REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
Index 4
GENERAL INFORMATION ON THE SECTOR
9
SOCIAL AND ENVIRONMENTAL REGULATIONS FOR THE SECTOR
17 PALM OIL AND ITS BENEFIT 20 CONCLUSIONS 22 SOURCES 23 ANNEX LIST
3
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
1. GENERAL INFORMATION ON THE SECTOR 1.1 Economic Importance of the Palm Oil sector Palm Oil exports represent 4% of Ecuador’s agricultural GDP. Palm production has grown at an average annual rate of 8% over the period 2010-2016, making this sector the country’s seventh agricultural export and one of the most dynamic industries within non-traditional and nonoil production in the country. During the last 5 years, 42% of palm oil produced in Ecuador was consumed internally, while 58% was exported as crude palm oil and as semi-processed and derived products, generating US $ 271 million in export currencies, contributing positively to the steadiness of the country’s trade balance.
PALM OIL PARTICIPATION ON AGRICUTURAL GDP Palm OIL Other Agriculture GDP
4%
96% FUENTE: CENTRAL BANK
Ecuador is the seventh exporter of palm oil and palm oil by-products worldwide, and its main export destinations are Colombia, Venezuela, the European Union, Mexico, among others:
SOURCE: OIL WORLD - FEDAPAL
4
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
Ecuador reached a historic exports record on palm oil and palm oil by-products in 2016, reaching 349,569 MT, 136% more than in 2006, when exports amounted to 148,081 MT. These statistics demonstrate the importance of the palm sector in terms of economic growth, which has been continuous, contributing positively to job creation and poverty reduction.
ECUADORIAN EXPORTS OF PALM OIL AND PALM-BASED PRODUCTS (MT)
SOURCE: FEDAPAL
In Ecuador, there are approximately 280 thousand hectares planted with palm, of which an estimated 219 thousand were harvested in 2016. According to the size of producers, the sector is distributed as follows:
As noted above, the cultivation of palm oil is a socially important sector, since of the 7,000 palm oil producers that currently exist in Ecuador, 87% are smallholders with less than 50 hectares of production. This sector also generates 150,000 jobs (directly and indirectly),
5
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
particularly in marginal and vulnerable areas, where it contributes to poverty reduction and social peace. The palm oil producing areas are located in the Provinces of Esmeraldas, Sucumbíos, Santo Domingo, Los Ríos and Pichincha. As a particular characteristic in palm cultivation, smallholders are present in all producing areas of the country, and not concentrated in specific places. This is due to, as previously shown, the vast majority of palm oil producers being small and medium producers (99.7%). For its part, it has been identified that the large producers of palm oil are concentrated in the cantons of San Lorenzo and Shushufindi, within the Provinces of Esmeraldas and Sucumbios, respectively.
1.2 Domestic Certification Systems and RSPO Standard African palm producers are constantly seeking to improve their quality standards and promote environmental and social responsibility conditions, in order to comply with international requirements. The main objective is to ensure good production practices and to ensure economic, social and environmental sustainability throughout the supply chain. In Ecuador, palm oil producing companies work with local communities to support the sustainable production of palm in their territories, with the aim of ensuring the transfer of “know how” for greater productivity and environmentally friendly production. The National Association of Cultivators of Palm - ANCUPA formed the Technical Team of National Interpretation -ETIN, to carry out the process of National Interpretation of the Principles and Criteria of the international standard RSPO to promote the production of sustainable palm in Ecuador. There are associations of producers and palm companies that have obtained certifications of organic and sustainable palm (RSPO), which have supported policies in favor of environmental protection and respect for labor rights adopted by the National Government, guarantying an adequate production of this product based on a sustainable management of palm oil cultivation.
6
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
On the other hand, the National Government, through the Ministries of the Environment (MAE) and Agriculture, Livestock, Aquaculture and Fisheries (MAGAP), has pledged to support the palm-growing sector to transform production towards a sustainable model. In particular, the MAE, through UN REDD Funds and with the support of MAGAP, implements the REDD+ Plan as a firm policy of non-deforestation, with the purpose of transforming palm production to sustainable production, which will continue to generate economic and social benefits in the country. Within this framework, a Consultancy is taking place, named: “Design and support in the execution of Plans for the Implementation of Measures and Actions framed under the REDD+ approach for sustainable palm production and nondeforestation”, which aims to “Design at least two Implementation Plans for Measures and Actions under the REDD+ approach for sustainable palm production and non-deforestation, and to support the beginning of its implementation by coordinating with the implementing partner (Sub secretary of Commercialization - MAGAP). A hired consultancy firm is formulating the following action plans: 1)Concrete activities to obtain sustainable palm certification in the Ecuadorian Amazon and national level. The specific objectives of the first plan include: • Implement a process of active participation with local governments, MAE, MAGAP, civil society, guilds and producers in order to achieve the RSPO (Roundtable for Sustainable Palm Oil Roundtable) certification. • Analyze the existing conditions and delimit a geographical area based on the information collected, define the land use for the context of the sustainable management of palm plantations and evaluate the available information regarding the titling of lands that are dedicated to palm production. • Establish procedures to achieve compliance with the technical and legal requirements of RSPO certification and carry out studies that allow compliance with these requirements in accordance with the principles and criteria required for this certification. • Integrate the values of the chain through strategic alliances to reach international standards of sustainable palm oil exports. 2)The entire development of the palm oil farm, through the technical advice to achieve Good Agricultural Practices and the fulfillment of other RSPO criteria in favor of smallholders and producers. The specific objectives of the second implementation plan include:
7
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
• Developing and carrying out comprehensive farm management plans, establishing an advisory system for small producers and groups of labor technicians, with RSPO’s principles and criteria. • Strengthening the associative and organizational capacities of local producers. • Reinforcing a coordination system with all of the competent entities operating in the territory and align them with the objectives of jurisdictional certification, and creating regulatory capacity and local technical assistance in the Decentralized Autonomous Governments located within the territory. The jurisdictional certification is focused precisely on working with a delimited area, where all producers, processors and other public and private actors immersed in the jurisdiction work in an articulated way to achieve sustainable palm certification. In addition, the public and private sector implement the Plan for the Competitiveness Improvement of the Palm Chain (PMC), which is a space where the necessary strategies and actions are delineated, in order to achieve a productive transformation of the palm oil chain in an efficient, sustainable, and socially inclusive way. The PMC is an instrument of dialogue and discussion that is under the Framework Agreement signed by MAGAP, the Ministry of Foreign Trade (MCE), the MAE and the Ministry of Industry and Productivity (MIPRO).
