Sustainable Productive Chain in the Peruvian Amazon

Grupo Palmas

1. No Poverty 4. Quality Education 8. Decent Work and Economic Growth 11. Sustainable Cities and Communities 12. Responsible Consumption and Production

Overview

The Palmas Group found the communities of Tocache in San Martín and Yurimaguas in Loreto. The same at a very poor level as a lifestyle with low resources and farmers who planted and illegally sold coca.

Grupo Palmas entered these two communities and offered them a new business model "Productive Chains", profitable for farmers. Placing with it the best agricultural practices and RSPO certifications, resulting in zero deforestation, forest conservation, proper relationship with the community, advice on land and good labor relations.

The impact was positive and the benefit was for the community, bringing economic security, access to housing, education and resources in general for the development of the community.

Author

Brenda Cano

Brenda Cano

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professor

Consuelo Garcia-de-la-torre

Consuelo Garcia-de-la-torre

Innovation

What the Palmas Group is doing is really leading a change in how palm is grown and how it is developed in Peru, oriented to develop palms in a sustainable manner. What is done mostly in this policy of sustainability is the zero deforestation, the right relationship with communities and especially develop small farmers.

The importance that we have given to the model of productive Chains of the Palmas Group is that the farmer is in the Center, what does it mean that the farmer is at the center? The farmers instead of being suppliers, we look at them and treat them as a client, in such a way that the farmers improve their income, improve his quality of life and especially professionalizes in the cultivation of palms.

Several programs were created, such as "Jose Carlos Mariátegui" - Productive Chain programme- with a relocation of farmers. Giving to the date 478 hectares of oiled Palma and 52 families with benefits.

Likewise, programs such as "Proyecto Campeones" were set up supporting children and adolescents in school and sports training, the "Carrera Palmas 10K in Tocache" project, which is opened every year for the entire Selva area, among others.

Sustainable Productive Chain in the Peruvian Amazon

Inspiration

The first operation was Tocache. It was born in 1979. The Romero group saw an opportunity not common in Peru, but it required adventure. Going to the Jungle meant discovering new products, different business models, where they offered opportunities to those who did not have them at that time.

In that year there was a lot of drug trafficking and terrorism. They offered credit to pay in cases, training, granted technical assistance, etc.

This has been a long-term work since 1979, is a model that continued and was a decision that managers promoted. The inspiration was the stories of each farmer, each house and family, how they were suddenly included in a model of productive chains and how this model can change lives and bring with it, prosperity, respecting good agricultural practices.

Overall impact

Palmas Group found the communities of Tocache in San Martín and Yurimaguas in Loreto. The same at a very poor level as a lifestyle with low resources and farmers who planted and illegally sold coca.

Grupo Palmas entered these 2 communities and offered them a new business model "Productive Chains", profitable for farmers. Placing with it the best agricultural practices and RSPO certifications, resulting in zero deforestation, forest conservation, proper relationship with the community, advice on land and good labor relations.

The impact was positive and the benefit was for the community, bringing economic security, access to housing, education - Infrastructures of schools, implementation of sports programs in schools, community management, health, values, and resources in general for the development of the community.

It is to give quality of life, see patterns of evolution for the productive chain, make better use of the land, make them part of sustainability policies, have the best agricultural practices, projects with NGOs, to achive the maximum productivity and use of the land, make geo referentiation, which is done well and which are the evidences that define the good road.

Several programs were created, such as Jose Carlos Mariátegui – Productive chain programme with a relocation of farmers.

With this, the most important contribution was to generate a decent job and economic growth where the poverty of the communities in the Peruvian jungle was reduced where the resources were very low or almost nil, a sustainable model was made in which all the farmers developed working responsibly in production.

Business benefit

Definitely help farmers, that they are no longer farmers but are our customers with supervisors close to them, aligning them with the policies of responsibility and agricultural practices, so that they have an adequate growth, supported by our experience, create specialized jobs, to do Projects of social sustainability, good social -agricultural practices, be profitable, increase the number of employees by the operations carried out, giving quality of life to employees and seeing new business opportunities opening up to new markets.

We have an area of Research and Development that continuously and timely develops new products.

Innovation generates profits or benefits the company. (For more than 40 years): innovation has been applied since 1979 and has generated profits, positively influenced the community in a sustainable manner economically, socially and environmentally.

Social and environmental benefit

The innovation of the Palmas Group has 5 or more of the objectives for the sustainable development of the oONU: innovation meets four of the 17 objectives.

Innovation is scalable. This means that the company could expand and be a reference in Latin America. Likewise be replicable at an international level, having access to the Market internally.

To announce a new business model "Productive Chains", profitable for farmers. Placing with it the best agricultural practices and RSPO certifications, resulting in zero deforestation, forest conservation, proper relationship with the community, advice on land and good labor relations.

Interview

Aldo Chavez Herrera, Jefe de Comunicaciones

Aldo Chavez Herrera, Jefe de Comunicaciones

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Grupo Palmas

Grupo Palmas

Lima, Peru

Business Website: www.palmas.com.pe/

Year Founded: 1979

Number of Employees: 5001 to 10000

With 40 years in the Peruvian east, the Palmas Group is a leader in the cultivation and sustainable production of oil palm and cocoa. It is part of the Romero Group, one of the main business conglomerates of Peru. With two operations, located in the provinces of Tocache (San Martín) and Yurimaguas (Loreto), it generates more than 6,000 formal jobs in the field and industry and serves the national and international market.

It has an integrated operation vertically from the field to the industry and transforms raw material into high value added products for mass consumption, the food industry and biodiesel.

The Palmas Group seeks maximum productivity through operational efficiency and innovation. It has 26 thousand hectares of palm and 1,200 hectares of cocoa, and implements a model of productive chains that complements its own production, where it supports the small producer to be successful, have the maximum yield of their crops and have a secure market.

The Palmas Group is committed to sustainability as one of its competitive advantages; It has a Sustainability Policy where it is committed to a production of oil palm and cocoa free of deforestation, which respects the Amazon, people and communities. He is a member of RSPO and TFT, leading organizations that ensure responsible production.