""

Required Report - public distribution

**Date:** 12/12/2003

**GAIN Report Number:** CO3018

CO3018

**Colombia**

**Exporter Guide**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)David J. Mergen

U.S Embassy

**Prepared by:**

Luz Hernandez, External Contractor

**Report Highlights:**

In 2002, total Colombian food and agricultural imports were \$1.8
billion. The United States accounted for 28.5 percent of total imports
valued at \$579.5 million, making Colombia our largest export market in
Central and South America. Colombia and the United States will start
negotiations for a bilateral free trade agreement in the second quarter
of 2004. The trade agreement is expected to provide a major boost to the
Colombian economy and imports of food products from the U.S.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Bogota \[CO1\]

\[CO\]

![](media/image2.png){width="4.513888888888889in"
height="3.9902777777777776in"}

**TABLE OF CONTENTS**

I.  **Executive Summary**

II. **Economic Outlook**

III. **Market Overview**

IV. **Exporter Guide**

V.  **Market Structure and Sub-Sector Profile**

    A.  **Food Processing**

    B.  **Hotel, Restaurant, Institutional Food**

    C.  **Retail Food Market**

VI. **Competition**

VII. **Best Product Prospects**

VIII. **Related Reports**

IX. **Post Contact Information**

# I. EXECUTIVE SUMMARY

In 2002, total Colombian food and agricultural imports were \$1.8
billion. The United States accounted for 28.5 percent of total imports
valued at \$579.5 million, making Colombia our largest export market in
Central and South America. Demand for processed foods and other
high-value food products grew steadily during the 1990\'s and has
recovered from a recession-induced downturn in 1999. Although, recent
indicators reflect a weak growth in production and sales that coincides
with a high unemployment rate, low income and economic crisis in top
trade partner countries, growth tendencies are very favorable. Sales are
expected to rise above the projected inflation rate (6.8%). The economy
is projected to grow 2.5 percent in 2003 and 3.5 percent in 2004.

Colombia and the United States will start negotiations for a bilateral
free trade agreement in the second quarter of 2004. While no specific
timetable has been established for finishing the negotiations, the
Colombian Government has proposed completing the negotiations by the end
of 2004, with the agreement implemented at the start of 2006. The trade
agreement is expected to provide a major boost to the Colombian economy
and imports of food products from the U.S.

The food processing industry continues to be one of the largest and most
vital sectors of the Colombian economy, accounting for 21 percent of
industrial production and 17 percent of industrial employment. The
supermarket sector in Colombia is one of the most modern in Latin
America, with sales of US\$8.5 billion in 2002, of which \$3.5 billion
was in food products. The hotel, restaurant and institutional sector is
also important, generating 2.1 percent of GDP. It has great potential
for growth driven by the tourism sector, though it continues to be
affected by persistent internal conflict. However, the government
campaign " live Colombia and travel in it" has fostered in-country
tourism. Colombia is well endowed with human and natural resources and,
should security improve, foreign investment and economic growth would be
strong and growth in tourism, with its concomitant demand for imported
products, would be exponential.

Despite the political unrest, industry continues to develop.
Concentration and consolidation remain as dominant forces in the
Colombian food market. Domestic supermarket chains continue seeking
strategic alliances with foreign partners in a frantic effort to capture
market share. The giants of the market continue opening new stores.
Economic realities and current consumer trends indicate that buying
decisions are increasingly based on quality and price and that consumers
today are more health-conscious and selective shoppers. Consumers have
benefited from the "price war" among competitors. Although most imports
are still handled through agents and distributors, Colombian importers
are constantly seeking alternatives to reduce high costs. Large
companies import directly, and end-users are increasingly establishing
contacts abroad. Additionally, there is a new retail market structure in
Colombia and the production-consumer chain has forced
distributors/suppliers to switch from being passive to active agents.

Several factors have a negative impact on the market: 1. As a member of
the Andean Community, Colombia imposes a variable import duty system on
more than 140 product categories, resulting in high and unpredictable
duties. 2. Restrictive import licensing and domestic procurement
requirements hinder or block imports of a number of U.S. products such
as chicken parts, dairy products, and pet food. 3. Despite GOC efforts,
artificially low-priced contraband produces unfair competition and
disrupts sales of legally imported products, and 4. Internal conflict
continues hindering economic growth.

Despite the present limitations and constraints, the market is highly
competitive and will become much more open in the future when the
bilateral free trade agreement is in place. U.S. products enjoy an
advantage because they are well regarded for their perceived high
quality and value. This makes it more challenging than ever for small to
medium-sized exporters to get their products on supermarket shelves and
restaurant menus.

