the new jari - Philip M. Fearnside - Inpa

Long term viability offertilizing Jari's plantations, as in manyof the forms of high input agriculturearound the world, is clouded by thediminishing global store of inexpensivenutrients. Projections of world trendsindicate both potash and phosphate rockbeing exhausted by the year 2061 (UnitedStates, Council on Environmental Qualityand Department of State, 1980). 11Utilization of low grade deposits afterthis date would result in dramatic priceincreases, as well as requiring presentlyunachieved technological breakthroughs.In addition to the costof suppliyng nutrients to the plantations,with or without better recycling in thesystem, plantation area will have to in·crease to compensate for wood presentlyderived from native forest. Establishing,maintaining, and harvesting the 37.5%additional area for firewood will makesupplying energy a major figure in Jari'sbooks at some future date, although thecost would be reduced if the contemplatedhydroelectric dam at Cachoeira deSanto Antonio is built.The 15% of the presentGmelina-based pulp mix derived fromnative forest trees (Woessner, 1980a)will also have to be supplied fromplantations, raising costs accordingly.Prospects for Jari's silvicultureand pulp operation depend,in addition to establishing an equilibriumbetween nutrient inflows and outflowsin the system, on low risks of majoryield setbacks from pests, diseases, orother agronomic problems. Decline msoil nutrient levels can be expected toact synergistically with other factors tofurther jeopardize silvicultural yields.Less than optimal soil fertility for treegrowth, such as early Gmelina sites locatedon inappropriate soil types, increasesthe susceptibility of plantationsto insect pests (Johnson, 1977). Sitedeterioration through soil compaction andother processes expected to increase withfuture rotations will further exacerbatethis problem.The probability of significantlosses to insect and disease outbreakcan be expected to increase withincreasing area of monocultures planted,12and with the passage of time duringwhich pests and disease organisms notyet present can become established. 13Defoliation by pests can reduce plantationtree growth by varying amounts(Ribeiro and Woessner, 1980), adding tothe plantation area that would be neededto meet the pulp mill's demand for wood.In silvicultural operationsgenerally, many potential managementproblems are not solvable at acceptablecosts through traditional agri-cultural remedies such as chemical treatments.If a major disease problem arises,for example, the only option usually openis to switch to a new species unaffectedby the problem. Preparing the operationto counter such problems is difficult andcostly, but essential. Jari would be wiseto adopt as a goal the ability to sustainthe loss of one of its plantation species.Finding alternative speciesis not an easy process. The Eucalyptusdeglupta being planted on a commercialscale since 1979 had performedwell in young trial plots on some sitesprior to initiation of commercial planting,but only a few areas could be testedprior to adoption. E. deglupta is a speciesknown for more varied growth thanmost, with isolated trees or small plotscommonly doing much better than largecommercial stands (R. G. Lowe, personalcommunication, 1980). A nthrocephaluschinensis, a species which hasgiven excellent results in trials on someJ ari sites, has not been planted commerciallybecause it demands good soil, hasnarrower requirements for amount andtiming of water than other species, andis susceptible to a disease, not yet arrivedat Jari, which has attacked plantationsin Central America (C. Briscoe, personalcommunication, 1980, see Gibson andNylund, 1976).Pulpwood plantations,as in many forms of agriculture, are sustainedthrough a continued struggle of thehumans managing the system with biological,silvicultural, and technical problems.The relatively long cycle of thecrops, and the large investments involved,make it especially difficult tosteer a successful course where problemsmust be anticipated and corrective actiontaken several years before yield declinesbecome economically significant. To acertain extent the sustainability of thesystem depends on high quality researchand monitoring efforts.The relative prices ofpulp as compared with needed inputs willbe crucial in determining whether stepsare taken by management to increasethe likelihood of long term production.Pulp prices can be expected to rise asworld consumption of white chemicalpulps continues to increase from 43 . 