Colombian Coca Farmers Flock to Palm Oil Amid Government Incentives

Colombian coca farmers are turning to palm oil production as an alternative crop. According to The Guardian, native to South America, the coca plant is used to make cocaine and smallholders had been worried about armed groups discovering they were selling their leaves to a rival.

The Colombian government's policy since 1995 has focused on replacing coca leaf plantations with other crops, including cacao and oil palm. Under this policy, which offers subsidies, technical support, and tax discounts, many coca growers have left the sector.

Camilo Santos, deputy director of market transformation for Latin America at the Roundtable on Sustainable Palm Oil (RSPO), praised the efforts of smallholder oil palm growers in San Pablo. He noted that almost 90% of these growers are independent and have revitalized the local economy, creating jobs and improving food security.

Colombia is now the largest oil palm producer in Latin America, with 609,142ha planted with palm oil in 2024, a 2.2% increase from the previous year. Arturo Garcia, a project manager at consultancy Econometria, emphasized that demand is driving production and many palm oil producers are seeking environmental certifications.

Despite concerns about sustainability, Garcia believes that the commitment to sustainable oil palm is irreversible, with growers interested in maintaining high environmental standards due to market demands, particularly in Europe.