SCHEME OF IMPLEMENTATION PLANS FOR SUSTAINABLE PALM OIL TRANSFORMATION
8
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
Likewise, an Inter-Institutional Monitoring Committee for the Sustainable Palm (CISPS) has been created with public and private actors involved in the palm chain, which will be responsible for defining and promoting policies, actions and the different plans being developed for the implementation of RSPO certification on national and jurisdictional levels. This Committee was created by Ministerial Agreement No. 145 of May 23, 2017. It is worth mentioning that, as an initiative for the implementation of the RSPO certification in Ecuador, the country analyzed the possibility of obtaining the JURISDICTIONAL RSPO certification that was created as an alternative which can be adapted to countries like ours, where the majority of producers are small ones. In order to have tools to advance on the implementation of sustainable palm certification, the “International Workshop on Juridical Approaches in Palm Production Areas: Concepts, Challenges and opportunities” was held in Ecuador on the 28th and 29th of March 2017, with the presence of Darrel Webber - Executive Director of RSPO worldwide, who said that the sustainable palm jurisdictional certification “is a visionary initiative for a country that produces palm oil. The challenges will be great, but so will the long-term rewards. Multistakeholder collaboration will be the key to bring this initiative to its ultimate goal.” In this workshop the signing of an Act of Commitment was carried out with different public and private actors. The Act’s signatories have expressed their commitment and unrestricted will to move towards sustainable palm production, based on RSPO standards and an inter-institutional, inter-sectorial structure which will monitor and follow up on these actions.
2. SOCIAL AND ENVIRONMENTAL REGULATIONS FOR THE SECTOR Since the approval of Ecuador’s 2008 Constitution, a number of reforms have been established to ensure the strengthening of human rights, workers’ rights, and environmental rights, as well as assuring their implementation in production processes at all levels. The palm oil sector is not an exception.
2.1 Compliance with Environmental Rights Ecuador’s Constitution is the first in the world to recognize rights to the environment.
9
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
The country declares as a public interest the preservation of the environment, conservation of ecosystems, biodiversity and the integrity of the country’s genetic heritage, prevention of environmental damage and recovery of degraded natural areas. Ecuador has a National System of Protected Areas - SNAP, which by constitutional mandate guarantees the biodiversity conservation and the maintenance of ecological functions. In Ecuador, the main deforestation causes, according to the map of deforestation 20082014, are pastures (65% of the forest became pasture) and agricultural mosaics1. Palm is one of the least predatory crops, since 97% of the palm oil crop is grown in agricultural areas outside protected areas. In the case of palm, action plans are being developed to promote sustainable palm production in the social, environmental and productive spheres. Ecuador has adopted a policy of non-deforestation, which translates into the Plan of Action REDD2 + Ecuador, where its strategic components are the transition to profitable sustainable crops, sustainable forest management, conservation and restoration. The Government, in partnership with the private sector of the chain, has promoted the PMC of Palm Chain since 2014, which implements specific actions to achieve a productive, inclusive and sustainable palm chain until 2025. In this sense, MAGAP and MAE have jointly established the “Updated Map of Agroecological Zoning of Palm Cultivation”, which defines specific areas where palm oil can be planted outside of protected areas and high conservation value defined by the Government (Interministerial Agreement No. 189 of July 29, 2015)3. MAE, with the aim of environmental preservation in mind, requests all producers to have an environmental permit or license and has created the Unique System of Environmental 1 They are groupings of different kind of crops cultivated that are intermixed and cannot be individualized 2 Reducing Emissions from Deforestation and Forest Degradation (REDD) 3 http://www.ancupa.com/pdfs/informativos/julio-2015/acuerdo_189_mapa_zae_palma.pdf
10
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
Information SUIA4, which facilitates the producers and companies to obtain that permit. (Book VI, of Environmental Quality, Decree No. 3516)5. In Ecuador, every natural or juridical person has the right to participate in environmental management. For this reason, the Ministry of Environment maintains a process regarding social participation where the community is informed of environmental projects to gather observations in order to take future actions (Art.28 and 29 of Environmental Management Law). In order to achieve sustainable production, AGROCALIDAD has also generated the Guide to Good Agricultural Practices (BPA) for the Palm sector, established by Technical Resolution 303, issued on November 9, 2015, which details the technical guidelines to ensure an adequate sector chain, considering elements such as Control and monitoring; Food safety; Protection and conservation of the environment, traceability, as well as the guarantee of the safety of the people who work in this activity and the communities that live nearby, among others. Regarding control and monitoring, among other aspects, it is necessary that those parties interested in obtaining a certification of BPA for palm, register as operators in AGROCALIDAD, thus facilitating verification and enforcement of BPA (e.g. properties must have a map of location and sketch). Concerning food safety, the history of the soil and the management of the pre-plant nursery and plant nursery for the production of plants is considered. This means, the soil must be optimal for planting by eliminating the risks (e.g. soil conservation tasks), and the seeds must come from national or international, public or private propagation centers certified by official entities, therefore guaranteeing the quality of the product. 4 http://suia.ambiente.gob.ec/ 5 http://suia.ambiente.gob.ec/documents/10179/185880/ACUERDO+061+REFORMA+LIBRO+VI+TULSMA+-+R.O.316+04+DE+MAYO+2015.pdf/3c02e9cb-0074-4fb0-afbe-0626370fa108
11
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
The Guide to Good Agricultural Practices also establishes mechanisms for integrated pest control and the correct use and responsible management of pesticides, in order to avoid or minimize their impact on the environment. Likewise, plantations must comply with the rules established within national legislation regarding the prevention, mitigation and minimization of negative impacts on the environment. Concerning safety, elements have been identified to guarantee the safety and biosafety of workers and surrounding sectors. For example, plantations must have an occupational health and safety plan considering the inherent risks about productive activity, such as those caused by chemical, biological and physical agents, in addition to considerations of cleanliness, order, and clothing, among others, necessary in the farms.
