Brazil nut harvesting in Peruvian Amazonia from the perspective of ecosystem services
RISTO KALLIOLA AND PEDRO FLORES
Kalliola, Risto & Pedro Flores (2011). Brazil nut harvesting in Peruvian Amazo- nia from the perspective of ecosystem services. Fennia 189: 2, pp. 1–13. ISSN 0015-0010.
Brazil nuts are harvested from the primary rainforests in the Amazonian low- lands as a direct form of sustainably using the region’s biological resources. We analyze the ecological economics of Brazil nut production in the Peruvian re- gion of Madre de Dios where nut extraction occurs on hundreds of small-holder concessions operating under long-term agreements. This activity sustains locally important economies that suffer from small volumes and high seasonality. The size and the remoteness of the NTFP concession determine much of its profita- bility to concessionaires. Seasonality of the harvest generates short-term income peaks for the majority of collectors. The fragility of the Brazil nut economy in the region is compounded by volatile market prices and the overall development pressures in Amazonia, which usually involve deforestation. Although the cur- rent regulatory mechanisms in Peru encourage long-term Brazil nut production in concessions, the income level is seldom high enough to help concession- owners to rise from poverty. Auxiliary financial support based on compensations for the non-valued ecosystem services provided by the forest-covered Brazil nut concessions could change the picture. Funds for these could come from interna- tional instruments like those of carbon emission control or debt for nature swaps. Green marketing could be developed to consider payments supporting ecosys- tem values as well as mechanisms supporting indigenous communities working with Brazil nuts. Appropriate indicators are needed to optimize those manage- ment, policy and trading conditions that best help to preserve the invaluable ecosystem functions and services.
Keywords: non-timber forest products concessions, Brazil nuts, Peruvian Ama- zonia, payment for ecosystem services, capture of carbon, REDD
Risto Kalliola (corresponding author), Department of Geography, University of Turku, 20014 Turku, Finland. E-mail: [email protected]. Pedro Flores, ACCA- Asociaciòn para la Conservación de la Cuenca Amazóni- ca, Madre de Dios-Perú. E-mail: [email protected].
Introduction forest products have become important even in the world level. For example the first effective Ecosystem services refer to the many different drug against malaria was made of the bark of the contributions of nature to human welfare, provid- cinchona (quinine) tree, and also the resin of the ing such necessities as food, shelter, medicines, rubber three has contributed significantly to our clean water and atmospheric gas exchange among modern lifestyle. The potential of Amazonia’s bio- others (De Groot et al. 2002). In many cases they diversity resources is huge due to the wide exten- provide primarily local benefits to local people sion of these poorly-known forests and their high yet some products have been exploited commer- species richness, but it is challenging to realize cially for centuries. In megadiverse regions such this potential into the form of viable persistent as the Peruvian Amazon lowlands, many different economy.
URN:NBN:fi:tsv-oa4307 2 Risto Kalliola and Pedro Flores FENNIA 189: 2 (2011)
This paper focuses on one of Amazonia’s emi- more appealing uses of the same areas. As defores- nent Non-Timber Forest Products (NTFP), the Bra- tation tends to follow the improvement of road zil nut (local name castaña in Perú and Bolivia). connections in Amazonia (Mäki et al. 2001), any The large-sized seeds (“nuts”) of the Brazil nut tree time the Brazil nut production forests get to occur (Bertholletia excelsa, Lecythidaceae) have an es- in the development front of the expanding road tablished market demand around the world, com- network and agricultural activities, their economic prising 1,5% of the international edible nut trade return and consequently also longevity will be (Clay 1997). The tree that produces this crop is a questioned. true rainforest giant that may live for centuries – We here examine the ecological economics of one individual has been estimated to be 1600 the Brazil nut extraction and economy using the years old (Clay 1997) – and reach up to 40−50 Madre de Dios region in south-eastern Peru as a meters high. Its populations are dense enough for case study region. Each year the harvest season commercial nut extraction only in Brazil, Bolivia (zafra) that mainly occurs between January and and Peru, yet the total distribution area of the spe- March is an active period