VZCZCXYZ0001
RR RUEHWEB

DE RUEHBO #2274/01 0942204
ZNR UUUUU ZZH
R 042204Z APR 07
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 3934
INFO RUEHBR/AMEMBASSY BRASILIA 7471
RUEHCV/AMEMBASSY CARACAS 8860
RUEHLP/AMEMBASSY LA PAZ APR LIMA 4923
RUEHZP/AMEMBASSY PANAMA 0159
RUEHQT/AMEMBASSY QUITO 5556
RUEAIIA/CIA WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS BOGOTA 002274 

SIPDIS 

SIPDIS 

E.O. 12958: N/A 
TAGS: ECON EAGR PGOV PTER SOCI CO
SUBJECT: PALM OIL CREATES OPPORTUNITIES AND RISKS FOR 
AFRO-COLOMBIAN COMMUNITIES 

------- 
Summary 
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¶1.  Colombia is increasing production and export of African 
palm oil as a sustainable alternative to coca.  There are a 
small number of high-profile accusations that palm oil 
producers, possibly in concert with paramilitaries, illegally 
seized land from Afro-Colombian communities for palm 
cultivation.  These communities are especially vulnerable to 
exploitation because of ambiguous land ownership, weak 
internal organizations, and a history of violence in the 
Pacific coast region.  The number of such cases is unlikely 
to dramatically increase, and the GoC is focused on the 
problem. 

--------------------------------- 
A Sustainable Alternative to Coca 
--------------------------------- 

¶2. Colombia is ramping up African palm oil production. 
President Uribe extols its virtues as a sustainable source of 
biofuel, and alternative to coca.  The amount of land under 
palm oil cultivation has doubled to 400,000 hectares since 
2002, and is projected to increase by about 50,000 hectares 
per year over the next decade.  The number of Colombians 
directly employed in the industry has climbed from 30,000 to 
close to 50,000 in the past five years.  Colombia is now the 
world's fourth largest exporter of palm oil, exporting USD 
100 million annually, with demand expected to grow. 

¶3.  The model for palm oil production is shifting from large 
plantations to strategic alliances between small farmers and 
larger companies that process and sell the palm oil using the 
cooperative model.  Human rights and Afro-Colombian groups 
generally critical of the palm oil industry admit the 
benefits of this system for farmers, and agree it reduces 
adverse environmental impacts.  However, they worry over 
increasing debts among small farmers, with some calling the 
system, a "new slavery."  In March a virus with potentially 
devastating impact on African palm was found in Colombia, 
which could damage small farmers and increase opposition to 
palm cultivation. 

¶4.  USAID is supporting community and association-led African 
palm investments on 50,000 hectares, representing over 10 
percent of Colombia's total production.  USAID recognizes 
that land tenure and environmental problems have been 
associated with palm oil cultivation.  All projects are 
vetted to ensure they are not linked to displacement, and 
consultations with human rights and Afro-Colombian groups are 
conducted prior to project approval.  USAID is developing a 
new protocol to ensure that communal land tenure rights are 
fully protected and that Afro-Colombian and indigenous 
communities are involved in all of its economic development 
projects.  Moreover, USAID is initiating a program to help 
strengthenconsejoscommunitarios. 

--------------------------------------------- -------- 
Palm Cultivation Displaces Afro-Colombian Communities 
--------------------------------------------- -------- 

¶5.  Afro-Colombian and human rights groups say armed groups 
have forced Afro-Colombians off dozens of communal 
territories in the Pacific coast to grow palm oil.  Still, 
only a small number of cases have been documented.  Communal 
territories are a relatively new legal entity, created in 
accordance with the 1991 Constitution, that cannot legally be 
bought or sold.  More than 5 million hectares of communal 
lands are in the Pacific coast region where the country's 
highest percentage of Afro-Colombians reside. 

¶6.  Populations in the Afro-Colombian communities of 
Jiguamiando and Curvarado in Choco Department were displaced 
by paramilitaries and other illegal groups in the late 1990s 
through targeted assassinations of community leaders.  When 
they returned in 2001-2002, they found palm oil plantations 
covering almost a third of their land.  GoC agricultural 
agencies had financially supported the plantations, but the 
GoC's land titling agency, INCODER, ultimately ruled in favor 
of the Afro-Colombians after the agency discovered the palm 
oil companies' claims were based on false documents.  The 
Minister of Agriculture promised the lands will be returned 
to the communities by the end of April. 


¶7.  In the Tumaco region of the Narino department, palm oil 
companies also claimed contracts pre-dating communal 
territories on about 800 hectares.  The contracts were not 
false, but the GoC determined that they were invalid because 
they were entered into after the companies knew communal 
territories were going to be created in the area.  The 
embassy will continue to monitor these cases. 

¶8.  Our contacts tell us there are likely smaller, 
unpublicized cases of illegal palm plantations in the Pacific 
coast region.  But the GOC's increased focus on the 
problem--and high palm production costs in the Pacific 
coast--have deterred new land takeovers.  Due to poor 
infrastructure, palm oil production is between 15-25 percent 
more expensive in the Pacific coast region than in other 
parts of the country, and accounts for only about 10 percent 
of Colombia's production--most of it legal on privately owned 
land.  Contacts think palm cultivation garners more attention 
than the number of cases warrants because it symbolizes 
critical issues such as the plight of Afro-Colombians, 
violence and forced displacement, and paramilitary 
activities. 

-------------------------------------- 
Why Target Afro-Colombian Communities? 
-------------------------------------- 

¶9.  The structure and recent history of territorial 
communities means they have unique vulnerabilities that 
increase their odds of being targeted.  Afro-Colombian 
"consejoscomunitarios" have to approve all land use.  But 
they are often weakly organized without clear guidelines on 
who makes decisions.  Afro-Colombian groups claim there are 
numerous cases of palm cultivation in communal territories 
where companies ignored consejos and instead made deals 
directly with individuals claiming to be in charge.  Fear of 
additional violence is also a factor:  perceived 
relationships between palm oil companies and ex-paramilitary 
organizations give companies enormous leverage when making 
land deals. 

¶10.  Cloudy land title in Afro-Colombian communities creates 
opportunities for exploitation.  Unresolved claims usually 
pre-date communal territories, some literally dating back to 
the Spanish colonial period.  In the Jiguamiando and 
Curvarado cases, claims by peasants who were granted land in 
the area decades ago complicated ownership, and palm oil 
companies took advantage of this.  Property lines are equally 
unclear, and plantations have sometimes encroached into 
communal territories.  Contacts tell us that 
corruption--local officials issuing false 
documents--contributes to the problem. 
Drucker

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