Janzen - Guaiac wood - IFEAT

Paper presented at the IFEAT International Conference in Marrakech, 26 - 30 Sept. 2010 ‘North African and Mediterranean Essential Oils
and Aromas: 2010 Tales and Realities of our Industry – a new decade of challenges and opportunities’
Pages 317-324 in the printed Conference Proceedings.
INTRODUCTION
GUAIAC WOOD OIL, PARAGUAY AND CITES.
Hans Karl Janz Janzen
Alpaca S A
Asunción, Paraguay
info@alpacasa.com
The presentation analyses production, processing, uses and markets for guaiac wood oil in Paraguay,
with particular emphasis on the impact of the CITES Treaty (Convention on International Trade in
Endangered Species of Wildlife, Fauna and Flora). Following a brief introduction to Paraguay, the
presentation discusses guaiac wood (Bulnesia Sarmientoi) and the role of the various Paraguayan
regulatory and environmental agencies. Topics discussed include harvesting and guaiac oil production
processes, uses and market trends. A third section outlines aspects of CITES and the various decisions
and notifications relating to guaiac. Finally, the presentation will review the legal requirements for
guaiac oil exporters and importers, legal loopholes and the current and future development and
availability of guaiac wood oil.
SOME FACTS ABOUT PARAGUAY
Paraguay is a small landlocked country about
the size of California with approximately 6
million inhabitants, located in the centre of
the South American continent. About half of
its territory corresponds to the
biogeographical region known as Chaco. This
ecosystem of about 650,000 km2 is shared
among Argentina, Bolivia, Paraguay, and a
small sector of south-western Brazil. It is one
of the regions with the richest environmental
and biological diversity in the world and
contains the largest forest area of the
continent after the Amazon and is also the
natural habitat of the guaiac tree.
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Main economic activities.
Paraguay’s trade is heavily dependent on its
big neighbours (Argentina and Brazil). The
main income is from commodity agriculture
and cattle meat exports. It is the world’s 4th
largest soybean exporter and 6th largest
soybean producer behind USA, Brazil,
Argentina, China and India, in that order. To
achieve this, lots of forest land had to be
transformed into ploughed fields. Even so
about 40% of the population is below the
poverty line.
Main essential oils of Paraguay – relative importance of guaiac.
The main essential oils produced in Paraguay are: petitgrain, guaiac, arvensis mint and cabreuva.
There are also much smaller crops of palma rosa, citriodora, vetiver and citronella oils. Guaiac oil
corresponds to about 30% of Paraguay’s total essential oil sales (in tons).
GUAIAC WOOD
a) Guaiac wood - brief introduction
The Guaiac tree Bulnesia Sarmientoi is locally
known in Spanish as palo santo which means
holy tree, it grows only but very abundantly
throughout the sparsely populated Gran
Chaco. The tree is sometimes crocked; its
wood has greenish stripes and a fragrant resin.
It reaches a height of 10 metres and the trunk
can have a diameter of 80 cm. The name “holy
tree” says it all about what Paraguayans feel
for this species, which has a very unique and
distinctive place in Paraguay’s general culture.
It is highly valued for the many healing powers
attributed to infusions brewed from of its bark,
crust or leaves. It is used by traditional healers
for many generations to heal gastric pain,
syphilis, leprosy, gout, rheumatism, arthritis,
lumbago and skin diseases. Indigenous groups
also use the wood for craftwork. The tree is one
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of the hardest and heaviest of woods (1100-1280 kg/m3); it is very strong and decay resistant, even
underground, because of its resin content. The wood is used to make durable poles, beams, posts and
pillars for construction in the Chaco region (especially in Mennonite communities). In the past two
decades the wood has been exported to manufacture special pipe bushings which are used for ships of
shallow, medium and deep draught. Demand for guaiac flooring wood has been strong in the Asian
and North American markets.
b) Local legislative and regulatory environment regarding guaiac wood.
There are two main administrative institutions and one judicial office involved in guaiac wood
regulation.
• SEAM (General Environmental Regulatory Agency)
In charge of analyzing and granting general investment permits such as: logging, forest clear
cut, large scale farming, cattle rising, industrial facility compliance, national infrastructure
construction, mining, drilling and any important investment project that could have any
significant impact on the environment. The relationship is strictly between the government and
private land owners. Permits must be renewed every two years. SEAM is also Paraguay’s
CITES permit issuing Management Authority.