in the forest, involving cies covers most of the Amazon Basin. As attempts numerous concession holders, their families and to produce Brazil nuts in plantations have not contracted workers. Parallel to this, road improve- been successful, nut extraction from the natural ment projects near the Brazil nut production areas stands is the only way of its commercial exploita- go together with advanced timber logging, defor- tion (Mori 1992). estation other land use pressures. In the following, Brazil was the main producer and exporter of we will analyze the current state of the Brazil nut Brazil nuts until the 1990s but its production levels economy in the region by using a holistic ap- have now decreased. The Brazil nut tree is nowa- proach that combines geographical, socio-eco- days considered vulnerable in Brazil according to nomic, market and ecosystem service perspec- the IUCN Red List of Threatened Species (IUCN tives. 2007). However, the protection of the species only is not enough because the viability of its popula- tions rely on an intricate set of ecological interac- Materials and methods tions. In consequence Brazil nut populations are susceptible to environmental changes associated Our study draws from a combination of wide-rang- with deforestation in the surrounding areas, lead- ing information sources, both literature based, re- ing into ceasing tree reproduction (Clay 1997). mote sensing and field work. Academic literature Long term nut exploitation may also change the and maps of the Peruvian Amazon as well as gov- age structure of the populations, as shown by the ernment and NGO reports and data were reviewed reduction in the juvenile age class in intensely har- to appraise the general geographical realities that vested areas (Zuidema & Boot 2002; Peres et al. correspond to the Brazil nut production in Peru. 2003). Keystone species, decreasing Brazil nut We applied a mosaic of Landsat TM satellite imag- populations imply capricious ecological and so- ery (Kalliola et al. 2008; SIAMAZONIA 2008) to cial consequences in the forest (Camargo et al. reveal the environmental heterogeneity of the study 1994). area. This part of the study was backed by R. Kal Policy options to promote healthy Brazil nut liola’s biogeographical research activities in the re- stands and sustainable nut extraction should be gion (e.g. Salo et al. 1986; Tuomisto et al. 1995; considered in terms of the entire production chain Kalliola et al. 1999; Toivonen et al. 2007). The spa- from the forest to the market. Dedicating some tial data about the Brazil nut concessions are from lands for the Brazil nut production implies that the Instituto Nacional de Recursos Naturales (INRENA, forest of these areas shall not be altered too much the name of this institution was changed in 2008 overall, which in turn contributes to the persis- ATFFS, Administración Técnica Forestal y de Fauna tence of the vigorous rain forest. It is hoped that Silvestre). The national statistical data comes from the Brazil nut based economies would therefore the year of 2005 and is from the Instituto Nacional help to preserve some of the Amazonian forests de Estadística e Informática (INEI 2005). Supporting with their enormous biological values, climatic in- statistical and descriptive data are from the Food fluences and contribution to atmospheric gas ex- and Agriculture Organization (FAOSTAT 2006). change. However, cattle ranching and other ac- Socio-economic data include interviews made tivities involving deforestation may appear even by P. Flores with Brazil nut collectors, middlemen FENNIA 189: 2 (2011) Brazil nut harvesting in Peruvian Amazonia from the … 3 and exporters on two different occasions. The first stands made by a few tens of individuals in non- interviews were made in late 2001 when the con- flooded areas, separated from one another by dis- cessions for the NTFP extraction were about to be tances of a few hundred meters (Mori & Prance defined. The second set of interviews is from 1990; Peres & Baider 1997). The low density of spring 2007, after the concessions had been oper- the Brazil nut trees (10 or 20 trees per hectare) ational for a few years. A total of 107 interviews may be beneficial for the species, as the nut pro- were conducted in the city of Puerto Maldonado, duction capacity depends on a variety of complex the capital of the department of Madre de Dios, interactions between the Brazil nut tree and other and in the production zones of Las Piedras, Alerta, species of the forest; for example bees, bats and Alegria and Tahuamanu. A questionnaire was rodents that contribute to pollination and see dis- filled during the interviews, focusing on the