Grupo Daabon has snapped up Brazil’s leading producer of palm oil and derivatives, Agropalma, for an undisclosed sum.
The family-owned, Colombian business operates across four continents, from regional offices including Daabon UK and Daabon Europa; supplying regenerative organic, certified sustainable palm oil, as well as bananas, cocoa, coffee, avocados and limes.
This latest move significantly scales its supply chain, and is set to enhance the company’s availability of fully traceable, EUDR compliant, certified sustainable palm oil for the UK, Europe and wider global markets.
The acquisition includes 100% of Agropalma’s operations in Pará, including 39,000 ha of planted palm, 64,000 ha forest reserve area, six extraction plants in Tailândia (PA), and the refinery in Belém. It also marks Daabon’s entry into Brazil.
This will see 5,000 employees and 300 partner farms joining the business, with strategic investments planned to boost plantation productivity, sustainability and expand regional support programmes.
“Agropalma is a family farming business that shares our values and commitment to sustainability – our mission now is to build on our shared legacy, elevate our combined organisation, and set a new benchmark for our industry,” commented Manuel Davila, MD of Daabon Europa and Daabon UK.
“Together, we will be stronger, more resilient, and better positioned to serve the demands of European, UK and global markets with certified sustainable, deforestation-free palm oil that meets the highest standards of environmental and social responsibility.”
Daabon’s arrival in Brazil forms the beginning of a new set of investments in Pará which the business says will help create jobs and consolidate community partnerships in the region.
As part of this, the company has promised to double down on its support and engagement programmes with smallholder farmers in Brazil. This includes investing in improving the productivity of its palm plantations in line with the development potential of Brazil’s sustainable palm oil sector.
The company will also be investing in aligning the Agropalma operations to the same standards and certifications as Grupo Daabon.
Following the acquisition, Agropalma operations in Brazil will preserve the brand’s legacy and the Agropalma name. The refinery located in Limeira – which was not included in the deal – will operate entirely as Indústrias Xhara, under the management of APAR Holdings group.
