Brazil

Latin America:news review in progress - Melka group plans to sell off its plantations, Global Witness finds Latin America most dangerous region for environmental activists

7 July 2016: news review in progress - Global Witness finds Latin America most dangerous region for environmental activists


Environmental Destruction, Land Grabs: Controversial Oil Palm Plantations in the Peruvian Amazon - Melka group plans to sell off its Plantations By Forest Peoples Programme Global Research, June 28, 2016 http://www.globalresearch.ca/environmental-destruction-land-grabs-controversial-oil-palm-plantations-in-the-peruvian-amazon/5533205

Latin America most dangerous region for environmentalists in 2015 by LINDSAY FENDT JUNE 19 2016 -- Latin America remains the most dangerous region for environmental activists, according to a new report from the U.K.-based watchdog group Global Witness. Now in its third iteration, the report, “On Dangerous Ground,” assembled information on the known worldwide murders of environmentalists and land defenders in 2015.  With 185 recorded deaths, 2015 was the deadliest year on record for environmentalists. “As demand for products like minerals, timber and palm oil continues, governments, companies and criminal gangs are seizing land in defiance of the people who live in it,” said Global Witness campaign leader Billy Kyte. “Communities that take a stand are increasingly finding themselves in the firing line of companies’ private security, state forces and a thriving market for contract killers.”  More than 65 percent of the murders tallied by Global Witness in 2015 occurred in Latin America, with 50 environmentalists killed in Brazil alone. Activists were also killed in Colombia, Peru, Nicaragua, Guatemala, Honduras and Mexico. Most of the murders in the region stemmed from conflicts related to mining, agri-business and hydroelectric dams, according to Global Witness, with indigenous people disproportionality affected. http://www.ticotimes.net/2016/06/19/latin-america-dangerous-region-environmentalists-2015

Amazon land tenure study wins top award - CIFOR scientists awarded for ground-breaking study on land tenure. by KATE EVANS  25 Jun 2016 http://blog.cifor.org/42067/amazon-land-tenure-study-wins-top-award?fnl=en


Latin American Environmentalists Are Paying For Their Protests With Their Lives - A new report shows that Latin American activists make up the majority of those killed during an extremely deadly year for protesters. Jun. 20, 2016 https://www.buzzfeed.com/karlazabludovsky/latin-american-environmentalists-are-paying-for-their-protes?utm_term=.mfPnreAaB#.icEoWpNVQ

17 Feb 2016: news review in progress - Agropalma's Faria, Colombia expects to add 150,000 hectares, Biosa moves into palm phytonutrients

Agropalma - Aloysio De Andrade Faria’s Journey to Become One of the Wealthiest Men in Brazil By Maureen Bongat Feb 10, 2016
http://www.latinpost.com/articles/114445/20160210/aloysio-de-andrade-faria-s-journey-to-become-one-of-the-wealthiest-men-in-brazil.htm


Colombia to Expand Land Devoted to Palm Oil Industry over 3 Years BOGOTA February 16,2016 – Colombia expects to add 150,000 hectares (370,000 acres) to its palm oil plantations over the next three years, Agriculture Ministry permanent crops program coordinator William Granados Perez said Monday.... The Agriculture Ministry “plans to invest 1.6 trillion pesos (about $480 million) in this (three-year) period,” Granados said. Colombia has created a series of “special credit lines” to do this, the official said in his address to the forum.... http://www.laht.com/article.asp?CategoryId=12393&ArticleId=2405192

Colombian Palm Oil Exports Up 10.4% BOGOTA February 16,2016  – Colombian palm oil exports increased 10.4 percent in 2015, the Andean nation’s deputy minister for Entrepreneurial Development said Monday. “We must keep working, the sector must increase its productivity since, although we’ve grown in extent, not at the same rhythm in productivity. We must focus ourselves on products with greater value added,” said Daniel Arango ...(Colombia),” which is the world’s fourth largest palm oil producer and the largest in Latin America.. http://www.laht.com/article.asp?CategoryId=12393&ArticleId=2405202



