Beef and livestock sector 2016

1. INVESTMENT IN THE BEEF AND
LIVESTOCK SECTOR
COLOMBIA, A PRODUCTION CENTER
AND OUTSTANDING LOGISTICS
HUB IN THE AMERICAS
Itslocationinthetropicsandthetopographicalcharacteristics
of the various Colombian regions provide Colombia with
access to pastures of excellent quality year-round, which
guarantees enough food for cattle during the entire fattening
process. (FEDEGAN, 2014).
Colombia’s cattle inventory reached 23 million heads in
Casanare, Cesar and Santander account for around 50% of
Colombian cattle inventory. (FEDEGAN, 2014).
(OIE) provided the certification that completes Colombia’s
map and establishes it as a country free of foot-and-mouth
disease through vaccinations.
Of the total number of hectares dedicated to raising
livestock, more than 60% are located at altitudes below
1,000 meters above sea level with temperatures that
oscillate between 23ºC and 32ºC for all bovine specimens,
of which at least 95% are Zebu or have Zebu genes.
(Asocebu, Asociacion de criadores de ganado Cebú [Zebu
Cattle Breeding Association] 2012).
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With a production of 947,000 tons of beef carcass equiva-
lent¹, Colombia was the fourth largest producer of beef in
Latin America in 2014. (FEDEGAN, Federación de Ganade-
ros de Colombia,[Colombian Livestock Federation], 2014).
In 2014, over 4.3 million head of cattle were slaughtered in
Colombia, a growth of 1.9% over 2010. (FEDEGAN, 2014).
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2. Source: (Bovine Census-FEDEGAN).
REGION1ismainlymadeupofthedepartmentswhosecattle
in this region are: Antioquia, Cordoba, Casanare, Meta, Cesar,
Santander, Caqueta, Magdalena, Cundinamarca and Arauca.
(Bovine Census-FEDEGAN, 2012).
REGION 2 on the other hand, covers the departments
departments in this region are: Bolivar, Sucre, Boyaca,
Tolima, Huila, Valle del Cauca, Norte de Santander, Nariño,
La Guajira, Caldas, Cauca, Vichada and Atlantico. (Bovine
Census-FEDEGAN, 2012).
Finally, REGION 3 , is made up of the departments that
have the lowest concentration of cattle herds in Colombia.
heads of cattle.
Putumayo, Choco, Quindio, Guaviare, Risaralda, Amazonas,
Guainia, San Andres and Providencia and Vaupes are the
departments that make up this region. (Bovine Census-
FEDEGAN, 2012).
REGIONS WITH AVAILABLE
RAW MATERIAL
REGION 1
REGION 2
REGION 3

3. companies focused on the production, transformation,
and commercialization of meat products that have
knowledge of consumption patterns and national
distribution.
ANDEAN REGION, SANTANDER - LLANOS
North Santander: Friogan - Headquarters in North
Santander:
Meta: Friogan - Meta Plant.
COFFEE-GROWING REGION
Antioquia: Frigo - Colanta.
Caldas: Friogan, Headquarters in La Dorada, Caldas.
CARIBBEAN REGION
Atlantico: Camaguey.
Cárnica.
Sucre: Friogan- Headquarters in Corozal.
BUSINESS NETWORKS
IMPORTANT COMPANIES IN BEEF SECTOR
INDUSTRY
Source: BPR Benchamrk [sic].
CATTLE SLAUGHTER AND BEEF PRODUCTION
are 428 companies in Colombia’s beef sector. More than
a half are located in Bogota, Antioquia, Valle, Atlantico,
Santander and Cundinamarca.
2010-2015 2010-2015
864 929 979 969 947 944
2010 20102011 20112012 2013 2014 2015 2012 2013 2014 2015
4.0 4.3 4.4 4.3 4.3
4.5
CARIBBEAN REGION
COFFEE-GROWING REGION
ANDEAN REGION, SANTANDER - LLANOS
CATTLE SLAUGHTERED IN COLOMBIA, BEEF PRODUCTION IN COLOMBIA,
(millions of animals) (thousands of tons; Beef carcass equivalent)
In 2015, over 4.3 million head of cattle were slaughtered in Colombia
(a growth of 1.1% over 2011). (FEDEGAN, 2015)

