Deal #3245

Colombia
Created at
2013-02-27
Last update
2019-03-17
Last full update
2019-03-17

Land area

Size under contract (leased or purchased area)
  • [2006, current] 5300.0 ha
Size in operation (production)
  • [2006, current] 5300.0 ha
Comment on land area
The company implements a project called MIDAS with fund of USA. This project allows that smallholders grow eucalyptus for the company.

Intention of investment

Intention of investment
  • [current] Timber plantation for wood and fiber, Forest logging / management for wood and fiber

Nature of the deal

Nature of the deal
Pure contract farming
Comment on nature of the deal
With support from USAID, the company was fostering the implementation of silvopastoral system in ranches located in the Atlantic Coast of Colombia.

Negotiation status

Negotiation status
  • [2006, current] Concluded (Contract signed)

Implementation status

Implementation status
  • [2014, current] Project abandoned
Comment on implementation status
It is not quite clear, but it seems that the company had started an insolvency process at the correspondent Colombian authorities.

Contract farming

Contract farming
Yes
On leased area/farmers/households
  • [2010, current] 5260.0 ha 1157
Not on leased / purchased (out-grower)
Yes
Not on leased area/farmers/households (out-grower)
  • [2010, current] 5260.0 ha 1740 1157
Comment on contract farming
The company has agreed with beef producers to start planting eucalyptus for silvopastoral systems. The producer will offer the land use and some workforce, while the company will support the outgrowers with credit management, technology, technical assistance and input purchases (economies of scale to reduce input costs). According to the program, the outgrowers would obtain 75% of the produce, while Madeflex would retain 25%. For smallholders this share raises to 80%