The Oil Palm Agroindustry

in Colombia

The world of the oil palm is about shades of green and warm, humid, environments which are inhabited by hundreds of species of plants and animals. It is also about human relationships and communities, where the urban and rural, national and international worlds intertwine and interact. The oil palm community also involves farming, extraction industries and a whole range of different activities. It is a world where diverse and complimentary efforts merge to form production chains, which bring progress and promote social development.

The National Federation of Oil Palm Growers (Fedepalma) is one of Colombias most well-established trade associations. As a promoter of the oil palm, Fedepalma contributes to the needs and future progress of the country. The oil palm is an oleaginous fruit and when nurtured in Colombias soils bring progress and benets.

Queen of the Oleaginous Plants

Today, out of all oleaginous plants, oil palm produces the most oil. On average, a hectare of oil palm produces six to ten times more oil than other oleaginous plants.

The origins of the African oil palm, known as Elaeis guineensis Jacq, can be traced back to the Gulf of Guinea in West Africa. In the Americas, the oil palm is also known as noli or Elaeis oleifera. The African oil palm has integrated harmoniously with other plant species found in the tropics and in Asia, Africa and the Americas. Products made from oil palm are found all over the world, including edible oils, food concentrate for animals, cosmetics, paints, soaps, detergents, printing inks, candles, biofuel, and forms part of many other important ingredients used today.
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The outstanding versatility of palm oil, along with its prolic yield and countless attributes is what makes it a popular crop among farmers. Consumers choose palm oil for its health benets and industries favor palm oil for its physical properties, including its excellent stability, which allows it to be mixed with other raw materials. Governments consider oil palm an ideal crop through which to create development projects, generate employment and promote alternative fuels. Oil palm is an expression of life, a symbol of progress and a generator of benets.

Average yield of palm oil (ton/ha)

Palm 3.7 Rapeseed 0.6 Sunower 0.4 Soybean 0.4

Palm Kernel 0.4

In 2005, around 9.1 million hectares of oil palm met 27.3% of the global demand for oils and fats. In comparison, 92.5 million hectares of soybeans met just 24.3% of the global demand for oils and fats.

Palm oil A gift from the tropics to the world

Few tropical plants have become so important in todays world like the oil palm has. It is the worlds leading supplier of edible oils and fats. More recently palm oil has played an important role in the development of alternative fuel sources used to run machines.

The worlds main producers of palm oil

The oil palm is a living expression of the tropics it is a sun and water plant which radiates exuberance, majesty and robustness. The mature fruit blazes like and Equatorial sunset.
10. Honduras 9. Costa Rica 3. Nigeria 8. The Ivory Coast 2. Indonesia 6. Papua New Guinea 1. Malaysia 4. Thailand

5. COLOMBIA
7. Ecuador

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Even before the very rst civilizations appeared in Africa, palm oil was eaten by populations living along the coast between Senegal, Angola and Congo River basin. In Europe, palm oil became more widely used during the Industrial Revolution and was used as grease and to produce soaps, candles and lubricants. In addition, kernel husks recovered from the remaining chaff of the palm fruit were used as cattle feed during that same period. In the Far East, oil palm was introduced during the 18th Century and was used for ornamental purposes. The Dutch and English were the rst to start systematically cultivating oil palm. The rst commercial oil palm plantations were founded in 1911 in Indonesia and later in Malaysia in 1914. By the end of the 1950s, two right conditions had developed leading to the further growth and development of oil palm plantations economic potential. This growth was helped by the development of genetic materials and a huge surge in global demand for edible fats in the post-war era. As a result, the numbers of oil palm plantations and production increased rapidly during the 1960s, doubling the worlds supply of palm oil. The Malaysian government staunchly backed the oil palm sector as part of its development plans. Consequently, Malaysia has become today the worlds main exporter of palm oil, displacing African countries, which previously held this position and which palm oil production nowadays in mainly destined for domestic consumption. The growth of Malaysia, as the worlds leading producer of palm oil, closely followed by Indonesia, has been important in the development of the oil palm agroindustry in general. Malaysia has also helped to promote rapid growth in palm oil production and productivity rates, due to greater research and improvements in technology and business efciency. The last quarter of the 20th Century saw a rapid increase in oil palm production. By now, palm oil was playing an important role in meeting global supply for edible fats, accounting for more than a quarter of its supply and ranking second in the production of edible fats, beaten only by soybean production. The growth of oil palm plantations has played an important role in shaping a booming agroindustry which is always looking towards new national and international markets. The oil palm agroindustry creates many offshoot industries, including farming, extraction industries and businesses which share a global vision and follow stringent business codes of ethics.

