2024 Marks the Worst Year for Colombia's Food Industry in 15 Years, Says ANDI

The Colombian food industry has faced its toughest year in a decade and a half, according to Juan Camilo Montes, the executive director of the Chamber of Food Industry of the National Association of Industrialists (ANDI). The decline in household consumption and the impact of a 'health tax' on meat products have particularly affected the dairy and meat sectors.

Impact of Economic Downturn

Juan Camilo Montes highlighted that the three key metrics monitored by the National Administrative Department of Statistics (DANE) — production, sales, and employment — have all recorded their lowest levels in 15 years. This worrying trend spans across various food categories, including dairy, meat, bakery, and oils. The primary culprit behind the decline is the reduced household consumption due to prevailing economic difficulties.

Challenges for Dairy and Meat Sectors

The dairy and meat sectors have borne the brunt of the economic downturn. In particular, meat products have been severely affected by the 'health tax,' especially impacting processed meats and derivatives. This tax, which increased from 15% in 2023 to 20% in 2024, has raised prices and decreased consumption.

Potential Recovery Outlook

Despite the setbacks of 2024, there remains cautious optimism for recovery in the upcoming years. Juan Camilo Montes emphasizes that controlling inflation is key to this recovery. If inflation is managed, it could restore economic stability and increase household food consumption, aiding in the revival of the dairy and meat sectors.