian
government's export ban caused a tight market supply, forcing the
Colombian government to suspend the subsidy and expand the rice supply.

The BNA provides a program for growers to hedge exchange rate and price
fluctuations. The government pays 90 percent of the hedging cost for
growers and buyers to encourage the use of this new program.

The GOC reduced the import duty on white corn to 30 percent from 45
percent in December, 2007 and will continue imposing the 30 percent duty
in 2009. Rice imports from non-Andean Community countries will continue
to pay an 80 percent duty as no special TRQ has yet been announced for
2009.

## Andean Community - Mercosur Agreement

Andean Community countries (Colombia, Peru, Ecuador and Venezuela) and
Mercosur members signed an Economic Supplemental Agreement (ESA) in
October 2004. This agreement includes a preferential trade program that
Colombia implemented in February 2005. Import duty preferences will
weigh more importantly in 2009 as the price band will raise the
effective duty for U.S. grains (see trade section above).

The ESA agreement includes the following basic features on grain imports
granted by Colombian to Mercosur members:

**Corn**: A fifteen-year phase out period to bring the basic corn duty
of 15 percent down to zero (the variable component of the price band
will continue to be applied). In 2009, Colombia granted Argentina and
Brazil a preferential duty, such that Argentina and Brazil will pay 51
percent of the 15 percent basic rate and Paraguay and Uruguay 60 percent
of the 15 percent basic duty. The variable duty of the Andean Community
will remain applicable. Under this agreement, corn imports from
Argentina would pay 7.35 percent less in duties than imports from the
United States and other countries in 2009. However, while corn imports
enter under the TRQ, the duty will be zero for Andean and Mercosur
countries and 5 percent for the United States.

**Rice:** Colombia will phase out the base duty rate of 15 percent for
paddy rice and 20 percent for milled rice over 15 years, while
maintaining the variable component of the price band duty. For 2007,
Colombia granted Mercosur countries a 40 percent preference on the basic
duty of 15 percent for paddy and 20 percent for milled rice.

**Wheat:** Wheat and products containing wheat will be taken out of the
price band system immediately and are not subject to the special
agricultural safeguard. Colombia will phase out the 15 percent duty by
2009.

## Colombian Trade Promotion Act (CTPA)

Colombia and the United States signed a free trade agreement in November
2006. Under this agreement the price band duty system will be eliminated
upon implementation of the CTPA. Additional conditions for grain imports
were negotiated as follows:

**Corn:** the CTPA establishes a minimum tariff-rate quota of 2.1
million tons for yellow corn, and 136,500 ton tariff-rate quota for
white corn, of which both quotas will increase 5 percent annually. The
yellow corn out-of-quota import duty was set at 25 percent and the white
corn out-of-quota import duty was set at 20 percent, of which both will
be phased-out over 12 years.

**Wheat:** Imports from the United States will pay zero duty upon the
implementation of the trade promotion agreement.

**Rice:** A tariff-rate quota of 79,000 tons milled rice equivalent that
increases 4.5 percent yearly. The out-of-quota duty was established at
80 percent, and the phase out period is 19 years with a 6-year grace
period. In addition, Export Trading Companies (ETC) will be created in
both countries to manage the TRQ allocation. Income generated from TRQ
certificates fees will be divided between the two ETC's.

# Other Relevant Reports

[www.fenalce.org](http://www.fenalce.org/)

<http://www.comunidadandina.org/comercio/franja_circular.htm>

# Tables

## Colombia: Wheat PSD

  -------------- --------------- ------- ---------- --------------- ------- ---------- --------------- ---- ---------- ---------
  **Wheat        **2007**                           **2008**                           **2009**                        
  Colombia**                                                                                                           

                 **2007/2008**                      **2008/2009**                      **2009/2010**                   

                 **Market Year                      **Market Year                      **Market Year                   
                 Begin: Jul                         Begin: Jul                         Begin: Jul                      
                 2007**                             2008**                             2009**                          