The plant
The Elaeis guineensis Jacq., or oil palm is a perennial tree, of late and long yield, and it can grow up to 30 meters.

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Oil palm plants have bright male and female owers which bear fruits by the thousands. Its fruits are round, ovoid or elongated in shape which make up compact bunches weighing between 10-40 kgs. Before ripening, palm fruits are dark purple, almost black, and when they become ripe under a tropical sun, they acquire a bright, colorful orangey-red color. Inside each fruit is a single seed, the kernel or palm kernel, protected by a woody endocarp or shell which is surrounded by a eshy mesocarp or pulp. Both the pulp and kernel produce large quantities of oil. Two types of oil are produced, palm kernel oil from the kernel and the palm oil extracted from the pulp. The stem of the palm tree is straight and the plant forms the shape of an inverted cone. Young palms have rough, jagged stems. Later older palms have smoother stems but have scars left behind as some 40 leaves wither and fall off, giving the stems a layered and segmented texture. When the oil palm tree has reached middle age, its leaves lie almost parallel to the ground, between 3-7 meters long. Each leaf is made up of some 250 linear folioles, which grow out of the sides of its petiole in an irregular pattern. The messy and disorganized appearance of the leaves is a special feature of the oil palm. The oil palm is a perennial tree, its production can last more than 50 years. But after 20-25 years, the oil palm is difcult to harvest because of its height. Normally at this stage, plantations are cleared out and replanted.
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Plantation work
Cultivating oil palm not only requires the right climate and soil. Obtaining maximum yields at each production stage also depends on the quality of seeds used, a rigorous selection process of seedlings in the nursery, good soil preparation before planting, the correct setting up of coverage plants and the right use of fertilizers.

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Oil palm plantations require intensive labor and much care. Palm trees need to be protected and nurtured carefully so that they grow, develop and reach their maximum yields as quickly as possible. Good plantation management also involves protecting the oil palm throughout its life span and ensuring that other crops do not take away the water, light and soil nutrients it needs. The oil palm requires the right amount of water and nutrients when necessary. Finally, it is important that leaves and bunches are cut carefully so as not to damage the plant. A varied labor force with different levels of expertise and experience works on oil palm plantations. Those working at the eld are aware that the way fruits are harvested, transported and processed all affect the quality of oil produced in the end. The design of a plantation, including the lay out of its lots, paths and canals and the site of a palm oil mill, all play an important role in oil palm cultivation, including how fruits are harvested and transported to the mill.

The Oil Extraction Process

Oil palm fruit are processed at a palm oil mill. Here oil is extracted in crude form, both from the palm kernel and fruit.

