I have a story in the paper today looking at how economic growth in Brazil is impacting the Amazon rain forest and the savanna that surrounds it. To write the story I travelled to Mato Grosso state, the heart of the soybean industry.
I visited the agri-industrial town of Lucas do Rio Verde to learn about a project created by The Nature Conservancy in conjunction with local farmers and municipal officials. The idea is to find a way to sustain agricultural growth without harming the environment.
A dusty highway carves through this agricultural boom town, lined by huge tin-roofed grain silos, bearing the names of the world’s largest, mostly U.S.-owned, agri-business giants, Cargill, Archer Daniels Midland, and Bunge (see photos). An endless procession of tractor-trailers rumbles down the dusty, two-lane highway, Route 163, which continues north into the Amazon.
With this kind of agricultural expansion going on, analysts question whether the notion of 'Responsible Soy' can compete with the huge economic interests at play?
Brazil
currently accounts for about 30 to 35 percent of an increasingly
lucrative world market for soybeans, which has seen prices rise to
all-time highs, in part because of the extra demand for biofuel.
A federal mandate that goes into effect in January will require
blending every gallon of diesel in Brazil with 2 percent biodiesel.
This is set to rise to rise in stages to 5 percent by 2018. (Brazil
already mandates the blending of gasoline with 25 percent ethanol.)
"Only soy today has the production capacity to meet that demand," recognizes Carlos Klink of The Nature Conservancy. "That means a lot of expansion."
Mato
Grosso could increase two or three times double or triple its
agricultural production without cutting down any more forest, local
authorities say.
"Brazil has enormous potential to increase soy production without
causing any more deforestation," I was
told by Miguel Vaz, president of Fiagril,
a local soybean company that is building a 30-million-gallon biodiesel
plant on the outskirts of town.
In April The Nature Conservancy joined with other
environmentalists, soy farmers and commodity traders to create the
'Round Table for Responsible Soy', an effort to draw up international
standards.
"We have to sit down and talk face to face," said Klink.
"They are asking for our help. It's a very strong, clear sign that
these guys are serious. They see how the market is going
internationally."
The big US agri-business companies, Cargill, ADM and Bunge, appear to be going along with this new thinking. I spoke with Scott Roney, ADM's vice-president for Compliance and Ethics.
" ADM has committed itself to responsible and sustainable bioenergy
around the world," he told me. "We are working with NGOs to conduct
supply chain analysis .... In my experience I have seen people in South
America are pretty atuned to environmental issues," he added.
"We
welcome engagement from parties who have good information and good
faith intent to try and find solutions to issues, or give a positive
direction for responsible development of agriculture. We think the
environmental stewardship and agriculture go hand in hand, and so it is
certainly not offensive to us to engage with any group that is
interested in trying to address those issues and create sustainable
agriculture."
Environmentalists aren't all in agreement with such collaborative efforts with big industry. But more and more, they recognize that it may be the only way to make progress. (in photo, The Nature Conservancy's Giovanni Malmann, left, helped soy farmer Darci Eichelt map his land, marking off with stakes where he needs to reforest.)
"I commend TNC's work," says Vasco van Roosmalen, field director for the Amazon Conservation Team, which works with indigenous groups in the Amazon. "Some balance has to be found. There's no option., economic expansion isn't going to cease."
But van Roosmalen, says there's no one solution for the Amazon. It's so vast, different ideas have to be used in different areas. Fundamental issues remain, such as protecting eco-diversity, limiting the impact of roads and hydro-electric dams will affect fish and water.
"What's missing most is that the legislation needs efficient and active presence in these areas. Any system for preserving standing forest should include payment for ecological services. That's one of the big solutions."
This raises one of the big issues being debated today. How can the evolving system of carbon credit be applied to the rain forest. Van Roosmalen, and many others, argue that the best way is to involve the indigenous people who have been living in the forest all these years and know how best to protect it.
"You can't expect (indigenous peoples) to protect those lands with bows and arrows," he said. "Nor will money do it alone. Conservation is inherently local. The indigenous people are the eco-system managers of the forest. It's really about getting the cash and transforming it into the right incentives on the ground."
Click here to read my article in The St Petersburg Times
Click here for some historical perspective from the AP.
- David Adams