# II. ECONOMIC OUTLOOK

![](media/image3.wmf)

![](media/image4.wmf)

0

![](media/image5.wmf)

![](media/image6.wmf)

![](media/image7.wmf)

*\*Projections*

# 

# 

# 

# 

# III. Market Overview

![](media/image8.wmf)

**Colombian Food Production**

![](media/image9.wmf)

+----------------------+-----+-----+-----+-----+-----+-----+-----+
| **GDP BY ECONOMIC    | **  | **  | **  | **2 | **  | **2 | **  |
| SECTORS**            | 199 | 200 | 200 | 002 | 200 | 003 | 200 |
|                      | 9** | 0** | 1** | (pr | 1/0 | (py | 2/0 |
| **(Constant 1994     |     |     |     | )** | 2** | )** | 3** |
| prices)**            | **  | **  | **  |     |     |     |     |
|                      | US\ | US\ | US\ | **  | **  | **  | **  |
|                      | $** | $** | $** | US\ | %** | US\ | %** |
|                      |     |     |     | $** |     | $** |     |
|                      | **  | **  | **  |     | *   |     | *   |
|                      | Mil | Mil | Mil | **  | *Gr | **  | *Gr |
|                      | lio | lio | lio | Mil | owt | Mil | owt |
|                      | n** | n** | n** | lio | h** | lio | h** |
|                      |     |     |     | n** |     | n** |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Meat & Fish          | 472 | 491 | 526 | 531 | 0.9 | 541 | 1.9 |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Animal/Vegetable     | 212 | 224 | 237 | 239 | 0.9 | 259 | 8.3 |
| Fats & Oils          |     |     |     |     |     |     |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Dairy Products       | 294 | 299 | 299 | 302 | 1.0 | 316 | 4.6 |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Milling Industry     | 590 | 624 | 649 | 656 | 1.1 | 721 | 9.9 |
| Products             |     |     |     |     |     |     |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Sugar                | 355 | 358 | 358 | 405 | 1   | 411 | 1.5 |
|                      |     |     |     |     | 3.1 |     |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Processed Coffee     | 103 | 115 | 82  | 83  | 1.2 | 85  | 2.4 |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Cocoa, Chocolate,    | 271 | 264 | 260 | 263 | 1.1 | 266 | 1.1 |
| Confectionery        |     |     |     |     |     |     |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Other Food products  | 373 | 394 | 349 | 353 | 1.2 | 374 | 5.9 |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Beverages            | 845 | 842 | 831 | 892 | 7.3 | 901 | 1.0 |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| **Total Food         | **3 | **3 | **3 | **3 | *   | **3 | *   |
| Industry**           | ,51 | ,61 | ,59 | ,72 | *3. | ,87 | *4. |
|                      | 4** | 0** | 0** | 5** | 7** | 4** | 0** |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| Other Industrial     | 8,  | 9,  | 9,  | 9,  | 0   | 9,  | 4.7 |
| Sectors              | 901 | 363 | 216 | 219 | .03 | 652 |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+
| **Total              | *   | *   | *   | *   | *   | *   | *   |
| Manufacturing        | *11 | *12 | *12 | *12 | *1. | *13 | *4. |
| Industry**           | ,60 | ,97 | ,80 | ,94 | 1** | ,52 | 5** |
|                      | 5** | 3** | 6** | 4** |     | 6** |     |
+----------------------+-----+-----+-----+-----+-----+-----+-----+

Source: DANE, FAS Projection

![](media/image10.wmf)

**Food and Agriculture Products Imported In 2001-2002**

+---------------------------+---------+---------+----------+----------+
| **PRODUCTS**              | *       | *       | **MARKET | **GROWTH |
|                           | *2002** | *2001** | SHARE    | RATE     |
|                           |         |         | %**      | 01/00**  |
+---------------------------+---------+---------+----------+----------+
|                           | **US\$  |         |          |          |
|                           | MI      |         |          |          |
|                           | LLION** |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Consumer -oriented Food   | 477.2   | 527.9   | 100.0    | -9.6     |
| Products                  |         |         |          |          |
|                           | 64.0    | 76.8    | **13.4** | -16.7    |
| **U.S.A**                 |         |         |          |          |
|                           | 413.2   | 451.1   | 86.6     | -8.4     |
| Others                    |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Beverages                 | 30.2    | 40.7    | 100.0    | -25.8    |
|                           |         |         |          |          |
| **U.S.A.**                | 0.6     | 1.0     | **2.0**  | -60.6    |
|                           |         |         |          |          |
| Others                    | 29.6    | 39.7    | 98.1     | -25.4    |
+---------------------------+---------+---------+----------+----------+
| Raw Materials & Interm.   | 159.5   | 172.3   | 100.0    | -9.5     |
| Prod. for Animal Food     |         |         |          |          |
|                           | 34.2    | 37.0    | **20.9** | -7.6     |
| Production                |         |         |          |          |
|                           | 125.3   | 139.3   | 79.1     | -10.9    |
| **U. S.A.**               |         |         |          |          |
|                           |         |         |          |          |
| Other                     |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Other Raw Materials for   | 332.0   | 320.7   | 100.0    | 3.5      |
| Agriculture.              |         |         |          |          |
|                           | 92.3    | 83.0    | **25.9** | 11.2     |
| **U.S.A.**                |         |         |          |          |
|                           | 239.7   | 237.7   | 74.1     | 0.8      |
| Others                    |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Raw Materials &           | 815.9   | 701.1   | 100.0    | 16.4     |
| Intermediate Products for |         |         |          |          |
| Food Industry             | 387.8   | 308.2   | **44.0** | 25.8     |
|                           |         |         |          |          |
| **U.S.A**.                | 428.1   | 329.9   | 56.1     | 8.9      |
|                           |         |         |          |          |
| Other                     |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| TOTAL                     | 1,814.7 | 1.776.9 | 100.0    | 2.1      |
|                           |         |         |          |          |
| **U.S.A.**                | 579.5   | 506.5   | **28.5** | 14.4     |
|                           |         |         |          |          |
| Others                    | 1,235.2 | 1.270.4 | 71.5     | 2.8      |
+---------------------------+---------+---------+----------+----------+

Source: DIAN (Revenue and Customs Agency).