work- persal (Mori 1992; Gustafsson 1998). ing conditions in the Brazil nut concessions and The environment and natural resources of the the corresponding income generation process. Madre de Dios region were focused in the 1970s The main body of raw primary data has been re- by the Peruvian government in connection to ported by Flores (2002). plans to integrate the Amazonian lowlands into The following analysis presents a combinatory the national economy (ONERN 1972). The region review of the above described materials. We fur- was shown to have significant natural resources, thermore present scenarios to estimate the income particularly timber, NTFP, alluvial gold, gas and generating potential of selected area-based eco- agricultural products. The Peruvian Amazonian system service payments in support of viable Bra- Research Institute (IIAP) made a proposal of eco- zil nut production within the region. logical-economic zoning for this region and iden- tified areas suitable for extractive forest uses (SIAMAZONIA 2008). The institute suggests that Results as much as 40% of the department’s area is suita- ble or modestly suitable for Brazil nut extraction Geographical perspective (IIAP 2002). The Brazil nut trees in Peru are owned by the The indigenous people Ese’Eja living in Madre de state, which may provide concessions to individu- Dios are considered to be among the first to use als with the exclusive right to harvest the nuts in a Brazil nut seeds as food, but commercial Brazil given area (Peruvian law of Forestry and Wildlife nut extraction started in the region not until after from year 2002, No.27308; with updates in 2008). the “rubber” boom in the early 20th century. The Currently, there are around 1,200,000 hectares of current Brazil nut collection areas cover an area of NTFP concessions in Peru, including 60,000 hec- 2,500,000 hectares and are mainly located in the tares in titled indigenous people territories. There department of Madre de Dios that borders with are almost one thousand separate concessions Brazil and Bolivia (Fig. 1A). The climate in this with their sizes ranging between 100 and 1 200 area is humid tropical with an annual average pre- hectares, the smallest of them usually belonging to cipitation of approximately 2200 mm, and tem- the indigenous people. The concessions occur perature of nearly 26 oC. A distinct dry season oc- side by side with each others as a dense cluster of curs between June and August, but the Brazil nut free-shaped land units in eastern Madre de Dios, fruits fall mostly during the rainy season in January being significantly distinct from the larger-sized and February. quadrangular shaped timber production conces- The physical landscape of the Brazil nut collec- sions in the same region (Fig. 1). Considering the tion areas is flat, made of river floodplains, alluvial puzzle-like composition of the Brazil but conces- terraces and dissected low-lying non-flooded are- sions across the region, spatial accuracy is critical as with variable soil characteristics (Osher & Buol in the field. The precise locations of the conces- 1998). Madre de Dios has an almost uninterrupted sions are considered carefully by national and re- cover of rain forest vegetation with some decidu- gional planning authorities with help of satellite ous emergent trees. These forests are well known positioning. Sometimes big Brazil nut trees are for their high levels of biological diversity (Lamas tagged to designate their ownership. 1994; Phillips et al. 2003), though also extensive Logistics and accessibility constitute another thickets of species-poor arborescent bamboo are critical spatial factor. The nut harvest is made widespread. Brazil nut trees often grow in small manually on forest floor after the extremely hard- 4 Risto Kalliola and Pedro Flores FENNIA 189: 2 (2011)
Fig. 1. Maps from the Brazil nut production areas in Madre de Dios, Peru. The bottom layer is formed by Landsat TM mo- saic with data from 1985−86 (BIODAMAZ 2004), expressing the natural environmental variability of the region when de- forestation was still limited to the vicinity of Puerto Maldonado. Green colours and tonalities indicate tropical rainforests and their local variations; the palest green areas are bamboo forests. Water areas are black and deforestation appears in pale and blue colours. A. Names of the provinces, major population centres and rivers. The main roads are shown by dashed line and protected areas are hatched with black. B. Distribution of concessions of Brazil nut extraction (pale yellow) and for- estry (purple). C and D. Magnification of the satellite image from the area of Brazil nut concessions (quadrangle shown in B).