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This process involves rst sterilizing the fruit bunches, picking fruit off the bunches, macerating the fruit from which pulp oil is extracted and then nally recovering the palm kernel from the remaining chaff. Palm kernels produce two types of products palm kernel oil and palm kernel meal the latter being an important ingredient in animal feed. Plantations need to be located near mills because once bunches are cut off a tree, the fruits can perish quickly. Each plantation or group of plantations, including the mill and facilities where fruits are processed, form the heart of oil palm production. Apart from Africa, where palm oil is normally consumed in its crude form, palm oil goes through a rening process. This involves humidity reduction, bleaching and deodorizing it. Sometimes palm oil is sold in this rened form, but usually consumers buy palm oil already mixed with other vegetable oils. After fractionining palm oil, two products are obtained: olein and stearin fractions. In warm climates, olein fraction is liquid and can be mixed with any type of vegetable oil. In comparison, stearin fraction is more solid and is used to produce fats, mainly margarines and soaps. The particular properties of olein and stearin fractions account for their versatile nature, allowing them to be used in a variety of ways.
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Palm Oil
Palm oil is part of our world in many more ways than we imagine. It is present at home, work, in restaurants, and even cars rely on the countless uses of palm oil. As technology develops in our fast-paced worlds, and the need for healthy diets, new uses of palm oil develop too.

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Cada Mosto, a Portuguese explorer from the 15th Century once tasted palm oil in Africa and wrote: It smells of violets, tastes like olives and has a colour that blends foods together like saffron, but even all this cant sufciently describe its special qualities. Palm oil is rich in carotene (Vitamin A) from which it derives its bright, tropical, red colour. In fact, the carotene content of palm oil is 17 times higher than levels found in a carrot with the same mass and weight. This makes palm oil one of the main and richest sources of carotene and as such is important in combating vitamin A deciency common in many developing countries. Tocopherols and tocotrienol (vitamin E fractions) are other important nutrients found in palm oil. Carotene, tocopherols and tocotrienol act as antioxidant agents and can reduce cell damage caused by toxic substances and environmental pollution, which are both known to speed up aging and the development of certain diseases. In addition, palm oil is an excellent source of tocotrienols, which are powerful anticancerigenic substances and help against thrombosis. In Asia, palm oil is also referred to as gold oil for its perfect balance of saturated and unsaturated fatty acids which do not adversely affect cholesterol levels. The palm tree originally comes from Africa and even though in the past Africans did not fully know about the benets of palm oil, it has been used as a source of food for the last 5,000 years. Today, as in the past, crude and unrened palm oil is consumed across Africa.
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The many uses of oil palm products

A healthy, versatile crop
Due to its physical characteristics, palm oil can be used and prepared in a number of processes without the need to hydrogenate it. This has advantages as hydrogenation can produce undesirable trans fatty acids which may lead to diseases, including cardiovascular problems and diabetes. The composition of palm oil, together with its natural consistency, appearance, pleasant smell and its resistant nature makes it an ideal ingredient in the development and production of a variety of edible oils, in particular margarines and fats. Palm oil is also ideal when making the following products: dry cake mix used for baking biscuits, cakes and sponge cakes, soups, sauces, fat substitutes used when making condensed milk, powdered milk, non lacteous cream used in coffee and ice-cream.
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Palm oil is also considered one of the best oils for frying. This is because it can resist high temperatures and does not produce unpleasant smells. Palm oil as such is used in the home, in restaurants and during the mass production of fried potatoes, French fries, puffy hor'dourves, pies, ring-shaped pastries and doughnuts. Also, palm kernel meal, a by-product of palm oil, is used in the production of animal feed and as a supplement in animal nutrition. In comparison palm kernel oil, even though it comes from the same fruit, is very different from the oil obtained from the rest of the fruit. In fact, palm kernel oil resembles coconut oil and is semi-solid or solid at room temperature and melts at temperatures above 30C. When it is eaten it produces a soft sensation in the mouth, similar to cacao butter. This makes palm kernel oil popular among chocolate lovers. Due to its neutral taste and long life, palm kernel oil can also be used as a substitute for cacao and fats found in milk. Palm kernel oil is used in cream made from sugar, condensed milk and doughnut llings. It is also found in biscuits and cakes giving them a softer texture and sweeter taste which lingers in the mouth. Palm kernel oil is also used to make special kinds of margarines and is found in ingredients used when baking cakes, croissants and bread, giving these products added volume, a soft texture and making them last longer. Palm kernel oil is also favoured when making sweets, cream for coffees and peanut butter.
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Other uses of palm oil

Palm oils have non-edible uses which are of great economic value and can be used as a substitute for petroleum.