**2001-2002 Food and Agricultural Imports from U.S.**

+------------------+-------+-------+----------------+-------+-------+
| **PRODUCT**      | **2   | **2   | **PRODUCT**    | **2   | **2   |
|                  | 002** | 001** |                | 002** | 001** |
+------------------+-------+-------+----------------+-------+-------+
|                  | **U   |       |                | **U   |       |
|                  | S\$** |       |                | S\$** |       |
|                  |       |       |                |       |       |
|                  | *     |       |                | *     |       |
|                  | *MILL |       |                | *MILL |       |
|                  | ION** |       |                | ION** |       |
+------------------+-------+-------+----------------+-------+-------+
| Meat and Edible  | 7.9   | 13.9  | Vegetable      | 0.4   | 0.5   |
| Meat Offals      |       |       | Planting       |       |       |
|                  |       |       | Materials      |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Fish, Shellfish, | 0.7   | 0.8   | Animal or      | 16.9  | 21.5  |
| Mollusks         |       |       | Vegetable Fats |       |       |
|                  |       |       | and Oils       |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Dairy Products,  | 1.0   | 3.7   | Preparations   | 12.1  | 11.2  |
| Eggs, Honey      |       |       | of Meat and    |       |       |
|                  |       |       | Fish           |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Products of      | 3.1   | 3.6   | Sugars and     | 3.5   | 4.4   |
| Animal Origin    |       |       | Confectionery  |       |       |
| and other Animal |       |       | Products       |       |       |
| Products         |       |       |                |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Live Trees and   | 3.6   | 3.9   | Cocoa and      | 2.5   | 1.8   |
| Plants, Bulbs,   |       |       | Cocoa          |       |       |
| Roots            |       |       | Preparations   |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Edible           | 1.7   | 3.4   | Cereal         | 12.9  | 20.0  |
| Vegetables and   |       |       | Preparations,  |       |       |
| Tubers           |       |       | Flour,         |       |       |
|                  |       |       | Starches,      |       |       |
|                  |       |       | Milk, Bakery   |       |       |
|                  |       |       | products.      |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Edible Fruits    | 8.0   | 7.9   | Preparations   | 5.9   | 5.0   |
| and Nuts, Citrus |       |       | of Vegetables, |       |       |
| Fruits           |       |       | Fruits         |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Coffee, Tea, and | 0.1   | 0.4   | Miscellaneous  | 16.0  | 13.4  |
| Spices           |       |       | Edible         |       |       |
|                  |       |       | Preparations   |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Grains           | 327.0 | 258.8 | Beverages,     | 1.0   | 1.6   |
|                  |       |       | Spirits and    |       |       |
|                  |       |       | Vinegar        |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Milling Industry | 0.3   | 0.8   | Residues and   | 32.9  | 31.3  |
| Products, Malt,  |       |       | Waste from     |       |       |
| Starches         |       |       | Food           |       |       |
|                  |       |       | Industries     |       |       |
|                  |       |       | /Prepared      |       |       |
|                  |       |       | By-Products    |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Oilseeds, Other  | 53.9  | 35.4  | Cotton         | 37.9  | 34.5  |
| Grains           |       |       |                |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Lacs, Gums,      | 5.4   | 4.6   | Others         | 24.6  | 24.0  |
| Resins, Other    |       |       |                |       |       |
| Vegetable Saps/  |       |       |                |       |       |
| Extracts         |       |       |                |       |       |
+------------------+-------+-------+----------------+-------+-------+

Source: DIAN (Revenue and Customs Agency).

**Market Entry Strategy**

General suggestions to access the Colombian food market, to raise
competitive sales position and to introduce new products:

# Advantages for U.S. Companies and Products

  -----------------------------------------------------------------------
  The Colombian food market is dynamic and efficient. Demand in Colombia
  for processed foods and other high-value food products has grown over
  the past years.

  Colombia ranks third in the list of 11 emerging countries, which are
  included in the Index of "Global Development Retail sales". Among
  others are Chile, Mexico, Russia, Venezuela and China

  U.S. continues to be the number one trading partner of Colombia. The
  U.S. accounts for 28.5% (\$579 million) of food and agricultural
  imports.

  Most popular U.S. made products are well regarded by Colombian
  consumers, because they are perceived as being of good quality and good
  nutritional value. Many Colombians have traveled and studied abroad and
  have developed a taste for U.S. products.

  Alliances and mergers with foreign companies are broadening the scope
  of the food business.