8million metric tons per year in the 1972-73 period to a projected 67.1 millionmetric tons per year in 1990 (UnitedNations, F.A.O., 1977: 144). Whetherrising prices of inputs will cancel thesegains is unknown: commodity prices are,unfortunately, more responsive to supplyand demand at any given time than tothe cost of investments needed to sustainproduction at some future date.Political and bureaucraticdecisions affecting the silviculturaloperation may have at least as muchimpact on its ultimate sustainability asthe many biological and agronomicthreats to continued production. Regu·lations regarding marketing and pricingare particularly important, 14 amongmany other factors.Irrigated RiceThe irrigated rice projectin diked varzea (floodplain) at SaoRaimundo has recently undergone set.backs, both agronomic and economic,leading to management changes andclose scrutiny of the project. One majorcause of worry was a sharp fall in riceyields in 1979 to about 7 metric tons/ha/ year from slighty over 8 metrictons/ ha/ year in the previous year.Various contributing causes have beenidentified, and some have been remediedthrough management changes.One reason for the decline was iron toxicity,evinced by accumulation of brownsludge on the rice roots. Although thearea's soils are prone to this problem,iron toxicity can be minimized throughcareful water management in the paddies.A delicate balance exists between excessiveflooding, leading to iron toxicity,and dryness, leading to aluminum toxicity.A preflood helps raise pH levelsand reduce iron toxicity.Increased insect attacksare believed by the technical staff to bea major factor affecting rice yidds. Armyworms (Spodoptera frugiperda) are aparticularly persistent problem, which canquickly inflict severe losses if timelyand effective controls are not taken eachtime populations begin to increase. Thearmy worm problem, like the toxicityproblems, is linked to water manage·ment: flooding the paddies when theworms are young being an importantweapon in the battle to control thesepests (see Grist, 1975: 320).Stink bugs (Oebaluspoecilus) have also been a problembelieved to contribute to yield declines.Attacks of these insects on rice rootsN\1ERCIEI\[IR NOV- DEC 1982, VOL. 7 N9 6333

have a synergistic effect with iron toxicitycontributing to reduced absorptionof nutrients by the rice plant. Theplants respond to roots being puncturedby stink bugs by replacing them withadditional roots. Foliar symptoms ofnutrient deficiencies can easily lead tothe conclusion that increased fertilizerapplications are needed, a response thecurrent technical staff likens to treatinga human patient suffering from intestinalparasites by applying blood transfusionsor additional food. Increased attentionto insect problems may reduce the costand increase the effectiveness of futureresponses to these symptoms.Nematodes are an additionalproblem found by the currentteam of technical staff, which beganwork at the IRI Research Institute stationassociated with the rice project in thelatter part of 1980. The problem's severityand the possibility of control arestill under investigation. Aphids (Aphididae)in the rice roots and mites (Acari) ,are two additional problems discoveredby the present research team.Rice diseases presentinclude rice blast (Piricularia oryzae), towhich the IR-22 variety now being phasedout is very susceptible (but which didnot inflict economically significant lossesduring the time that IR-22 served as Jari'smainstay). Leaf scald (Rhynchoporiumoryzae) has been the most damagingdisease for both IR-22 and J-226. J-226seed is being propagated as a promisingreplacement for both IR-22 and the J-229progressively supplanting IR-22 since1979. Brown leaf spot (Helminthosporiumoryzae) is also present, as well as alittle false smut (Ustilagenoides virens).Although diseases represent a constantworry to rice growers, J ari's rice hasnot suffered unduly from them sofar. "Hoja blanca" virus, a majorproblem in Venezuela, has