• INFONA (National Forest Institute)
In charge of technically monitoring all forest harvesting, sawmill functioning and
industrialized timber transport affairs. Its specific purpose is to protect forest resources from
being over exploited. It regulates internal timber commerce and export issues. It is also the
instigator of administrative claims. If a contentious event is considered a crime, the case is
referred to the Fiscalia for prosecution.
• FISCALIA AMBIENTAL (Environment Attorney General)
In charge of state criminal prosecution against environmental crimes and felonies. The
minimum jail time for guilty convicted environmental crime is 7 years. It is a feared institution
due to its provisional detention powers. It is better to have paperwork in order.
c) Guaiac timber harvest and guaiac oil production process and yields.
• Guaiac timber harvest.
Landowners can initiate harvesting
only after having obtained clearance of
the SEAM and INFONA. Usually
owners hire contractors to do the
harvesting and then sell the logs to the
local saw mills. Alternatively, they sell
the complete logging rights to other
timber companies. Once the trees are
cut with chain saws, tractors pull the
logs out on tiny roads into larger clear
fields. Afterwards the logs are loaded
onto trucks which transport them to
sawmills or to distillation units.
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• Guaiac oil production process.
In the early 1900’s the logs were
exported to Europe for oil distillation.
After World War 2, distillation has
been done locally. The oil is obtained
by steam distillation of shredded
wood chips of the Bulnesia
Sarmientoi. It is pale yellow and solid
at room temperature with a strong
woody scent. In our case (ALPACA
S.A.), only uses timber scraps or logs
of no use to the saw mills, this raw
material is mechanically shredded
into small chips the size of beans.
These woodchips are loaded into
autoclave stainless steel distillation
stills. Steam is passed through the
layer of chips, which is afterwards
cooled in condensers and separated in
florentine vase units. The difference
from other essential oils distillation is
that care must be taken in order not to
cool the oil too much; as guaiac oil is
solid at room temperature. In our case
we have the entire florentine vase
submerged in a “mary bath”. The oil
yield is around 3.5 - 4 %.
d) Production and processing structure in Paraguay.
About 500 people are directly employed through the entire production chain involving guaiac timber
and the guaiac oil industry. There are 4 main guaiac oil manufacturers. The general steam distillation
process is the same for each one, with some variations regarding water treatment, total distillation
times, still size, etc. The main difference is in the raw material each uses.
It is perfectly legal to cut healthy mature trees
for the sole purpose of essential oil
manufacturing. However, it is environmentally
friendlier and economically wise to harvest
guaiac, first for its timber value, using only the
byproducts such as branches, fallen or useless
trees, sawmill leftover boards and sawdust as
the raw material for essential oil distillation.
Manufacturers export the oil directly. Paraguay
is the world’s sole producer and exporter of
guaiacwood oil.
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e) Guaiac oil uses, major markets, statistics and trade trends.
• Uses
The two main components of guaiac
oil are “Guaiol and Bulnesol”. Guaiac
oil is used in the soap and varnish
industry but mainly as a fixative in
perfumes. Guayil acetate is also a
popular product made from the oil
and is also used as a fixative.
• Major markets
Spain, France, USA, India, Switzerland and Germany are the main markets for guaiac oil.
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• Statistics and trade trends
Only a few hundred kilos of guaiac essential oil are sold locally. From the statistic chart we
can confirm a steady increase in sales from 2005 to 2008. In 2009 sales decreased about 20%
due to global destocking. This year up to July total sales had already surpassed all of last
year’s figures. After Paraguay receives CITES’s blessing we should finish the year easily
surpassing sales of 2008 and reach or pass 200 tons.
3) CITES (CONVENTION ON INTERNATIONAL TRADE IN ENDANGERED SPECIES OF
WILD LIFE FAUNA AND FLORA)
a) Description of CITES.
CITES is an international treaty that has been ratified by 175 countries
since it first came into force in 1975. Its aim is to ensure that
international trade in specimens of wild animals and plants does not
threaten their survival.
CITES regulates international wildlife trade through a system of permits
and certificates to ensure that trade in listed wildlife (including plants),
including their parts and products is legal and does not threaten their
survival in the wild. Species may be listed in one of three appendices,
each of which provides different levels of protection.
b) Description of the CITES Appendix list.
Appendix I: Includes species threatened with extinction. Trade in specimens of these species is
permitted only in exceptional circumstances.