  Locally established multinational firms are taking advantage of their
  brand names to position new imported products.

  The readjustment of the retail market is paving the way for the new
  retail market structure in Colombia. The minimarket is a new and strong
  competitor of "Mom and Pop" stores and hyper/supermarkets.

  Information flow has reduced the negotiation power of suppliers but
  increased that of retailers.

  Information and technology have become strong tools for food marketing.
  The Uniform Product Code and scanners at point of sales have been
  fundamental to collaborative planning, forecasting and replenishment
  aimed at increasing profitability and stock control.

  The Colombian government has changed investment policy to attract new
  foreign investors. Joint ventures, franchising and licensing agreements
  are increasing in number and value.

  The younger population (60% is under 30) has been stimulating the
  expansion of fast food restaurants. The deli business is one of the
  faster growing segments.

  Middle-income families are developing a taste for new and more
  sophisticated products. Colombian consumers are now more health
  conscious and selective shoppers.

  Changing lifestyles and the rise in female participation in the labor
  force (38%) will continue to stimulate demand for value-added food
  products.

  The shift from essential to high-quality foods is continuing. A surplus
  of ordinary low-price food products coexists with a shortage of
  high-quality food products. Colombians are now selective shoppers.

  Upscale and middle-income Colombian families are eating out more
  frequently, at least twice a month, devoting 24% of food spending for
  meals away from home.

  U.S. Food shows are excellent opportunities to introduce new products
  and set up personal relationships, meet customers and personally
  address their technical needs and requirements.

  Colombian business community knowledge of and confidence in U.S.
  business practices and geographical proximity help reduce costs of
  training trips, equipment transportation, etc.

  Supply channels have been streamlined. End-users increasingly are
  establishing direct contact abroad for sourcing new products and
  services.

  Colombia's strategic geographical position makes it a gateway to many
  other Latin America markets.

  Preshipment inspection has been eliminated
  -----------------------------------------------------------------------

Challenges to U.S. Companies and Products

  -----------------------------------------------------------------------
  Consumption of processed food is low according to international
  standards and highly price sensitive. Colombian households devote 34%
  of their earnings to food.

  Importers demand competitive prices, good quality and consistent supply
  availability. Category management practices by stores, including
  charging slotting fees for products, are overhead costs to be expected.
  Probably 60% of price discounts are absorbed by the supplier.

  Competition has intensified. Food products from countries around the
  world are found on the shelves of Colombian stores, and Colombian
  companies and foreign affiliates are launching a variety of new frozen
  and ready-to-eat products.

  Consumer prices for food and beverage have declined more than total
  consumer price index. "Price War" among retailers have become a
  permanent tool to maintain market share and increase sales.

  Colombian consumers are now either time-constraint consumers who seek
  good quality and essential products, or "cherry pickers" who are after
  sales and discount products.

  Innovation and new concepts for a low-cost product portfolio is a must
  to gain market participation. The portion-pack business is an expanding
  sales venue.

  Investment in new outlets continues as part of the effort to penetrate
  regional markets and attract unattended consumers. During the period
  1968-2002, the top four hypermarkets invested more than US\$ 800
  million.

  Private brands are expanding rapidly though still incipient and
  limited. They represent 2.5% of total sales. Private brand margins are
  higher than other brand margins (20,4%). Similarly, private brand
  prices are 25.6% lower than third party prices.

  Franchising is an excellent opportunity for fast food restaurants,
  particularly through the expanding Gasmarts. Investment and foreign
  trade are keystones for economic development in the years to come.

  Procurement Law 80 regulates purchases and contracts by the government
  and state industrial and commercial enterprises. Given equal
  contracting conditions, the offer of goods and services of domestic
  origin are preferred. The GOC urges all official entities and
  decentralized industrial and commercial government organizations to
  \"buy Colombian\".

  For sales to the government, either directly or through international
  tenders, foreign bidders must: have legal representation in Colombia,
  register with the Colombian Chamber of Commerce under the so-called
  \"Registro Unico de Proponentes\" (Bidders Register), and be
  pre-classified and pre-qualified by the Chamber and, in some cases, by
  the Colombian government contracting agency.

  Absorption agreements to protect domestic production are another
  limiting factor for some U.S. products. Chicken, turkey and duck meats
  are subject to such restrictive measures.

  Some Colombian trade agreements with U.S. competitors make several U.S.
  products less competitive, e.g., zero import duties on wine and apples
  from Chile and soybean meal from Bolivia.

  Due to a number of integration agreements with various countries, a
  complex system of tariffs is applied.

  U.S. suppliers should intensify market advertising and promotional
  campaigns and sampling to compete with the wide range of quality
  products available. After-sales service and customer support is a
  decisive purchasing factor in Colombia.

  U.S. suppliers should encourage buyers to tour suppliers/producers
  facilities and have business representatives tour their plants.

  The import process still has many layers. However, the GOC has
  introduced key modifications to significantly simplify the paperwork.
  Import/export procedures and customs clearances have become almost
  virtual. Documents are to be presented through electronic or magnetic
  media.

