Palm Oil - Lucrative Environmental Disaster

I thought it would be a good idea to discuss the oil palm as part of this blog. There are 2 species of oil palm  commonly cultivated. The more prevalent one is the African oil palm (Elaeis guineensis), though there is also an oil palm native to Central and South America (Elaeis oleifera). Mature trees can be as much as 20 meters or 65 feet tall, with pinnate leaves. Young trees produce about 30 leaves a year, while mature trees over 10 years of age produce about 20 leaves a year. Oil palms can be productive for up to 40 years, bearing fruit just 3 or 4 years after planting. Palm fruits take about 5 months from pollination to maturity. The tree can flower year round regardless of season. Since oil palms are very lucrative their cultivation has become an environmental as well as a socio-economic development issue in many parts of the world.

 A high producing plantation can have up to 30 tons of fruit per hectare per year (1 hectare is about 2.47 acres). On average 1 hectare of oil palms can produce 7,250 liters or 1,915 gallons of palm oil per hectare per year. Palm fruits are usually purplish, the size of a plum and clustered in big bunches that weigh between 40 to 50 KG (88 to 110 lbs) each. Each fruit contains a single seed or kernel which is surrounded by an oily fruit pulp. Edible palm oil is extracted from the fruit pulp, while palm kernel oil is extracted from the kernel for use in both foods and soaps. 100 KG of oil palm fruits will yield 22 KG or 48.5 lbs of palm oil and 1.6 KG or 3.5 lbs of palm kernel oil. It takes about 600 hectares of oil palms to support 1 oil palm mill.

Palm oil is widely used in cooking in Asia and Africa and is gaining access to other world markets due to its  lower pricing. It is popular because of the refined oils high oxidative stability and high levels of natural antioxidants. It contains more saturated fats than other competing oils like canola, sunflower or soybean, making it an excellent choice for deep frying. Other by-products include palm fronds for roofing and kernel meal used as livestock feed. Worldwide annual palm oil production is around 40 million metric tons (44 million US or imperial tons), with the vast majority of production occurring in Malaysia and Indonesia. Palm oils are the most widely produced tropical oil, and account for almost one-third of the world’s edible oil production.

 However, oil palm production faces severe criticism in many quarters. The worst aspect is biodiversity loss, as countries like Malaysia have seen fit to cut down their rain forest to maximize oil palm acreage and production. Governments justify this on the basis that oil palms create significant socio-economic development and provide a lot of employment. One oil palm farmer in Costa Rica told me that their incomes went from $150 a month to $2,000 a month thanks to oil palms. Unfortunately many governments have failed to regulate when and where oil palm plantations can be planted, or have failed to enforce environmental laws, because of perceived socio-economic benefits. The arguments have become even more virulent in recent years, as oil palms have proven themselves to be an excellent source of bio-fuels, causing food versus fuel debates, as acreage is used to feed refineries instead of humans.

Making Money with Rubber Trees

The world consumes in excess of 18 million tons of rubber annually. Rubber is either natural or synthetic. Natural rubber provides nearly half of the world rubber market. Natural rubber is produced from rubber trees, grown in tropical areas by over 30 million small landowners and farmers, making it an important source of employment and socio-economic development. In contrast, synthetic rubbers all have one problem in common: they depend on the price of crude oil and are a petro-chemical industry product. The Pará rubber tree (Hevea brasiliensis) is originally native to the Amazon basin, but grows well in a variety of tropical climates. Amazonia Reforestation is planting rubber in the Orinoco basin of Vichada, Colombia. Rubber tree latex production starts within 5 to 6 years of planting.

As the standard of living improves around the globe, the price of rubber has been rising. There is increasing demand for rubber products, with 70% of natural rubber being used in automotive and motorcycle tires. Items like medical gloves, tubing and hoses, condoms and mats are other typical examples of other everyday rubber products. Just like wood, rubber plantations face the same pressures from urbanization, high land costs and short term demand for other commodities that are sometimes planted instead of rubber. Reflecting the world’s increased demand for latex, it is interesting to note that China has reduced its import tariffs on natural rubber, confirming China’s intention of becoming more aggressive in the global automotive industry.

