Socially and ecologically sustainable Organic palm oil production in Brazil
Ciranda’s palm fruit is grown in north-eastern Brazil by Agropalma
AgroPalma: CIRANDA’S Sustainable Palm Partner <ul><li>The company is the largest and most modern palm cultivation and processing company in Brazil — from cultivating the seeds to producing refined oil, vegetable fats and margarine. </li></ul><ul><li>Area of 30,000 acres of palm oil, about 20% of the total land area that it manages. </li></ul><ul><li>4,900 employees in production and processing </li></ul><ul><li>Works with several hundred independent small farms </li></ul><ul><li>Has reforested 185,000 acres of previously cultivated land leading to the rehabilitation of 7 endangered animal species. (according to IBAMA – the Brazilian Department of Environment) </li></ul>
Organic and Eco-Social Certifications <ul><li>The Agropalma project has been certified by the Brazilian certifier IBD not only as an organic plantation, but it has also been approved as one of the first EcoSocial projects in Brazil. </li></ul>EcoSocial Seal is from the IBD Program for fair relations in trading socially and environmentally certified products.
Red, virgin palm oil is refined into palm oil RBD. This is separated into olein and stearin. Shortening is a blend of the olein and stearin. Oil processing and shortening production Red palm oil Refined, Bleached and Deodorized (RBD) Olein Stearin Shortening
Palm oil is refined without chemicals: bleached with clay and deodorized with steam
Crystallization tank chills refined RBD oil so olein and stearn can be separated.
Shortening is made of blends of olein and stearin through controlled crystallization
Environment 70% of the land is protected as original or recovering native forest. (shown is second growth)
Environment Seasonal wetlands are respected and protected from polluting run off
Environment ISO 14001 Environmental Management Systems Identify and control the environmental impact of activities; improve environmental performance; systematic approach to set environmental objectives and demonstrate achievement
Environment Areas include 346 bird species, nearly 66% of all bird species ever recorded. Seven endangered species have been repatriated. Golden Parakeet White Hawk
By-products of palm processing Cluster and ash are recycled as fertilizer Fiber is used to heat the boilers to run the processing.
Fiber is collected and used to run the boilers
Environment Palm cluster husks are trucked back to the forests and spread as compost.
Environment Biodiesel, made on-site from palm oil waste (soapstock), fuels the hundreds of tractors and trucks on the farm.
Social and Environmental Issues in the Para state of Brazil <ul><li>Native family farmers oppose migrants; </li></ul><ul><li>Farmers demand land ownership; </li></ul><ul><li>Indigenous peoples witness the expropriation of their means of production and their culture; </li></ul><ul><li>Companies exploit natural resources with predatory management practices; and many families live in utter poverty. </li></ul><ul><li>Rainforest degradation and fragmentation </li></ul>
Solution: Dendê Family Agriculture Project <ul><li>“ In 2001, the Agropalma Group, considered Latin America’s most important palm oil producer, began the “Dendê Family Agriculture Project” in the municipalities of Pará. The project became an attractive labor option for small family farmers.” </li></ul>
Dendê Oil Family Agriculture Project A quest for sustainable economic and social development By Rosa Maria Fischer, Monica Bose and Paulo da Rocha Borba “ Perennial crop production means ongoing income. Steady and higher incomes reduce rural migration and strengthen local communities.” Harvard Review of Latin America, Fall 2006
- 185 farm families involved initially - 25 acres per family, provided legal title to the land - $130/month loan at 4% interest to fund startup expenses and income 7 year grace period on loan repayment - Crop yield started in 2003 - 30 crop cycle
<ul><li>“ Agropalma feels investment in social welfare activities must be aligned with its mission of achieving the sustainable development of its business and of the region as well. Thus, its social actions take place mainly through participation in socioeconomic development projects involving the region’s small producers. The Dendê Family Agriculture Project stands as an example, aimed at creating productive activities, reducing environmental damage and curbing rural migration by means of a production model based on family agriculture. Through this, Agropalma aims at implementing palm oil farming in small rural properties and thus encouraging income growth; recovering areas degraded by subsistence crop farming; providing farmers with a production alternative based on a perennial crop cycle; and reducing clearance of land by raze fires and deforestation driven by itinerant agriculture. This action chain assures a supply of raw material for the industry, at the same time trying to foster the region’s sustainable development and to generate positive economic and financial results for the farming families involved and for the company itself.” </li></ul>
<ul><li>“ By transforming family farmers into fruit suppliers for the palm oil production chain, the company managed to get them to play an active role in the local economy, whereas previously they had focused only on subsistence farming. </li></ul><ul><li>By becoming oil palm farmers, these families became the agents of a sustainable socio-environmental development process characterized by the growth of income generation and ecosystem conservation.” </li></ul>
Results on the ground <ul><li>In just four years it attained its initial targets of: Planting 3,705 acres of palm; </li></ul><ul><li>Generating employment for 150 families, with roughly 750 direct jobs; </li></ul><ul><li>Increasing the income of the families involved in the project by 80% from Agropalma directly. </li></ul><ul><li>Furthermore, the company pledged to purchase the small farmers’ entire production and to keep on hand an agricultural operations team, vehicles for transporting fertilizer, raw materials, tools and personal safety equipment </li></ul>
Social School and medical clinic provided 480 students Graduation party!
Local Environmental Sustainability <ul><li>“ Promoting environmental education among family farmers is another one of the project’s main outcomes, since previously they were used to living off the non-sustainable extrac- tion of timber, as well as other native resources and subsistence crops such as manioc, corn and beans. In the words of Edmilson Ferreira de Barros, president of the Arauaí Community Development Association, “we didn’t have development before – we deforested a lot and reaped little. Now we don’t cut down the forest.” </li></ul>