New Models for Colombia Palm Industry to Be Discussed at EFE Forum in Bogota; These new models are based on the extraction of vitamins and phytonutrients from palm oil – an activity that experts say is 10 times more profitable than farming and refining operations – as well as the production of bio-lubricants. The market for palm oil phytonutrients is growing at an annual rate of 7 percent yet there is still not enough supply, partly because the extraction of this byproduct has always been in the hands of a small group of international companies. The phytonutrient business generates more than $1.7 billion annually and is mainly focused on palm oil’s tocotrienols and tocopherols (Vitamin E); its carotenes (Vitamin A), sterols and squalenes, which possess antioxidant, anti-cholesterol and immune-boosting properties that are incorporated into functional foods and beverages; and vitamin supplements and cosmetic products.... Hector Castro, the chief executive officer of Biosa, the first Latin American company to move into the business of extracting and selling palm oil phytonutrients; and Consuelo M. Ferrero, the CEO of Palmvit, a Spanish chemical engineering company that specializes in the extraction of vegetable phytonutrients.... http://www.laht.com/article.asp?ArticleId=2405087&CategoryId=12393


13 December 2015: Issues in Honduras, NGOs worry about human right abuses in Lat Am palm oil


Analysis - Palm Oil’s Corporate Deception: Green-Washing a Dirty Industry 1 December 2015; .. The expansion of oil palm plantations around the tropical world presents a fierce assault on the climate in the name of corporate profits. While the industry green-washes palm oil under the guise of biofuels and so-called sustainable development, digging behind the corporate myths reveals a complex mess of deforestation, pollution, “carbon debt,” and destruction of biodiversity, wildlife habitat, and food security, often along with grave human rights abuses. ....Activists have slammed the Roundtable on Sustainable Palm, which purports to promote “sustainable development” and “green energy” through oil palm expansion, as “window dressing” to cover up the environmentally-destructive monopolization of land and resources and for turning a blind eye to land grabbing and grave abuses of human rights perpetrated by the industry.  According to Kerssen, author of “Grabbing Power: The new struggles for land, food, and democy in Northern Honduras,” biofuel uses actually makes up a small portion of the palm oil agricultural portfolio, which as a flex crop bends to where it maximizes corporate profits.... http://www.telesurtv.net/english/analysis/Palm-Oils-Corporate-Deception-Green-Washing-a-Dirty-Industry--20151201-0020.html

NGOs call for end to human rights abuses in the Latin American palm oil sector by Jennifer Kennedy | 19th November 2015  http://latincorrespondent.com/2015/11/ngos-call-for-end-to-human-rights-abuses-in-the-latin-american-palm-oil-sector/

Illegal Deforestation of Peru’s Amazon, 5000 Hectares for Palm Oil: Peruvian Indigenous Leader 2 Nov 2015, http://www.globalresearch.ca/illegal-deforestation-of-5000-hectares-of-perus-amazon-for-palm-oil-peruvian-indigenous-leader/5486126


19 October 2015: Guatemala suspension and activists kidnap

 

Guatemalan Court Orders Palm Company to Suspend Operations  by Jeff Abbott      Thursday, 24 September 2015 13:35 A Guatemalan judge has ordered the oil palm company Reforestadora Palma de Petén S.A. (REPSA), to suspend operations at their Sayaxché palm plantation, pending an investigation into the environmental disaster in the Pasión River, which led to the death of millions of fish in May and June of 2015. The court’s September 17th order states that the firm must suspend operations for 6 months.... http://upsidedownworld.org/main/guatemala-archives-33/5471-guatemalan-court-orders-palm-company-to-suspend-operations-

Guatemala: Activists Kidnapped in Palm Oil Region  Published 18 September 2015 Three members from the Guatemala’s Council of Displaced Peoples, CONDEG, were kidnapped on Thursday in the palm oil producing town of Petén.   Local human rights organization, UDEFEGUA, issued a press release Thursday denouncing inaction on the part of local authorities following the disappearance.  “We reiterate and demand immediate action by the authorities to ensure the security, life and physical integrity of the human rights defenders,” the statement read.   Police officials have not identified any suspects or persons of interest involved in the incident.  According to local media reports, the kidnappers are demanding the reversal of a Guatemalan court ruling, which ordered local palm oil manufacturer Repsa to temporarily halt its operations due to unethical environmental practices.  http://www.telesurtv.net/english/news/Guatemala-Activists-Kidnapped-in-Palm-Oil-Region-20150918-0025.html

22 August 2015: Colombia indigenous territory, Guatemala's Pasion River, REDD+ in Brazil, Can Latin America do palm oil right?