still notarrived at J ari. The most effective responseto disease problems is generallya switch to more resistant varieties, chemicaltreatments representing only a temporarymeasure. The greatest problemis ability to produce sufficient seed fastenough to effect a variety change whenand outbreak occurs (given that a resistantvariety is available in the pool ofstrains undergoing testing at the site).Sufficient seed was not available to completethe switch from IR-22 to J-229two years after the change began, andJ-229 is now already slated for replacementas soon as enough J-226 seed isavailable.Weeds are a continualworry in the Jari rice project, as in irrigatedrice everywhere. Barnyard grass(Echinochloa crusgalli) is present at low334levels throughout the rice area, althoughit has not exploded to inflict the severelosses it is capable of causing. Wild redrice (Oryza rufipogon) is now present atJari's Sao Raimundo rice project in lowlevels. Wild red rice is a major problemin many parts of the world because it isdifficult to distinguish from domesticrice (0. sativa), many seeds fall from thepanicles before harvest allowing it to reseedin the paddies, and any grainsharvested shatter when milled, thuslowering product quality. The most effectiveway to control these and mostother weeds is to pre-flood the fields togerminate the weeds, followed by drain.ing and multiple herbicide sprayings priorto flooding and planting. These timeconsumingand expensive procedures areso far only used for the seed productionbeds. In production fields weed control ispresently limited to one spraying beforeplanting (either Dalapon of Gramoxone),followed by spraying with Starn (Propanil)when the rice is growing. Onehigh spots. Another engineering changebegan in 1980: construction of an additionalcanal through the middle of eachlarge field, allowing independent fillingof each of the paddies into which thelarge fields are divided. The new canalsreduce the time required to fill a paddyfrom eight days to 36 hours. The newcanals in presently existing rice productionfields will be complete by the endof 1983, if the construction schedule isfollowed.Beginning in 1980, ricecrops are planted on a rolling basisrather than in two distinctly separateand more synchronized cropping periods.The number of crops obtained from anygiven paddy is still limited to two, asthe remaining time is insufficient for afull third crop. In the future the 1-226variety may allow about 30% of a fullcrop's yield to be harvested from resproutsas a stubble crop during this timeslot, but this possibility is still, in thetesting phase. Rotation crops other thanPolitical and bureaucratic decisions affecting the sylviculturaloperation may have at least as much impact on its ultimate sustainabilityas the many biological and agronomic threats to continued production.marantaceous weed (Thalia geniculata)has not been sucessfully controlled withthese procedures, but the problem hasnot grown to economically damagingproportions. Other weeds include an unidentifiedPhaseolus species, and anotherwild rice species (Oryza alta). Two majorgraminaceous weeds in Surinam ( Barett,nd. (1975) ) not yet arrived at Jari(R. Cheaney, personal communication,1980) are Leptochloa scabea and Jschaemumrugosum. The latter is consideredthe "most dangerous grass inSurinam" (Doeven and Peorink, 1955,cited by Grist, 197 5: 280) .A number of remediesare underway for the various agronomicproblems and the decline in rice yieldsmay not continue if these are effective.A major effort is improvement of thephysical structure of fields and dikes toallow more finely tuned and rapid responsesto water management problems.Fields are being regraded at considerableexpense. Slight depressions and "highspots" in the present fields have been aconstant headache hampering uniformflooding or drying of fields to controlinsects, weeds or other problems. Armyworms, for example, preferentially attackrice are also being tested, including sweetpotatoes (Ipomoea batatas), maize (Zeamays), sunflowers (Helianthus annus),sorghum (Sorghum vulgare), cow-peas(Vigna sinensis), winged beans (Psophocarpustetragonolobus), soya beans (Glycinemax), peanuts (Arachis hypogaea),and an unidentified local legume greenmanure crop. Taro (Colocasia