covered fruits of the Brazil nut trees have fallen Maldonado, which has some 100,000 inhabitants down. Both the collection and the subsequent and is the main economic center of the region. transportation are laborious. The seeds must be re- Sometimes entire Brazil nut fruits are transported moved from the fruits and carried to the collection instead of forest-dried seeds, adding to the trans- centers in heavy bags. After sun-drying the nuts port load and diminishing the revenue. Most trans- must be further transported to the city of Puerto ports in the forest are by foot, but also waterways FENNIA 189: 2 (2011) Brazil nut harvesting in Peruvian Amazonia from the … 5 are used whenever possible. As the northernmost Table 1. Selected welfare indicators in the two districts of rivers in Madre de Dios drain to Bolivia or Brazil, the Madre de Dios department with Brazil nut concessions (Tahuamanu district in the Tabuamanu province and Las Pie- the crop may have to be carried overland from one dras district in the Tambopata province). Data from INEI river to another. Whenever roads are available the (2005). nuts are finally taken to the city by car. In Puerto Maldonado, they get re-dried and sorted, after Categories / Districts Tahuamanu Las Piedras which they are exported over the Andes – mainly Number % Number % to the international market through the seaports of Callao (Lima) and Matarani (Arequipa). Dwellings Rural area 313 59 1157 65 Urban area 218 41 635 35 Socioeconomic perspective Main building material The gathering of Brazil nuts is important for many Brick 23 6 37 3 indigenous and immigrant communities living in Timber 316 78 1340 91 Madre de Dios (Lawrence et al. 2005). All conces- Other 66 16 100 6 sionaires are requested to develop annual operat- ing plans and present a management plan every Type of lighting system fifth year. The latter includes basic information Electricity 2 0,4 430 29 about the production process and forest quality, Kerosene 129 31,8 738 50 including the numbers of existing Brazil nuts trees Oil-gas(lamp) 38 9,3 18 1 and their management plans. The current regula- Candle 171 42,2 158 11 tions are mainly ecological and overlook cultural Electric Generator 38 9,3 111 8 values such as indigenous communities. By fulfill- Other 25 6,1 20 1 ing all requirements, the concession holder can establish a planning horizon of up to 40 years. Do not have 2 0,4 2 0 Such assurance provides a strong predictability el- Primary cooking fuel ement that can be considered as an incentive to Electricity 0 0 1 0 invest in and maintain the sustainability of the nut Gas 70 17 183 12 production. The obligation to regularly update the Kerosene 0 0 2 0 operation and management plans also promotes Coal 106 26 306 21 bidirectional interaction with the national authori- ties that are in charge of this natural resource. This Fire wood 223 54 940 64 linkage reinforces the implementation of sound Other 12 3 0 0 environmental practices in the country, yet the re- quired paper work may be overwhelming for some concession-holders. The Brazil nut collection areas in Madre de Dios are among the least populated and poorest areas in Peru. The livelihood of these people is ergy, and with extremely limited infrastructure (Ta- however contributed by the direct use of the re- ble 1). gions natural resources. The majority of conces- The total number of people working with Brazil sions are located in the Tahuamanu province that nut harvesting, processing, and commerce in Peru borders with Brazil and Bolivia (see Fig. 1A), hav- is about 30,000 (Collinson et al. 2000). In native ing one of the smallest populations in the country. communities, the decision to harvest Brazil nut is According to a recent census (INEI 2005), its total communal, allowing some members to harvest population is 7429 people, which makes on aver- Brazil nuts from their reserved area. The majority age 0,4 inhabitants per square kilometer. The of the Brazil nut collectors are however urban province has three districts, the Brazil nut conces- dwellers from mainly Puerto Maldonado, who sions being situated in the Tahuamanu district come to work in the forest only during the harvest (21,196 km2). Socioeconomic indicators from this period, living in rudimentary camps in the woods. district as well as the other major Brazil nut collec- Most concessionaires have been working as gath- tion areas confirm low living standard, one largely erers for a long time already, sometimes being de- dependent on forest resources for housing and en- scendants of people who have a few decades ago 6 Risto Kalliola and Pedro Flores FENNIA 189: 2 (2011) migrated into the lowlands mainly from the An- money is moving. In most cases Brazil nuts merely dean regions of Cusco or Puno. The additional provide temporary contribution to the economy of gatherers they employ are typically recent male rather poor households. Combined activities such immigrants in the region or local people living in as agriculture, fishing and hunting provide some the nearby areas. As the population in Madre de buffer against