From Illicit Crop to Sustainable Supply Chain: How Smallholders in the Peruvian Amazon are Building Livelihoods

Deep in the Peruvian Amazon in the Ucayali region, more than 800 smallholder families have built something extraordinary, progressing from cultivating illicit coca crops to sustainable palm oil, unlocking access to the global market. Not simply a productive palm oil operation, it is a tangible demonstration that sustainability and cooperative development can grow hand in hand.

By: Juan Camilo Plazas

During some of Peru’s most challenging years, when drug trafficking and illicit crops dominated large areas of the Amazon, Ucayali was no exception. For many families, coca represented the only viable alternative. Today, those same families cultivate oil palm, which has given them the opportunity to send their children to schools and universities, while also participating actively in global supply chains.

The transformation did not happen by accident. It happened because of organisations willing to lay the groundwork of building something lasting.

The Central Committee of Palm Growers of Ucayali (COCEPU), has spent more than 35 years doing precisely that. Founded with a clear mission, to support palm growers in producing sustainably and competitively, COCEPU has become one of Peru’s most recognised agricultural cooperatives. Today, it brings together 844 active members organised into 11 local associations across the region.

Sustainability principles guiding palm growers

What sets COCEPU apart is not only its scale, but its philosophy. Its motto, “I am a palm grower, sustainability first,” is the principle that guides every decision, from the plantation to the international market.

“At the organisational level, we manage more than 13,000 hectares of oil palm under a comprehensive sustainability approach. Our commitment is to ensure that every hectare generates not only economic value, but also social and environmental benefits for our communities, always aligned with the standards that define our organisation,” said Carlos Pastrana, Head of Sustainability at COCEPU.

That commitment has now gained global recognition. COCEPU became a certified RSPO Member in 2024, an achievement that reflects years of effort and dedication to meeting the world’s most demanding environmental and social standards.

For producers, this certification is a guarantee that their palm oil that reaches the market is traceable,  respects the environment and fair labour conditions, and is verified through rigorous audit processes.

A “social mill” where producers are shareholders

COCEPU’s model is further strengthened through strategic partnerships. The organisation works closely with OLAMSA (Oleaginosas Amazónicas S.A.) and AOPSA (Agroindustrias Oleaginosas del Perú S.A.), completing a cycle that extends from harvesting in the Amazon to the refined product. 

This arrangement works as a “social mill”, where the producers themselves are shareholders in the companies that process and market their harvest, ensuring that the value created at every stage of the chain remains in the hands of the same families who grow the palm. This integrated approach brings together traceability, efficiency and sustainability throughout the supply chain.

This arrangement works as a “social mill”, where the producers themselves are shareholders in the companies that process and market their harvest, ensuring that the value created at every stage of the chain remains in the hands of the same families who grow the palm.

Its model has not gone unnoticed. In 2025, sustainability representatives from major global RSPO Member organisations, including The Hershey Company, Grupo Bimbo and Natura & Co, travelled to Ucayali as part of an RSPO-organised tour. The aim was to connect Latin American smallholders, including COCEPU members, with major buyers from across the Americas.

On the ground, the work is equally ambitious. COCEPU’s technical team is supporting more than 500 smallholders in adopting the RSPO Standard. The objective is clear: to transform traditional palm cultivation into a truly sustainable model that encompasses social, environmental and economic dimensions. 

Alexander Pérez, President of COCEPU, said: “Sustainability in oil palm cultivation is not just a goal; it is the necessary next step to secure the future of our families. We invite more producers to take this important step to move beyond conventional models and adopt responsible and sustainable production practices that protect the environment, strengthen our communities, and open new opportunities in sustainable markets. Change is possible, and together we can achieve it.”

For hundreds of families, COCEPU represents much more than an organisation. It means access to stable incomes, technical assistance and, above all, the opportunity to build a different future. A future in which what they grow contributes to the development of their communities, protects their territory and connects their region with the rest of the world.

The challenge now is to translate that strong foundation into meaningful access to sustainable markets and, in doing so, fully capture the value of certification.

One harvest at a time, from the heart of the Amazon, organisations such as COCEPU are redefining what it means to produce sustainable palm oil.