Building intelligent palm oil value chains in Colombia

Colombia is an emerging source for sustainable palm oil. As production grows, companies, governments, NGOs and producers are focused on sustainable sector transformation. The Colombian palm oil sector has set an ambitious goal of 75 percent sustainable production by 2023 and has committed to increasing sustainable trade with key export markets in the EU. Intel4Value is a public private partnership that will contribute to the ongoing sustainable development of the sector.

Palm oil in producers using a digital tool for farm management

Intel4Value is a partnership between the Netherlands Enterprise Agency, Cargill, Oleoflores, Corponor and Solidaridad, aimed at building data-driven, sustainable palm oil value chains using integrated management of technical assistance, training and finance.

This project will improve livelihoods in rural communities, foster better conditions for workers, support optimized management of natural resources and high conservation areas, and ensure greater traceability and transparency along the palm oil supply chain. The project will inclue measures to monitor, eliminate and avoid deforestation in support of the zero-deforestation commitment signed by the Colombian palm oil sector.

Intel4Value will also contribute to the peace process in the Catatumbo region, one of the rural areas most affected by armed conflict in Colombia. A large number of internally displaced persons, including demobilized guerillas and former coca growers are among the beneficiaries. 

This partnership between smallholder producers, providers, processors and consumers will:

  • Create a positive social impact for 2,857 workers, including 971 women,
  • Ensure the sustainable management of 20,000 hectares, and
  • Improve incomes for 1,200 smallholder producers, including 442 women, and their families.

The primary goals for the Intel4Value partnership include:

  • Developing digital tools for value chain management. A set of proven step-by-step, data-driven tools will enable farmers, field extensionists, processors and importers to plan, monitor, verify and accelerate the uptake of sustainability practices and avoid deforestation in the Catatumbo area.
  • Providing access to inclusive and innovative finance. Innovative financial tech solutions will be deployed to enable smallholder producers to access finance for sustainability improvements. These tools will reduce risks and costs for anchor companies and financial service providers that attend to the financial needs of farmers.
  • Increasing the supply of certified sustainable palm oil. Continuous improvement at farm level will result in a greater volume of palm oil produced that is compliant with Voluntary Sustainability Standards and NDPE policies.
  • Increasing trade of certified sustainable palm oil. The partnership will allow buyers from the European market to fulfill commitments to increase their sourcing of sustainable palm oil.
  • Incentivizing good management of forest and high value conservation areas. The partnership will implement a Payment for Environmental Services (PES) scheme that compensates palm oil producers for their environmental services on the land they manage in a critical deforestation hotspot in Colombia.

Intel4Value is intended to contribute to the UN Sustainable Development Goals, including:

  • SDG 5 – Gender Equality
  • SDG 8 – Decent work and Economic Growth
  • SDG 12 – Responsible Consumption and Production
  • SDG 17 – Partnership for the Goals