Deal #1073

Location #1

Spatial accuracy level
Exact location
Location
Santa Marta, Magdalena, Colombia

Latitude
10.0845
Longitude
-74.0189
Facility name
Palm oil extraction mill - Palmeras de la costa
Target country
Colombia
Contract area
Comment on location
The polygons displayed in this deal relate uniquely to the area under control of Palmeras de La Costa, one of the investors participant in Biocombustibles del Caribe. The DAABON group, the other participant in the joint venture, is not displayed in the Land Matrix portal, given that their land purchases were done in the 1970s. Although Palmeras de La Costa has been present in the palm oils business in the state of Cesar since 1970s, several documents report that after the paramilitary violence suffered in El Copey, Cesar, the company attempted to acquired several properties close to their mill. The polygons on the west are already established plantations, which suggest that the company might have been several years there. On the other hand, and according to judiciary documents from the national authorities, the separate plots are involved in a restitution process. According to the national authorities, the company obtained those plots after paramilitary groups had threatened smallholders to abandon and sell their land. Sources: http://tribunaltierrascartagena.com/sites/default/files/SENTENCIA%202018-00017%20-%20JUANA%20AVENDA%C3%91O%20-%20DRA%20LAURA%20CANTILLO.PDF - https://www.restituciondetierras.gov.co/documents/10184/514988/200013121003-201500113-00++El+Copey++19+Julio+2016.PDF/535fb02c-e78f-472d-85c2-ffe2f19949ea?version=1.0

Land area

Intended size (in ha)
4722.0
Size under contract (leased or purchased area, in ha)
[2019] 4722
Size in operation (production, in ha)
[2019] 4692
Comment on land area
According to the reports for the RSPO certification, for the year 2019, the company managed 4722 hectares of land for the growing of oil palm. Out of them, 1203 correspond to outgrower schemes. It is impossible to determine the exact date of land acquisition of the properties. Source: https://rspo.org/view-acop-pdf/palm-oil-processors-andor-traders/Palmeras_de_la_Costa_S_A_-ACOP2018.pdf

Intention of investment

Intention of investment
Biofuels, Non-food agricultural commodities

Nature of the deal

Nature of the deal
Outright Purchase
Pure contract farming
Comment on nature of the deal
The company was established in the 1970s in El Copey, Cesar. Nevertheless, after decades of violence of marxist guerrillas in the 80s and a following violence intensification by paramilitary groups, the company openly started to buy properties from peasants that abandoned their land. Some of them left due to clear threats and violent attacks to their relatives. This purchase process started in the 2003. The judiciary system of Colombia has already recognized in two cases that Palmeras de la Costa was involved in this process. - http://tribunaltierrascartagena.com/sites/default/files/SENTENCIA%202018-00017%20-%20JUANA%20AVENDA%C3%91O%20-%20DRA%20LAURA%20CANTILLO.PDF - https://www.restituciondetierras.gov.co/documents/10184/514988/200013121003-201500113-00++El+Copey++19+Julio+2016.PDF/535fb02c-e78f-472d-85c2-ffe2f19949ea?version=1.0

Negotiation status

Negotiation status
[2003] Concluded (Contract signed)
Comment on negotiation status
It is unknown the exact date of all properties linked to Palmeras de La Costa. It is certain that the company attempted to purchase several plots of land abandoned by internal displaced in 2003. After some trials, some peasants have obtained back their land in 2018 and 2019.

Implementation status

Implementation status
[2019] In operation (production)

Purchase price

Purchase price
280000
Purchase price currency
Colombian Peso ($)
Purchase price area type
per ha
Comment on purchase price
This price relates to one of the plots acquired in 2003. Colombian prices for 2003. Source: http://tribunaltierrascartagena.com/sites/default/files/SENTENCIA%202018-00017%20-%20JUANA%20AVENDA%C3%91O%20-%20DRA%20LAURA%20CANTILLO.PDF

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
[2019] 1263
Comment on contract farming
Biocombustibles Sostenibles del Caribe belongs to both Daabon Group and Palmeras de La Costa. Both are buying the produce from outgrowers. It was possible to identify that 25% of the produce of Daabon Group comes from Outgrowers and Palmeras de La Costa has 1263 hectares in contract farming schemes. Therefore, at least the project is having 1263 hectares in contract farming. Source: https://docplayer.es/14384692-Palmeras-de-la-costa-s-a.html https://beta.landmatrix.org/media/uploads/pinonengranadoblogspotcomar200902entrevista-con-el-gerente-de-biosc-sahtml.pdf

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
731
Comment on jobs created (domestic)
Source: https://www.rspo.org/uploads/default/pnc/RSPOPC_-_STAKEHOLDER_LETTER_-_Palmeras_de_La_Costa_POM_2015_-_ESPANOL.pdf

Operating company

 

Network of parent companies and tertiary investors/lenders. Please right-click the nodes to get more details.