  Despite GOC efforts, artificially low-priced contraband products still
  produce a climate of unfair competition and disrupt sales of legally
  imported products.
  -----------------------------------------------------------------------

# 

**New Retail Market in Colombia**

3.0%

4.5%\*

1.5%

1.0%

\* Excludes Hotel, tourism and maintenance

# IV. Exporter Guide

In early 2003, as part of the sweeping economic reforms to reduce
government size and spending , the Ministry of Comerce Industry and
Tourism (MOCIT) absorbed the previous Ministry of Economic Development.
However, entities and procedures dealing with the food market have not
been modified.

**COSTS AND PRICES**

**Import Licensing and Duties**

Colombia applies a restrictive, discretionary licensing system to
certain imports such as poultry, milk powder and rice. Import licenses
for selected products are rejected whenever authorities determine that
they are harmful to domestic production. With the exception of milk
powder, the import licensing requirements are scheduled to expire at the
end of December 2003. The Colombian Government is, however, reportedly
considering the use of tariff-rate quotas for some of these products.

Import licenses are approved by the General Directorate of Foreign Trade
of the MOCIT. A total of 4,484 (66.1 %) of the products in the Colombian
Harmonized Tariff Schedule must be registered (Registro de Importacion)
at MOCIT.

**Tariff Rates**

The weighted average of Colombian tariffs fluctuates between 11 and 13.5
percent. In general, importations are classified under one of the
following categories:

**Value-added Tax (VAT)**

**Pricing Products**

**MARKET ENTRY**

**Sanitary and Phytosanitary Measures and Other Licensing Requirements**

**Registration Requirements**

Both the company/importer and the product must be registered.

**Company/importer Registration**

**Product Registration**

**Labeling and Marking Requirements:**

Regulated by Resolution #1056, 1999 of the Instituto Colombiano
Agropecuario, ICA (Colombian Agricultural Institute of the Ministry of
Agriculture and Rural Development).

**Import Documentation**

Colombian importers must follow seven basic steps to carry out an
ordinary import into Colombia:

**Import Declaration**

**Certificate of Origin**

**Patents and Trademarks**

**Copyright**

**Samples**

**Courier and Express Shipment**

**Distribution and Sales Channels**

**Joint Ventures/Licensing**

**Agents/Sales Representative**

**Importers And Distributors**

**COLOMBIA - MAIN PORTS AND CITIES**

\...\...\...\...![](media/image11.jpeg){width="5.472222222222222in"
height="5.722916666666666in"}

