Colombian-founded ingredients specialist, Grupo Daabon, has reportedly made a key acquisition of Agropalma, considered as Brazil’s leading producer of palm oil and derivatives, writes Neill Barston.

The sector remains of huge significance for the confectionery and snacking industry, with manufacturers coming under increasing pressure to guarantee sustainable sourcing policies in ensuring best agricultural practices that are as environmentally sensitive as possible.

Notably, the latest major palm oil acquisition – which was for an undisclosed sum, marks a significant period of expansion for Grupo Daabon, and a fresh chapter for the business. It 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.

As the company explained, Grupo Daabon remains 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.

Manuel Davila, MD of Daabon Europa and Daabon UK, commented on the global impact of the acquisition, and the future direction of the group. He said: “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.

“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 the 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 a culture that respects people and the land.”

As the company added, its arrival in Brazil marks the beginning of a new cycle of strategic investments in Pará and the strengthening of the company’s global footprint, contributing to job creation and the consolidation of community partnerships in the region.

Furthermore, as part of this, the company will intensify the support and engagement programs with smallholder farmers in Brazil, and will invest 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.

Operating under rigorous Environmental, Social, and Governance (ESG) standards, Grupo Daabon holds certifications including Regenerative Organic Certified™ (ROC™), Fair Trade, and Roundtable on Sustainable Palm Oil (RSPO). The company also ensures full traceability to the plantation, zero-deforestation commitments, and robust community development programmes.

The group confirmed that Agropalma’s identity would be retained, and its refinery in  Limeira (SP), was not in fact included in the deal, and is set to operate as Indústrias Xhara.