Legend
  • Is parent company of
  • Is tertiary investor/lender of
  • Left-click to reveal related parent companies and tertiary investors/lenders.
  • Right-click on investors to get more information.
  • Left-click to hide related parent companies and tertiary investors/lenders.

Data source #1

Data source type
Media report
File
Date
2011-01-01
Comment on data source
Federación colombiana de biocombustibles website

Data source #2

Data source type
Personal information
Includes in-country-verified information
Yes

Data source #3

Data source type
Research Paper / Policy Report
File
Date
2009-01-01

Data source #4

Data source type
Company sources
File
Comment on data source
biocombustibles del caribe website

Data source #5

Data source type
Media report
File
Date
2007-01-01
Comment on data source
El tiempo website

Data source #6

Data source type
Research Paper / Policy Report
File

Data source #7

Data source type
Research Paper / Policy Report
File

Data source #8

Data source type
Government sources
File

Data source #9

Data source type
Company sources
File

Data source #10

Data source type
Company sources
File

Data source #11

Data source type
Company sources
File

Data source #12

Data source type
Media report
File

Data source #13

Data source type
Research Paper / Policy Report
File
Publication title
Cifras informativas del sector de biocombustibles
Date
2011-07

Data source #14

Data source type
Company sources
File
Publication title
COLOMBIAN DAABON ARE WORLD’S FIRST OIL PALM GROWER TO RECEIVE RSPO NEXT CERTIFICATION
Date
2017-07-07

Data source #15

Data source type
Media report
File
Publication title
Otras zonas francas
Date
2009-11-07

Data source #16

Data source type
Company sources
File
Publication title
Grupo Daabon entregó cancha múltiple al colegio Líbano 2000
Date
2013-11-26

Data source #17

Data source type
Company sources
File
Publication title
Política ambiental corporativa
Date
2018-10-18

Data source #18

Data source type
Company sources
File
Publication title
Protocolo de manejo del conflicto

Data source #19

Data source type
Company sources
File
Publication title
M ecanismos de observancia de los derechos humanos en e l procedimiento de debida diligencia

Data source #20

Data source type
Other (Please specify in comment field)
File
Date
2016
Comment on data source
Form for the application of the Rountable on Sustainable Palm Oil

Data source #21

Data source type
Media report
File
Publication title
El Copey: tierra de desapariciones, despojo y muerte
Date
2013-10-13

Data source #22

Data source type
Other (Please specify in comment field)
File
Date
2015-02-05
Comment on data source
Call for Previous consultation. Letter sent by Control Union, a certifier

Data source #23

Data source type
Company sources
Publication title
Palmares de la Costa S.A.

Data source #24

Data source type
Other (Please specify in comment field)
File
Date
2018-05-04
Comment on data source
Application form for the certification of the Roundtable on Sustainable Palm Oil

Data source #25

Data source type
Other (Please specify in comment field)
File
Comment on data source
RSPO certification report of Palmeras de La Costa

Data source #26

Data source type
Government sources
File
Publication title
Sentencia 200001312100120180001700
Date
2019-05-28
Comment on data source
Court sentence linked to the plot known as "Santa Inés", which was acquired by Palmeras de la Costa after threats suffered by a smallholder

Data source #27

Data source type
Government sources
File
Publication title
Sentencia 20001-31-21-003-2015-00113-00
Date
2016-07-19
Comment on data source
Court sentence linked to the plot known as "Casa Loma", which was acquired by Palmeras de la Costa after threats suffered by a smallholder

Data source #28

Data source type
Media report
File
Publication title
¿Qué es el Grupo Daabon?
Date
2012-10-10
Comment on data source
Interview to one of the main stakeholders of the Grupo DAABON, one of the investors of the joint venture "Biocombustibles del Caribe". Here is explained that the land of this investor was acquired in the 1970s and not after the 2000s.

Consultation of local community

Community consultation
Other
Comment on consultation of local community
Palmeras de La Costa is following a certification by several labellings, including the RSPO label. On their applications and the forms required for this certification the company seems to apply a previous consultation scheme for the neighboring communities. Nevertheless, there have been some cases involving this company that contradict this. Regarding Palmeras de La Costa, it seems that smallholders were displaced by paramilitary groups so that oil palm plantations could be implemented: Sources: https://verdadabierta.com/el-copey-tierra-de-desapariciones-despojo-y-muerte/

How did the community react?