Oil Palm Plantations in Colombia Expand into Indigenous Territory - Native Cultures’ Sikuani and Jiw Sacred Sites and Livelihoods at Risk by Environmental Investigation AgencyAugust 11, 2015; WASHINGTON, D.C.—A new video released this weekend from the Environmental Investigation Agency (EIA) to commemorate the UN’s Day of the World’s Indigenous People, shows the devastating effects of the growing palm oil sector on the lands and rights of farmers and indigenous peoples in Colombia. Currently the world’s fourth largest oil palm producer, Colombia is promoting both national and international investment in this sector, and has been opening the country’s vast eastern plains (llanos) to companies expanding their palm plantations. EIA’s video, “Between Water and Oil Palm,” is a collaboration with Colombian group La Comisión Intereclesial de Justicia y Paz (Justicia y Paz) and has documented how investments have come at the expense of indigenous rights in Mapiripán, Meta, Colombia. One company, the Italian-owned Poligrow Ltd, has prohibited the Jiw and Sikuani indigenous communities from using traditional hunting and fishing lands, and prevented access to a culturally revered site, Las Toninas—a lake considered sacred and home to pink dolphins. The Jiw report that no free, prior, or informed consultation has taken place regarding Poligrow’s operations and that the company’s expansion limits their right to freedom of movement....https://intercontinentalcry.org/oil-palm-plantations-in-colombia-expand-into-indigenous-territory/

Impact of 'Ecocide' in Guatemala's Pasion River Runs Deep Published 22 July 2015 (2 hours 38 minutes ago); The United Nations said 23 species of fish have been affected by contamination caused by industrial African oil palm production. The United Nations expressed concern Tuesday about serious contamination of Guatemala's Pasion River and the risks the environmental damage poses to thousands of families. http://www.telesurtv.net/english/news/Ecocide-in-Guatemala-Passion-River-Causes-Deep-Impacts-20150722-0009.html

REDD+ in Brazil: Coordination needed. 12 Aug 2015 BY Barbara Fraser   Brazilian government policies tackling deforestation (most often caused by farming and cattle ranching) are being undermined by lack of coordination and communication, says a new CIFOR study. Photo: CIFOR Farming and ranching remain the main drivers of deforestation in Brazil, a new study from the Center for International Forestry Research (CIFOR) has found. But any new government policy to combat the problem may be undermined by lack of coordination and communication, says one of the study’s authors, Monica Di Gregorio, a senior CIFOR associate. Sharing information and coordinating efforts are crucial for implementing policies to reduce greenhouse gas emissions from deforestation and forest degradation (REDD+), the study claims. http://blog.cifor.org/31744/redd-in-brazil-coordination-needed-now#.Vdh-Z4ywrjo

Can Latin America do palm oil right? As western hemisphere oil palm plantations boom, environmentalists eye ways to avoid repeating the devastation in Southeast Asia. WriterDuncan Gromko  @dgromko Climate change associate, Inter-American Development Bank; Latin America currently accounts for just 6 percent of global palm oil production, compared to 85 to 90 percent for Indonesia and Malaysia — but production is growing fast.
A 2014 study by Juan Luis Dammert, Ph.D. candidate at the Graduate School of Geography at Clark University in Massachusetts, summarized oil palm growth in Colombia, Ecuador and Peru. Colombia is the region’s largest palm oil producer and is among the top five producers worldwide, with nearly 500,000 hectares (more than 1 million acres) of oil palm as of 2012 and plans to increase production sixfold by 2020, which would require 3 million hectares (7 million acres) of plantations. Palm oil production in Ecuador has grown 7 percent per year over the past decade, with 250,000 hectares (620,000 acres) in productionMuch of the recent expansion is driven by government programs to support oil palm in order to promote rural development. as of 2010. Peru has less palm oil than Colombia and Ecuador with 55,000 hectares (140,000 acres) as of 2011, but more than doubled production between 2006 and 2012. Companies have requested permission to plant oil palm on approximately 100,000 hectares (more than 200,000 acres) in the Peruvian state of Loreto alone....
http://ensia.com/features/can-latin-america-do-palm-oil-right/

Eye on Brazil: 5 million hectares of sustainable Amazon oil palm eyed, China $150 billion infra spend plan for Brazil, Petrobras' political corruption scandal

I was talking yesterday to Nicholas (Khor Reports research assistant) about Brazil oil palm. So since we've not really covered this here, I've gathered a few links below. It is fascinating to see China's infrastructure investment plans for Brazil to lower cost of bringing its product to market. That has been quite the bane of agriculture producers in Brazil interior. Brazil has identified a maximum 5 million hectares for oil palm, mostly for biodiesel purposes (imagine the cost savings of not having to transport diesel inland). How is this proceeding?

