Sustainable businesses development in post-conflict zones: a case in rural Colombia

Purpose: Farmers in Colombia have faced economic instability due to a long-lasting armed conflict. An attempt to support the rural community has been through the creation of productive alliances – a strategic association between small-scale producers and anchor companies with the assistance of the private and public sectors. By closely examining the Association of Guarupay Palm Growers (ASOPAY)'s financial cash flows, this study investigates the challenges faced by small-scale agribusinesses in an emerging economy. Design/methodology/approach: This study addresses the situation of ASOPAY, an oil palm productive alliance formed by families displaced by the Colombian armed conflict and relocated in the eastern foothills of the Andes Mountains. By closely examining ASOPAY's financial flows, the article sheds light on the economic incentives enhancing the cohesion of the small-farmers’ association. Findings: A key finding is the critical role played by institutional efforts focused by promoting policies to enhance producers income. In addition, technological transfers made through technical assistance programs may improve the association's profitability by enhancing agronomic practices, while decreasing palm mortality and disease incidence. Research limitations/implications: The relatively small sample used in the study might rise concerns regarding the generalization of the outcomes. However, the authors implemented strategies to overcome these limitations by incorporating the inputs from experts on the oil palm supply chain in Colombia and from experts in rural development. Originality/value: To the authors' knowledge, this is the first study analyzing the financial success of small farmers in post-conflict zones.