Regarding traceability, the Guide to Good Practices for the Palm establishes the implementation of a complete traceability process system that allows establishing the identity of the product from the field to the place of sale of the product. The information should include information on the production unit (farm, lot or sector), harvest, harvested quantity (bunch number per batch), date of shipment and the name of the buyer or extractor company. To ensure the safety of palm oil for consumption and export as well as to ensure the health of populations that live next to the palm oil crops, a control system has been established in the country led by the Ecuadorian Agency for Quality Assurance in Agriculture (AGROCALIDAD), under the Minister of Agriculture, Livestock and Fisheries which, through the Department of Registration of Agricultural Inputs, registers products used to control various crop pests, in conjunction with the National Direction on Environmental Control of the Ministry of
12
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
Environment and the National Direction on Sanitary Surveillance and Control of the Ministry of Public Health. These instances are part of the National Technical Committee on Pesticides, which is responsible for assessing the records for the registration of chemical pesticides for agricultural use based on Decision 804 of the Andean Community, in the farming and toxicological fields, as well as analyzing and defining several aspects that may arise regarding the proper use and handling of those products. Once certain pesticides have been evaluated and their use has been accepted, AGROCALIDAD is responsible for maintaining the registry of companies authorized for the sale of pesticides as well as the list of pesticides and related products permitted for use. In fact, it is required that all warehouses of sale and distribution of pesticides be registered in system of the guide of AGROCALIDAD, whose control is based on periodic inspections of post-registration for verification and compliance with national legislation. In addition to Resolution 804 of the CAN, control over the use of pesticides in agriculture is based mainly on the following national laws and regulations: • Law for the formulation, importation, sale and use of pesticides and related products for agricultural use (Official Journal 442 of May 22, 1990), which was codified in 2004. This Act established better control and regulation of the pesticides used in agriculture.
13
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
• Decree 3609, Unified Secondary Legislation Text of the Ministry of Agriculture, Livestock, Aquaculture and Fisheries, updated in 2010, for the registration of biological pesticides and related products for agricultural use. • Resolution 0173 of AGROCALIDAD, of September 2012, issuing the “Complementary Standard to facilitate the implementation of Decision 804 of the Andean Community”. This regulation establishes the requirements for registration of enterprises for application of agricultural pesticides, among which is the obligation to pass a training course on the proper use and management of pesticides. This Resolution also stipulates that “it is prohibited to practice aerial applications of pesticides and related products in categories “Ia” and “Ib”, which are of extreme and highly dangerous use, as well as pesticides when evaluation results show a high probability of contamination to the environment and to human health. Similarly, it is prohibited to conduct aerial applications near schools or populated areas. All aerial applications must have a prescription from a professional agronomist. It should be mentioned that pest control in palm crops is treated by root absorption techniques, avoiding the need for massive controls and aerial fumigations, which affect the environment. • The Inter-ministerial Agreement no. 365 developed by the MAE, MSP, MAGAP and the General Directorate of Civil Aviation, published in the Official Journal No. 431 of February 4, 2015, issues the Regulation for Agricultural Environmental Sanitation, which regulates and controls the aerial and ground applications of agrochemicals and related products in agriculture considering the agronomic, geographic and environmental aspects. This regulation states that it is mandatory: • To establish a security strip of 60 meters without hedgerows and 30 meters with hedgerows with respect to sensitive areas (rivers, estuaries and major water bodies, which are not intended for human consumption). • To plant native plants in order to protect and conserve other water sources (internal channels of crops) • To establish a security strip of 200 meters on the perimeter of the crops located next to populated areas, schools, health centers, recreation centers and outdoor bodies of water intended for human consumption; in these security strips ground spraying is permitted when the activity is in compliance with specific guidelines. • This regulation also provides that MAE will be in charge of: giving capacity building to the agricultural sector in environmental regulations; ensuring
14
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
implementation of hedgerows in the agricultural sector; coordinating, together with the responsible entities, the monitoring of chemicals in water, soil and air resources; ensuring compliance with safety strips for water bodies; and developing management guidelines for hazardous and non-hazardous waste. To ensure these processes, the MAE coordinates with the MAGAP and MSP to conduct periodic inspections on crops. In addition, regarding the control over the use of pesticides, MAGAP, MAE and MSP have been running a National Training Plan for the Sound Management of Pesticides since 2011, directed to the whole marketing chain of chemical pesticides for agricultural use, including in the palm oil sector, using the field school methodology, developing educational materials that facilitates the understanding of this matter. To achieve a comprehensive environmental control system on agricultural plantations, which includes palm oil, MAE has based its action on the following standards: • The Unified Text of the Secondary Legislation of the Ministry of Environment (TULSMA) (Official Journal No.725 of March 31, 2003) establishes the procedures and regulates the activities and public and private responsibilities regarding environmental quality. On this basis, the requirement of environmental licenses and records in the palm oil sector has been implemented. • The Ministerial Act No. 026 of May 3, 2008, issued the Procedures for Registration of Generators of Hazardous Waste, Management of Hazardous Waste prior to the Environmental Licensing and Hazardous Materials Transportation. • The Integral Management of Plastic Waste that was used for Agricultural Purposes (Official Journal No.943 of 29 April 2013) requires palm oil plantations to have a better control of plastic waste with the support of companies that sell inputs.
2.2 Labor and Communities Law Protection Ecuador’s Constitution, the Labor Code and the Comprehensive Criminal Code ensure the rights of workers, compulsory membership of social security and imprisonment for those who do not enroll workers in this system. In addition, Ecuador has made significant efforts to reduce extreme poverty and improve the salary conditions of the Ecuadorian population through the implementation of public policies that have fostered the protection and maintenance of income in the homes of Ecuadorian workers while improving the distribution of income.
