Deal #801

Location #1

Spatial accuracy level
Administrative region
Location
Norte de Santander, Tibú

Target country
Colombia
Contract area
Comment on location
Norte de Santander, Tibú. The polygons presented here represent some of the properties belonging to Bioagroindustrial de Colombia. By comparing the name of the facilities mentioned in Source 12 and cadastral data, it was possible to determine some plots. Finding the other plots was complicated because a lot of properties in the area have the same name, therefore selecting one of them would have some considerable error. The area has extended plantations of palm oil.

Land area

Size under contract (leased or purchased area, in ha)
[2014] 1814
Size in operation (production, in ha)
[2014] 1814
Comment on land area
The land was acquired in different moments (2001, 2008 y 2009) for Bioagroindustrial de Colombia in the Notary of Tibú. This extension of land acquired is for 21 properties. Source 6

Intention of investment

Intention of the investment
Biofuels

Nature of the deal

Nature of the deal
Outright Purchase
Pure contract farming
Comment on nature of the deal
Hacienda Las Flores, which belongs to Carlos Murgas, has developed some contract farming schemes. Hacienda Las Flores might be receiving the produce of approximately 12500 hectares, but not purchasing land. Its owner also owns Bioagroindustrial de Colombia

Negotiation status

Negotiation status
[2001] Concluded (Contract signed)
Comment on negotiation status
Hacienda Las Flores and its partners like Bioagroindustrial de Colombia are working for the expansion of oil palm in Colombia through their own plantations, through companies with other entreprises, and through what they call "alliances" with small and medium producers. So, the surfaces cultivated are dynamically changing.

Implementation status

Implementation status
[2001] In operation (production)
Comment on implementation status
Hacienda Las Flores and its partners like Bioagroindustrial de Colombia are working for the expansion of oil palm in Colombia through their own plantations, through companies with other entrerprises, and through what they call "alliances" with small and medium producers. So, the surfaces cultivated are dynamically changing.

Purchase price

Purchase price
253167
Purchase price currency
Colombian Peso ($)
Purchase price area type
per ha
Comment on purchase price
This price relates to the purchase of one land holding known as "Finlandia"

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased area (in ha)
[2012] 12500
Comment on contract farming
The one managing the Contract farming is Hacienda Las Flores, which belongs to the same owner of Bioagroindustrial de Colombia. They receive the produce of 17 producer associations.

Operating company

Comment on investment chain
According to the newspaper source, founded on official governmental informations, Hacienda Las Flores and Bioagroindustrial de Colombia are purchasing small properties in the municipe of Tibú (Catatumbo), taking advantage of the context (region hurted by violence where peasants were expulsed and are afraid to come again) and perhaps exercing pression on smallholders to force them to sell their land. Both companies have the same owner Carlos Murgas, but Bioagroindustrial was registered like owner.

 

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Data source #1

Data source type
Media report
File
Date
2009-01-01
Comment on data source
"Masiva compra de tierras a víctimas en Montes de María y Catatumbo; las pagan por debajo de su valor", by Marisol Gómez Giraldo, eltiempo.com, 29 de marzo de 2009

Data source #2

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

Data source #3

Data source type
Company sources
File

Data source #4

Data source type
Media report
File
Date
2012-03-03
Comment on data source
It relates the process development of the Hacienda las Flores work in the Catatumbo, and the relationship with Bioagroindustrial

Data source #5

Data source type
Research Paper / Policy Report
File
Comment on data source
It points 1017 hectares in Tibú in hands of Bioagroindustrial de Colombia

Data source #6

Data source type
Company sources
File

Data source #7

Data source type
Media report
File

Data source #8

Data source type
Research Paper / Policy Report
File

Data source #9

Data source type
Media report
File

Data source #10

Data source type
Media report
File

Data source #11

Data source type
Media report
File

Data source #12

Data source type
Government sources
File

Data source #13

Data source type
Media report
File
Comment on data source
Secondary investors of company in page 295 to 297

How did the community react?

Community reaction
Consent
Comment on community reaction
the land was acquired through purchase contracts

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
Forest land

Detailed crop, animal and mineral information

Crops area
Oil Palm

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Bioagroindustrial sells the production to Hacienda las Flores ( Carlos Murgas Guerrero is the owner of both)

Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)

Application of Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)
No
Comment on VGGT
It seems that some of the properties purchased by Bioagroindustrial de Colombia were bought to peasants that had left their plots and the transfers were done without their knowledge. It seems that there was corruption involved by some members of the land institutions of Colombia in the state of Norte de Santander.

Principles for Responsible Agricultural Investments (PRAI)

Application of Principles for Responsible Agricultural Investments (PRAI)
No
Comment on PRAI
It was proven by the government that Bioagroindustrial de Colombia established palm oil plantations without the required permissions. Additionally, it had affected several water sources and deforested.

Overall comment

Overall comment
Import of error check - Coordinator's overview comment: Review - issues with land size and use Import of error check - Reviewer's overview comment: The case is founded but the issue is about the total land surfaces involved because there is both a coordinated and competitive action between various companies (not only the two mentioned here) to expand oil palm plantations on proper estated and through other holders. The pression on small holders to buy their properties at little prices is documented by an official agency near presidency, named Programa de Protección de Tierras de Acción Social. The land extension is compiled for Verdad Abierta and the relationship between Hacienda Las Flores and Bioagroindustrial de Colombia for one of the sources added

June 28, 2019, 7:29 p.m.

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Oct. 24, 2017, 2:34 a.m.

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Feb. 16, 2016, 8:38 p.m.

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Jan. 21, 2016, 9:01 p.m.

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Aug. 28, 2013, 7:37 p.m.

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Feb. 15, 2013, 5 p.m.

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