Palm and kernel oils are used in the production of oleochemical products such as fatty acids, fatty esters, fatty alcohols, which all contain glycerol and fatty nitrogen. Recently, palm and kernel oils have been increasingly used as biodiesel fuel. In 1900, Rudolf Diesel used vegetable oil as fuel for the engine, from which it subsequently took its name. Years later, palm oil was successfully developed as a biofuel for cars. Using palm oil as a biofuel is more environmentally friendly and its more advantageous than other combustible fuels such as petrodiesel and standard petrol.
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Colombia has pledged to produce biodiesel using palm oil mixed with diesel. This will eventually play an important role in providing energy fuels which can power thousands of cars and machines with motor engines across Colombia. Using palm oil as a biodiesel brings benets and is environmentally friendly. It also generates employment and contributes to the supply of renewable energy sources. Non-edible uses of palm and palm kernel oils include: Soaps and detergents Candles Cosmetics Lubricating greases for machinery used in the production of edible foods Grease for bread molds and bread making equipment Grease used to protect tanks, pipelines and similar instruments which remain uncovered and in the open air Drilling mud for the petroleum industry Epoxidated palm oil used to plastify and sterilize products in the plastics industry, in particular during the production of PVC Glue Printing inks Biodiesel Metallic soaps for the manufacture of lubricating grease and metallic dryers Steel cold rolling processes Tinplate rolling Acids to lubricate bers in the textile industry

In addition to oils extracted from the oil palm fruit, other parts of the tree can be used in industry. For example, leaf bers and empty fruit bunches are used to produce chipboard and plywood. After plantations are cleared out, the trunks of old palms can be used to make furniture.
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Colombia The Land of the Oil Palm Tree

Colombia is the worlds fth producer of palm oil and the leading producer in Latin America. Palm growing is one of the countrys most promising and important agricultural activities and is at the heart of Colombias economic and social development.
Oil palm, Elaeis guineensis, was rst introduced to Colombia in 1932. But it was only in the mid-20th century that oil palm growing in Colombia rst started to be commercialized across the country, backed by government policies aimed at developing farmland and supplying Colombia with locally produced palm oil. As part of the governments plans to back and promote the oleaginous crop, oil palm was rst grown in the Caribbean coastal plains, in the middle Magdalena River valley, the foothills and plains of the llanos and in southwest Colombia. Both palm growers and Fedepalma have played an important role in the development and strengthening of the oil palm agroindustry as a whole. As a result of these efforts, during the 1980s, the number of hectares of oil palm in Colombia had tripled. By now, oil palm was the countrys most important raw material in the production chain of oil seeds and oils and fats. In the 1990s, efforts focused on improving the competitiveness of oil palm companies and Fedepalma sought to help palm growers compete and meet the challenges they faced in the 21st century. Palm oil and palm kernel oil accounts for 90% of oils and fats produced domestically and almost 60% of all oils consumed in Colombia. Since 1990, palm oil exports have increased signicantly and make up an important share of Colombian agroindustrial exports.
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The areas with the highest number of hectares of oil palm are (in order): The departments of Meta (1), Cesar (2), Santander (3), Magdalena (4), Nario (5), Casanare (6), Bolvar (7),Cundinamarca (8) and Norte de Santander (9). Other departments with oil palm plantations are: Atlntico, Caquet, La Guajira, Crdoba, Choc, Antioquia, and Arauca.

It is estimated that by the end of the rst decade of the 21st Century, the production of palm and palm kernel oils in Colombia will exceed 1,000,000 tons.