esculenta)is being tested as a potential alcoholcrop, and a native papyrus (Cyperusspp.) may be tested as a potential pulpsource. Rotation crops could help reducepest problems, as well as fertilizer costsin the case of green manure crops.The search continuesfor rice varieties more tolerant of suboptimalmanagement, and for varietieswith greater tolerance for iron toxicity.Variety screening continues, as well asresearch on possible rice managementchanges. Research on annual crops onterra firme (unflooded uplands) at SaoRaimundo was discontinued in 1979.Better insect populationmonitoring methods have been institutedin the irrigated rice fields (sweep nettransects rather than 1 m2 quadrats),and spraying programs have been adaptedto try and control more insect out-NOV- DEC 1982, VOL. 7 NQ 6 IIVERlJENJR

eaks before they become severe.Sprayings have increased from only 2/crop to 5-61 crop to achieve better control(note: in part to compensate foraging stocks of pesticides), althougharmy worms are not yet resistant to themain foliar insecticide used, Folidol(methyl-parathion). The coordination ofapplications of various agriculturalchemicals so that certain chemicals don'tneutralize the effectiveness of otherchemicals is essential. The systemic insecticideFuradan ( carbofuran), for example,must be applied before the herbicideStarn (propanil), whereas Folidol(methyl-parathion) must be applied 6-7days after Starn (propanil). Humanerrors on these and other details havecaused production losses.The dependence of themechanized agriculture used in the riceoperation on fossil fuels continues to bea potential long term problem. Cost andavailability of fuel will be importantfactors in the future. Temporary shortagesof natural gas have required shuttingdown the rice dryers at least once,although the diesel pumps lifting waterin and out of the polder surrounding therice fields have not been affected so far.Posts have been installed for futureelectrification of the diesel pumps. Electricitywould be supplied from a generatorburning crude oil, unless Jari's hydroelectricdam is authorized and built.The future prospects ofthe rice project depend on many factors.Biological problems can be expected tobecome more severe as additional weeds,pests, and diseases arrive in this new riceproducing area, and as pest populationsdevelop resistance to chemical treatmentsbeing applied ( Fearnside and Rankin,1980). At the same time managementpractices can be expected to improve, asmore is learned about how to grow ricein this new area, and as new varieties,equipment and other improvements inphysical parts of the agroecosystem becomeavailable. Costs related to theproject's isolated setting and minimalinfraestructure (no road link yet exists)can be expected to decrease, as can costsfrom the large staff required for engineeringworks in present fields and, eventually,for completion of the project'snow stalled expansion phase. Economiesof scale would also be expected to reduceper hectare costs more as the projectexpands from its present 3062 ha size toits projected 14,165 ha.To a great extent theprospects for sustainability and profitabilityof the rice operation depend on theskill and dedication of the people whorun it. Agriculture of this type is a continualbalance between the ability of thehumans involved and the ever-changingbiological and other problems threateningproduction. The cost of a single mistakecan often be an entire crop.In addition to agronomican human factors, the rice operation'sfuture depends heavily on politicaland economic decisions beyond the company'scontrol. Export restrictions andprice controls are chief among these.These restrictions are presently seriouslyaffecting the project, probably representinga greater source of concern to thecompany than the dip in rice yields inrecent years. Only one rice crop wasever exported, the first crop of 1978, soldto Italy. Since that time the companyhas been required to sell all productionon the Brazilian internal market atcontrolled prices well below those forrice of thi~, quality on international commodityexchanges.The performance of therice project in recent years has not beenencouraging. Ludwig tried unsuccessfullyto sell a controlling 50% interest in theproject to Atlantic Richfield