Natural rubber is unique in that it is produced as an agricultural product but consumed as an industrial raw material. This has prompted some producing countries, like Thailand, Malaysia and Indonesia, to set up a rubber cartel, much like OPEC for crude oil, to try and control natural rubber sales and withhold stocks in order to maintain price levels. Vietnam, which has doubled its production in the last 10 years, may join. This opens up considerable opportunity for plantations outside of those countries to benefit from relatively high prices and growing demand. Amazonia Reforestation also benefits from parawood or rubberwood having a verified international market for the manufacture of furniture. It is a hardwood with a dense grain, attractive color that accepts a variety of finishes, and is subject to only minimal shrinkage. Rubber wood is considered "environmentally friendly", because latex production causes the tree to sequester a lot of carbon, while productive use of the tree’s wood can be made at the end of its latex-producing years.

Permaculture Design in Tropical Forestry

The socio-economic benefits of tropical tree plantations can be greatly enhanced by including a permaculture design in the process. Permaculture means permanent agriculture, a system in which food is raised for human and animal consumption in a bio-diverse framework. Since tropical afforestation and reforestation usually includes soil reclamation, it can lend itself to an integrated permaculture design. The idea is to include vegetable, root and herb plants with farm animals for manure, all placed in strategic locations with fruit trees and shade trees, possibly using recycled water, and with each element within the design performing several functions. At the end of the day, the goal is to use the least amount of space for the largest amount of food production with the lowest possible labour requirements. Low maintenance, but high productivity, is the buzzword!

There are 3 significant philosophical objectives that underpin permaculture design. The first is environmental  and ecological. Look after the Earth by implementing biodiversity in the design, while restoring or reclaiming damaged land, so that the impact is one of conservation coupled with an ethical use of resources. The second is to create a design that can look after a large number of people within the system. This is what we mean by socio-economic benefits, as people can meet their basic needs and generate some income, all within a sustainable development framework. The final and third objective is to perfect one’s environmental and people permaculture design, so that one can start to reach out and help others to achieve their goals with the least impact and in a sustainable manner.

It should come as no surprise that permaculture design tries to copy natural eco-systems. Natural eco-systems are usually bio-diverse, recycle, and do not depend on man-made chemicals, pesticides, herbicides, antibiotics and hormones for success. Good permaculture may include micro-climates within the overall design, such as using the heat reflected off a wall for areas that need warmth, or using shade trees for areas that perform best with less sunlight. Trees can act as windbreaks or firebreaks. Composting reduces the need for external additions to one’s food production. The bottom line is that no two permaculture designs are alike, as each is based on local conditions, preferences and human requirements. Amazonia Reforestation is happy to be associated with Weforest for the purpose of developing good permaculture designs within their afforestation and reforestation areas.

Fertilizing Tropical Soil

A multi-disciplinary group of Corpoverde (“Green Orinoco”) experts have developed a special forestry fertilizer for use in plantations in the eastern plains or llanos orientales of Colombia. This special forestry fertilizer mix meets the needs of tropical trees planted in infertile ground and in high rainfall conditions. These conditions definitely apply to many of the areas in which Amazonia Reforestation and CO2 Tropical Trees do their planting. Tropical trees are the ultimate recyclers, but to achieve rapid growth and best results it is important to provide the right mix of minerals and elements during the early stages of the planted trees’ growth. Proper fertilization in the early stages of an afforestation and reforestation project can have an important impact on soil quality later on.

Tropical soils are often infertile because of the heavy rainfall that occurs for 8 months of the year, leaching most nutrients out of the soil. That is why subsistence farmers have such poor results after indiscriminately cutting down rain forest. One subsistence crop later the soil is depleted and they are cutting down another area of rain forest in hopes of better conditions. This is, of course, the definition of insanity, doing the same thing over and over again anticipating a different result every time. Unfortunately, subsistence use of organic fertilizers like biochar by campesinos is often misunderstood, making conditions worse, because they fail to deactivate the biochar before use. Biochar may also be the cause of further deforestation, as subsistence farmers cut down trees to produce the charcoal component of their homemade fertilizer when they plant those subsistence crops.