**Top Colombian Importers and Distributors of Processed Food**

+---------------+-----------------------------------+--------+--------+
| **Importer**  | **Products**                      | **From | **T    |
|               |                                   | U.S.** | otal** |
|               |                                   |        |        |
|               |                                   | **US\$ | **US\$ |
|               |                                   | M      | M      |
|               |                                   | ill.** | ill.** |
+---------------+-----------------------------------+--------+--------+
| Nabisco       | Nuts, peanuts, biscuits, wafers/  | 7.3    | 103.6  |
|               | waffles, mucilage and thickeners. |        |        |
+---------------+-----------------------------------+--------+--------+
| Fruticola     | Fresh apples, plums, kiwis,       | 31.2   | 75.1   |
| Comercial     | cherries, garlic.                 |        |        |
| Panamericana  |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Nestle of     | Poultry fat, condensed milk,      | 5.8    | 40.2   |
| Colombia      | lactose/whey, tomato sauce,       |        |        |
|               | bakery products, biscuits, cacao  |        |        |
|               | preparations, cereals.            |        |        |
+---------------+-----------------------------------+--------+--------+
| Italcol       | Cookie meal, meat meal, yellow    | 11.1   | 19.9   |
| Occidente     | grease. Oilseed meal.             |        |        |
+---------------+-----------------------------------+--------+--------+
| Harinera del  | Corn, wheat, sauces, margarine,   | 32.9   | 37.3   |
| Valle         | baked products.                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Ancla y       | Salmon, fish, sea food.           | 11.8   | 32.2   |
| Viento S.A.   |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Grasas S..A.  | Sunflower oil, bovine animal      | 27.3   | 31.9   |
|               | fats, edible mixture of animal    |        |        |
|               | fats/oils of fish, soybean crude  |        |        |
|               | oil.                              |        |        |
+---------------+-----------------------------------+--------+--------+
| Industrias    | Glucose, sugars, bakery           | 27.8   | 29.7   |
| del Maiz      | enhancers, mixes and pastas.      |        |        |
+---------------+-----------------------------------+--------+--------+
| Zarama        | Duck/goose meat, meat offals.     | 26.4   | 29.2   |
| Clarkson      |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Lloreda S.A.  | Bovine animal fats, edible        | 10.3   | 18.9   |
|               | mixture of animal fats/oils of    |        |        |
|               | fish, soybean crude oil.          |        |        |
+---------------+-----------------------------------+--------+--------+
| Molinos del   | Wheat, Bakery Products.           | 10.1   | 16.7   |
| Cauca         |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Effem         | Confectionery, pet food.          | 16.8   | 17.9   |
+---------------+-----------------------------------+--------+--------+
| Nacional de   | Tuna, peanuts, almonds, soups,    | 1.2    | 35.5   |
| Chocolates    | broths, cocoa, lactose/whey,      |        |        |
|               | cereals.                          |        |        |
+---------------+-----------------------------------+--------+--------+
| Agri          | Sunflower seeds, soybean          | 5.6    | 9.8    |
| brands-Purina | oilcakes, dog/cat food, fish      |        |        |
|               | meal.                             |        |        |
+---------------+-----------------------------------+--------+--------+
| Barragán      | Honey, species, curry, chickpeas. | 5.8    | 17.2   |
| Saavedra      |                                   |        |        |
| Manuel Uriel  |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Compania de   | Vinegar, sauces, tomato sauce.    | 11.2   | 16.0   |
| Galletas Noel |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Rica Rondo    | Frozen pork, edible swine offal,  | 7.3    | 13.3   |
|               | and other edible pork.            |        |        |
+---------------+-----------------------------------+--------+--------+
| Com           | Fresh fruits: apples, cherries.   | 1.9    | 13.2   |
| ercializadora | plums, peaches, etc.              |        |        |
| Rossi Fruits  |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Avidesa Mac   | Corn, fish meal,, spices,         | 10.5   | 13.2   |
| Pollo         | cookies.                          |        |        |
+---------------+-----------------------------------+--------+--------+
| Productos     | Wheat, semolina, pasta, dry       | 8.1    | 13.0   |
| Alimenticios  | vegetables.                       |        |        |
| Doria         |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Productos del | Vinegar, tomato sauce,            | 4.9    | 12.9   |
| Maiz S.A.     | mayonnaise, margarine, corn.      |        |        |
| Promasa       |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Tropicafe     | Beet sugar, saccharose.           | 9.6    | 12.0   |
+---------------+-----------------------------------+--------+--------+
| Varela        | Soybean& palm oils, vegetable     | 6.7    | 8.5    |
|               | juices& extracts.                 |        |        |
+---------------+-----------------------------------+--------+--------+
| Franchise     | Natural honey, hams, potatoes,    | 0.6    | 2.3    |
| System de     | salad dressings, mustard, food    |        |        |
| Colombia      | preparations.                     |        |        |
+---------------+-----------------------------------+--------+--------+
| Industrias    | Bacon, frozen swine/ bovine meat, | 8.0    | 8.7    |
| alimenticias  | poultry, malt extract, soy sauce, |        |        |
| Noel          | salad dressings.                  |        |        |
+---------------+-----------------------------------+--------+--------+
| Distribuidora | Wine, whiskey, seasonings,        | 2.5    | 10.0   |
| de vinos y    | breakfast cereals, canned fish    |        |        |
| licores       | products, cookies, vegetables and |        |        |
|               | grains.                           |        |        |
+---------------+-----------------------------------+--------+--------+
| Provisio      | Duck, goose, beef, cheeses, sweet | 3.5    | 7.1    |
| nes,Servicios | corn, mixes and dough,            |        |        |
| del Caribe    | condiments, salad dressings.      |        |        |
+---------------+-----------------------------------+--------+--------+