15
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
Consequently, according to the Social Development Report 2007-2017, the real growth of household income has increased due to the elimination of labor outsourcing; informality reduction, increase of the economically active population (PEA) affiliated to social security, from 26.1% in 2006 to 44.2% in 2016; and because the basic salary has increased 121%, between 2006 and 2016. The Labor Code prohibits child labor and its non-compliance is sanctioned according to article 95 of the Childhood and Adolescence Code. In 2005, the Ecuadorian Government, in partnership with various national and international non-governmental organizations (NGOs) and civil society institutions, developed the National Plan for the Prevention and Progressive Eradication of Child Labor in Ecuador (PETI). This National Plan has been implemented through various projects, most notably, the current “Project to Eradicate Child Labor 2014-2017�, led by the Ministry of Labor. Since the implementation of PETI, the palm oil production sector has focused on preventing child labor and improving the living conditions of people engaged in this economic activity in the country. Ecuador adheres to the International Labor Organization (ILO) 169 Convention, which recognizes the collective rights of indigenous peoples. Within the framework of this Agreement, Ecuador has supported the titling, land regularization ownership and possession rights, among other actions, as well as consulting indigenous persons about
16
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
exploitation activities that could affect their environment and heritage. Ecuador, according to its Constitution, guarantees the right of communities, peoples and nationalities from having to move from their ancestral lands, prior to a free and informed consultation, within a reasonable period of time on plans and programs for prospecting, exploitation and commercialization of non-renewable resources of their lands (Article 57 of Ecuador’s 2008 Constitution
3. PALM OIL AND ITS BENEFITS Palm oil is one of the 17 major oils and fats produced globally, and was the highest consumed oil in 2012, reaching nearly three million people in 150 countries. Global consumption also rose from 14.6 million tons in 1995 to 61.1 million tons in 2015, making it the most consumed oil in the world. Ecuador being the seventh largest exporter of palm oil in the world and considering that palm oil production plays a significant role in reducing poverty in the country; there is a serious concern about the misconception of the effects of this product in the areas of health and environment. In light of this misconception, several details regarding the characteristics of palm oil have been provided below.
3.1 Compliance with Health • Palm oil does not contain TRANS fatty acids. It also has a lower content of unsaturated fatty acids compared to other oils, and a lower content of saturated fatty acids when compared to coconuts, butter and cocoa butter.
17
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
• Unlike other vegetable oils, palm oil is naturally semi-solid and does not need to undergo hydrogenation to make it suitable for solid applications. The hydrogenation process is responsible for the formation of trans fatty acids which are detrimental to health. • An adequate amount of fat is required in the human diet for proper digestion and nutrient absorption. Palm oil provides the right amounts of fat in a balanced diet. • Palm oil has the richest known content of natural tocotrienols (Vitamin E) among all vegetable oils. Several studies have shown that tocotrienol helps lower cholesterol levels and protects the brain against diseases.
• Palm oil is also high in carotenoids, a rich source of vitamin A. Carotenoids can be stored in the body and converted to vitamin A when needed. Vitamin A stimulates the immune system and controls the growth and functions of body tissues. Red palm oil, slightly refined palm oil, has seventeen times more carotenoids than carrots. • Coconut, dairy butter and cocoa butter contain higher amounts of saturated fatty acids than palm oil. Olive oil, sunflower oil and rapeseed oil are high in unsaturated fatty acids. Palm oil is often used as an ingredient and mixed with other vegetable oils. Together they determine the fatty acid composition of a food, hence it cannot be considered in terms of a single unit.
18
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
• Palm oil does not increase the risk of cardiovascular disease. In fact, there is no indication that consumption of palm oil in a balanced diet is related to any specific health concern. Dietary advisory bodies recommend moderate intake of foods high in saturated fats, replacing SAFA6 with PUFA7 and avoiding trans fatty acids (TFA). Palm oil is a good replacement for partially hydrogenated fat containing unhealthy trans fatty acids. • Products labeled as “palm oil free” are not healthier than food products containing palm oil. Substituting palm oil with other fats may have unfavorable effects. Replacing palm oil in food products or diets with fats higher in SAFA will not make a product healthier. The relationship between nutrients and health should be considered within the whole diet. • In Ecuador, there is also production of palm oil hybrid varieties with high amounts of olein (85% approx.), that have higher levels of unsaturated fatty acids with Good Cholesterol HDL.
3.2 Environment Friendly • Palm cultivation has zero “tillage” only a hole is made for sowing which generates an important soil advantage, considering that the cultivation cycle lasts 25 years. In addition, the palm does not need mechanical equipment such as plows, dredges, seeders or harvesters, which means the soil compaction is basically zero, alleviating soil erosion. • Simply replacing palm oil with other types of vegetable oil would create similar –if not even larger- social and environmental problems. The palm oil tree is the most efficient crop in terms of land use. It has the highest yield compared to other oil crops. Replacing palm oil with other types of vegetable oil (sunflower, soya or rapeseed oil) means that much larger amounts of land would need to be used and the growth of the agricultural frontier would be required. In addition, the palm oil captures more CO2 than any other crop: palm 45.10 MT CO2/ha/year. • Pest control on palm oil is performed using root absorption methods, in order to avoid aerial fumigations. Additionally, rachis is used as organic fertilizer in the same palm oil plantations.
6 Saturated Fatty Acids 7 Polyunsaturated Fatty Acids
19
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
• The extraction process of palm oil in Ecuador is totally mechanical; no solvent of any kind is required. Even some by-products that come out of the process such as fiber and kernels are used for the water vapor production that is required in the sterilizers to cook the fruit and even such steam is also used for the self-generation of electric energy.
• Palm oil is the best primary input for biodiesel production. The environmental benefits that this fuel generates would be reflected in a substantial improvement of air quality.