Corporation(ARCO), but after an 18-month trialperiod, ARCO exercised its option tocancel the sale in June 1981. Paralyzingexpansion plans and great reduction inpersonnel had failed to reverse the drainon cash resources. The rice project's1980 cash flow was estimated at approximatelyUS$ 10 million (Kinkead, 1981).Water BuffaloJari's herd of 5800water buffalo in unaltered wirzea (floodplain)grasslands helps reduce the project'scosts for dairy products and meat.J ari personnel are pleased with thisanimal's adaptation to native Amazonfloodplain, as has been the experience ofprivate ranchers and government experimentersm various parts of the Amazonasand SolimOes Rivers. In the case of theportion of Jari's herd along the AraiolosRiver below the rice project, it would bewell to monitor the milk and cheese producedfor pesticide residues. Long termresidents in the Araiolos River arearemark on changes in river water qualityand fish catch since the implantation ofthe rice operation. Chemicals used in therice project include the pesticides Folidol(methyl-parathion), SEVIN (carbaryl),Toxaphene (chlorinated camphene), andFuradan ( carbofuran). The principalherbicides used in the fields are ST AM(prop a nil), Dalapon, and Gramoxone;lesser quantities of Anthrophene are alsoused on leeves.Pasture with PineA herd of 6300 zebuherfordhybrid beef cattle 111 is apparentlydoing well in pastures interplanted withPinus caribaea three years of age, withoutdoing significant harm to the pine seedlings.Initial use of guinea grass ( coloniiio:Panicum maximum) has been discontinuedin favor of the more covering andresistant creeping signal grass ( Quicuiuda Amazonia: Brachiaria humidicola), agrass species currently being promotedfor pastures throughout the Amazonterra firme (uplands) by the Braziliangovernment based on EMBRAP A experiments16 •Kaolin MineJari's open-pit kaolin(china clay) mine presently represents asmall area of forest destruction whencompared with other land uses, a contrastwhich is even greater if the differencein value of the products is considered.Foliar symptons of nutrient deficiencies can easily leadto the conclusion that increased fertilizer applicationsare needed, a response the current technical staff likensto treating a human patient suffereng fromintestinal parasites by applying blood transfusionsor additional food.IIUER[}Ef\[IR NOV- DEC 1982, VOL. 7 N9 6335

Jari officials say the size of the depositcould supply the mining operation aJ the1980 extraction rate for 250 years,although the extraction rate is expectedto be increased in 1982 according to thecompany 17 • The small disturbance ofthe current operation could therefore beexpected to increase tremendously as extractionproceeds through the comingtwo centuries. The problem of reclaimingthese much larger areas will thereforeeventually have to be faced.Environmental RisksSilvicultureThe size at which replacementof natural forest with plantationswould provoke significant widerenvironmental effects is unknown, butprobably large in comparison with Jariitself. Reduced rainfall is the macroecologioaleffect most closely tied to deforestationin general (Salati et al., 1978;Fearnside, 1979). Increased severity ofthe dry season is a greater reason forpreoccupation about deforestation thanare decreases in annual rainfall totals.J ari's silvicultural plantations could beexpected to have less impact than theAmazon region's fast-growing areas ofcattle pasture, but would have more thanland uses which maintain intact rainforest canopy cover. Transpiration islargely a function of leaf area, implyingthat the transpiration potential of theplantations is less than that of rain forest.Evapotranspiration, mostly transpiration,has been found to account for approximatelyhalf of the water vapor generatingrainfall between Bell!m and Manaus (VillaNova et al., 1976; Salati et al., 1978).Large-scale modification in the evapotranspirationpotential could therefore beexpected to cause similar changes in rainfallfor the region. Precipitation recordsfor rain gauges maintained by Jari atMonte Dourado since 1968, and at otherlocations in the silvicultural area since1970, 1971, 1974, and 1975, do notreveal any significant trends in total rainfall,or in such dry season severity indicatorsas