                 **Annual Data           **New      **Annual Data           **New      **Annual Data        **Jan**    
                 Displayed**             Post**     Displayed**             Post**     Displayed**                     

                                         **Data**                           **Data**                        **Data**   

  Area Harvested 19              18      19         19              18      15                              15         (1000 HA)

  Beginning      130             66      130        128             60      136                             144        (1000 MT)
  Stocks                                                                                                               

  Production     37              36      37         37              36      30                              30         (1000 MT)

  MY Imports     1,308           1,280   1,316      1,325           1,290   1,300                           1,320      (1000 MT)

  TY Imports     1,308           1,280   1,316      1,325           1,290   1,300                           1,320      (1000 MT)

  TY Imp. from   927             580     932        0               580     950                             950        (1000 MT)
  U.S.                                                                                                                 

  Total Supply   1,475           1,382   1,483      1,490           1,386   1,466                           1,494      (1000 MT)

  MY Exports     2               2       2          5               2       2                               2          (1000 MT)

  TY Exports     2               2       2          5               2       2                               2          (1000 MT)

  Feed           20              20      20         20              20      20                              20         (1000 MT)
  Consumption                                                                                                          

  FSI            1,325           1,300   1,325      1,325           1,300   1,300                           1,330      (1000 MT)
  Consumption                                                                                                          

  Total          1,345           1,320   1,345      1,345           1,320   1,320                           1,350      (1000 MT)
  Consumption                                                                                                          

  Ending Stocks  128             60      136        140             64      144                             142        (1000 MT)

  Total          1,475           1,382   1,483      1,490           1,386   1,466                           1,494      (1000 MT)
  Distribution                                                                                                         

  Yield          2\.             2\.     1.9474     2\.             2\.     2\.                             2\.        (MT/HA)

  TS=TD                                  0                                  0                               0          
  -------------- --------------- ------- ---------- --------------- ------- ---------- --------------- ---- ---------- ---------

## Colombia: Wheat Imports

  ------------------ -------------- -------------- ------------ ----------
  **Import Trade                                                
  Matrix**                                                      

  **Colombia**                                                  

  **Wheat**                                                     

  Time Period        Jul/Jun        Units:         (,000)Tons   

  Imports for:       2007                          **2008**     

  U.S.               932.1          U.S.                        

  Others                            Others                      

  Canada             299.9                                      

  Argentina          83.5                                       

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

                                                                

  Total for Others   383.4                         0            

  Others not Listed                                             

  Grand Total        1315.5                        0            

                                                                
  ------------------ -------------- -------------- ------------ ----------

## Colombia: Wheat Prices to Grower

  ------------------ ------------------- ---------------------- -----------
  **Prices Table**                                              

  Colombia                                                      

  Wheat                                                         

  Prices in          (0,000) Col Pesos   per uom                Ton.

                                                                

  Year               2007                2008                   \% Change

  Jan                590                 625                    6%

  Feb                590                 625                    6%

  Mar                590                 625                    6%

  Apr                590                 625                    6%

  May                590                 625                    6%

  Jun                590                 625                    6%

  Jul                625                 650                    4%

  Aug                625                 650                    4%

  Sep                625                 650                    4%

  Oct                625                 650                    4%

  Nov                625                 650                    4%

  Dec                625                 650                    4%

                                                                

  Exchange Rate      2575.5              Local Currency/US \$   

  Date of Quote      2/26/2009           MM/DD/YYYY             
  ------------------ ------------------- ---------------------- -----------

## Colombia: Corn PSD.

  -------------- --------------- ------- ---------- --------------- ------- ---------- --------------- ---- ---------- -------
  **Corn         **2007**                           **2008**                           **2009**                        
  Colombia**                                                                                                           

                 **2007/2008**                      **2008/2009**                      **2009/2010**                   

                 **Market Year                      **Market Year                      **Market Year                   
                 Begin: Oct                         Begin: Oct                         Begin: Oct                      
                 2007**                             2008**                             2009**                          

