Organic palm oil supplier Daabon has expanded its operations with the acquisition of Brazil’s Agropalma for an undisclosed sum.
The move makes the Colombian group the largest palm oil supplier in the Americas, adding 39,000 hectares of planted palm and 64,000 hectares of protected forest reserve in the Brazilian state of Pará, as well as six extraction plants, a refinery and an export terminal.
Daabon said the “landmark” deal significantly scaled its supply chain and ensured enhanced availability of fully traceable and certified palm oil that was compliant with EU deforestation regulation.
It follows the UK government this week stepping up action to prevent food & drink products linked to illegal deforestation being sold in the country. The new rules, announced during London Climate Action Week, will push UK companies to make supply chains more robust and transparent when sourcing commodities in soy, palm oil, cocoa, coffee and rubber.
Palm oil, in particular, is widespread in products sold in supermarkets, from shampoo and shower gels to peanut butter, pizza and chocolate.
The acquisition of Agropalma marked an entry into Brazil for Daabon and is expected to significantly increase its supply to UK brands.
Daabon already supplies a number of companies in the UK with palm oil, including Pieminister and Dr Bronner’s. It also owns Glasgow-based Soapworks, a manufacturer of premium soaps and cleansing bars for brands and retailers.
Manuel Davila, MD of Daabon Europa and Daabon UK, said as a family farming business, Agropalma shared the group’s 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,” he added.
“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.
“We’ll achieve this by doing what we’ve built our global reputation on: farming in the right way for people and planet. That means harmonising the best practices of both organisations in terms of operational excellence, agronomic discipline, industrial efficiency, traceability and rigorous compliance to the world’s leading certification schemes, while nurturing culture that respects people and the land.”
Grupo Daabon is a family-owned, Colombian business operating across four continents, from regional offices including Daabon UK and Daabon Europa. It supplies regenerative organic, certified sustainable palm oil, as well as bananas, cocoa, coffee, avocados and limes to customers worldwide.
The acquisition of Agropalma completed this week, following an agreement of takeover terms in March.
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