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Oil Palm - An ecological crop

Colombia is the second most biodiverse country in the world. The countrys rich biodiversity is found in its national parks and protected state forest reserves. In addition, a large number of oil palm plantations and estates are found in Colombias natural ecosystems. For this reason, the oil palm sector places great importance on following policies which promote sustainable development.

Oil palms are planted in a triangle, with a distance of around 9 meters separating each other. Trees are planted in straight lines and can cover tens, hundreds and even thousands of hectares. As palm trees grow and mature, the area becomes like a forest where a variety of ora and fauna live. As a result of photosynthesis, palm trees can x large amounts of carbon gas and in such a way help to lessen the effects of global warming. Micro-climates form around palm plantations which contribute to the sustainability of other crops and benet communities living nearby. In Colombia, palm plantations are set up without having to cut down native forest areas and are built in regions which were once used for farming. Colombian palm growers are committed to caring for the environment and have adopted a range of good practices which allow them to maintain a competitive edge and promote sustainability, while complying with international standards.
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The Oil Palm - A Social Crop

The Colombian oil palm sector plays an important role in peaceful and sustainable development across the country.
Today, Fedepalma is proud of the fact that in 73 of Colombias municipalities, making up half of all the countrys provinces, the oil palm agroindustry provides 80,000 jobs beneting thousands of families and generating regional development. The oil palm community gathers small oil palm growers, agricultural workers, administrative staff, technicians and professionals with different areas of expertise and numerous companies with diverging interests in agriculture and industry. A whole range of people make up the oil palm community, who bring different experiences and levels of expertise to the sector. Across Colombias oil palm growing regions, Fedepalma forges strategic alliances between medium, large-scale palm growers and small-scale farmers. They all contribute to the palm agroindustrys progress by sharing their knowledge, cultures and efforts, from which everyone can benet from.

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Fedepalma - The Oil Palm Growers Organization

Fedepalma identies and appraises the needs of its members so that it can respond effectively to their interests. Its mission aims at gathering oil palm growers, protecting their interests and guiding them in their oil palm-related activities.

Fedepalma is one of the most well-established and dynamic associations in the agricultural sector. Fedepalmas work has played a decisive role in strengthening and consolidating the oil palm agroindustry in Colombia. Fedepalma works like a business. Since its founding in 1962, it has pushed forward a whole range of initiatives aimed to increase the sectors competitiveness. It has supported programs which help oil palm growers and producers gain training and progress efciently on their own. As a business organization, Fedepalma examines the inherent risks present in the oil palm market. It analyzes the oil markets, commissions pilot studies, explores new uses of palm oil and advises palm growers about possible future challenges. In such a way, Fedepalma helps oil palm growers to make informed decisions based on extensive, rigorous, up-to-date and accurate research and data provided by the union.
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Thinking towards the future

Fedepalma formulates policy and business strategies which address the current challenges facing the oil palm agroindustry, while taking into account the needs of the sector. The association promotes policies which focus on the sustainability of the oil palm agroindustry in the future.

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Until the 1980s, Fedepalma focused on implementing the right conditions and measures needed for the oil palm sector to progress and it protected the sector as it began to market its products. This policy was backed by successive governments. Later in the 1990s, due to the expansion and strengthening of the oil palm agroindustry, Fedepalma turned its attention to promoting research across the sector. It also promoted measures and initiatives which aimed to improve the competitiveness of the Colombian oil palm agroindustry, enabling it to be in a stronger position to compete with global markets. These measures were adopted while following liberal economic market policies which encouraged the opening up of domestic markets to participate in markets abroad. In recent years, society as a whole has become more aware of and concerned about health and the environment. In this context, palm oil plays an important role. Its physical properties allow palm oil to be adapted for an innite number of uses. Palm oil is a raw material present in many healthy foods and can be used to replace petrol with environmentally friendly biofuel. To meet these current challenges, Fedepalma is encouraging its members to create new initiatives which have a global vision and are environmentally friendly, including initiatives which focus on diversifying the uses of palm oil in national and international markets. Fedepalma is providing training programs for its members which address each stage of the palm oil production process and is actively participating in the denition of their policies. Colombian oil palm growers can rely on Fedepalma to promote the oil palm sector in an organized and structured way. Fedepalma is committed to developing research units, marketing palm oil products, and securing nancial backing for large-scale agroindustrial projects. Also, Fedepalma is involved in implementing special programs which are based on clear and sound business criteria and devise strategies across the sector which enhance the sustainability of the palm sector in the future.
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Research and Technology Transfer