4. CONCLUSIONS • Ecuador ensures compliance with the social, labor and environmental standards necessary for an adequate palm production, through its Constitution, respect of International Conventions, as well as Government policies, programs, and public and private sector initiatives. • Substantial progress in the last 10 years (2006-2016) has been made in Ecuador throughout efforts to eradicate child labor on palm plantations and to improve living conditions for workers in the palm oil sector. As mentioned, Ecuador through its competent authorities, is implementing the National Plan for the Prevention and Eradication of Child Labor, where thousands of children and adolescents have been recovered in recent years.
20
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
• Ecuador, through MAE, MAGAP, AGROCALIDAD and the private sector has defined clear mechanisms to take care of protected areas and the environment, respecting the rights of indigenous and ancestral communities of the country, ensuring the safety and quality of harvested products; and a sustainable management of the resources regarding the palm oil production chain. Therefore, the National Government and the private sector have launched the Competitiveness Improvement Plan for the Palm Chain - PMC; have defined the updated Agroecological Zoning Map of the Palm Crop; and has encouraged the adoption of Good Agricultural Practices (BPA) for palm cultivation, which shows the significant efforts made by the country in order to obtain a responsible, respectful and inclusive palm production. • Palm cultivation in Ecuador is a potential growth sector generating benefits for the most vulnerable population. About 100% of producers are smallholders and medium-sized, with only a minimum participation from large producers (0.3%). In the framework of Corporate Social Responsibility, large companies have established themselves as “anchor companies” to promote the development of the crop with small producers, sharing with them all the experience (know-how), technological baggage, as well as environmental and socially friendly processes that are used in their plantations with the aim to achieve optimum yields. • MAE, in coordination with MAGAP and the MSP, has made significant efforts to control the proper use of pesticides and to provide adequate environmental management during palm oil production processes, which are designed to protect the environment and the health of workers and residents of the producing areas. • African palm producers themselves seek to improve their quality standards and promote conditions of environmental and social responsibility, in order to comply with international requirements on production, quality and sustainability on Ecuadorian palm oil. In this effort, the National Association of Cultivators of Palm Oil - ANCUPA formed a Technical Team to carry out the process of National Interpretation of the Principles and Criteria of the international standard RSPO (the only one nowadays) to promote a correct palm production in Ecuador. • As an initiative for the implementation of RSPO certification in Ecuador, the country analyzed the possibility of obtaining the RSPO JURISDICTIONAL certification that was born as an alternative that can adjust to countries like ours, where most producers are small. Darrel Webber - Executive Director of RSPO Worldwide, stated that the jurisdictional certification of sustainable palm proposed by Ecuador “is a visionary
21
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
initiative for a country that produces palm oil. The challenges will be great, but so will the long rewards. Multi-stakeholder collaboration will be the key to bring this initiative to its ultimate goal.” • This important sector of Ecuador’s economy has made remarkable efforts in conjunction with the National Government, in order to strengthen the process of production and export of palm oil and its by-products, to achieve compliance with standards and more demanding international market requirements. Ecuador is also aware that any joint efforts for the production and cultivation of this product must coincide with social and environmental policies that ensure better living conditions for current and future generations.
5. SOURCES • • • • • • • • •
Central Bank of Ecuador Ministry of Agriculture, Livestock and Fisheries - MAGAP Ministry of Environment, - MAE Coordinating Ministry of Social Development. “Social Development Report 2007-2017” AGROCALIDAD MAGAP/Palm Oil Sector Office PROECUADOR TradeMap National Foundation for Exports Promotion of Palm Oil and Derivatives of National Origin - FEDAPAL • National Association of Cultivators of Palm - ANCUPA • Health information: - European Palm Oil Alliance - Research: “Effects of palm oil on the lipid profile in consumers with normal cholesterol”. - Research: “Palm oil in human health and nutrition”
22
REPORT OF ECUADORIAN PALM OIL SECTOR MAY 2017
6. ANNEX LIST • Annex I. • Annex II. • Annex III. • Annex IV. • Annex V. • Annex VI. • Annex VII. • Annex VIII. • Annex IX. • Annex X.
Palm Good Agricultural Practices -MBP. Unique System of Environmental Information -SUIA. Action Plan REDD+Ecuador – Non-Deforestation National Policy. Decision 804 of Andean Community : “ Andean Standard for Registration and Control of Chemical Pesticides for Agricultural Use”. AGROCALIDAD Resolution – Maximum Residue Limits. Act of Commitment for the Formation of the Inter-Institutional Monitoring Committee to RSPO. Ministerial Agreement No.145 (MAGAP) - Establishment of the Interinstitutional Monitoring Committee to RSPO. Public-Private Interest Manifest on Jurisdictional Certification RSPO. Public-Private Agreement for the Plan for the Competitiveness Improvement of the Palm(PMC) Inter-institutional Agreement (MAGAP, MCE, MAE and MIPRO) for the implementation of the PMC.
23
ANNEX
Summary 1
GOOD AGRICULTURAL PRACTICES ON OIL PALM In order to guarantee the quality of food in its primary phase, Ecuador through AGROCALIDAD has generated 28 guides of Good Agricultural Practices (BPA in Spanish) for the production and control of contaminants in agricultural products. These guides were conducted with the aim of complying with the requirements of national and international regulations, while facilitating access to increasingly demanding markets. The BPA has the participation of different players in the country's agricultural food chain, which has created an inclusive and consensual process. Within the framework, the Guide to Good Agricultural Practices for Palm (BPA), was established by Technical Resolution 303, issued on November 9, 2015, which details the technical guidelines that producers have to implement on their farms while complying with the following conditions: a) Hygiene and food safety, which relate to the product suitability for protection of consumer health (pesticide residues, microbiological and physical contaminants). b) Selection of the land, the soil history and the management of the pre-nursery and nursery for the production of plants are all important. The soil must be optimum for planting by eliminating the risks and soil conservation work must be performed in order to avoid erosion. Furthermore, the seeds must come from national or international public or private propagation centers certified by official entities, in order to guarantee the quality of the product. c) The protection and conservation of the environment, through agricultural practices that represent a low impact and help to conserve and improve the environment that surrounds the crop (e.g. integrated pest management, integrated crop management, agroforestry systems, conservation plans). d)
Safety and health of workers and people related to the environment (Application of national and international regulations, use of protective equipment, training, medical appointments, among others).
e) Traceability, the implementation of a system that is able to identify the product from the field to the place of sale of the product; it must include information on the production unit (farm, lot or sector), harvest, quantity harvested (bunch number per lot) date of shipment and the name of the buyer or extractor company.