occasional drops in the market price Dios grows fast, attention toward Brazil nut jobs is that may otherwise lower the collector’s share increasing. This may reduce the prize paid of the near the threshold of overall profitability and lead harvest, salaries of the hired collectors and also into withdraw of the harvest for the lack of realistic widen the harvest activities into previously unex- economic incentives. As the majority of the con- ploited areas (Stoian 2004). cessionaires have practically no access to bank Adult Brazil nut trees produce some 24−36 kg credit, opportunities for investments and improve- of raw nuts per season (Clay 1997) but fruit pro- ments in the concession are limited and must be duction varies among individuals and years (Kai- funded through alternative means. ner et al. 2007). Usually the nuts are sold by the Unsecure conditions hardly encourage conces- concessionaires sun-dried in bulk to traders work- sion owners in laborious or long-term manage- ing as buyers for the exporting companies. Prefer- ment of this renewable resource. Even simple ence is given to high quality nuts that are delivered management efforts like vine cutting from juvenile punctually in the desired quantities and quality. individuals could, however, be beneficial for Bra- Being closer to the market, middlemen and ex- zil nut production in the long run (Wadt et al. porters have ways to guarantee their own profit, 2005; Kainer et al. 2007). The potential for bigger particularly as there is only a low degree of com- harvest is lost as most concessions are finally treat- petition among the Brazil nut buyers. Some gath- ed as immediate and short term cash money gen- erers have long-term contracts with buyers with erators and otherwise neglected. This is particu- trust-based relationships which can involve credits larly so in the small remote concessions that are to cover the harvest period costs. This situation near the threshold of profitableness. The popula- may create obstacles for new firms that would like tions of the Brazil nut trees in the Tambopata and to enter to this business. Additionally, when a mid- Tahuamanu provinces may already be decreasing dleman credits a collector prior to the harvest, lit- below the density of 0,5 individuals per hectare in tle price negotiation power remains when the nuts consequence of long lasting seed harvesting (Cor- are sold (Collinson et al. 2000). The situation is nejo 2001). Other evidence of possible population even worse for those who transport their harvest decline is provided by the natural resource inven- laboriously in shell until Madre de Dios, facing tories made in the region, which reported that Bra- rude trading conditions: “sell it or bring it back”. zil nut production forests should typically have a This situation is commonly met by the indigenous density of some four to five big trees per hectare people who generally get lower price of their har- (ONERN 1972), which is notably more than it is vest than the non-indigenous people. Those work- today (see also Peres et al. 2003). Worse, accord- ing in remote areas tend to get only poor returns ing to our interviews some Brazil nut trees have due to the high costs of transportation and a small- been cut due to their valuable timber. er number of buyers working in these areas. The best alternative for a Brazil nut collector would be Market perspective to sell his product to a fair trade certified buyer, in which case the maximum payment may reach half The present world production of Brazil nuts is of the export price (Collinson et al. 2000). roughly at levels seen already in the 1970s but the In the most remote areas with difficult access to production levels of different countries vary a lot the market, a minimum of 800 hectares or 320 (Fig. 2A). Brazilian production has dropped to productive Brazil nut trees is considered sufficient about half of its peak time, whilst Bolivia has com- to support one gatherer and his family. This con- pensated for that drop maintaining the annual cession size allows the Brazil nut collectors to ob- world production at levels between 70,000 and tain a net income within a range of some 500 to 80,000 tons (FAOSTAT 2006). The Bolivian in- 2000 USD annually (Flores 2002). Some urban in- crease was made by improved collaboration be- terviewees considered the Brazil nuts collectors as tween the nut gatherers and the exporting firms “rich” but this generalization comes from tempo- acting in the country (Vinocur Coslovsky 2006), rary impressions from the selling period when and also improving road conditions that have FENNIA 189: 2 (2011) Brazil nut harvesting in Peruvian Amazonia from the … 7 made some remote production areas accessible. In co-occurring ecosystem services in the Brazil nut contrast the Peruvian exports have suffered from a concessions would ensure that the holders of these perception among importers that the quality of the concessions would stay over the threshold of min- nuts is lower than those from the neighboring imum profitability. A way to recognize the value of countries. Much