Partnership with private sector reinforces copaiba oil production chain in the South of Amazonas state

Posted on July, 25 2011

July marks the beginning of a promising partnership in the municipality of Apuí, 408 kilometres from Manaus, capital of the state of Amazon. The Brazilian branch of the Swiss company Firmenich which manufactures fragrances and aromas has ordered its first purchase of copaiba oil produced in the interior of the municipality under a regime of sustainable forest management. The agreement with the Aripuanã-Guariba Agri-extractive Association, negotiated in the first semester of 2011 was mediated by WWF-Brazil.
Brasilia, July 25. July marks the beginning of a promising partnership in the municipality of Apuí, 408 kilometres from Manaus, capital of the state of Amazon. The Brazilian branch of the Swiss company Firmenich which manufactures fragrances and aromas has ordered its first purchase of copaiba oil produced in the interior of the municipality under a regime of sustainable forest management. The agreement with the Aripuanã-Guariba Agri-extractive Association, negotiated in the first semester of 2011 was mediated by WWF-Brazil.

According to the company's proposal to the extractive producers, a kilo of copaiba oil will be negotiated for a price 100% higher than the price formerly paid by informal dealers. Firmenech will also create a 10 thousand real fund which it will, administer itself and the returns from the fund will be used to serve as working capital and income to finance capacity building and the purchase of equipment. Around 20 copaiba oil producers have already adhered to the proposal.

The first order placed by the company is for 5 tons of oil to be supplied by the end of 2011. Producers from Vila do Carmo, Vila Batista, Areal and Bela Vista do Guariba will be responsible for this first shipment. The product will be stored at Vila do Carmo, also known as Matá-Matá, because of its central location on the course of the Aripuanã river, its superior infrastructure and the better transportation connections that enable it to function as a centre for other communities in the area. Furthermore, Matá-Matá is on the BR-230 Trans-Amazon Highway which facilitates product shipment to other regions. The copaiba oil will be shipped by road, first to Porto Velho, Rondônia and then to São Paulo.

This trading agreement will enable the producers to sell directly to the company without the need for intermediaries and they will also be assured of a fair price for their oil. In previous years the copaiba was sold to middlemen for just 7 reais a kilo. That means generating a better income for the producers involved in the extraction and an enhanced value for forest products. In turn, the Firmenich company is guaranteed a supply of a raw material produced under proper forest management conditions that will ensure the sustainability of the supply and an effective contribution to the conservation of the Amazon forests.

WWF-Brazil's Amazon Programme coordinator, Mauro Armelin, attaches great importance to the company's initiative. "It is a decisive step taken by private initiative in the light of social and environmental considerations, insofar as the company itself establishes relations with the communities and also contributes to enhancing the value of forest products and fostering their conservation. In that way extractive producers have more options for generating income and the region's resources and potential will be made better use of," he declared.

Firmenich Brasil's regional manager for natural ingredients, André Tabanez, explained that the work in Apuí is actually part of a much bigger company project. On July 29, at a corporate event in São Paulo, (SP), an announcement will be made concerning the purchase of forest products from another two Amazonian communities . "This is the way we have found to foster social justice and take environmental issues into account in our production area. We wish to see these partnerships built on solid foundations and sustaining themselves within the next few years ," added Tabanez.

The sales contract with Firmenich is part of a set of actions grouped under the heading 'Development measures; forestry and agro-forestry production in the municipality of Apuí'. The strategy embraces a series of activities with a focus on forest management, reforestation, extractive activities and agro-forestry systems, all aimed at creating sustainable income and employment in the southern part of the State of Amazonas. Around 10 institutions are involved in the work including government bodies, civil society organisations, producers associations and cooperatives and WWF-Brazil.

Partnership with private sector reinforces copaiba oil production chain in the South of Amazonas state
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