Also to note a key project is by Petrobras-Vale and the former is mired in a massive political corruption problems:
 

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China - Brazil $50 billion infrastructure investment plan

China to invest $50 billion in Brazilian infrastructure AFP By Damian Wroclavsky May 14, 2015 7:27 PM; Brasília (AFP) - China will invest $50 billion to help overhaul Brazil's aging infrastructure, Brasilia said Thursday, ahead of an official visit by Chinese Prime Minister Li Keqiang. "There are $50 billion in new projects," said Jose Graca Lima, Brazil's undersecretary of state, who oversees Asia and Oceania. "We shall have to await the end of the visit to expand upon which projects," he said, without providing details. Battling a fifth straight year of poor growth and mired in a bruising graft scandal involving state oil giant Petrobras, Brazil is seeking to revamp its sagging infrastructure ahead of next year's Rio Olympics, the first Games to be held in South America. A Brazilian government source said Brazil, Latin America's biggest economy, was determined to overhaul its dilapidated roads, railways, airports and ports ahead of the Olympics. The Chinese cash infusion is set to cover various sectors, including transport and energy. http://news.yahoo.com/china-invest-50-billion-brazil-212318218.html

China's ICBC, Brazil's Caixa to start $50 billion fund -sources Wed May 13, 2015 5:43pm EDT BRASILIA; May 13 Caixa Econômica Federal, Brazil's top mortgage lender, and the Industrial and Commercial Bank of China Ltd (ICBC) will create a $50 billion fund for Brazilian infrastructure investments, two government sources with knowledge of the plans said on Wednesday. The fund will be financed entirely by the ICBC, but both banks need to set up the regulatory framework to decide on the projects, said the Brazilian sources, who requested anonymity because the plan remains private. The plan will be formally announced when Chinese Premier Li Keqiang visits Brazil next week, they added. Caixa and ICBC will sign a memorandum of understanding during Li's visit in which the main terms for the fund will be outlined, the sources said. The governments agreed the fund will finance a railway link from Brazil's Atlantic coast to the Pacific Ocean in Peru as a way to reduce the cost of exports to China, said one of the sources. The fund will also finance a joint-venture to produce steel in Brazil. In January, Chinese President Xi Jinping pledged $250 billion in investment in Latin America over the next 10 years as part of a drive to boost resource-hungry China's influence in a region long dominated by the United States. Last year, China and Brazil agreed $7.5 billion in financing for Brazilian miner Vale SA, and the purchase of 60 passenger jets from planemaker Embraer SA. http://www.reuters.com/article/2015/05/13/caixa-ec-federal-icbc-fund-idUSL1N0Y41C020150513
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News links on Brazil oil palm topics

Oil palm set to take over from cattle ranching as the biggest threat to Brazil’s Amazon rainforest?  By Chris Lang 10 November 2014  Despite the reduction in deforestation in Brazil over the past decade, “the deforestation problem is far from solved”, notes Datu Research in a recent report about the beef industry and deforestation in Brazil. Datu describes the most effective tactic in reducing deforestation as “pressure from Western companies that demand deforestation-free supply chains”.  Demand for Brazilian beef is increasing. In August 2014, Russia announced a suspension of beef imports from several countries, including the USA, Australia, and the EU. Even before that announcement, demand was increasing. The Brazilian Beef Exporting Association reports that beef exports increased by more than 10% in the first eight months of 2014.  Datu argues that with the expansion of palm oil and other commodities, “it will become increasingly difficult to attribute deforestation to a specific commodity, making commodity-by-commodity enforcement methods less effective”. Instead, Datu and the Environmental Defense Fund (which paid for the report) suggest complementing deforestation-free supply chains with “enforcement and certification mechanisms focused not by commodity, but by jurisdiction”........ Datu is promoting a “zero net deforestation” approach, where forest can be cleared in some areas, “as long as other areas are sufficiently reforested to maintain net carbon density”. This raises the risk that biodiverse forests could be cleared, and “offset” by monocultures of fast-growing eucalyptus plantations.  Or even oil palm. Datu notes that the Brazilian government sees palm oil as a win-win opportunity: green fuel, green jobs, and a carbon sink “ideal for reforesting lost segments of the Amazon”. The report notes that REDD “has not yet been implemented at sufficient scale to have significant impact”. But with the jurisdiction approach, Datu writes that “the stage would be set” for REDD, “giving producers economic incentives”. In other words, payments from the sale of carbon credits that would allow greenhouse gas emissions to continue elsewhere.... http://www.redd-monitor.org/2014/11/10/oil-palm-set-to-take-over-from-cattle-ranching-as-the-biggest-threat-to-brazils-amazon-rainforest/

