Rising demand for biodiesel curbs Colombia’s palm oil exports

Colombian palm oil exports are projected to drop to 420,000 tonnes in 2024/25 due to rising domestic demand for biodiesel, according to the USDA. The country's biodiesel blending rate is expected to hit 12.5% in 2024. The report also highlighted a decrease in Colombia's palm oil exports to EU markets and a rise in its share in the Mexican market. Thai palm oil exports have plateaued after a decade of growth, largely due to increased demand from India.

Colombian palm oil exports are expected to fall to 420,000 tonnes in 2024/25 due to growing domestic demand for biodiesel, according to a report from the U.S. Department of Agriculture (USDA). A March report from the USDA’s Foreign Agricultural Service (FAS) said palm oil exports from the world’s fourth-largest producer, which produces nearly 2 million tonnes a year, fell in the first quarter despite increases in both planted area and production. Colombia’s biodiesel blending rate has been steadily increasing since 2015 and is estimated to reach 12.5% ​​in 2024. The higher blending is supported by voluntary programs allowing up to 20% biodiesel in truckloads. The report said that the share of exports in total production fell from 40% previously to just over 20% in 2023/24, with supply directions changing. Colombia’s share expanded in the Mexican market, likely due to lower imports of rapeseed oil from Canada. It declined in the European Union (EU) markets, including due to ...