Drop in agricultural investments likely cause of lower Amazon deforestation

Posted on August, 27 2005

The decrease in deforestation in the Amazon in 2005, announced by the Brazilian government, is good news but the reasons behind it must be further analyzed.
Brasilia, Brazil / Gland, Switzerland – The decrease in deforestation in the Amazon in 2005, announced today by the Brazilian government, is good news but the reasons behind it must be further analyzed.   
 
According to WWF, while the government must be given credit for creating conservation areas and improving controls in the Amazon, significantly declining profits and investments in the agricultural sector are probably the main cause of the reduced deforestation. Conversion of forest to agriculture is the main cause of deforestation in Brazil.   
 
Between August 2004 and July 2005, slightly more than 9,000 square kilometres of Amazon forest disappeared — compared to 18,700 sq km from August 2003 to July 2004 — a 50 per cent decrease. However, these numbers were generated under a system known as DETER, which gives estimates instead of a precise rate.   
 
The lower figure announced today is less a result of government actions than a consequence of the current bad economic situation of the country.

"In the past, there have been several examples of decreasing deforestation rates immediately followed by increases in the years after," said Denise Hamú, CEO of WWF-Brazil.   

"We must now ensure that responsible forest management practices become the rule, as we know they can contribute to less deforestation on a more permanent basis."  

The Brazilian press had already announced a drop in the production of grains and beans, such as soy. The Brazilian Minister of Agriculture, Roberto Rodrigues, had also declared that areas planted with grains and beans were expected to shrink between 2 and 3 per cent. The international price of soy beans, which dropped by 36 per cent between March 2004 and August 2005, and the devaluation of the US dollar against the Brazilian currency have also reduced profits. Soy grains are the most important agricultural commodity in Brazil.   
 
According to WWF, government measures to control and prevent deforestation in the Amazon, including the arrest of officials involved in illegal logging, and the creation of conservation areas in Terra do Meio and in the south of the Amazon State played an important, albeit limited role, in the reduction of the deforestation rate.

WWF believes the government should put more effort in implementing better forest management and land-use planning to prevent the conversion of areas of high conservation value into soy plantations.   
 
"While the government is prepared to renegotiate farmers' debts at a cost of roughly US$700 million, it is appalling that forest companies have difficulty getting access to government credit for the implementation of  sustainable forest management," said Mauro Armelin, Forest Policy Officer at WWF-Brazil. 
 
For further information:
Helio Hara, Institutional Communications Officer
WWF-Brazil
Tel: +55-61 3364 7408
 
Mariana Ramos, Agriculture Programme Communicator
WWF-Brazil
Tel: +55 61 3364 7404

Soh Koon Chng, Communications Manager
WWF Global Forest Programme
Tel: + 41 22 364 9018

Olivier van Bogaert, Senior Press Officer
WWF International
Tel: +41 22 364 9554
                                                                                                                 
Deforestation along the Rio Branco River in Brazil's Amazon.
© WWF / Mark Edwards