Oil Palm Changes Rural Culture in Brazilian Amazon By Fabiana Frayssinet; CONCORDIA DE PARÁ/MOJÚ/ACARÁ, Brazil , Nov 20 2013 (IPS) - Thousands of small farming families in Pará, in the Amazon jungle in northeast Brazil, have turned to the African oil palm as a new source of income, through contracts with biofuel companies. Strange bedfellows, which poses cultural and economic challenges. The small farm of Antônio de Oliveira smells like a mixture of oranges, black pepper and achiote or annatto (Bixa orellana), a shrub whose fruit is harvested for its seeds, which contain a natural dye that has coloured his farm red. “I didn’t know anything about oil palm…it’s really different to work with, it’s a queer bird, and complicated,” said Oliveira, who signed a contract with the biofuel company Biopalma three years ago to plant African oil palm (Elaeis guineensis), known as “dendê” in Brazil. Biopalma belongs to the Vale mining company, and has 60,000 hectares of oil palm of its own. In addition, it buys the output of small farmers through its Family Agriculture programme. The company plans to use palm oil to produce biodiesel to run the machinery and vehicles at its mines..... http://www.ipsnews.net/2013/11/oil-palm-changes-rural-culture-in-brazilian-amazon/

Petrobras, Vale May Join to Make Brazil Palm Oil and Biodiesel 'By'Stephan Nielsen 2:32 AM HKT  August 15, 2012 Aug. 14 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil company, and Vale SA are discussing a partnership to produce palm oil and biodiesel in the northern state of Para. Both companies are currently developing separate biodiesel projects in the state, Rio de Janeiro-based Petrobras said today in a statement. Petrobras’s biofuels unit said it will build a 230 million-liter (60.7 million-gallon) a year biodiesel facility in Para in its five-year plan for 2012-16, according to the statement. Vale plans to produce biodiesel from the palm oil in the region and mix it with regular diesel to fuel its Brazil operations from 2015, Petrobras said. http://www.bloomberg.com/news/articles/2012-08-14/petrobras-vale-may-join-to-make-brazil-palm-oil-and-biodiesel

Brazilian mining giant buys Amazon palm oil company  mongabay.com  February 03, 2011; Vale, a Brazilian mining giant, will buy palm oil producer Biopalma da Amazonia SA Reflorestamento Industria & Comercio, reports Bloomberg.  The deal, valued at $173.5 million, will enable the mining company to run more of its operations on palm oil biodiesel.  Vale began its palm oil push in 2009 when it formed a partnership with Biopalma. At the time Vale said the deal would save $150 million in fuel costs starting in 2014, with palm oil biodiesel replacing up to 20 percent of diesel consumption in the company's northern operations.  Biopalma has six oil palm plantations covering 18,400 hectares (45,467 acres) in Para, according to Vale. The company expects this to expand to 60,000 ha in 2013. The announcement comes less than a year after Brazil laid out plans to dramatically expand palm oil production in the Amazon. The initiative, called the Program for Sustainable Production of Palm Oil (O Programa de Produção Sustentável de Óleo de Palma), will provide $60 million to promote cultivation of oil palm in abandoned and degraded agricultural areas, including long-ago deforested lands used for sugar cane and pasture. ... http://news.mongabay.com/2011/0202-vale_biopalma.html