                 **Annual Data           **New      **Annual Data           **New      **Annual Data        **Jan**    
                 Displayed**             Post**     Displayed**             Post**     Displayed**                     

                                         **Data**                           **Data**                        **Data**   

  Area Harvested 581             555     580        578             560     575                             580        (1000
                                                                                                                       HA)

  Beginning      1,260           547     1,260      1,080           677     1,021                           854        (1000
  Stocks                                                                                                               MT)

  Production     1,655           1,480   1,655      1,658           1,500   1,635                           1,700      (1000
                                                                                                                       MT)

  MY Imports     3,267           3,400   3,208      2,800           3,400   2,800                           3,050      (1000
                                                                                                                       MT)

  TY Imports     3,267           3,400   3,208      2,800           3,400   2,800                           3,050      (1000
                                                                                                                       MT)

  TY Imp. from   2,946           3,100   2,946      0               3,100   2,600                           2,750      (1000
  U.S.                                                                                                                 MT)

  Total Supply   6,182           5,427   6,123      5,538           5,577   5,456                           5,604      (1000
                                                                                                                       MT)

  MY Exports     2               0       2          0               0       2                               2          (1000
                                                                                                                       MT)

  TY Exports     2               0       2          0               0       2                               2          (1000
                                                                                                                       MT)

  Feed           3,800           3,650   3,800      3,600           3,750   3,400                           3,550      (1000
  Consumption                                                                                                          MT)

  FSI            1,300           1,100   1,300      1,300           1,100   1,200                           1,300      (1000
  Consumption                                                                                                          MT)

  Total          5,100           4,750   5,100      4,900           4,850   4,600                           4,850      (1000
  Consumption                                                                                                          MT)

  Ending Stocks  1,080           677     1,021      638             727     854                             752        (1000
                                                                                                                       MT)

  Total          6,182           5,427   6,123      5,538           5,577   5,456                           5,604      (1000
  Distribution                                                                                                         MT)
  -------------- --------------- ------- ---------- --------------- ------- ---------- --------------- ---- ---------- -------

## 

## Colombia: Corn Imports

  --------------------- ----------------- ---------------- ---------------
  **Import Trade                                           
  Matrix**                                                 

  Colombia                                                 

  Corn                                                     

  Time Period           Oct/Sep           Units:           (0,000)tons

  Imports for:          2007                               **2008**

  U.S.                  2905              U.S.              

  Others                                  Others           

  Argentina             227                                 

  Brazil                52                                  

  Ecuador               22                                  

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

                                                            

  Total for Others      301                                0

  Others not Listed     2                                   

  Grand Total           3208                               0

                                                           
  --------------------- ----------------- ---------------- ---------------

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## Colombia: Corn Prices to Grower

  -------------------- ------------------ --------------------- -----------
  **Prices Table**                                              

  Colombia                                                      

  Corn                                                          

  Prices in            (0,000 col pesos)  per uom               Ton

                                                                

  Year                 2007               2008                  \% Change

  Jan                  598.3              630.9                 5%

  Feb                  597.6              651.7                 9%

  Mar                  607.7              670.4                 10%

  Apr                  574.5              664.4                 16%

  May                  604.5              660.1                 9%

  Jun                  586.3              661.3                 13%

  Jul                  575.6              695.1                 21%

  Aug                  560.4              731.6                 31%

  Sep                  556.7              742.2                 33%

  Oct                  564.6              697.4                 24%

  Nov                  597.8              673.2                 13%

  Dec                  587.8              643.9                 10%

                                                                

  Exchange Rate        2575.5             Local Currency/US \$  

  Date of Quote        2/26/2009          MM/DD/YYYY            
  -------------------- ------------------ --------------------- -----------

## Colombia: Milled Rice PSD.

  -------------- --------------- ------- ---------- --------------- ------- ---------- --------------- ---- ---------- -------
  **Rice, Milled **2007**                           **2008**                           **2009**                        
  Colombia**                                                                                                           