Technical Resolution 303 (BPA Guide) also contains definitions, mechanisms, processes and practices related mainly to:
-
Planting Registration. Selection of terrain. (Agro-ecological conditions, soil requirements and soil history). Establishment of plantation (Mapping, construction of roads and drainage). Registration of Plant Nurseries (Installation and management of pre-nurseries and nurseries). Agronomic Cultivation Management (Soil conservation, seeding/land management and weed control). Cultivation Nutrition (Organic and inorganic fertilization). Crop Protection (Integrated pesticide management, responsible use and storage of pesticides for agricultural use, storage of tools, equipment and machinery). Harvest Practices, Post-Harvest and Transportation (Previous phases, harvest and quality parameters, transport of harvested products). Water Management, Risk System and Drainage (Selection, security, irrigation system, drainage network). Safety and Biosafety of Workers (occupational safety and health plans, education and training, protective measures). Environmental Protection (comply with current regulations, protection and noncontamination of vegetation around rivers and other water sources and vegetation to avoid soil erosion, waste management and disposal, among others). Traceability system (Monitoring mechanisms throughout the whole process). Documentation and Records (Documentary requirements for BPA certification). Concession of the Certificate in BPA for the cultivation of Palm Oil (Certification Manual). Annexes (Criteria models for correctly applying BPA)
The document containing the BPA for palm oil has served as a basis for the development of the National Interpretation Guide for the International Certification Roundtable on Sustainable Palm Oil (RSPO), which guarantees consumers that the product comes from sustainable systems (environmentally and socially). Elaborated by: Ministry of Foreign Trade Source: Food Safety Office International Relations Unit - AGROCALIDAD For more information: http://www.agrocalidad.gob.ec/wp-content/uploads/pdf/Resolucion-0303-Guia-de-Buenas-Practicaspara-la-Agricultura-de-Palma-Africana.pdf
Summary 2
REDD in Ecuador Reducing deforestation in Ecuador is a national priority and the National Development Plan (known as the Plan for Good Living) aims to reduce deforestation in Ecuador by 30%. To help achieve this goal, the Ministry of the Environment’s Socio Bosque Program (SBP) began in 2008 to conserve natural forests by providing financial incentives to private and community forest owners to keep their forests standing. Ecuador has been a participant in the UN-REDD programme since Oct 2009 when it was formally accepted as an observer country. Since the acceptance of its National Joint Program (NJP) in March 2011, Ecuador became a beneficiary country and joined the group of twelve pilot countries that are implementing activities in preparation for REDD. At the national level, a framework to regulate REDD activities is under development. These activities will be implemented at the national level with the possibility for subnational projects. All measurement, reporting and verification (MRV) will be carried out at the national level. To date, the sub-national activities underway in Ecuador are largely feasibility studies for potential REDD+ projects, reforestation projects and include a few REDD projects that are preparing project design documents (PDDs). The Ministry of Environment (MAE) is the official governmental partner to the UN-REDD programme and coordinates all REDD initiatives and activities in Ecuador. During the readiness phase the MAE is responsible for implementation of the NJP and ensuring that the NJP is in compliance with the provisions of the National REDD+ Plan (PNREDD+). Ecuador has coordinated several actions at the national level to engage key stakeholders in the national REDD+ process. The REDD+ engagement programme, which is supported by UN-REDD, aims to provide information, opportunity for consultation and capacity building on the PNREDD+. The objectives of the engagement program are to assist stakeholders to understand REDD+ and the implications for implementation, to reach agreements about REDD+ and generate interest in participation, to involve key actors through mechanisms to promote participation and to build local capacity to implement the PNREDD+. The National Advisory Committee (COASNA) was established to ensure that the implementation of the NJP is an inclusive process with equal representation of interests. COASNA is comprised of government and civil society stakeholders, including indigenous peoples and will initially consist of a representative and acting representative of the National Planning Secretariat (SENPLADES) and the Ministry of Agriculture, Ranching, Aquaculture and Fishing (MAGAP), to facilitate governance and coordination among different levels of government as stated in the mandate of the 2009-2013 National Plan for Good Living. Ecuador has also established a review group for the NJP and has convened various workshops and a series of public meetings that serve as primary forums for stakeholder engagement around the UN-REDD process. Finally, the national Social and Environmental Standards (SES) Committee has engaged with a wide variety of stakeholders to develop standards and safeguards for REDD+ in Ecuador.