Brazil launches major push for sustainable palm oil in the Amazon by Rhett A. Butler, mongabay.com  May 07, 2010 "Sustainable" palm oil effort may pressure Malaysia and Indonesia on environmental performance of widely used vegetable oil. Brazilian President Lula da Silva on Thursday laid out plans to expand palm oil production in the Amazon while minimizing risk to Earth's largest rainforest, reports Globo and Terra Brasil. The plan, called the Program for Sustainable Production of Palm Oil (O Programa de Produção Sustentável de Óleo de Palma), will provide $60 million to promote cultivation of oil palm in abandoned and degraded agricultural areas, including long-ago deforested lands used for sugar cane and pasture. Brazilian officials claim up to 50 million hectares of such land exist in the country.... Although Embrapa, Brazil's agricultural research agency, has identified some 29 million hectares (71.6 million acres) of land suitable for oil palm cultivation in the Amazon and 2.8 m ha (6.9 m acres) outside the region — an area that would dwarf the 13 m ha of oil palm currently cultivated worldwide — Brazil says it will strictly limit development to less than 5 million hectares. The program specifically prohibits expansion at the expense of native forests, a major concern among environmental groups that have watched the relentless conversion of tropical forests across Malaysia and Indonesia for oil palm over the past 25 years. The palm oil program marks a new focus for Brazil, which currently produces about 110,000 metric tons of crude palm oil per year, a fraction of the amount produced by market leaders Indonesia (16.9 million metric tons in 2008) and Malaysia (15.8 m tons), according to the FAO. But Brazilian growers could see a boost in the international market if they can cost-effectively produce palm oil without driving direct or indirect deforestation, a concern that has dogged Malaysian and Indonesian producers. Brazil says it will rely on its world-class satellite monitoring system to ensure that expansion does not cause deforestation.  Read more at http://news.mongabay.com/2010/0507-amazon_palm_oil.html#Ap41ACGGl564lQL5.99


The importance of logistics hubs?

Interesting news in metals commodity news is Malaysia new role as Brazil Vale's logistics hub in Asia. Vale spends US$1.4 billion in Lumut to build its new Asia port terminal at Teluk Rubiah, Perak in the Straights of Malacca. Valemax 400,000 tonne vessels are just huge! We had neighbours who are engineers from Brazil to help implement this project. Progesys notes that "the stockyard is designed to be able to handle 30m tons of iron ore annually and can be expanded to take a maximum capacity of 60m tons per annum." The purpose: the Brazilian giant seeks to erode its geographic disadvantage in supplying Australian customers as falling iron ore prices hurt producers' margins. Thus, the terminal is a competitive strategic move. Read more here:  http://khoryuleng.blogspot.com/2014/11/malaysia-as-brazil-vales-logistics-hub.html

Is this akin to what's happening in palm oil merchandising? The likes of Wilmar and Musim Mas have taken strategies to have terminals / bulking / capacity / logistics in key end use regions such as Africa (Wilmar noted to have bought / built / booked up capacities to better serve Africa buyers) and Europe (Musim's notable biodiesel acquisitions).

From key industry sources, it is notable to hear Malaysia earlier had an allocated multi-billion Ringgit budget to help build up joint terminal / bulking facilities in strategic locations. This didn't get off the ground on apparent commercial disinterest by private companies.

Malaysia palm oil is facing stiff competition from Indonesia palm oil for markets. On the latter's upstream expansion, it is inevitable that it gains market share. Key plantation groups and trader-processors are transnational businesses.

How Brazil clamped down on deforestation

Khor Reports comment: Worth reading this piece from The Economist: http://www.economist.com/news/science-and-technology/21603409-how-brazil-became-world-leader-reducing-environmental-degradation-cutting. I'm hoping to soon get hold of a the source article in Science. I've been reviewing soy sustainability. State regulations are an important part, as are proactive and well functioning industry associations that seem well engaged with all levels of administration. Some sources point out that Brazil has a well-engaged and active domestic NGO sector, which also pushed the earlier changes via domestic contestation. To be sure, implementation was a major question mark and international pressure has been for Brazil's relatively strict regulations to be followed. There are also efforts at information reporting on GIS mapping of deforestation and such. Bottomline, Brazil annual deforestation is now about 500,000 hectares and it's attributed significantly / mostly to smallholders.

