Aletho News

New frontiers for oil palm

Communities lose out to oil palm plantations

GRAIN |  September 22, 2014

Palm oil is not something you would associate with a Mexican kitchen. But go to any supermarket in the country, and you will find countless products containing it. The country’s food system has changed immensely since the North American Free Trade Agreement (NAFTA) came into effect in 1994 and multinational companies moved in to take control of the country’s food supply. The alarming rate of obesity, now higher than that of the US, is one manifestation of Mexico’s changing food landscape, and tied to this is the escalating consumption of palm oil.

Palm oil consumption has increased by over four times since NAFTA was signed, and it now accounts for one quarter of the vegetable oil consumed by the average Mexican, up from 10% in 1996. Other countries in Latin America undergoing similar changes to their food systems have also increased their consumption of palm oil. Venezuelans have doubled their intake, and Brazilians are consuming 5 times what they did in 1996.

This growing consumption is matched by growing production, not in Mexico, but in those countries where oil palm can be most cheaply produced. A third of Latin America’s palm oil exports now go to Mexico.

Colombia, with about 450,000 ha under production, is the biggest palm oil producer in the Americas. Since the late 1990s, Colombia’s palm oil production has taken off for several overlapping reasons, including government incentives and a national biodiesel mandate. Oil palm has also been promoted as a substitute crop for coca as part of the US-backed “Plan Colombia” – a programme aimed at ending the country’s long-standing armed conflict and curbing cocaine production. Paradoxically, palm oil is also proving a useful way for drug cartels, paramilitaries and landlords to launder money and maintain control of the countryside.

The most notorious land grabs for palm oil in Colombia have occurred in the north west Chocó province, where businessmen and paramilitaries have colluded to force Afro-Colombian communities to cede their territories for palm oil plantations and contract farming. After dozens of Afro-Colombian leaders were killed resisting such land grabs, Colombia’s Prosecutor General’s Office brought forward charges against 19 palm oil businessmen for crimes of conspiracy, forced displacement, and the invasion of ecologically important land. Three of these businessmen have so far been convicted.

Disease outbreaks have limited palm oil’s expansion in Chocó Province and most of the expansion has instead happened on the pasture lands of the central and eastern parts of the country, where the oil palm industry claims there is little deforestation and displacement of peasants. But studies show that these pasture lands are in fact typically common areas vital to peasants for the production of their food crops and the grazing of their livestock. The “pasture lands” are often the only lands that peasants have access to, and palm oil companies routinely use force and coercion, including paramilitaries, to take control of these lands from them or to force them into oppressive contract production arrangements. Across Colombia, the expansion of palm oil and the presence of paramilitaries are tightly correlated.

Ecuador, Latin America’s second largest palm oil producer, has also seen a recent expansion in oil palm production. While much of its palm oil is produced on farms of less than 50 ha, new expansion is driven by private companies who have been moving into the territories of Afro-Ecuadorians and other indigenous peoples in the Northern part of the country, leading to severe deforestation and displacement and meeting with stiff local resistance.

Land conflicts over palm oil are also erupting in Central America. In Honduras, peasants in the Aguan Valley have been killed, jailed and terrorized for trying to defend their lands and small palm oil farms from powerful national businessmen who have been grabbing their lands to expand their palm oil plantations with the backing of foreign capital. Ironically, these peasant families first moved into the forests of the Aguan in the 1970s as part of a government land reform programme, and were encouraged to grow palm oil and establish their own cooperatives. The neoliberal policies of the 1990s and a coup d’état in 2009, opened the door for powerful local businessmen like Miguel Facussé, to destroy the peasant cooperatives, violently grab lands for plantations, and reorient the supply chain towards exports for biofuels and multinational food companies. Likewise in Guatemala, where production of palm oil has quadrupled over the past decade, the palm oil sector is now entirely controlled by just eight wealthy families who have been aggressively seizing lands from indigenous communities, such as the Q’eqchi,

Some industry insiders predict that an expansion of oil palm production in Brazil will soon dwarf all other production in the region. Brazil is a net importer, and production has so far been confined to a small area of Pará, in the North. But, unlike in other regional palm oil producing countries where production is dominated by national companies and wealthy landowning families, transnational corporations have recently made significant investments in Brazilian palm oil production, such as the mining company Vale, energy companies Petrobras and Galp, and ADM, one of the world’s largest grain traders and a major shareholder in the world’s largest palm oil processor Wilmar.

Going further

Tanya M. Kerssen, “Grabbing Power: The New Struggles for Land, Food and Democracy in Northern Honduras,” FoodFirst, 1 February 2013

Human Rights Everywhere, “The flow of palm oil Colombia- Belgium/Europe: A study from a human rights perspective,” 2006

More frontiers

October 5, 2014 - Posted by aletho | Economics, Environmentalism, Ethnic Cleansing, Racism, Zionism | Biodiesel, Central America, Colombia, Guatemala, Honduras, Latin America, Mexico, NAFTA, North American Free Trade Agreement, Palm oil