Palm oil agroindustry's competitiveness in Colombia

This article presents the main results of the research carried out in Colombia by the British firm, SMC International, in order to identify and compare the production cost structure of palm oil in the country's four palm tree zones. The study was drawn up starting from a cost survey applied to a representative sample of the oil palm plantations that exist in Colombia. The more outstanding factors of the palm oil production costs are analyzed in the study, such as the fruit production yields, transportation costs, maintenance, harvest and processing, the labor costs and the efficiency of the worker and the machinery employed in the plantations. In order to determine the costs, a basic model developed by LMC International is used which duplicates the cycle of an oil palm project within a 25-year period in which all of its costs are discounted in order to bring them to their present value. The results obtained are presented according to the different stages of the production process and the contribution of the main factors in the total production costs. In the final part of the work, some sensibility analyses are made of the production cost of the palm oil on factors within the plantations, such as irrigation, work productivity and mechanization, as well as on external factors, such as financing and the exchange rate.

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Bibliographic Details
Main Author: Stringfellow, Rachel
Format: Digital revista
Language:spa
Published: Fedepalma 1999
Online Access:https://publicaciones.fedepalma.org/index.php/palmas/article/view/700
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