Fedepalma believes that research and technology transfer play key roles in the oil palm sectors competitiveness. As a result, in 1990 Fedepalma created the Oil Palm Research Centre Corporation (Cenipalma) which has led the way in providing solutions which affect the oil palm crop in general, including phytosanitary problems. Cenipalma also provides scientic data which can help oil palm growers increase yields, the quality of oils they produce, and at the same time reduce costs. In Colombia, research in the oil palm sector focuses on promoting the competitiveness of the industry and guarantying its sustainable development. Research is also committed to improving the quality of palm oil products while emphasizing the social benets of palm oil. Cenipalma leads studies which focus on technology transfer. It also carries out research in the following areas: diseases which can harm the oil palm, integrated pest management systems and pollinators, irrigation systems,
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integrated water management and soil systems, studies into the physiology of the oil palm and its nutrient needs, developing new varieties of oil palm which can adapt to the specic environment, benchmarking and productivity of the palm oil extraction process and its by-products. In addition, Cenipalma is also involved in disseminating research to the oil palm community about the use and benets of palm oil in human diets and health. Fedepalma and Cenipalma are committed to developing technology and scientic research in the oil palm sector. As a result, the Field Research Centre of Palmar de La Vizcana was opened in 2004 and is located in the countrys central oil palm growing area, in the municipality of Barrancabermeja. Its main aim is to support research which deals with the development of better materials, allowing the oil palm crop to adapt more easily to the different edafoclimatic conditions found across Colombia. The Field Research Centre also develops agronomic projects which promote efcient crop management in general.

The Oil Palm Development Fund: A Guarantee for Sector Programs

The industry scheme to underwrite programs of collective interest to the oil palm agroindustry is the Oil Palm Development Fund, created in 1994 by the Colombian Congress. It is funded by mandatory contributions from all crude palm oil and palm kernel producers and is managed by Fedepalma. The supreme authority of the Oil Palm Development Funds (and also of the Price Stabilization Fund for Palm Kernel, Palm Oil and its Fractions) is the National Congress of Oil Palm Growers. It represents all producers who have enlisted on the National Oil Palm Growers and Mills Register. The Congress convenes at least once a year to examine investments made by the Funds and to indicate general guidelines for their operation. It also appoints industry representatives to the steering committee of both funds.
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Marketing Oil Palm Products

Most people working in the oil palm sector are either involved in cultivating the oil palm crop and or processing it. The oil palm agroindustry produces many different products, including: Oil palm fruit Crude palm oil Palm kernel Crude palm kernel oil Palm kernel meal