number of days of rain in eachof the dry season months, minimumnumber of days of rain in any month,and minimum rainfall in any month. Thetime sequence is, however, too short toallow conclusions.Risk of any eventualclimatic effect is minimized by the largeareas which must be converted beforeany measureable change is provoked.Jari's area is small in comparison withthe 3.5 million ha of cattle pastures estimatedto exist in Brazil's Legal Amazonby 1978 (Serrao et al., 1979) and the336rapid incr·eases in cleared areas since thattime (Fearnside, 1982). Beyond Jariitself, probable limitations on the spreadof large silvicultural operations in Amazoniawould include how much of theAmazon is suitable for this kind ofplantation, and how much plantationarea would be needed ·to supply projectedmarket demands (not to imply that allmarket demand should be supplied orthat all suitable areas should be used).It is well to remember that macroecologicaleffects are generally cumulative innature, being the combined result ofmany smaller strains on the system, noneof which is sufficient in itself to provokethe change.Pulp MillWater pollution frompulp mill is treated by filtering solidsludge, followed by holding the effluentfor 16 days in a series of 1 m deepconsequent increase in the risk of pollutioneffects. Although the 2000 m 11 /second average discharge of the JariRiver (Lang, 1979: 63) would appearto dwarf the effluent inputs, the headof the Brazilian Navy station at the sitesays at least one fish die-off has occurreddownstream of the mill. The location ofthe mill near the mouth of the AmazonRiver is fortunate in limiting potentialdamage were water pollution to becomea severe problem (and is also one of themany features of the Jari site not duplicablewere the project to be copiedelsewhere in Amazonia).Jari maintains a pollutionmonitoring laboratory at Monduga,which submits reports of daily measurementsof biological oxygen demand(BOD), disolved oxygen (DO) and otherindicators to SEMA every week. SEMAalso occasionally sends its own personnelto collect samples. The Jari River isclassified by SEMA as "class 2"; applicablewater quality standards for thisMost of J ari's other operations, such as timber extraction for solidwood, kaolin mining, and irrigated rice, involve thedestruction of natural habitats.ponds where bacteria act to degradeorganic materials. The 159 ha of pondsinclude capacity for emergency drainageof digestors, not included in originalplans. The relatively inexpensive ponds,constructed with simple earth dikes, allowmuch cheaper pollution treatment thanwould be possible in temperate zoneswhere covered concrete tanks are neededto maintain water at the required 300Ctemperature. In late 1980, Brazil'sSpecial Secretariat of the Environment(SEMA) took the additional precautionof requiring a further enlargement of thepond area, since the ponds were nearlyfull. The enlarged ponds are underconstruction (P. Nogueira Neto, personalcommunication, Feb. 1981).Effluent, a brown liquidwith a distinctive odor (Table II), is releasedinto the Jari River at the riverbottom (about 18 m deep). An 80 emtide at the mill site in Monduga causeswater to flow upstream each day as thetide comes in, restricting effluent releasetimes to the hours when water is movingat its maximum rate downstream. The 1.1ms/second average discharge is thereforeconcentrated into much larger effluentpulses when released into the river, withcategory call for a BOD/ 5 days at 20°Cof 5 mg/ 1 or less, and DO of at least5 mg/1 in any sample (Brazil, Ministeriodo Interior, SEMA, 1976: 21).Other OperationsMost of Jari's otheroperations, such as timber extraction forsolid wood, kaolin mining, and irrigatedrice, involve the destruction of naturalhabitats. Some, such as rice, involve theuse of chemicals which can affect ecosystemsbeyond those altered directly inimplanting the production system.Jari's buyers are seekinggovernment approval for several projectsattempted by Ludwig but blocked byregulatory impasses. These include constructinga hydroelectric dam and importing a second pulp mill ( Veja, 13 de janeiode 1982). Other projects contemplatedby Ludwig, such as expanding theindustial sector to produce paper on thesite, might eventually also be realized ifthe various projects already in operationprove profitable.Environmental risks ofthe various projects depend very muchNOV- DEC 1982, VOL. 7 NQ 6 IIVERDffiDR