An ideal tropical tree fertilizer mix consists of the following: 5% nitrogen (N), 17% phosphorus (P2O5), 2.5% potassium (K2O), 16% calcium (CaO), 12% magnesium (MgO), 22% silicon (SiO2), 0.5% zinc, 0.7% boron (B), 2% Sulphur (S), 0.005% cobalt Co) and 0.01% molybdenum (Mo). When applying this special forestry mix to tropical soils, the following quantities should be used on a minimum to maximum basis per hectare (per 2.47 acres): 50 - 250 kg of nitrogen (N), 25 - 100 kg of phosphorus (P), 40 – 160 kg of potassium (K), 140 – 200 kg of calcium (Ca), 10 – 15 kg of magnesium (Mg), 20 – 30 kg of sulphur (S), 5 to 10 kg of zinc (Z), 1 to 4 kg of boron (B), 2 – 3 kg of iron (Fe), 2 to 3 kg of manganese (Mn), 2 to 3 kg of copper (Cu) and 0.1 to 0.3 kg of molybdenum (Mo). The above translates into approximately 140 grams of fertilizer applied at a depth of 5 to 8 cm around each young tree, just before or just after the rainy season. Amazonia Reforestation uses this mix in the areas that are most devastated and in need of reclamation.

Trends Supporting Tropical Tree Investments

Wood is a renewable biological resource that has appealed to humanity since time immemorial. Its value is based on its many positive characteristics, including hardness and durability, insulating properties, weight, ease of use, ease of harvest, appearance and calorific value. Needless to say these qualities have been one of the main reasons why wood has been integral for construction, furniture, fuel and packaging, to name just a few uses. Going beyond lumber, the inherent properties of wood allow for the manufacture of numerous value-added products, such as dyes, resins, rubbers, syrups, paper, cellulose, fibreboard, plywood, concrete additives, food, animal fodder, medicines and oils. Best of all, many tropical trees are fast growing, meaning that there replacement cycles are short, on average no more than 10 to 15 years, depending on the species.

Besides cash values, there are environmental values to consider. For example, the Consortium for Research on Renewable Industrial Materials (“CORRIM”) has found in studies that construction using wood has a significantly smaller negative environmental impact than does construction using concrete or steel. A building using steel has a 36% greater chance of contributing to global warming through CO2 emissions than does a building made of wood. Preparing concrete requires 312% more water than does preparing lumber for use in construction. To produce 1 ton of steel requires 24 times more energy than does producing 1 ton of solid wood. To produce 1 ton of cement requires 5 times more energy than does producing 1 ton of solid wood. Using wood products provides a unique opportunity to store carbon from sustainable tree plantations like Amazonia Reforestation. The carbon stored in wood products offsets the emissions from the processing of the wood and also from the emissions of other products used in construction. Using wood is a real substitute for fossil-intensive non-wood materials, because it can offset their emissions.

In 2009 the United Nation’s Food and Agriculture Organization (“FAO”) suggested that the number of trees being planted worldwide needed to increase by 33% every year for the next 20 years if there was to be any hope of meeting the global demand for wood. It is a sad fact that at present over 65% of wood production for all uses is coming from natural forests, an amount equivalent to 1.2 billion cubic meters. Since access to natural forests is becoming more and more difficult due to increased protection of natural areas and tougher environmental regulation, the opportunities for private woodlot and forestry investments have never been better. It is another sad fact that at present all the tree planting in the world accounts for less than 30% of what is being harvested on an annual basis. Add to this the fact that humans continue to procreate at an alarming rate, and it is small wonder that demand for wood will continue to grow exponentially for decades to come. Buying trees with Amazonia Reforestation offers you an opportunity to participate in this very “green” and financially rewarding investment.

