Participants in the technology diffusion process

The process of technology diffusion in the Colombian oil palm sector is mainly facilitated by anchor companies. According to Alcibiades Hinestroza and fieldwork observations, agro-industrial companies or mills, to which farmers often sell the FFB, usually support the

majority of these farmers. This occurs whether or not smallholders negotiate a CFA. In the case of independent producers, Hinestroza affirmed that the market relationships between farmers and agro-industrial companies sometimes re-create an organisational condition in which the latter regularly collect basic technical information and provide technical services and credits if required by producers.

Marketing and technical relationships between smallholders and anchor companies are also influenced by a factor that is known in the sector as loyalty of fruit provision²⁰. This refers to the consistent sale of the oil palm fruit to the same agro-industrial company. This aspect implies more of a trust-based relationship than legal commitment that regulates the side-selling of fruit by smallholders to alternative buyers outside of an official agreement. Loyal producers, who do not side-sell the harvest, ensure that the anchor company within the arrangement keep providing them with technical services.

The channels of communication between anchor companies and smallholders, through which the former provided regular technical assistance to the latter, were further exploited by Fedepalma and Cenipalma for technology diffusion. With the aim of building up these channels and improving the technical assistance in nuclei, agro-industrial firms, Fedepalma devoted efforts to strengthen technical units of anchor companies that support smallholders’ crop management in the oil palm zones. One of these efforts was the promotion of the Technical Assistance and Auditing, Environmental and Social Units (UAATAS for its Spanish acronym), which are entities responsible for technical support and provision of extension and training services to producers organised in a nucleus scheme.

These units were located within anchor companies with the goal of applying one-crop management criteria in their own areas and in the areas of fruit providers. Each UAATAS is established on the basis of particular needs in a nucleus regarding crop management and, primarily, the prevention and control of diseases and pests (Hinestroza Córdoba, 2010).

20 A large number of interviewed individuals in the sector (e.g. producers, agro-industrial companies, staff from Fedepalma and Cenipalma, social and farmer organisations) commonly used the term ‘loyal producers’

during the fieldwork.

Technical units within nucleus schemes help to optimise efforts of technology transfer in the sector. According to several interviewees, such as staff of Cenipalma, Fedepalma and agro-industrial companies, the high volume and geographical dispersion of smallholders require that technical units of anchor companies act as intermediaries of technology transfer between other sectoral actors and smallholders. These units also collect information that enables public and sectoral institutions to make good decisions regarding the smallholders’ crop management.

Agro-industrial companies, whilst essential, are not the only actors that contribute to the process of technology diffusion involving smallholders in the Colombian oil palm sector.

Farmer organisations, for example, also help smallholders to acquire inputs and equipment as well as to mediate in the technology diffusion. Interviewed members of associations and academic studies indicated that collective action in the Central zone mostly aimed to finance inputs and equipment, to share operational expenses (e.g. fruit harvesting, collection and transportation), and to obtain government subsidies and funding from NGOs (Bernal-Hernández, 2010; Ramirez et al., 2014). A few associations, such as Asopalcentral, Asopepa and Asobenpro, supported training by mediating between relevant entities and smallholders.

Another key actor supporting the processes of technology diffusion is Fedepalma: this federation group represents, and defends oil palm growers’ interests (Web.fedepalma.org., 2017a). In terms of technology diffusion, Fedepalma have performed two central functions. First, it created Cenipalma in 1991 for the research and development of technical practices related to oil palm production. Second, it implemented and supported strategies for the promotion, organisation, certification and development of UAATAS (Hinestroza Córdoba, 2010).

Cenipalma is a scientific and technical organisation in charge of the production, adaptation, validation and transfer of technologies for the cultivation and processing of oil

palm. Even though this entity has important financial resources²¹, it does not have the logistical capacity to reach all smallholders within the regions. Interviewed researchers of Cenipalma stated that in order to reach as many producers as possible, this research centre provided assistance to technical departments and UAATAS, who in turn transfer this knowledge to smallholders within nuclei. In addition, the centre adopts a producer-to-producer strategy through which it generates a ‘contagious’ effect around selected leading producers.

