Brazil could triple its palm planting area in 10 Years, Industry Leader Says
Victor 'Almeida said that Brazil could triple its palm oil production area in the next 10 years by expanding the cultivation of land already deforested in the Amazon.
Almeida, in an interview, said that the demand for biofuels will?boost? growth in this sector. The expansion of the industry has been largely done on previously cleared land, which avoids environmental risks and ensures a sustainable supply of vegetable oil.
Almeida’s comments coincide with a world facing successive heatwaves in a climate that is warming. This has prompted industries to look for feedstocks of low-carbon biofuels, such as sustainable aviation gasoline.
"We are going to reach 1 million hectares (2.47million acres). We're now at 288,000, which is more than tripling the size of this sector. I believe it is possible to achieve this within 10 years," Almeida said, who chairs the board of Belem Bioenergia Brasil - one of the largest palm oil companies in the country.
He said that the demand for biofuels will drive growth in this sector, and that oil palm trees will be used to produce vegetable oil, which will bring further investment.
Almeida explained that the trees could only be planted in areas which were deforested prior to 2008. This would help restore vegetation and generate income for smallholders in Amazon.
Almeida stated that Brazil's environmental regulations and a traceability program implemented by the state Para allow it to provide assurances to buyers in Europe that palm oil used as a biofuel is not associated with deforestation.
Almeida added that smaller producers have access to subsidized credit.
He said that under this model, companies would sign long-term agreements with growers, which were?linked to commodity prices. This provided predictability on both sides.
He said that a policy backed by the state to protect the palm oil?sector?from recurring import tariff exemptions?and to ensure long-term funding?for all producers would be crucial to the success of the industry, not just for smallholder farmers, but also for large producers and companies.
(source: Reuters)