I am very pleased to announce the launch of the web site for our Reserva Natural La Pedregoza in Vichada, Colombia. The founders are Dexter Dombro, Dr. Kochurani Dombro and Dilmun Dombro. At present this natural reserve consists of two old growth forests, both of which are inundation forests (riparian forest), being naturally flooded for almost 5 months a year. The natural reserve also features considerable river bank along the Rio el Bita, as well as two beautiful morichals (heavily treed drainage ways across the savannah). This is the first part of the reserve, with plans to add further areas in the near future, once proper surveys and legal title issues allow La Pedregoza to expand. We regard La Pedregoza as the anchor to our afforestation and reforestation efforts around the natural reserve.

La Pedregoza Natural Reserve is dedicated to the conservation of native tree species and the preservation of endangered wildlife using those native trees for expanded habitat. To that end there are plans to establish native tree seed collection programs and a native tree nursery. On the wildlife side we have exciting plans to build a river turtle hatchery. Using boats we will collect turtle eggs up and down the river before poachers can get to them and then bring them to the natural reserve where they will be hatched and then released into a magnificent, protected river inlet within the park boundaries. Besides jungle trails ending at dry season beaches, we are also going to erect platforms for nature observers and artists wishing to sketch or paint the inundation forest during the wet season.

The other significant element we have planned is an Interpretive Center providing locals and visitors alike with knowledge regarding the importance of the gallery and riparian forest, the rain forest, the savannah and the wildlife that depends on them. Reserva Natural La Pedregoza is meant to protect a unique eco-system while providing endangered wildlife with a refuge while moving along the Rio el Bita and on to the El Tuparro National Park. Completing the picture are our partnerships with the University of Alberta’s Faculty of Agricultural, Life & Environmental Sciences, who will no doubt make use of this natural reserve when conducting their research and studies, and with the world renowned Omacha Foundation, who are our partners in the turtle hatchery program and for doing a biological inventory of the natural reserve. Please visit http://www.pedregoza.org/.

Tree Ranching instead of Tree Farming...

One of the practical problems associated with tropical tree plantations is tree maintenance and value enhancement. Though not official terms, I like to call the act of planting trees and letting them grow tree farming. However, to really maximize one's opportunities with tropical trees requires a more hands on, diligent approach, something I call tree ranching. This secondary approach is much like a rancher looking after the calves in a herd, it requires that a lot of tender loving care is directed towards each tree in the plantation. In contrast, tree farmers take a "let it be", let nature take it's coarse approach. The difference between the two can cause a sigificant impact on the bottom line over a 10 year period.

Tree ranching includes the following actions for maximizing returns on investment: (1) using tractors and deep ploughs to loosen the soil before planting, as tropical trees set deep roots, (2) liming the soil to balance pH and to soften it for planting, (3) applying boron for healthy tree growth, and (4) fertilizing as required. In the nursery, tree ranching starts with (5) the use of certified, climate adapted seeds, not just any seeds one happens to get at liquidation world, and (6) the use of misting sprays as opposed to large drops or heavy sprays that may damage seedlings. (7) Seeds are sprouted before being transplanted into planting bags, allowing for early deletion of poor quality seedlings, meaning that once planted there is a very high rate of survival and a healthy plantation.

As the trees grow, (8) some species require pruning in their first year of growth. Acacia mangium, much like teak, needs to have all secondary branches pruned within 10 to 12 months of planting, so that only the principal stem is left. This allows the tree to grow with a nice trunk that isn't full of knots, greatly improving the value of the wood at harvest. Some species, like Eucalyptus pellita, do not require pruning as they grow naturally with a tall, knotless trunk. (9) A foreman inspects every tree in the plantation at least once a month, and if (10) a tree is leaning or crooked ropes or cords can be applied to try and straighten it. Inspection also allows other problems to be identified early, (11) including pests or disease, or trees that (12) have fallen or are affecting the growth of others. All of these points are just a small sampling of what it means to be a tree rancher for better profits and more valuable wood. Please visit Amazonia Reforestation at http://www.myreforestation.com to find out how you can help with our tree ranching efforts.