“Democracia Capitalista o Capitalismo Democrático” Lecciones para aprender Caso Agrícola: Agropalma Brasil Marcello Brito Commercial & Sustainability Director
Bogota, Colombia – Junho/2012
People matters!
2 billion , + 120 years
1 Billion - 19th century
10 billion
4 billion - 1974
3 billion - 1959 6 billion - 1998
5 billion - 1987
7 billion - 2011
<US$ 2/day
Half of the world population
800 million living in slums
Enough to feed 9 11 billion people
Lack of distribution, not money
YES? NO?
Find your space out there
How to Transform Natural Patrimony Into Attribute For the Low-Carbon Economy?
Brazil
• 7th largest economy • 1/3 of planet rain forests • 20% of species of fauna and flora • 17% of fresh water • 8 thousand Km of coastline • The 2nd largest deforestation rate in the world
$
?
3 billion new middleclass consumers in the next 25 years.
Exhausted by 50% above its natural Renewal capacity
• Biodiversity products account for 31% of the Brazilian exports • The country has 520 million ha of preserved areas • Uses 28% of its area for agriculture Water Consumption: • Agriculture – 69% • Livestock – 12% 83% • Rural uses in general – 2% • Industries – 7% • Domestic /urban uses – 10%
$$ ?
Sustainable Development Model 80’s
(Najam 2009)
90’s
00’s
Future
Governments Solution
Catalyst
Problem
Partner
Civil Society
Monitor
Solution
Catalyst
Partner
Private sector/ Corporations
Problem
Problem
Solution
Partner
Our Route to Sustainability
The Business as phase / 1982 to 1999 Development Model (as business as usual)
Deforestantion and burning
Partnership with smallholders (support for local development)
No
Identification, monitoring and management of biodiversity
No
Shared management of the impacts on local communities
No
Best agricultural practices
Yes
International sustainable, traceble and quality certifications
Just a few
Transparency in the stakeholders relations
No
Planted area
20.000 hectares
Best gained results For the Country: • Deforestation • Social conflicts and social side effects • Lack of social and local developments due to NO income distribution. For the company: • Good economical results
“Learning Means Changing of Attitudes” Plato
WHO, WHY, HOW AND WHEN
The Sustainable Phase Development model
Restrict to previous degraded areas
Applicable methods
Replacement of cattle pasture
Partnership with stallholders (support for local development)
Yes. We have 232 partners reaching 10,000 hectares of oil palm plantations
Identification, monitoring and management of biodiversity
Yes, over 500 species identified e monitored every year
Shared impacts management on local communities
Yes, several socials, health and economical developments programs
Best agricultural practices
Biological pest management, mechanization , training methods etc.
International certifications?
ISO 9.001, 14.001, 22.000, OHSAS 18.001, EcoSocial, RSPO, JAS, USDA, Biosuiss etc.
Transparency in stakeholders relations?
Yes, throughout FPIC, internal communication, corporative communication accessed by workers, communities, clients and other stakeholders.
Planted area
30,000 hectares
Best gained results For the country: • 65,000 ha of protected forests • 50,000 ha of solid and modern company • 5,000 direct jobs • Local social development • Income distribution, poverty alleviation • A sustainable model for new players For the company: • Solid reputation • Economical return expressed in a huge “market good will” • Access to main markets and clients • Profitability
SOME SUSTAINABLE EXAMPLES FOR A NEW AGRICULTURAL PARADIGM THAT CAN PROPEL YOUR COMPANY
Social Efforts – to tackle the issue of prostitution
Palmares Village citizens during Agenda 21 meeting on women issues
Important Points • 2003 – Acknowledgement that the problem exists • 2004/2005 – Social study identifies the main (root) cause • 2005 – Company recognizes that have (indirect) responsibility on part of the problem • 2006 – company start to implement the strategy to deal with the problem
Social Efforts – to tackle the issue of prostitution Actions runned:
Palmares Village citizens during Agenda 21 general meeting
• 2006 – today: company starts to eliminate lodgings of rural workers (reduction of 95%). • 2006 – 2008: Consolidation of employees transportation system. • 2007 – 2008: elimination of contractors that used to provide workforce to Agropalma. • 2009 – 2010: establishment of Agenda 21 Program in Palmares Village. • 2011 – 2012 : elaboration and implementation of Palmares Village Sustainable Development plan. • 2007 – 2012: several campaigns about STD and AIDS among employees and Villagers
Social Efforts â&#x20AC;&#x201C; Transportation and Inclusion
We must see resultsâ&#x20AC;Ś
Social Efforts – UFA
• 2005 – First sewing course. Group of women is founded and call itself UFA (União Feminina Agropalma) • 2007 – 2008: assessment of UFA situation. • 2009 – 2010: Strategic planning • 2011 – COOP-UFA is founded • 2012 – COOP-UFA registered in Chamber of Commerce.
UFA sewing in their own machines
Private Forest Reserves • Forest reserves area: 64 thousand hectares • Planation area: 40 thousand hectares • 40 exclusive people in protection activities • 407 birds, 37 mammals, 40 reptiles and 22 amphibians species • Partnerships with local universities and NGOs.
Sustainable Company What is Sustainability?
Balance
Forest reserves
Plantation Riparian forests
Environmental Responsabilty
Manutenção de santuários com o auxílio da CI (Conservation International)
Fonte: Agropalma
Social Responsability
Housing for singles
Family housing
Fitness center
Cafeteria Leisure
Our People
School â&#x20AC;&#x201C; over 650 studants
Free transportation to school
Science Labs
IT Lab
Health Care
Making a Difference Brazil: DENDĂ&#x160; OIL FAMILY AGRICULTURE PROJECT
A QUEST FOR SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT ReVista - Harvard Review of Latin America (Fall 2006) htpp://drclas.fas.harvard.edu/index.pl/publications
Local economical development 230 partners (smallholders)
Mechanization
CERTIFICATIONS Management certifications: • ISO 9001 – Products e Process Quality • ISO 14001 – Environment Management System • OHSAS 18001 – Healthy and Security Systems • ISO 22000 – Food Safety Organic certifications: • IBD – Instituto Biodinâmico • NOP/USDA – National Organic Program of the United States • JAS – Japan Agricultural Standard • Bio Suisse • FIPA – South Korea Fair Trade certification: • EcoSocial Sustainability certification: • RSPO
“Learning Means Changing of Attitudes” Plato
But,
â&#x20AC;&#x153;It is not the strongest of the species that survives, nor the most intelligent, but the most responsive to CHANGEâ&#x20AC;? Charles Darwin
THANK YOU For further information:
marcello@agropalma.com.br Twitter: @msabrito www.agropalma.com.br Special thanks for the following sources: - United Nation, Mckinsey Group, World Bank, MSC studies, Jornal Valor Econ么mico, Financial Times, ReVista Harvard Review, Google images, Agropalma and FBDS.