Appendix II: Includes species that are currently not threatened with extinction, but in which trade
must be controlled in order to avoid utilization incompatible with their survival.
Now including Bulnesia Sarmientoi (Guaiacwood).
Appendix III: Contains species that are protected in at least one country, which has asked other,
CITES Parties for assistance in controlling the trade.
c) Decisions and notifications of the Conference parties to CITES.
September 29th, 2003: Paraguay decided to enter a voluntary moratorium on all trade in wildlife
under CITES.
February 12th, 2008: Bulnesia Sarmientoi (Guaiacwood) was listed in Appendix III, officially
sponsored by Argentina.
August 10th, 2009: Paraguay’s voluntary moratorium was lifted (by CITES-Geneva) with regard to
trade in specimens of Appendix III species.
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March 19th, 2010: At the 15th meeting of the Conference of the Parties (CoP15) it was resolved to
list Aniba Rosaedora (Brazilian Rosewood) sponsored by Brazil and Bulnesia Sarmientoi sponsored
by Argentina in Appendix II.
August 28th, 2010: A CITES delegation arrived in Paraguay to make assessments towards the
complete lifting of its moratorium.
d) Current implications for guaiac oil under CITES.
The current listing for guaiac covers logs,
sawn wood, veneer sheets, plywood, powder
and extracts.
The Cites Management Authority of
Paraguay (SEAM) has told us that it has
submitted all the paperwork necessary for the
voluntary moratorium to be completely lifted
on species listed in appendix 1 and 2. We are
eagerly waiting for the head office of CITES
in Geneva to notify our government officials,
so we can start exporting again.
4) FINAL COMMENTS
a) Requirements for guaiac oil importers and exporters.
• a.1) An export permit or re-export certificate issued by the
Management Authority of the exporting State is required. An
export permit may be issued only if the specimen was legally
obtained and if the export will not be detrimental to the survival
of the species. A re-export certificate may be issued only if the
specimen was imported in accordance with the Convention.
• a.2) No import permit is needed unless required by national
law. The import of any specimen of a species included in
Appendix II shall require the prior presentation of either an
export permit or a re-export certificate.
b) Legal loopholes, distinctions between “extract” and “essential oils”.
After first reading the list issued by CITES I was very tempted to challenge whether guaiac oil was
actually covered by the term “extracts” that is regarded in the CITES # 11 annotation. My doubts were
cleared after carefully reviewing a letter from the European Federation of Essential Oils regarding the
inclusion of Bulnesia Sarmientoi in Appendix 2. It states as follows:
“Extract” is an umbrella term comprising derivatives like the extract, the essential oil,
the oleoresin and/or any form of distillation or extraction from the source material. This
view is commonly shared by trade and non-officially also by national authorities.
Source: (LD//EFEO CITES INFO MAY 19/2010).
The term “EXTRACTS” covers all types of derivatives obtained by any extraction method (solvent,
steam, pressed, etc). The term Essential oil only covers those obtained by steam distillation.
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Current status and future availability of guaiac oil.
I am firmly convinced that CITES will notify
the Parties of Paraguay’s moratorium lifting,
and guaic oil exports should restart between
October and December of this year. I also
personally believe that guaiac is being
sustainable exploited and that it will be
around for many decades to come. After an
initial worry about guaiac being placed in
CITES I thought to myself that exporters and
importers should not feel intimidated by the
CITES certificate obligation. Yes, it is another
product whose paperwork has increased. But
considering the fact that South America in
general and specifically Paraguay’s cattle
ranching and agricultural frontiers are being
extended, it is only natural, and why not say healthy, that this process and the natural occurring species
used; should be monitored. After all, we all want to be part of sustainable development respecting the
environment. If we have a CITES certificate for guaiac oil, which by the way is not freely handed out
as a pizza pamphlet, then we are a guaranteed that the product is being sustainably exploited.
Hans Karl Janz Janzen is Executive Director of Alapaca, S.A., a company he cofounded
in 1998 to undertake essential oil distillation. He was born in Paraguay
and following a high school education in Canada he took a law diploma at the
National University of Asunción in Paraguay, specializing in Paraguayan
environmental regulations. Prior to establishing Alapaca S.A. he worked in the
sugar cane, timber and steel sectors in Paraguay. He speaks several languages
and is a certified lawyer and civilian pilot. Hans Karl is President of the
Cooperativa Jejui Guasu, an organization dedicated to improving the living
conditions of Paraguayan aromatic plant farmers.
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