Pico de Oro Case

Reflecting the need to strengthen land rights and Consent in Palm Oil operations

The Pico de Oro community in Guatemala is home to 22 families and 88 residents, often described by those familiar with the case as an “island on land.” It is bordered to the west by the Salinas River, a natural boundary that separates it from Mexican territory. Previously, the surrounding lands belonged to other communities, but since 2000, a palm oil company acquired all of these, and for the past 17 years, Pico de Oro has been surrounded by about 520 hectares of oil palm plantations, cutting off their terrestrial access route to the municipal center.

• IMPORTANT: The company referenced in this article is not a member of RSPO; however, the case sheds light on the conditions faced by communities surrounding palm oil plantations and underscores the importance of adhering to RSPO principles and criteria in the region.

The first settlers arrived in Pico de Oro in 1975, and for at least 25 years—before the palm oil company arrived—they used a 30-minute path to reach the municipal center. However, since the company established its operations, free movement along this old path has been restricted, and they now rely on a combined water and land route, taking around two hours to reach the main road. 

The representatives of Pico de Oro hold a document drawn up by community leaders when the palm company first arrived in the area, which had the recognition of the Sayaxché municipal authorities. This document records the segment of land traditionally used as an easement, allowing them access to the municipal center. However, the palm oil company has since blocked access to this route.

Currently, this company not only dismisses these community-backed agreements, which represent local civic participation in rural areas, but also refuses to provide a favorable solution for the communities. 

Media sources report that six dialogue sessions have taken place, supported by the Municipality of Sayaxché, the Human Rights Ombudsman, and other state agencies. Nevertheless, a resolution has not been reached. According to records from these dialogues, the company has offered three responses: (a) to authorize only one community vehicle to use the path through the plantation; (b) to donate a boat to the community to facilitate river access via the Salinas River; and (c) to buy the land from the inhabitants of Pico de Oro.

The community representatives assert that they do not wish to sell their land. It is their livelihood, as they are farmers, and they have a deep-rooted connection to the territory. However, having to use a boat to transport their products significantly raises their costs and affects their income. 

This case should serve to intensify the discussion on the international palm oil industry’s commitment to respecting land rights and Free, Prior, and Informed Consent (FPIC) for communities. Although the palm oil company in question is not RSPO-certified, it sells crude oil to European and U.S. markets, to companies that have publicly committed to respecting human rights and supporting local communities. 

RSPO Criteria 4.4 states that land use for oil palm cultivation must not diminish the legal, customary, or usage rights of other users without their Free, Prior, and Informed Consent. This means that if a palm oil project potentially affects a community’s right of way, informed consent from these populations is required.

For the Pico de Oro community, it is not just a matter of land rights and consent. With no terrestrial access, their right to health and education is also restricted, as healthcare providers and teachers face limited possibilities to reach the community. During the rainy season, floods add further challenges, and in such emergencies, they hope for unrestricted passage through the path that now crosses the palm plantations.  

Pico de Oro is located in Sayaxché, Petén, in northern Guatemala, the country’s area with the greatest expansion of oil palm plantations. Petén hosts nearly half of Guatemala’s palm plantations, and as a region crucial to palm oil production, the case of Pico de Oro should draw the attention of all stakeholders in the supply chain. 

Industries purchasing palm oil produced in this region must ensure that human rights are respected at the earliest links in the chain, guaranteeing land rights and Free, Prior, and Informed Consent.