Government entities also contribute to the process of technology diffusion by providing funding, establishing a legal framework and delivering technical training services. Three important government institutions that were often mentioned by interviewees were the Ministry of Agriculture and Rural Development (MADR for its Spanish acronym), the Colombian Agriculture and Livestock Institute (ICA for its Spanish acronym), and the Colombian Vocational Training Agency (SENA for its Spanish acronym).

MADR, for example, establishes regulations for funding and subsidies that address the technical assistance for agricultural producers. Some of the main regulations²² include the Law 607, 2000 and the Resolution 145, 2015 that help smallholders to acquire high quality services and thus create communication channels between technical agencies and producers (Minagricultura.gov.co, 2000 and 2015).

The ICA supports the prevention of diseases and phytosanitary control in agricultural sectors and develops applied research to manage risks to plant species (Ica.gov.co, 2017).

In the Central zone, the ICA established regulations for technical assistance and sanctions related to the enforcement of mandatory procedures for the management of pests and diseases in the oil palm sector (e.g. the Resolution ICA, 2009, and the Resolution ICA 4170, 2014) (ICA, 2014 and 2014a).

21 This centre is funded with public resources collected from the oil palm sector and other national and international entities (Web.fedepalma.org, 2017b).

22 Other governmental regulations related to technical assistance are resolutions 140, 217 and 177 of 2007;

026, 303, 336 and 360 in 2008; 406, 208, 161 and 396 in 2009 (Minagricultura.gov.co).

SENA is a public organisation in charge of enhancing the technical capacities of the population (SENA, 2017). According to interviewed smallholders and Cenipalma staff, this entity develops programmes and alliances for vocational training through which actors such as Cenipalma and Fedepalma can transfer knowledge and information.

Other actors supporting the process of technology diffusion are social organisations and input companies. In addition to social projects, some social organisations assist in the development of oil palm production schemes and support smallholder training. This was the case of the organisations Fruto Social de la Palma (FSP) and Fundepalma in the Central zone. Concerning input companies, fieldwork evidence of this research and works developed by Bernal-Hernández (2010) and Ramirez et al. (2014) indicated that these actors inform and train smallholders in the use of their products for technology adoption.

Finally, international entities also help in the diffusion process by sharing technical information and carrying out training sessions with oil palm smallholders. For example, the United States Agency for International Development (USAID) and the Common Fund for Commodities (CFC) implemented projects and programmes addressed particularly to oil palm smallholders. The USAID financed the MIDAS programme²³ through which it adopted the model of Farmer Field Schools (FFS) for participative training. In the case of the CFC, this intergovernmental institution financed the project ‘Bridging productivity gaps of small-scale oil palm growers’, in which a producer-to-producer strategy was implemented (Fedepalma, 2010).

The following figure gives an overview of the main actors having an important influence on the centralised-diffusion process of technologies around smallholders.

23 MIDAS was a programme implemented between 2006 and 2009 by USAID. It supported the government project of productive alliances in order to provide technical assistance, ensure the disbursement of credits, enforce producer organisations and support the sustainable development of these alliances. Molano (2008) asserted that, amongst other characteristics, productive strategic alliances had to be articulated with the private sector or social organisations to acquire this support. In this specific case, the leadership of anchor company B was crucial for the nucleus to receive USAID assistance.

Figure 3.2: Participants in the diffusion of technologies to oil palm smallholders Source: Own elaboration from collected information

From this section, it was seen that the different ways in which Colombian smallholders participate in an oil palm nucleus were by either acting individually, or by engaging in schemes of productive alliances or farmer associations. Although anchor companies and their units of technical assistance have different levels of control in the crop management of plantations, smallholders often have direct and regular contact with these companies due to their marketing relationships, through which smallholders are more likely to acquire resources and technical services. In addition to agro-industrial firms, there are other actors that contribute to the process of centralised diffusion around smallholders, including Fedepalma and Cenipalma, farmer associations, social organisations, governmental entities, supply companies and international agencies. The role of these actors varies when it comes to the transfer of agricultural practices related to disease and pest management. The next section is concerned with this specific diffusion process.