Community reaction
Rejection
Comment on community reaction
The community had to flee their homes due to constant clashes between illegal groups and political murders. By the end of the 90s and the start of the 2000s, the paramilitary violence worsened and many left their lands. After the enactment of the "Land restitution law" in 2011, many smallholders started processes against Palmeras de La Costa for the usurpation of their landholdings.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
In the case of Palmeras de La Costa, it seems that there were land conflicts, threats and displacements. Source: https://verdadabierta.com/el-copey-tierra-de-desapariciones-despojo-y-muerte/

Displacement of people

Displacement of people
Yes
Comment on displacement of people
It is uncertain the number of displaced households. Nonetheless, it is completely certain that paramilitary groups displaced smallholders previous to the land acquisitions by Palmeras de La Costa

Negative impacts for local communities

Negative impacts for local communities
Displacement

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Promises of support with technical assistance and the certification process for oil palm small outgrowers.
Received compensation (e.g. for damages or resettlements)
Promises of support with technical assistance and the certification process for oil palm small outgrowers.

Promised benefits for local communities

Comment on promised benefits for local communities
Technical assistance and support in the certification process for the RSPO

Materialized benefits for local communities

Materialized benefits for local communities
Financial Support
Comment on materialized benefits for local communities
Souce: https://docplayer.es/14384692-Palmeras-de-la-costa-s-a.html

Former land owner (not by constitution)

Former land owner
Private (smallholders)

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Shrub land/Grassland (Rangeland)

Detailed crop, animal and mineral information

Crops area
[2018] Oil Palm (3489 ha)
Crops yield
[2018] Oil Palm (73280 tons)

Detailed contract farming crop and animal information

Contract farming crops
[2017] Oil Palm (1263 ha)

Use of produce

Has domestic use
Yes
Domestic use
100

In country processing of produce

In country processing of produce
Yes
Processing facilities / production infrastructure of the project (e.g. oil mill, ethanol distillery, biomass power plant etc.)
Mill, Refinery
In-country end products of the project
The company is involved in a joint venture with the DAABON group. They established a biodiesel refinery in the municipality of Santa Marta. The biodiesel is all traded in Colombia.

Water extraction envisaged

Water extraction envisaged
Yes
Comment on water extraction envisaged
From a document issued by an environmental regional authority, it is possible to deduce that the company envisaged water extraction. The environmental authority entitles the company to use domestic and industrial residual waters for their plantations. Source:

Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)

Application of Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)
No
Comment on VGGT
Both companies seem to have ethical, social, environmental, human rights guidelines, nevertheless both are involved on legal processes related to land titles, and displacement.

Principles for Responsible Agricultural Investments (PRAI)

Application of Principles for Responsible Agricultural Investments (PRAI)
No
Comment on PRAI
Both companies seem to have ethical, social, environmental, human rights guidelines, nevertheless both are involved on legal processes related to land titles, and displacement.

Overall comment

Overall comment
Initially this deal related to a join venture between Palmeras de La Costa and the DAABON group for the construction of a biodiesel refinery and the establishment of a free trade zone in Santa Marta. Given that the lands under the ownership of the DAABON group were likely obtained in the 1970s, this company is not mentioned in this deal. Palmeras de La Costa is present since the 1970s in the municipality of El Copey in Cesar, Colombia. Nonetheless, it is confirmed that after a violent paramilitary presence at the end of the past millenium, the company started to acquire some land plots abandoned by conflict victims. It is impossible to determine the dates of land acquisition of any plot. It is certain that at least two of them were acquired in 2003. The Colombian court of land restitution issued a document in which is stated that these land plots should be returned to the previous owners. According to the document, these land transfers were done without the proper consent of the smallholders or were achieved through violent repressions and threats.

Oct. 14, 2019, 5:18 p.m.

overwritten

This version

Compare with previous version

Sept. 10, 2019, 7:03 p.m.

overwritten

Show this version

Compare with previous version

Feb. 19, 2018, 9:26 p.m.

overwritten

Show this version

Compare with previous version

Feb. 16, 2016, 11:06 p.m.

overwritten

Show this version

Compare with previous version

Feb. 16, 2016, 10:57 p.m.

overwritten

Show this version

Compare with previous version

May 2, 2013, 2:21 a.m.

overwritten

Show this version

Compare with previous version

Feb. 15, 2013, 5:01 p.m.

active

Show this version

First version

There are no comments to this deal yet.

Add a comment

(mandatory)
(mandatory)
(mandatory)

I've read and agree to the Data Policy.