Growing biodiesel demand curbs Colombia palm oil exports

Published 2025년 3월 26일

Tridge summary

The US Department of Agriculture (USDA) has forecasted a decrease in Colombia's palm oil exports to 420,000 tonnes for the 2024/25 period, despite an increase in planted area and production, due to rising domestic biodiesel demand and a steady increase in the biodiesel blend rate. The report also highlights a shift in Colombia's export destinations, with an expansion of its market share in Mexico and a decline in the European Union (EU) due to reduced palm oil consumption. In contrast, Thailand's palm oil exports have stabilized after a decade of growth, driven by increased demand from India.

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Original content

Colombian palm oil exports are expected to drop to 420,000 tonnes in 2024/25 due to growing domestic biodiesel demand, according to a report by the US Department of Agriculture (USDA). First quarter exports from the world’s fourth largest palm oil producer – which produces almost 2M tonnes/year – fell despite an increase in both planted area and production, the USDA’s Foreign Agricultural Service (FAS) March report said. The Colombian biodiesel blend rate has been increasing steadily since 2015 and is estimated at 12.5% in 2024, according to the Oilseeds: World Markets and Trade March 2025 report. Higher blending is supported by voluntary programmes allowing up to 20% biodiesel in cargo vehicles. Exports as a percentage of production declined from over 40% in 2018/19 to a just over 20% in 2023/24, with destinations shifting, the report said. An expansion of Colombia’s market share in Mexico was likely to be due to declining rapeseed oil imports from Canada, according to the ...

Source: UkrAgroConsult