Colombia announces measures to subsidy fertilizers, bans fertilizer exports, bans cattle exports
Bogota (Coffee Network)- Colombian President Gustavo Petro announced a series of measures aimed at curbing rising food inflation, including subsidies for agricultural producers—among them coffee growers—restrictions on fertilizer exports, and financial support to facilitate fertilizer purchases, he said in a televised address last night.
The central objective is to contain food inflation before it escalates further. Particular concern has focused on urea, one of the most widely used agricultural inputs, whose price has surged by more than 55% in just three weeks, raising alarms about its potential impact on food prices.
Petro warned that rising fertilizer costs could significantly increase agricultural production expenses.
“If we do nothing, we could see up to six additional percentage points in food price increases,” Agriculture Minister Martha Carvajalino said, underscoring the urgency of containment measures.
In response, the Ministry of Agriculture has activated an agricultural inputs fund totaling COP 32 billion ($8.69 million), aimed at subsidizing fertilizers for short-cycle crops critical to the country’s food security.
The government is also preparing an expansion of support with an additional COP 110 billion. The new program seeks to broaden subsidy coverage and counter the impact of rising international fertilizer prices. It will target 23 key production chains representing a large share of domestic consumption, including potatoes, rice, corn, meat, milk, coffee, and cassava.
“We are strengthening a fund to mitigate the impact of fertilizer costs on food prices,” Carvajalino said, noting that subsidies will focus on improving access to these inputs.
The measures also aim to secure domestic supply. On that front, the government is considering temporary restrictions on fertilizer exports to preserve local inventories amid a volatile global environment marked by geopolitical tensions and supply disruptions.
“What we want is for the current fertilizer inventory to remain within national territory,” Carvajalino said, emphasizing the need to prioritize the domestic market.
Although Colombia is not a major exporter of fertilizers, authorities view it as essential to anticipate potential international supply disruptions and reduce the risk of shortages. The country remains highly dependent on imports of nitrogen-based fertilizers, potash, and phosphorus, increasing its exposure to external shocks.
These developments come amid tensions between the government and the central bank following a recent 100-basis-point interest rate hike, with the administration seeking to complement monetary policy through targeted sectoral measures to protect agricultural production and limit cost pass-through to consumers.
Fertilizer prices—particularly urea—have risen sharply in Colombia, as key agricultural sectors such as coffee rely heavily on imports. Approximately 16 million tonnes of fertilizers transit annually through the Strait of Hormuz, making global supply vulnerable to geopolitical disruptions.
While Colombia does not depend heavily on fertilizers from that region, increased maritime transport costs have driven up overall prices, according to the Colombian Agricultural Society.
Colombia imported 2.3 million tonnes of fertilizers worth $1.107 billion, according to the Ministry of Commerce. Urea accounted for the largest share ($295 million), followed by potassium chloride ($217 million) and NPK fertilizers ($138 million).
By country of origin, Russia is the largest supplier ($265.57 million), followed by China ($171 million), the United States ($119 million), and Canada ($117 million).
Cattle export ban
Petro also announced a ban on cattle and meat exports amid sharply rising domestic meat prices. Colombia exports significant volumes of cattle and beef, particularly to China.
“We are running out of cattle herds,” Petro said.
“The practice is counterproductive—especially when cattle are exported live, and even more so when breeding animals such as cows and heifers are shipped abroad—as it erodes the country’s livestock base. We will therefore take firm action on this front. Even if it comes at the expense of the trade balance, lowering food and meat prices for Colombians must take priority. That goal cannot be achieved while such exports continue,” he added.
By Diana Delgado
Source: Televised speech of Petro, Minister of agriculture
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