on how large they become. Jari's size( 305 such estates would occupy Brazil'sentire Legal Amazon) means that potentialimpacts at the local level meritcareful monitoring.General ConclusionJari's management policymust strive for indefinite sustainability,even though this implies higher currentoutlays. Among the preconditions requiredfor sustainable management of thesilviculture operation are: additionalplantations to supply the fuel and pulpcurrently derived from native forest, anextensive research and monitoring effort,and the replacement of nutrients removedin harvested biomass. These changes donot assure Jari's future, although longterm prospects are clearly bleak withoutthem.Silviculture, irrigatedrice, and other sectors of Jari face biologicaland technical difficulties, as wellas environmental risks. Hopefully informeddebate on these issues will take placewith an eye to minimizing the probabilityand potential impact of possible problems,and with the objective of contributingto wiser choices of developmentpatterns offering a sustainable basis forserving human needs in the region 1 s.ARCOCENACNPqBMBRAPAFAOINCRAINPAIRISBPCSBMAGLOSSARYAtlantic Richfield Corporation.Centro de Energia Nuclear naAgricultura (Center for NuclearEnergy in Agriculture), Piracicaba,Sao Paulo.Conselho Nacional de DesenvolvimentoCienti/ico e Tecnol6gico(National Council for Scientificand Technological Development),Brasfiia.Empresa Brasileira de PesqulsasAgropecudrias (Brazilian Enterprisefor Agriculture and CattleRanching Research), Brasilia.Food and Agriculture Organizationof the United Nations, Rome.Instituto Nacional de Coloniza,iioe Reforma Agraria (National Instilefor Colonization and AgrarianReform), Brasilia.Instituto Nacional de Pesquisasda Amaz;bnia (National Institutefor Research in the Amazon),Manaus, Amazonas.IRI Research Institute, New York..Sociedade Brasileira para o Progressoda Ciencia (Brazilian Societyfor the Progress of Science),Slo Paulo.Secretaria Especial do Meio-Ambiente(Special Secretariat of theEnvironment), Brasflia.NOTES1. Jari Florestal e Agropecubia, Ltda. andCaulim da Amazonia S/ A are now beingintegrated into the firm Companhia doJari. The third Ludwig firm, Sao RaimundoAgropecuiiria Ltda., is not included in thesale, although negotiations are underway(Veja 27 de janeiro de 1982: 92).2. This figure is J ari's last claim underLudwig. Jari's new owners also claim 1.6million ha (A Critica, 13 de janeiro de1982: 2), but have apparently so far onlyreceived assurances from the Brazilian governmentthat 900,000 ha are theirs, withthe "possibility of expansion" to 2 millionha (Veja, 13 de janeiro de 1982).3. Jari's reported cash deficit in 1979 wasUS$ 150 million, the US$ 70 million inrevenues (pulp + rice) being offset byoperating costs of US$ 110 million, constructioncosts of US$ 50 million, and debtservice costs of US$ 60 million. In 1980 thedeficit was US$ 14 million, revenues ofUS$ 9(} million being absorbed by operatingcosts in the pulp project of US$ 10 million,operating costs in the rice project of US$10 million, construction costs of US$ 20million, and debt service of US$ 64 million(Kinkead, 1981). Other reports indicatethe project lost US$ 80 million in 1980on an operating budget of US$ 250 million(Brooke, 1981).4. Proceeds from the sale will go to theFundacao Daniel Ludwig para a Pesquisado C~ncer (Daniel Ludwig Cancer ResearchFoundation) in Sao Paulo, plus a percentageof dividends distributed to stockholdersthrough the year 2021: 5% for 10 yearsbeginning in 1987,4% for the next 10 years,and 3% for the last 15 years (Veja, 13 dejaneiro de 1982). Note: the total debts ofthe project have been reported to be US$350 million (Veja, 16 de dezembro de1981: 77), or US$ 170 million in additionto the remaining balance of the pulp millloan.5. From 5-12 November 1980 we observedcommercial and experimental plantationsof Gmelina arborea, Pinus caribea var.hondurensis, and Eucalyptus deglupta, andexperimental plantations of various otherspecies. Also visited were the nursey, pulpmill and power plant, mill effluent treatmentponds, wood transport and storagefacilities, laboratories for soil, pulpingresearch, and pollution control, herbaria,entomological and wood collections andother laboratories and technical offices.Other sectors observed were the vdrz;earice project, kaolin mine, water buffaloherd, beef cattle herd (in pastures in youngpine plantations), and native forest extractionoperations, as well as the native forestand the Jari and Araiolos Rivers. We alsovisited the project in August 1978.6. 