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Colombian Sugar Production to Remain Steady, Exports to Rise

27 April 2012
USDA Foreign Agricultural Service

COLOMBIA - Colombian sugar production is forecast to remain at 2.31 million tons in MY 2012/2013.

The area available for sugarcane in the Cauca river valley is virtually all planted and the area for expansion is marginal.

Increases in productivity and area will be devoted to ethanol production as new ethanol facilities enters into production.

Sugar exports are expected to increase by 30,000 tons, to 860,000 tons in MY 2011/2012; this increase in sugar production will also increase the sugar availability for exports.

Colombian sugar exports are projected to reach 880,000 tons in MY 2012/2013. This is a relatively small increase in exports due primarily to new ethanol expansion projects entering into production, thus resulting in more sugar being taken away from exports for ethanol production.

In October, 2011, the US congress ratified the CTPA which we believe will foster bilateral trade for sugar and sugar containing products.

Finally, the implementation of CTPA with the United States will be effective 15 May, 2012. Thus, Colombia gets a duty free TRQ of 50,000 tons of raw sugar equivalent which will increase annually by 750 tons.

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