The Socio Bosque Program (SBP), though not formally a REDD+ program, is an incentive-based policy for forest conservation. From its initiation in September 2008 to December 2011, the SBP has achieved conservation agreements with private individuals (114,701 ha) and indigenous community partners (768,522 ha) to conserve a total of 883,223ha of native forests, humid Andean grasslands (påramos) and other native vegetation formations, with estimated benefits for more than 70,000 people. MAE is considering a range of additional incentives which may be monetary in the form of direct financial compensation (as is the case with the SBP), tax breaks for sustainable activities (e.g. for forested lands or imported machinery) or non-financial incentives such as facilitation in the acquisition of logging permits, administrative services through mobile offices in timber production zones, free technical assistance from MAE to develop management plans, or the deregulation of plantations. Further incentives to promote sustainable forest management and reforestation are also currently under consideration. Ecuador will use a historical reference level (RL) for deforestation rates based on 1990 levels (MAE 2011a), and the government has recently begun a process to develop a national reference level for emissions from deforestation. The first component of this RL is the estimation of carbon stocks associated with different types of land use and vegetation cover, with an emphasis on forest ecosystems, which is being estimated as part of the National Forestry Evaluation. The second component is the calculation of the historical rate of deforestation that entails reliable estimation of the area and location of previous deforestation events. In February 2011, the MAE made publically available the first results on historic forest cover and land use for continental Ecuador for the two periods 1990-2000 and 2000-2008, based on a comparison of LANDSAT and ASTER images (MAE 2011a). The study estimated that Ecuador’s total forested area in 2008 was 9,599,679 ha, and that the deforestation rate in Ecuador was 74,300 ha/yr between 1990 and 2000, and 61,800 ha/yr between 2000 and 2008. The MAE plans to use historical reference data to focus national efforts across geographic areas with increased historical deforestation rates and to increase the effectiveness of the Forest Governance Model. The MRV program in Ecuador consists of four principal projects. The MAE developed a historical scenario to determine where deforestation and land use change has occurred over time, during the periods 19902000 and 2000-2008. In Feb 2011, the SBP reported its first results with a national historical deforestation map based on LANDSAT and ASTER satellite imagery with minimum possible cloud cover. Ecuador anticipates but has not yet done a projected reference scenario. The National Forestry Evaluation programme, financed by the FAO, was developed to procure data on tree species and biomass from plots in diverse forest types throughout the country, with information on some forest types (e.g. dry forest and part of Amazonia) to be completed in Jan 2012. MAE is currently developing a national forest monitoring system which was implemented in 2012. Ecuador is one of five pilot countries to develop voluntary national REDD+ Social and Environmental Standards (SES). This process includes an extensive stakeholder consultation process, workshops with diverse actors, revision by the Ministry of the Environment’s legal department and the establishment of a National Standards Committee. During the SES implementation phase in Ecuador, an information and monitoring system for safeguards was developed to link REDD+ SES with the UN-REDD program to ensure compliance with safeguards as well as multiple benefits from REDD+ implementation. This monitoring plan is used in the Socio Bosque Program as a pilot effort, to be scaled up for use in the National REDD+ Plan (MAE, 2011b).
In March 2010, the MAE and UNEP-WCMC began a joint program to identify social and environmental benefits from the implementation of REDD+ in Ecuador and the global UN-REDD Programme will also produce tools and guidance to assess biodiversity and ecosystem services in forested areas that are used in Ecuador. Elaborated by: Source:
Ministry of Foreign Trade. Ministry of Environment of Ecuador. REDD Desk.
For more information: -http://suia.ambiente.gob.ec/redd -http://www.ambiente.gob.ec/wp-content/uploads/downloads/2015/07/REED.pdf -http://theredddesk.org/countries/ecuador
Summary 3 RESOLUTION DAJ-20133EC-0101.0096 AGROCALIDAD AGROCALIDAD’s Resolution DAJ-20133EC-0101.0096 establishes general norms to regulate surveillance and control of pollutants in agricultural products and creates a National Plan to execute such surveillance and control. This plan includes a guide with the sampling methods for monitoring pesticide residues in products of plant and animal origin. The aim of this plan is to control the maximum allowed levels of pollutants in agricultural products, in order to reduce risks of food contamination and to improve food quality in Ecuador. The scope of its compulsory application covers all border inspection points for shipments of products of plant and animal origin, farms, packing plants and in wholesale and retail trade points. The maximum tolerance levels of pesticides, approved by Codex Alimentarius, are determined in Resolution DAJ-20133EC-0101.0096. They are also established in the European Union Regulation (CE) n396/2005 and the Code of Federal Regulations CFR40, Section 180. The specific sampling procedure for primary production, packing plants and wholesale and retail trade points will be carried out according to the mechanisms established in Annexes 1 and 2. The sampling of products for surveillance in the field will determine compliance with the maximum levels of contaminants and pesticides that are permitted. This will derive from the implementation and compliance with the Good Agricultural Practices in the farms. The products suspected of being contaminated or that exceed the maximum permitted levels will be subject to a strict control and monitoring program. Therefore, all events that are identified as a risk to consumers’ health will be notified to all the competent entities by the Ecuadorian Agency for Agricultural Quality Assurance (Agrocalidad, for its acronym in Spanish). The responsibility to carry out the pesticide residue analysis of the counter-sample at laboratories accredited by the OAE or any other internationally accredited agencies, is on the importer, who must keep the required samples under appropriate conditions. In the case that a shipment of the importer exceeds the permitted maximum residue levels, the product will be rejected, and destroyed or incinerated. The expenses generated from said procedure will be paid by the importer.