Marketing oil palm products is and always has been about international markets. This accounts for the oil palm sectors ability to adapt and respond to changes in international markets and the global economy. As with other products, palm oil and palm kernel oils are marketed according to supply and demand in the oils and fats market in general. In Colombia, the supply of palm oil products depends on particular seasons and harvest times when there is usually an increase in the supply of palm oil products and in storage capacity during these times. The supply of palm oil also depends on the ability of palm growers to sell their products to potential buyers and if and how much they decide to export. Accordingly, the demand for palm oil depends on the consumption levels of fats and oils, managing inventory levels and the ability of palm oil products to compete with similar products. The demand for palm oil is also inuenced by macro-economic
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policies in general which can either encourage or limit the import of other oil and fat products. Successful marketing of palm oil thus depends on its producers, including the decisions they make, how disciplined they are, and their ability to work as a team. At the end of the 1980s, palm oil production surpassed local consumption in Colombia. For this reason, Fedepalma decided to regulate internal supply for palm oil and seek new external markets. In 1991, Fedepalma promoted the creation of the Oil Palm Marketing Unit, now named C.I. Acepalma S.A., which implements marketing strategies for oil palm products and helps Colombian palm growers to export and market their products abroad. Later, Fedepalma promoted the organization of The Price Stabilization Fund for Palm Kernel, Palm Oil, and its Fractions (FEP). This Kick-Off Fund is a special account nanced with levies on producers, sellers or exporters. Its main aim is to stabilize revenues derived from palm oil and crude palm kernel oil products made in Colombia. From 1995, Colombian palm oil exports diversied in terms of their markets and increased nine-fold, helped by Fedepalmas marketing strategies and a dynamic supply of palm oil. Today, Colombian palm oil products are sold in more than 15 countries across Europe and the Americas. The above measures have increased the supply of Colombian oil palm processed products abroad. Oil palm processed products exports now account for 20% of all oil and fats products that Colombia exports. This has also led to an improvement in export logistics and infrastructure, including expanding storage capacity in liquid bulk terminals at Colombias ports. Fedepalma has played an important role in promoting Colombian oil palm products in global markets, providing its support in the different free trade agreement negotiations of the Colombian government with other countries.
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More about Fedepalmas programs

Colombian palm growers are committed to promoting their sector in national and international markets, developing products which are competitive and adhere to ever demanding international quality standards. Fedepalma helps to direct resources and projects in key areas including, training programs, economic studies and marketing.

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Fedepalmas main programs are: TRAINING PROGRAMS. This is a key area in Fedepalmas work which provides training programs that focus on raising the oil palm sectors competitiveness. Fedepalma believes that oil palm sector workers can benet from research and experiences from across the industry, allowing its members to stay informed. Training programs meet the needs of the oil palm community by using the expertise and knowledge of those already working in the sector. This way it is possible to make the sector more competitive, promote educational resources and organize different workshops and courses accordingly. ECONOMY ANALYSIS. The palm oil agroindustry in general competes with other global oils and fats industries. In general, the oils and fats industry is a complex market and operates in a competitive environment where marketing plays an important role and where prices are prone to uctuate. This can make the oil palm sector a vulnerable market. Fedepalmas, Economic and Trade Division, carries out a number of key tasks which allow oil palm business leaders to make informed decisions. It analyses and keeps a close eye on markets, in particular the oils and fats market, carries out pilot studies and initiates a variety of projects. MARKETING PALM OIL PRODUCTS AND MARKETS. Due to the increase in palm oil production and competition from other oils and fats produced around the world, Fedepalma is always looking for new products, trends and uses of palm oil which can benet its palm growers. Fedepalmas, Marketing and Promotion of Markets Division, deals with identifying potential new palm oil products and new trends in the use of oils and fats which can contribute to its development in Colombia. It seeks ways to enter new global markets using audacious marketing campaigns based on sustainability and competitiveness.