of the nut processing in Peru is the preserved forest is to pay for the ecosystem made by hand whilst while in Brazil and Bolivia services they provide according to a sensible more industrialized processes prevail. Peru’s share mechanism. The economic valuation of these of Brazil nut production is less than one tenth of services aims at linking the use values in the exist- Brazil’s and Bolivia’s combined. ing markets with the non-the use values of the The main importer of Peruvian Brazil nuts is the missing markets for values such as biodiversity, United States, with its share growing from 49% to supporting ecosystem services or preserved indig- 80% between 1997 and 2007. However, the FOB enous cultures. The cash equivalent payments to (Free On Board) price paid by U.S. importers is not the providers of such services naturally depend on as attractive as that of others (Fig. 2B), making it a number of different variables, both general and strategically important for Peru to maintain a di- local. versity of export destinations. The closest market is In organic production, the sustainability of the Colombia, which resembles the Peruvian national harvest is in focus and in fair trade, buyers contrib- markets. The price paid by the Colombian import- ute to the producer’s socioeconomic conditions. ers is the lowest, but also the logistics and transac- As none of these mechanisms recognize the func- tions costs are low. The best prices of the Peruvian tional value of the diverse forest, new approaches exports come from Japan, Australia and some Eu- need to be considered. To examine the feasibility ropean countries, with FOB prices doubling that and potential of the recognition of the indirect ec- offered by the USA. Much of this import occurs osystem values, we take the compensation levels with fare trade certification. Certificates of organic to of 6 and 12 USD per hectare as reasonable basis production (Nelson et al. 2002) could also be fea- to explore. sible for the Peruvian producers as the entire har- Scenarios A to F represent different surface areas vest comes from the natural forests. However, the to focus by these payments (Table 2). In A, the area administrative requirements needed for such cer- to consider (115,190 hectares) corresponds to the tificates are complicated and not yet appealing to total area of the smallest forest concessions in Ma- small export firms. dre de Dios covering also the native communities Sanitary certificates are demanded by most of of the region. At the level of 6 USD per hectare the the importing countries. Contaminating microor- extra annual income would be around 3000 USD ganisms and aflatoxins pose a continual threat, for a concession of 500 hectares, which would since Brazil nuts are kept for long times in bags in double the concession holder’s income. The total humid hot climate and they do not usually under- funds needed for this scenario is about 700 thou- go any industrial processing before their consump- sand USD annually, and nearly 21 million USD tion. The final product is most often sold in pack- during a 30 years period, which roughly coincides ages of either Brazil nuts alone or in nut mixtures. with the remaining time of the first 40-year long Sometimes nuts are used as an ingredient in com- concession allowances in Madre de Dios. In the mercial baking. Brazil nuts are a good source of subsequent scenarios we increase stepwise the to- selenium and may be preferred as functional food. tal area of concessions to consider until scenario F, Experiments with Brazil nuts in breakfast cereals which includes the total area of all the Brazil nut or in hair conditioner are examples of potential ex- concessions registered by Regional Forestry Au- panded uses. In terms of price, the wholesale and thority in 2007. With the compensation rate of 12 retail markets of Brazil nuts vary less than they do USD per hectare, the range of needed annual pay- for primary producers (Flores 2002). ments according to the different scenarios is be- tween about 1.4 and 8.4 million USD. During a Ecosystem service perspective period of 30-years, the levels of the total needed payments range between about 21 and 251million The existence of an established international mar- USD. ket for Brazil nuts gives an opportunity to support forest maintenance in the long run through rela- tively light additional incentives. Paying for the 8 Risto Kalliola and Pedro Flores FENNIA 189: 2 (2011) A
B
Fig. 2. International markets of the Brazil nuts. A. Amounts exported by different countries (in 103 kg). Source: FAOSTAT (2006). B. Average prize paid by the importing countries of Brazil nuts from Peru. Data from the year 2007 by INRENA. FENNIA 189: 2 (2011) Brazil nut harvesting in Peruvian Amazonia from the … 9
Table 2. Exploration about the application of alternative area-based payment settings for the ecosystem services provided by the Brazil nuts concessions in Madre de Dios. Scenarios A to F consider stepwise increasing surface areas with payments calculated in the rates of 6 USD and 12 USD per hectare, respectively.
