Key words of the passage: fertilizer; market; import; food

Colombia relies on imported raw materials for fertilizer production.

It is estimated that more than 2 million tons of fertilizers are consumed in Colombia each year. The dominant segment is the inorganic fertilizer market, accounting for more than 95% of total sales. In 2021, Colombia imported nearly USD 203 million in fertilizers. Russian fertilizer exports to Colombia represented 22% of the market share.

The following countries held the remaining portions of the market share: the United States (16%), China (13%), European Union countries (12%), Trinidad and Tobago (14%) Canada (9%), and Belarus (8%).

Urea, a low-cost fertilizer, is used by Colombian farmers for rice, coffee, sugar, potatoes, and corn production. According to the Colombian National Department of Statistics (DANE), the average price of a 50 Kg-bag of Urea increased from 80,000 pesos (USD 21) in January 2021 to 230,000 pesos (USD 61) in January 2022, a 187% annual increase. The potential shortage of fertilizers and input price speculation will put additional upward pressure on Colombian food prices, which were already registering high inflation as of April 2022.

According to the Colombian Farm Bureau, the local fertilizer supply will continue growing. However, prices are expected to increase in the upcoming months. This will likely affect overall fertilizer consumption and Colombia’s crop production. In addition, the prolongation of the Russia - Ukraine conflict will likely disrupt Colombia´s production of staple crops such as potatoes, sugar, and rice.

In 2021, 85% of fertilizer imports were concentrated in nine local companies: Yara Colombia (25%), Preciagro (16%), Monómeros Colombo Venezolanos SA (12%), Nitrofert (7%), CIAMSA (6%), Nutricion de Plantas (6%), Disan (6%), CI Acepalma (5%) and Ecofertil (4%).

Source: International Trade Administration