| Laboratorios  | Powdered/modified milk,           | 0.6    | 7.1    |
| Wyeth.        | lactose/whey, sugar, protein      |        |        |
|               | concentrates.                     |        |        |
+---------------+-----------------------------------+--------+--------+
| Importaciones | Fresh fruits.                     | 1.7    | 6.5    |
| y             |                                   |        |        |
| Exportaciones |                                   |        |        |
| Fenix         |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Frigorifico   | Frozen pork, pig/poultry fats,    | 5.9    | 5.9    |
| Suizo         | edible offal.                     |        |        |
+---------------+-----------------------------------+--------+--------+
| Productos     | Prepared foods of cereal, cereals | 2.7    | 5.8    |
| Quaker        | in grain, maple sugar, oats and   |        |        |
|               | corn.                             |        |        |
+---------------+-----------------------------------+--------+--------+
| Mejia y Cia   | Fish pellets, glycerol and yeast. | 5.1    | 5.6    |
+---------------+-----------------------------------+--------+--------+
| Morinda       | Vegetable juice mixture.          | 3.2    | 4.3    |
| Internacional |                                   |        |        |
| Colombia      |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Bavaria       | Hop cones of lupulin, malt.       | 3.7    | 3.7    |
+---------------+-----------------------------------+--------+--------+
| Francesca     | Fats & oils, saccharose, pasta,   | 3.2    | 3.4    |
| Maria Turconi | non-alcoholic beverages, canned   |        |        |
|               | vegetables.                       |        |        |
+---------------+-----------------------------------+--------+--------+
| Cooperativa   | Frozen pork meat, fats, corn,     | 1.6    | 2.7    |
| Colanta       | breakfast cereals, milk           |        |        |
|               | replacements for heifers.         |        |        |
+---------------+-----------------------------------+--------+--------+
| Frito Lay     | Chewing gum, pork cackling,       | 1.1    | 2.7    |
| Colombia      | seasonings.                       |        |        |
+---------------+-----------------------------------+--------+--------+
| Haagendaz     | Fresh, frozen cauliflower, sweet  | 1.5    | 1.6    |
| Colombia      | corn, maple sugar.                |        |        |
+---------------+-----------------------------------+--------+--------+
| Vigomez       | Fresh apples, pears, grapes,      | 0.6    | 10.0   |
|               | kiwis.                            |        |        |
+---------------+-----------------------------------+--------+--------+
| Quala S.A.    | Dried onions, ice cream flour,    | 1.6    | 1.8    |
|               | yeast, animal fats.               |        |        |
+---------------+-----------------------------------+--------+--------+
| Procaps       | Lactose, juices, honey, dry       | 1.2    | 2.0    |
|               | vegetables, fish oils, nu.        |        |        |
+---------------+-----------------------------------+--------+--------+
| Productos     | Soyben oilcake, cron, animal feed | 2.3    | 2.3    |
| alimenticios  | mixes, fish "pellets.             |        |        |
| El Galpon     |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| FEDCO         | Pistachios, frozen bread/pastry,  | 1.0    | 1.0    |
|               | mayonnaise, preserved vegetables, |        |        |
|               | sweet corn, tomato sauce, pasta,  |        |        |
|               | cereals.                          |        |        |
+---------------+-----------------------------------+--------+--------+
| Disa-Best     | Tomatoes, vegetables, cumin,      | 0.9    | 4.7    |
| Foods         | bacon, pepper, mustard, bakery    |        |        |
|               | products, hydrolyzes.             |        |        |
+---------------+-----------------------------------+--------+--------+
| Com           | Chilled/frozen vegetables, rice,  | 0.5    | 2.5    |
| ercializadore | seeds.                            |        |        |
| Internal      |                                   |        |        |
| Falcon Fa     |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Da            | Sweeteners.                       | 2.4    | 2.4    |
| Co            |                                   |        |        |
| mercializdora |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Griffith      | Pastry, vegetables, spices,       | 0.3    | 1.0    |
| Colombia S.A. | lactose, isolated proteins, whey. |        |        |
+---------------+-----------------------------------+--------+--------+
| Alimentos     | Processed/fresh cheese, mustard,  | 0.1    | 14.2   |
| Kraft         | sauces, pastry, spices other food |        |        |
|               | preparations                      |        |        |
+---------------+-----------------------------------+--------+--------+
| Frigoríficos  | Fruit preparations, olives, palm  | 0.4    | 2.2    |
| de la Costa   | hearts, capers, prunes, edible    |        |        |
|               | mixtures of bovine meat.          |        |        |
+---------------+-----------------------------------+--------+--------+
| Pesqueria     | Salmon, fish, sea food.           | 0.1    | 2.1    |
| Jaramillo     |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Bazaar        | Artichokes, sweet corn, vinegar,  | 1.5    | 1.5    |
| International | pasta, non-alcoholic beverages,   |        |        |
|               | soybean oil.                      |        |        |
+---------------+-----------------------------------+--------+--------+
| Unilever      | Bovine fats, coconut and soybean  | 0,3    | 0.7    |
| Andina        | oil, cereal flours, tomato sauce. |        |        |
+---------------+-----------------------------------+--------+--------+
| Impulsores    | Greenpeas, seeds, animal feed     | 1.3    | 2.2    |
| in            | mixe.                             |        |        |
| ternacionales |                                   |        |        |
+---------------+-----------------------------------+--------+--------+
| Almcenes      | Green peas, onions, garlic, fresh | 0.1    | 6.3    |
| Exito         | fruit, dry plums, olive oil.      |        |        |
+---------------+-----------------------------------+--------+--------+
| Gran cadena   | Tuna, frozen orange juice, bakery | 0.1    | 1.1    |
| de            | products, pastry, marmalade,      |        |        |
| almace        | cocoa preparations.               |        |        |
| nes-Cadenalco |                                   |        |        |
+---------------+-----------------------------------+--------+--------+