Summary 4 DECISION 804 OF THE ANDEAN COMMUNITY: "ANDEAN STANDARD FOR THE REGISTRATION AND CONTROL OF CHEMICAL PESTICIDES FOR AGRICULTURAL USE" Title I: Purpose and scope: Article 2 The purpose of this Decision is to establish harmonized guidelines and procedures for the registration and control of chemical pesticides for agricultural use, to guide the correct management in the framework of good practices, to prevent and minimize risks to health and the environment, to ensure the biological effectiveness of the product, and to facilitate trade in the sub-region. Title II: Competent National Authorities (CNA): In the framework of Articles 4, 5 and 6 of Decision 804, it is stated that: Competent National Authorities shall be: the Ministries of Agriculture of each country, or other bodies officially designated and uncharged of pesticide matters; the CNA and their respective national authorities, shall establish the interaction mechanisms that shall be necessary for fulfilling the registration and control requirements and procedures established in this Decision; all member states are empowered to adapt their regulatory framework and technical instruments to meet the objectives of this decision. Title III: Registration or Authorization of the Activity: articles 7 to 9 All exporters, packers, marketers and distributors of Chemical Pesticides for Agricultural Use (CPAU), whether natural or juridical persons, must be registered with the CNA in order to carry out their activities; the information to be submitted shall be accompanied by the report issued by the CNA in order to minimize all types of risks to human and environmental health, besides the conditions interposed by the member states. In addition, a copy of the license granted by the competent authority must be issued, taking into account that such registration will have an indefinite validity and may be subject to possible evaluations by the CNA. The CNA will have the capacity to decide on its operationalization. Title IV: Special Permits: Articles 10 and 11 The imports into member states of coded substances in development stages for research purposes in agricultural pesticides, is prohibited. In case of experimentation, such substances shall be admitted only in small quantities and provided that the undertaking concerned is registered or authorized to formulate or manufacture (CPAU). The information and deadlines of delivery, validity and renewal required are detailed in article 11. Title V: Registration of Pesticides for Agricultural Use: section I articles 11 to 16
All CPAU must be registered with the CNA. For such registration, the procedure detailed in Article 12 of this Decision and other requirements established in the Andean Technical Manual and the legislation established by each member country shall be observed. In the event that the requested registration is for the same product but the product has a different name, according to Article 14 of Decision 804, it will be limited to the requirements of the Andean Technical Manual. The information used for the CPAU records, as established in article 15, should be sufficiently scientific and based on international protocols and standards; such standards will be verified by the member states according to the international organisms of reference, among others. Section II: regarding the efficiency tests: articles 17 to 19 Efficiency tests shall be conducted according to the standard protocols contained in the Andean Technical Manual and other protocols authorized by the CNA. According to article 18, for the CNA to approve the use of a CPAU, the applicant requesting the registration of a CPAU must accompany the application with a report of the efficiency tests that took place in order to demonstrate that the product complies with its intended use. Therefore, article 19 of this Decision authorizes member states to expand testing of the CPAU in small plots, provided that the conditions listed on literals A to D of this article are fulfilled. Section III: of the Evaluation: articles 20 to 22 The technical information that will be considered in an application will be the technical active ingredient, formulation and additives. For said evaluation, each country will define the level of responsibility of its institutions/competent authorities, according to different aspects inherent to the registration. Besides, article 22 notes the importance of the technical opinions issued by competent authorities in order to complement their technical analysis. Chapter II: of the Modification of the Registry: Articles 23 to 27 For a registration to be modified the applicant must comply with the parameters and requirements established in article 23 of this Decision, by supplying the pertinent information in the format established in the Andean Technical Manual. Therefore, it is necessary to supply the proposed changes in the new draft label, as is called for in article 4. The applicant must also avoid changing the registration number, and ensure that any modification to the product takes place after the registration permission certificate has been issued, in accordance with articles 25 and 27 of Decision 804. Otherwise, if the competent authorities demonstrate on technical grounds that the conditions that gave rise to certain registries have changed, the ANC or said authorities may affect existing registries, as provided for in article 26 of Decision 804 of the CAN. Chapter III: of the Registry Termination: Article 28 determines that: “The ANC may suspend a registry, provided that it has the technical and scientific grounds on agricultural, environmental or health aspects, if the product is effective and harmful
for the purposes that it was created for, if the ANC determines it to be so, in compliance with the conditions, requirements and administrative procedures set out in each legislation or by a court order�. On the other hand, articles 29 and 31 establish the criteria for setting out the deadlines that the applicant must abide by, and the time by which it will inform users of a possible suspension. Chapter IV: of the Registry Cancellation A registry may be cancelled for the following reasons: lack of accuracy in the information, when a component of the PQUA has been banned and is stated in international agreements, and others that are set out in article 32 of this Decision. Once a cancellation takes place, the product may not be part of any commercial activity in that country. Title VI: of the Importation for Personal Consumption Member countries may use, on a discretionary basis, the mechanism of importation for personal consumption, but the product with a cancelled registry may not be part of any commercial activity, under the provisions of article 39. Title VII: of the Labelling and Packaging: Member states will require compliance with the labelling provisions, according to what is established in the Andean Technical Manual and in articles 41, 42 and 43 of this Decision. Title VIII: Surveillance and control of chemical pesticides for agricultural use (CPAU) National competent authorities, health-related institutions and further competent entities shall execute activities related to inspection, control and surveillance of chemical pesticides for agricultural use at every stage, and shall establish mechanisms and programs to that end by following the provisions set forth in articles 44, 45, 46, 47, 48 and 49 of Decision 804. Laboratory network According to articles 50 and 51, it is recommended that the national competent authority is provided with at least one official laboratory; this laboratory shall provide support to CPAU registration and postregistration processes in the region. Title VIX: Residues and maximum residue limits To this end, articles 52 and 53 establish that competent authorities shall determine residue levels based on the FAO’s levels and those that each competent entity deems necessary, which will be stated in the Andean Technical Manual.
Title X: Phytosanitary Emergencies Only in case of an emergency, as determined in article 54, will member states be allowed to import products that have no registration permit or are registered with specific aims, taking into account that its application will not be longer than the period in which this condition prevails. Title XI: Cooperation According to articles 55 and 56, the General Secretariat, the Andean Community and further authorities of member states shall fully cooperate in issues concerning technical assistance with the aim of adequately managing the functioning of CPAU along their life-cycle by proposing community measures and respecting the preferential framework stated in the Cartagena Agreement. Title XII: Confidentiality of the Information Member states shall ensure that the information presented as confidential by interested countries with the purpose of registration will be treated as established in the legal order of the Andean Community, except for the parameters determined in article 59, in the case that they might turn into health and environmental risks. Title XIII: Rights and Obligations of the Holder Article 63 states that the ownership of a registration is exclusively conferred to the natural person or legal entity registered as importer before the national competent authority. The ownership of a registration constitutes a transferable and transmissible right. Article 64 determines that the right-holder shall mention the prohibition to which his registration is subject to in another country, on the grounds of health and environmental damages. The registration holder takes every responsibility inherent in the product, if it is used according to the recommendations stated on the label. Title XIV: Andean System of Information Exchange The aim of the Information System is stated in articles 65 and 66 of this Decision. Its main objective is to carry out the follow-up of sub-regional harmonization activities and to provide general information that contributes to the purposes of the Andean Community Decision 804.
Guayaquil: Malecon Simon Bolivar 100 and Av. 9 de Octubre, building The Previsora, Floor 19 Tel.: + (593 4) 259-1370
Quito: Av. De Los Shyris Nยบ 34-152 and Holanda Tel.: + (593 2) 393 5460
For more information visit our social networks @ComercioExtEc
MinisterioComercioExteriorEcuador
www.comercioexterior.gob.ec