4. BEEF CONSUMPTION
IN COLOMBIA
a decrease of US $ 447 million ispresented. (DANE - 2014)
Exports other than livestock (live animals) was mainly concentrated on frozen,
de-boned beef, with a 55 % share of total exports, followed by de-boned and
frozen fine cuts of beef.
COMMERCIAL TRADE BALANCE AND USE OF
FREE TRADE AGREEMENTS
2
Includes live animals (livestock cattle), beef and edible
waste products.
Source: DANE (Departamento Administrativo Nacional de Estadística [National Administrative
Department of Statistics])- DIAN (Dirección de Impuestos y Aduanas Nacionales de Colombia
[National Directorate of Taxes and Customs])
COMMERCIAL TRADE BALANCE - BEEF
PRODUCTS, 2014-2015 (US $ Million FOB)
BEEF CONSUMPTION IN COLOMBIA, 2006-2014 (kg/inhabitant/year)
18.88
2006 2007 2008 2009 2010 2011 2012 2013 20 201514
17.81 17.38 17.67 18.94 20.01 20.76 19.70 1 19.109.30
2014 2015
104.6
273.6
-169.0
82.7
211.2
-128.5
EXPORTS IMPORTS COMMERCIAL TRADE BALANCE
Lebanon ranked as the largest exporter of live cattle, and Venezuela as the
main destination of chilled and frozen meat without bones. (DANE-2015)
In 2015, per capita consumption beef in Colombia surpassed
19.1 kilograms per inhabitant per year. (FEDEGAN, 2015)
In 2015, exports of beef products exceeded US$82.7 million. (DANE, 2015)
Imports increased by 29.8%, going from US$210.8 million in 2014 to US$273.6
million in 2015. (DANE, 2015)
Lebanon, Russia and Peru, which contributed with purchases above US $70
millions in 2015 (DANE,2015)
Over the last 6 years, per capita consumption of beef in
Colombia has grown at a compound rate of 0.3% since 2006
(when reached 18.8 Kg/hab/year).(FEDEGAN, 2015)

5. EXPORTS OF MEAT PRODUCTS BY DESTINATION COUNTRY,
2015 (US$ MILLIONS FOB)
that enjoy the same benefits, but to which di erent requirements apply in
regard to investment and employment:
Multi-use Free Trade Zone: companies should present projects to the
operator/user of the Free Trade Zone and comply, within three years
following its declaration, with the following requirements for investment
and employment based on the total amount of its assets.
INCENTIVES AND INVESTMENTS IN THE BEEF SECTOR
Source: DANE-DIAN.
Currently,Colombianbeefproductscanbeo ciallyexported
to the following markets: Peru, Venezuela, Curaçao, Egypt,
Russia and Angola.
Total exported
US$45.6 millones
Total exported:
US$36.9 millones
LIVESTOCK EXPORTS, 2015. EXPORTS OF DE-
BONED, FROZEN AND
REFRIGERATED BEEF,
2015.
Other Countries 7%
Lebanon
100%
Russia 62%
United States 3%
Curacao
Vietnam 3%
Jordan
6%
Peru
12%
6%
VALLEJO PLAN: by virtue of this program, capital assets and
replacement parts or raw materials and supplies can be imported
undertotalorpartialsuspensionofcustomsduties(VATandtari s).
procedures.
Individual Business Free Trade Zone regime allows for the recognition of a
Free Trade Zone in any part of the country for a new legal entity for developing
investment projects of high economic and social impact. Some specific
agro-industrial sub-sectors, including the beef sector, have more flexible
requirements on matters of investment and employment.
Among the main benefits that Colombia o ers to promote investment in projects
in the beef sector, the following stand out:

6. JOINT VENTURE WITH LOCAL PARTNERS OR
GREENFIELD PROJECTS: improvement of the cold chain, from
refrigerators into the chains.
JOINT VENTURE WITH A LOCAL PARTNER OR GREENFIELD
PROJECTS: the manufacture of products derived from the cattle
industry , such as fertilizers and leather, among others.
LARGE COMPANIES HAVE CHOSEN
COLOMBIA AS A PLACE TO INVEST
SUPPORT FROM PUBLIC ENTITIES
FOR SECTOR DEVELOPMENT
PROCOLOMBIA: entity in charge of promoting investment, exports and
tourism in Colombia.
PRODUCTIVE TRANSFORMATION PROGRAM: seeks to develop world-
class sectors via the formulation and execution of sectoral business plans
that favor economic growth and strengthen the national productive
apparatus via public-private alliances.
ACCESS TO INTERNATIONAL MARKET: Establish refrigeration
chambers close to production centers in order to obtain admissibility in
international markets with high standards of quality.
PROCESSED FOODS: Joint Venture with local partners or Greenfield
projects in the processed meat industry.
PRONACA, ECUADOR:beef company that came to Colombia in
2005 with the Mr. Cook line of prepared products: breaded, marinated,
pre-cooked and pre-seasoned. Additionally, it is the provider for the
McDonald’s fast food restaurant chain.
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Or den