Scenario Hectares included Cost (103 USD) at level 6 USD ha-1 Cost (103 USD) at level 12 USD ha-1 Annual Over 30 years Annual over 30 years A 115,190 691 20,734 1382 41,468 B 231,821 1390 41,727 2781 83,455 C 348,452 2090 62,721 4181 125,442 D 465,083 2790 83,714 5580 167,429 E 581,714 3490 104,708 6980 209,417 F 698,345 4190 125,702 8380 251,404
Discussion forest should be high enough to make this forest use attractive at the household level (Wunder Brazil nut production in Madre de Dios is a prime 2001; Shone & Caviglia-Harris 2006). This dede-- example of an extractive ecosystem usage that is mand calls for holistic approach to the Brazil nut significant to the regional economy. However, its economy and forest valuation as a whole. nature as a seasonal scale activity practiced main- As minor exporter, Peru is a “price taker” in the ly by poor disorganized concessionaires may world market of Brazil nuts where the price level is make it antagonistic with some other development set largely by Bolivian and Brazilian firms and trends in the region. Heavy pressures are posed by their clients. Many buyers in importing countries the continual migration of farmers from the Ande- have little awareness of the origin of these nuts and an highlands, illegal logging, bio-energy produc- their linkage to rainforest preservation. A better tion and the spread of pastures for beef produc- prize could be obtained voluntarily like in the case tion. The integration of the Regional Infrastructure of fair trade or organic labels that already exist in of South America (IIRSA) that involves highway the market of Brazil nuts. With better information construction through the major Brazil nut collec- provided, some customers could appreciate the tion zones in Peru may ease the transportation of purchase of Brazil nuts as an environmentally con- nuts to Puerto Maldonado and further on, but it scious choice (Kengen 1997). In the Mediterrane- simultaneously poses increasing threat of acceler- an region the marketing of some products upon ated deforestation. To save the Brazil nut conces- ecological values have got positive reaction from sions, ways should be sought to convincingly inte- consumers (Croitoru 2007). The application of grate the Brazil nut based economy into the over- these kinds of mechanisms require sound product all development priorities of the region. certification criteria that should be defined jointly The potential Brazil nuts have in the long-term among the producers, firms trading with the Brazil welfare of the region is limited. The current con- nuts, scientists, non-governmental organizations, cession system provides tenure security, rights and and the governments of exporting and importing other incentives that support stable nut extraction countries (Shanley et al. 2003). as well as the objectives of the Peruvian Amazon For additional stability, payments for the associ- biodiversity strategy (BIODAMAZ 2001). Howev- ated value of the standing tropical forest that hosts er, the socio-economics of sustainably managing the Brazil nut concessions could be considered Brazil nut extraction is challenging (Wadt et al. (Farber et al. 2002). Researchers have attempted 2008). In their analysis of Brazil nut extraction in to determine the economic potential of the di- Peru, Escobal and Aldana (2003) show a clear verse natural forests by valuing all of the found negative relationship between natural resource extractable resources (Peters et al. 1989; De Groot based income and family’s total income; the poor et al. 2002), but such analyses may lack market depend more on natural resources than the realism. Alternative approach is to account for wealthy. To make extractive forest use a real ecosystem services using avoided deforestation as choice in the long run, the value of the standing a proxy. Many services provided by the standing 10 Risto Kalliola and Pedro Flores FENNIA 189: 2 (2011) forest have thus far been operating free of charge, Brazil nut concessions in Madre de Dios for up to but now we may have to consider paying for thirty years. them. This approach could lead into concrete Also diverse side economies can help conces- earnings by those who have a choice in the forest sionaires to survive but care should be taken not to floor and who may be inclined into logging or damage the standing Brazil nut trees. Even re- slash and burn agriculture. Considering that the duced-impact logging may cause significant dam- Brazil nut concessions smaller than some 500 age to the Brazil nut trees (Guariguata et al. 2009). hectares are economically instable (Escobal & At places, ecotourism can be developed along Aldana 2003), only a third of the current conces- with viable Brazil nut production (Gössling 1999). sions in Madre de Dios are sufficiently large. In In the Tambopata National Reserve south from other concessions illegal logging may become Puerto Maldonado Brazil nuts are collected in the tempting but even a small regular compensation same lands that attract tourists. Also many other of the standing forest could make a difference. side economies may be considered but important- Long-term earnings and conservation goals could ly, the financial incentives that correspond must be reached simultaneously and encourage con- be predictable, stable and sufficient. In their ab- cessionaires for long-term management efforts sence at the local level the argument of preserving (Arnold & Ruiz 2001; Gavin & Andersson 2007; the non-valued ecosystem services by viable “soft” Zilberman et al. 2008). economies remains empty. In Peru, payments for the ecosystem services Market fluctuations constitute a constant chal- have received little attention compared to some lenge for the NTFP extractors in the Amazon (Ken- other Latin American countries like Costa Rica, Ec- gen 1997). Stable area based compensations like uador and Colombia (see Wunder et al. 2008). those experimented in this paper (Table 2) could Our calculations suggest that payments that re- help to buffer the influences of these variations, but main well under 10 million USD per year for the the allocation of such incentives should not be entire Madre de Dios would significantly improve made too easy. It is necessary to define objective the economic situation of the nut concessionaires criteria for the ecological sustainability of the con- in Madre de Dios. This level of funding is not cessions and for their assessment using undisputa- much when compared to for example the funds ble indicators. Also the associated socio-economic allocated by many individual countries to combat mechanisms need much attention. As an example, global warming. In the United Nations Climate prospected earnings from future ecosystem service Change Conference in Cancún in December 2010, compensations might induce some concession the so called REDD mechanism for compensating holders to incur debts in anticipation of the expect- tropical nations that succeed in reducing carbon ed income. This and other risks alike should be emissions from deforestation and forest degrada- minimized by appropriate planning and regulatory tion took a step forward. It is expected that REDD mechanisms. An initial set of possible long term could help to provoke ecological damages and evaluation criteria for Brazil nut production and promote ecological co-benefits in the Amazon ecosystem service valuation is presented in Table 3. (Stickler et al. 2009). The mechanisms of REDD set a number of conditions for the concessionaires to fill, requiring concerted efforts at the regional Conclusions scale. Such activities have already been initiated by some indigenous communities and WWF in The extraction of Brazil nuts from the primary rain- Madre de Dios. forest is an important source of livelihood in the Another source of potential international fund- Madre de Dios region of Peru. The current nation- ing for the ecosystem service payments is provided al legislation supports long term extraction activi- by the debt-for-nature swap. By the year 2006, ties. However, due to endemic poverty of the re- Peru’s national organization FONDEBOSQUE had gion, small size of most of the concessions (espe- agreed upon this mechanism for 14 million USD cially those of the native communities), strong in- with the governments of Germany, Canada and come fluctuations and underdeveloped produc- Finland (Flores 2006). A proportion that is less tion chains, this economy is vulnerable to forces than one percent of Peru’s public debt in 2008 beyond their control. would mean a capital of some 100−200 million The design of appropriate policies to sustain USD that would contribute the profitability of the long term viability of the Brazil nut concessions FENNIA 189: 2 (2011) Brazil nut harvesting in Peruvian Amazonia from the … 11
Table 3. Possible criteria to support the development of policies toward stable Brazil nut production in Peru.
Criteria Description Evaluation approach Source of verification Measurement Ecologic Maintenance of the Status of the forest Remote sensing, field Long-term monitoring of value diverse tropical forest according to ecological verification; manage- changes with low human impact and biodiversity criteria ment reports collected by forest authorities Economic Net economic benefits Economic profitability of Income statistics of the Income level per unit value of exports with better concessions, improved concession holders and area; statistics about prize for certified socio-economic welfare regional welfare welfare assets production and green statistics by national marketing; payments for authorities ecosystem services Public Agreed mechanisms of Stakeholders participate Reports and agreements Operational activities acceptability payments for ecosystem in a transparent process about the process, implemented and services; public support of negotiations and opinions of stakeholders audited; stakeholder for NTFP concessions agreements and public in general hearings and economies Fairness Peoples living in the Brazil nut collection Indigenous people Living language, region have valuable does not threaten the maintain their traditions communities and cultural attributes to culture and future of the and culture households evidenced preserve indigenous people by in situ surveys
must be knowledge based, including options and concessions and environmental conditions in the applying reasonable criteria of sustainability. Con- Madre de Dios region are from ACCA, National Di- sumers in the importing countries should be given rection of Forestry and Wildlife, IIAP and SIAMAZO- the chance to understand that their choice is criti- NIA. cal. Furthermore, mechanisms leading to paying for the currently non-valued ecosystem services provided by the Brazil nut concessions could rein- force and stabilize the economic return of the con- REFERENCES cessionaires. These policy measures should be im- plemented upon a framework of many simultane- Arnold JE & Ruiz Pérez M 2001. Can non-timber for- ously pertinent criteria such as ecological, socio- est products match tropical forest conservation and development objectives? Ecological Econom- economic and those supporting the indigenous ics 39: 3, 437−447. cultures of the region. The financing of the ecosys- BIODAMAZ 2001. Estrategia Regional de la Diversi- tem service payments could involve debt for na- dad Biológica Amazónica. Iquitos: IIAP-BIO- ture swaps and/or mechanisms of compensation DAMAZ.
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