**Standards**

# V. Market Structure and Sub-Sector Profile

A.  **Food Processing Industry**

    The Food Industry is one of the largest and most dynamic sectors of
    the Colombian economy accounting for 21.8% of industrial production
    and 28.6% including beverages. It generates 7.9 of GDP and 17% of
    industrial employment. Colombian demand for processed foods and
    other high value food products has grown steadily during the 1990-98
    period and recovered from a decline, in real terms, of 0.6 percent
    experienced in 1999. Food production is projected to increase by 4.0
    percent in year 2003 and to continue rising. Domestic demand and
    household consumption are projected to increase by 1.9% and 2.3%, in
    2003 and 2004 respectively thus stimulating food imports companies

B.  **HRI Food Service Sector**

The Colombian HRI Food Service sector has a great potential for growth.
Tourism could become one of the leading sectors of the economy although
the continuing internal conflict is a constant negative factor affecting
the sector. Colombia is well endowed with human and natural resources
and, should security improve, foreign investment and economic growth
would be strong. Growth in tourism, with its concomitant demand for
imported products, has great potential. The innovative scheme of
caravans with the slogan "Live Colombia and travel in it" has helped the
Hotel and Restaurant Industry. Renewed confidence in Uribe's
administration has fostered tourism activity.

C.  **The Retail Food Market Sector**

The supermarket sector in Colombia is one of the most modern in Latin
America The sector is consolidating the massive structural change
initiated in recent years due to domestic supermarket chains seeking
strategic alliances with international partners in a frantic effort to
modernize and capture market share.

# VI. Competition, Consumer- Ready Food

Colombia is a strong competitor in the production of:

  ---------------------------------- ------------------------------------
  **Product**                        **Company**

  Dairy products                     Alpina, Colanta, Parmalat, Purace,
                                     Nestle

  Breakfast cereals                  Kellogg's, Nestle, Quaker

  Snacks                             Frito Lay -Margarita, Savoy Brands,
                                     Yupi, Nabisco Royal, Kraft Foods

  Baked foods                        Levapan, Bimbo, Ramo, Comapan

  Confectionery                      Colombina, Noel, Warner Lambert,
                                     Nacional de Chocolates,Chiclets
                                     Adams, Italo

  Oils and margarines                Grasas S.A.,Unilever, Lloreda,
                                     Acegrasas, Gravetal

  Dry mixes for sauces, mayonnaise,  Unilever-Disa-Best Foods,
  ketchup, mustard, jellies,         California, La Constancia, El Rey,
  condiments                         Productora de jugos, Frutos del
                                     campo

  Poultry feed and pet food          Solla, Purina, Finca, Italcol,
                                     Contegral, Nestle Pet care,etc.
  ---------------------------------- ------------------------------------

![](media/image12.wmf)

# 

# 

# VII. Best Products Prospects

**But, there is significant space for new alternatives in ...**

**Business Customs**

**Travel Warning and Visas**

# Related Reports

+-----------+----------------------------------------------+----------+
| **Report  | #### Report Name                             | **Date** |
| No.**     |                                              |          |
+-----------+----------------------------------------------+----------+
| C03002    | Grain and Feed Annual                        | 03-10-03 |
+-----------+----------------------------------------------+----------+
| CO3040    | Sugar Annual Report                          | 04-04-03 |
+-----------+----------------------------------------------+----------+
| CO3005    | Coffee Annual Report                         | 05-14-03 |
+-----------+----------------------------------------------+----------+
| CO3007    | Livestocks & Products: Tariff increase for   | 06-06-03 |
|           | beef and beef offals                         |          |
+-----------+----------------------------------------------+----------+
| CO3009    | FAIRS                                        | 08-04-03 |
+-----------+----------------------------------------------+----------+
| CO3014    | Dairy and Products                           | 10-29-03 |
+-----------+----------------------------------------------+----------+

For further information, visit the FAS home page at
[http://www.fas.usda.gov](http://www.fas.usda.gov/).

# IX. Post Contact Information

**Office of Agricultural Affairs**

**U.S. Embassy, Bogota, Colombia**

Calle 22D Bis, No. 47-51

Apartado 3831

Bogota, Colombia

**David Mergen**

Agricultural Attaché

U.S. Mailing Address: U.S. Embassy - Bogota

Agr Section, Unit 5119

APO AA 34038

Phone: (57-1) 315-2138

Fax: (57-1) 315-2181

Email: agbogota@usda.gov

**John Shaw, APHIS Attaché**

**(Agricultural and Plant Health Inspection Service)**

U.S. Mailing Address: U.S. Embassy - Bogota

Agr Section, Unit 5103

APO AA 34038

Phone: (57-1) 315-2192

Fax: (57-1) 315-2191

Email: usdacol@colomsat.net.co

**COLOMBIAN GOVERNMENT CONTACTS**

**Ministry of Agriculture and Rural Development**

Colombian Agricultural Institute (ICA)

(Phytosanitary and Zoosanitary requirements office)

Calle 37, No. 8-43, Piso 4

Bogotá, Colombia

Luz Alba Cruz de Urbina

Deputy Manager Animal Health Protection and Regulation

Tel: (57-1) 320-3653

Fax: (57-1) 285-3050

E-mail: subgerencia.pecuaria@ica.gov.co

Jaime Cardenas, Head

Plant Inspection Guarantee-Health Risk

Tel: (57-1) 232-4709

Fax: (57-1) 288-1753

E-mail:sanidad.vegetal@ica.gov.co

**Ministry of Social Protection**

National Institute for the Surveillance of Food and Medicine (INVIMA)

Division of Food and Alcoholic Beverages

(Food Products registration and Health permits)

Juan A. Hadad

Director

Carrera 68D \# 17-21 Zona Industrial

Bogotá, Colombia

Phone: (57-1) 294-87003 Ext. 3920

Fax: (57-1) 315-1762

E-mail: jhadad@invima.gov.co

**Ministry of Foreign Trade**

Directorate of Foreign Trade

Eduardo Munoz

Director of Commercial Relations

Calle 28, No. 13A-15, 6th Floor

Apartado 240193

Bogotá, Colombia

Phone: (57-1) 606-7676 Ext. 1433

Fax: (57-1) 606-7539

E-mail:eduardom@mincomex.gov.co