                 **2007/2008**                      **2008/2009**                      **2009/2010**                   

                 **Market Year                      **Market Year                      **Market Year                   
                 Begin: Jan                         Begin: Jan                         Begin: Jan                      
                 2007**                             2008**                             2009**                          

                 **Annual Data           **New      **Annual Data           **New      **Annual Data        **Jan**    
                 Displayed**             Post**     Displayed**             Post**     Displayed**                     

                                         **Data**                           **Data**                        **Data**   

  Area Harvested 435             440     435        459             445     455                             445        (1000
                                                                                                                       HA)

  Beginning      95              95      95         95              95      95                              82         (1000
  Stocks                                                                                                               MT)

  Milled         1,453           1,300   1,453      1,555           1,310   1,520                           1,465      (1000
  Production                                                                                                           MT)

  Rough          2,422           2,167   2,422      2,592           2,183   2,533                           2,442      (1000
  Production                                                                                                           MT)

  Milling Rate   6,000           6,000   6,000      6,000           6,000   6,000                           6,000      (1000
  (.9999)                                                                                                              MT)

  MY Imports     123             145     123        45              150     48                              120        (1000
                                                                                                                       MT)

  TY Imports     45              145     123        100             150     48                              120        (1000
                                                                                                                       MT)

  TY Imp. from   0               0       0          0               0                                                  (1000
  U.S.                                                                                                                 MT)

  Total Supply   1,671           1,540   1,671      1,695           1,555   1,663                           1,667      (1000
                                                                                                                       MT)

  MY Exports     0               0       0          0               0       1                                          (1000
                                                                                                                       MT)

  TY Exports     0               0       0          0               0       1                                          (1000
                                                                                                                       MT)

  Total          1,576           1,445   1,576      1,595           1,445   1,580                           1,580      (1000
  Consumption                                                                                                          MT)

  Ending Stocks  95              95      95         100             110     82                              87         (1000
                                                                                                                       MT)

  Total          1,671           1,540   1,671      1,695           1,555   1,663                           1,667      (1000
  Distribution                                                                                                         MT)
  -------------- --------------- ------- ---------- --------------- ------- ---------- --------------- ---- ---------- -------

## Colombia: Rice Imports

  ---------------------- ------------------ ----------------- ------------
  **Import Trade                                              
  Matrix**                                                    

  Colombia                                                    

  Rice, Milled                                                

  Time Period            Jan-Nov            Units:            Tons

  Imports for:           2008                                 **2009**

  U.S.                   132                U.S.               

  Others                                    Others            

  Peru                   13664                                 

  Thailand               6534                                  

  Ecuador                6508                                  

  Venezuela              420                                   

                                                               

                                                               

                                                               

                                                               

                                                               

                                                               

  Total for Others       27126                                0

  Others not Listed      109                                   

  Grand Total            27367                                0
  ---------------------- ------------------ ----------------- ------------

## Colombia: Rice Prices to Grower

  -------------------- ------------------ --------------------- -----------
  Prices Table                                                  

  Colombia                                                      

  Rice, Milled                                                  

  Prices in            (0,000)Col Pesos   per uom               Ton

                                                                

  Year                 2007               2008                  \% Change

  Jan                  1200.2             1270.4                6%

  Feb                  1210.6             1364.1                13%

  Mar                  1201.9             1514.4                26%

  Apr                  1258.3             1568.3                25%

  May                  1245.1             1635.9                31%

  Jun                  1263.1             2005.6                59%

  Jul                  1253.6             2186.4                74%

  Aug                  1283.5             2074.3                62%

  Sep                  1280.2             1765.1                38%

  Oct                  1237.1             1960.1                58%

  Nov                  1266.7             2114.2                67%

  Dec                  1266.7             2120.4                67%

                                                                

  Exchange Rate        2575.5             Local Currency/US \$  

  Date of Quote        2/26/2009          MM/DD/YYYY            
  -------------------- ------------------ --------------------- -----------