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FUNDING. To develop and nance large-scale agroindustrial projects, Fedepalma established in 2000 Propalma S.A., which is the Oil Palm Agroindustrial Projects Promotions Agency. Since its establishment, Propalma S.A. has concentrated its efforts on structuring the issuance of a securitization instrument to allow the oil palm sector to access funds to nance its new initiatives and reduce its dependence on the banking sector, thus reducing the sectors production costs. At the start of 2005, Propalma S.A. has issued its rst securities to generate capital for oil palm investment projects. HUMAN HEALTH AND NUTRITION. This is another important part of Fedepalmas work which focuses on promoting and disseminating scientic research about the nutritional value of palm oil and its derivatives for human consumption. Fedepalma disseminates research among consumers of palm oil in Colombia to examine its health benets. The association consults with professional nutritionists and keeps up-to-date with the latest research in the eld. THE ENVIRONMENT. Fedepalmas environmental program focuses on promoting strategies which help to prevent, reduce and control any type of environmental impact the oil palm agroindustry may have on the environment. The association is also involved with protecting ecosystems and initiates programs which develop best business practices and the use of renewable resources while working in a competitive market. Fedepalma believes that environmental issues need to be a priority among oil palm growers. It is also involved in promoting environmental quality certicates and specic programs which focus on the Kyoto Protocol agreement. Also, Fedepalma helps managers of palm oil mills to implement environmental management plans and forges lasting working relationships between palm oil producers and environmental authorities. THE INFORMATION CENTRE. The centre is run by Fedepalma which offers its members, specialized, up-to-date and reliable information about the agroindustry in general, with helps to promote sustainability and competitiveness across the sector. The centre has a variety of national and international publications related to the sector.

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What does Fedepalma do?

Fedepalma brings together and represents oil palm growers and palm oil
producers from across the country and protects their interests while promoting the oil palm sector. xamines, researches and analyzes technological developments and economic and political trends which may affect the oil palm sector and its environment. This allows Fedepalma to examine the right conditions and strategies needed for the sectors further development. It also examines the oil palm sector in relation to other industries in order to improve its competitiveness and sustainability.

Disseminates information it produces and amalgamates data, so that its

members and other sectors involved in the oil palm agroindustry can make informed decisions. stablishes and promotes policies, strategies and actions designed to encourage and guarantee investment, increase production and explore potential markets so that the oil palm agroindustry in Colombia can expand.

Promotes relationships, alliances and agreements with businesses and those

involved in palm oil production in order to promote the oil palm sectors stake in the oils and fats market.

Advises and supports the government to carry out research which focuses on
nding solutions to problems relevant to the oils and fats industries, and in particular research that deals with the production and uses of palm oil and its by products. eads projects in collaboration with other public and private sectors which support the work of palm growers and those projects which focus on enhancing the progress of the oil palm agroindustry in general. In particular, Fedepalma promotes training initiatives across the sector. aintains permanent links with similar international organizations and research bodies which are involved with the growing, production and sale of palm oil.

Adopts and champions projects across the oil palm sector, backed by oil palm
growers, which lead to the progress and development of Colombia in general.
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Fedepalma - serving its members

Being a member of Fedepalma brings many benets:
Fedepalma members play an important role in the development of the sector as a whole and inuence policy making and decisions which affect the oilseeds agroindustry. Fedepalma members are informed about current research and have access to the latest analysis and studies carried out by the association on sectoral issues. Fedepalma members can participate in congresses, seminars, courses, informal talks, eld trips, and other forums tailored to the needs of oil palm growers. These different forums allow palm growers to learn and gain new skills and also exchange ideas and experiences with others oil palm growers and reach agreements. Being a Fedepalma member gives automatic membership to Cenipalma which allow members to join other programs created and backed by Fedepalma.

Who can join?

Any person who is involved in oil palm cultivation and palm oil producing in Colombia can join Fedepalma, either as an individual or as company. First applicants must be registered with the National Registry of Oil Palm Growers and Palm Oil Producers. Membership is approved by Fedepalmas Board of Directors and selected Fedepalma members must agree to abide by the associations rules. For further information about how to apply and what is needed to join, please contact the General Secretary at Fedepalma.
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Oficina de Comunicaciones de Fedepalma Design: Machado y Molina / Comunicacin Visual Corporativa Translated from spanish: Anastasia Moloney Second edition, 2006

National Federation of Oil Palm Growers in Colombia Telephone: (57 1) 313-8600 Fax: (57 1) 211-3508 Carrera 10A No. 69A-44 Bogot, D.C. Colombia www.fedepalma.org