60-90% standing crop ~ 20 em DBH. Inover 400 species present, 230 are of sameuse. Of usable species, 82-86% can beutilized with Gmelina for pulp (Woessner,1980a).7. Various growth rates have been reported,but an average figure has apparently neverbeen disclosed by the company. Kalish(1979) reports that "the exact growthrate was not disclosed by J ari foresters,but it is believed to be in the range of25-35 m' /ha/year for Gmelina and slightlylower for pine." One estimate, also madewithout benefit of production figures fromthe company, anticipated a mean yield of25 m'/ha/year for Gmelina, and 15 m 1 /ha;year for Pinus. (Rollet, 1980: 8), and reportedthat 35 m 1 /ha;year were "expected"from Eucalyptus (Rollet 1980: 14). AlthoughJ ari staff declined to estimateaverage yields for us as well, they statedthat yields obtained on good soils were35 m• /ha/year for Gmelina, 25 m' /ha/yearfor P. caribaea, and very approximately40 m' /ha/year for E. deglupta. It is worthnoting that these E. deglupta yields aremuch higher than those reported for plantationsin other tropical countries. In thePhilippines, for example, a maximum ofonly 25 m' /ha;year has been obtained (Tagudar,1974 cited by Johnson, 1976: 208).Woessner (1980a) gives maximum yieldsat rotation age at Jari of 42 m' ;ha/yearfor B. deglupta 38 m' /ha/year for Gmelina,and 25 m' ;ha/year for P. caribaea, butobserves that "on less optimum sites theyields may be reduced by 'h". Actually,on the least optimal sites the economicyield can be considered to be zero, since20.7% of the plantation is reportedly "notmanaged" mostly due to poor soils (T.H.Svendsen and S. Lassen, personal communicationJuly 1981). Jari's problem is thatrelatively little of the area is optimal, andit can ill afford to base calculations onthe best possible yields. Average yields aremuch lower than the approximately 40m'/ha/year originally anticipated by Ludwigfor the Gmelina he expected to use forthe entire plantation: the areas now plantedwith P. caribaea instead of Gmelina canyield a maximum of 63% of this figure,probably yielding less over most of thearea, while Gmelina and E. deglupta, al·though capable of achieving the expectedyields on the best sites, fall far short onmore typical solis. At more representativesite indices for Gmelina on the order of21, yields are around 20 m'/ha/year (seenote 10). One report gives Gmelina yieldsfor sites of index 21 or over as 28 m' /ha/year, expected yields of 20 m 3 /ha/year forP. caribaea, and 20 m 3 /ha/year (based onexperimental plots) for E. deglupta (T.B.Svendsen and S. Lassen, personal communicationJuly 1981). One earlier estimate,also made without benefit of productionfigures from the company, anticipated amean yield of 25 m 3 /ha/year for Gmelinaand 15 m 1 /ha;year for Pinus (Rollet, 1980:8), and reported that 35 m'/ha/year were"expected" (Rollet, 1980: 14). Very approximately,present yields on the order ofhalf the original expectation seem probableover the estate as a whole.8. According to Jari technical personnel,company laborers earn (Nov. 1980) Cr$114;day when calculated at 30 days/monthpaid for 13 months/year to include theextra month's salary standard in Brazil.They also receive production incentivesaveraging 30% of their total pay (butranging up to 300%). This gives a totalof Cr$57,798/year. Additionally, the companyprobably pays the standard benefitsin Brazil: 22.33% in health insurance andsocial security, 8.33% in government medicalassistance, and 8.33% for disabilityleave allowance. These would increase thecost to the company to Cr$75.132/worker/year, or Cr$262.70/day worked using a286-day year (discounting Sundays and aone month paid vacation), or US$4.24/worker/day worked at Cr$62/US$ (Nov.1980).ln7EI?DEni:IR NOV- DEC 1982, VOL. 7 N9 6337

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