The Economist writes, "But how did it break the vicious cycle in which—it was widely expected—farmers and cattle ranchers (the main culprits in the Amazon) would make so much money from clearing the forest that they would go on cutting down trees until there were none left? After all, most other rainforest countries, such as Indonesia and the Democratic Republic of the Congo, have failed to stop the chainsaws. The answer, according to a paper just published in Science by Dan Nepstad of the Earth Innovation Institute in San Francisco, is that there was no silver bullet but instead a three-stage process in which bans, better governance in frontier areas and consumer pressure on companies worked, if fitfully and only after several false starts." It concludes: "By any standards, Brazil’s Amazon policy has been a triumph, made the more remarkable because it relied on restrictions rather than incentives, which might have been expected to have worked better. Over the period of the study, Brazil also turned itself into a farming superpower, so the country has shown it is possible to get a huge increase in food output without destroying the forest (though there was some deforestation at first). Still, as Dr Nepstad concedes, a policy of “thou-shalt-not” depends on political support at the top, which cannot be guaranteed. Moreover, the policies so far have been successful among commercial farmers and ranchers who care about the law and respond to market pressures; hence the effectiveness of boycotts. Most remaining deforestation is by smallholders who care rather less about these things, so the government faces the problem of persuading them to change their ways, too. Deforestation has been slowed, but not yet stopped."


Source: Economist.com

Brazil deforestation accelerates

BBC News, in its 18 May 2011 article "Brazil: Amazon rainforest destruction rises sharply," http://www.bbc.co.uk/news/world-latin-america-13449792, reports the following:

Deforestation of the Brazilian Amazon rainforest has increased by almost six times...... New satellite images show deforestation has increased from 103 sq km in March and April 2010 to 593 sq km (229 sq miles) in the same period of 2011.... Much of the destruction has been in Mato Grosso state, the centre of soya farming in Brazil.... Last December, a government report said deforestation in the Brazilian Amazon had fallen to its lowest rate for 22 years.

The latest data comes amid a heated debate in the lower house of Congress on whether to ease an existing law on forest protection.... Brazil's Forest Code, enacted in 1934 and subsequently amended in 1965, sets out how much of his land a farmer can deforest...... Regulations currently require that 80% of a landholding in the Amazon remain forest, but that falls to 20% in other areas.

Proponents of change say the law impedes economic development and contend that Brazil must open more land for agriculture..... However, opponents fear that in their current form some of the proposed changes might give farmers a form of amnesty for deforested land..... The changes were put forward by Aldo Rebelo, leader of Brazil's Communist Party (PCdoB) and backed by a group in Congress known as the "ruralists" who want Brazil to develop its agribusiness sector.


Khor Reports Comments:

a) Indonesia is facing much the same debate as Brazil over forest protection vs. agribusiness and rural economic development. Indonesia is over due in announcing its policy on a moratorium on deforestation, as part of its commitment to REDD plus, which is being funded to the tune of USD 1 billion by the oil-producing Norwegian state. A pilot project in Central Kalimantan is being developed^.

b) Anecdotes from the heavy equipment sector (supplying machines for land clearance) suggest that the pace of land clearance in Indonesia is likely proceeding at an unabated pace. Quite possibly, to clear as much land as possible before any new restrictions are put in place.

c) Environmentalists have won significant battles by having several large oil palm public-listed plantation groups accept slower or no forest clearance; as required via membership of the RSPO and also via more stringent promises such as the Golden Agri (Sinar Mas) - The Forest Trust deal. However, they have to balance these 'wins' against the possibility of accelerated land clearance by mid-sized and smaller planters and also by smallholders. What is the net effect on the rate of deforestation?

d) Khor Reports expects that monitoring via satellite ecosystem mapping will be a crucial tool in this environmentalist - developmentalist tussle. We talked about the 'hot topic' of HCV mapping in our newsletter "Palm Oil Strategic Analysis, Issue 003 , 27 Oct 2010." You can download a copy here: https://sites.google.com/site/khorreports2011/palmoil_strat_analysis.

^ "Local communities oblivious to govt’s plans for their forests," The Jakarta Post, 05/12/2011, weblink: http://www.thejakartapost.com/news/2011/05/12/local-communities-oblivious-govt%E2%80%99s-plans-their-forests.html.