International Trade and Biodiversity. Ben Kamphuis Debrecen, May 29, 2011

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1 International Trade and Biodiversity Ben Kamphuis Debrecen, May 29, 2011

2 Wageningen University and Research Centre 5 Science groups Plant Sciences Animal Sciences Agro- Technology & Food Sciences Environmental Sciences Social Sciences VHL Agricultural College Wageningen International University departments University departments University departments University departments University departments Wageningen Business School Plant Research International Applied Plant Research Livestock Research Central Veterinary Institute Food & Bio-based Research Alterra Agricultural Economics Research Institute Centre for Development Innovation Van Hall Larenstein University of Applied Sciences IMARES RIKILT Wageningen UR 2 Wageningen UR

3 Contents of presentation 1. Research Background 2. International Trade 3. Biodiversity Impacts 4. Socio-economic Impacts 5. Policy Options 3

4 Soya International Trade flows 4

5 Soya Biodiversity Impacts Source: 5

6 Purpose of the Research Project To better understand the biodiversity and socio-economic impacts of Dutch trade in soya, palm oil and tropical timber Selection of countries Palm oil: Indonesia en Malaysia Soya: Brazil Tropical timber: Indonesia This presentation is on SOYA 6

7 Soy Supply Chain 7

8 Research Methodology Demand (Volume) Import en export data Production methods (Volume/ha) Yield data Calculation Required area Research results Impact on biodiversity 8

9 Soya World Area Harvested 30 million ha EU-15 =124.5 EU-12 = 47.9 EU-27 = million ha Source: FAPRI Outlook

10 Soya World Production 10 Source: UN Comtrade, LEI

11 Soya Bean Net Trade 11 Source: FAPRI Outlook 2010

12 Soya: Import & Export Netherlands 12 Source: UN Comtrade, LEI

13 Dutch Equivalent Cultivated Area The total required area of soya fields for the Dutch import from Brazil is +1.5 million hectares, i.e. almost 80% of the total cultivated area in the Netherlands Palm oil from Malaysia Palm oil from Indonesia Soya from Brazil 13

14 Dutch Equivalent Cultivated Area A very large part of the imported soya and palm oil products are (after processing) exported to other EU countries. Taking into account the net Dutch import volume only, then the required area is much smaller. Palm oil from Malaysia Palm oil from Indonesia Soya from Brazil 14

Germany Taking into account the net Dutch import volume only, then the

15 EU Import of Soy products + 40 million tons soybean equivalents + 16 million hectares soy bean fields Comparable with cultivated area of: Germany Taking into account the net Dutch import volume only, then the required area is much smaller. United Kingdom Poland Romania + Bulgaria 15

16 Soya and Palm Oil Production in World Hot Biodiversity Spots Soy Soy Palm oil Soy 16

17 Soya Biodiversity Impacts 17 Source:

Biodiversity Impacts 1: Deforestation Mainly indirect deforestation (chain of activities) illegal (selective) logging cattle farming (large scale) soya fields Indirect changes

18 Biodiversity Impacts 1: Deforestation Mainly indirect deforestation (chain of activities) illegal (selective) logging cattle farming (large scale) soya fields Indirect changes in land use Soya cultivation pushes cattle farmers further into forest areas Amazon moratorium may lead to expansion in Cerrado 18 Source: Woods Hole Research Center Falmouth, USA

19 Biodiversity Impacts 2: Loss of Species Reduction of almost 100% of forest species on soya fields Fragmentation of forest and savannah ecosystems Remaining forest fragments are too small or too isolated to maintain healthy populations of endangered species 19

20 Biodiversity Impacts 3: Pollution Use of fertilizers, pesticides and herbicides Contamination of surface water and aquifers Killing land and water species 20

21 Socio-economic Impacts 1 Employment At national level positive impact In production areas often negative impact Income Large scale farms need about 1 worker per 200 ha Positive for national GDP Negative in production areas Lower income and increased income inequality 21

22 Socio-economic Impacts 2 Access to land Conflicts about land ownership and land use rights Decreasing availability of (non-timber) forest products for indigenous people Health Contamination of farm land and (drinking) water Food security and food safety at risk Increased poverty 22

23 Future Demand and Trade in Soya 1. The expected growth of the world population and income per person will lead to a growing demand for soya 2. The Netherlands will continue to play an important role in trade and processing in the soya chain. 3. Dutch and EU policies are geared on making the international trade chains more sustainable 23

24 Expectations on International Biodiversity 1. Because of the growing demand for food, fodder and bio-energy it is quite certain that also in the coming decades large areas of nature areas and forests will be converted into agricultural production areas. 2. As a result biodiversity in these regions will further decrease 24

25 Options for mitigating the loss of biodiversity 1. Integrated landuse planning 2. Sustainable intensification of production 3. Alternative crops 4. Changing consumer demand 25

26 Option 1 1. Integrated land use planning Expanding production in already degraded areas Protecting High Value Conservation Areas Connecting High Value Conservation areas 26

27 Option 2 2. Sustainable intensification of production Increasing yields per hectare less land needed for more production Improving crop management Careful use of agro-chemicals (IPM) Nature oriented measures in and around the production fields 27

28 Options Alternative crops Protein rich crops o Beans, grasses, etc. 4. Changing demand Promoting the use of certified products Promoting the use of substitutes o DDGS (Dried Distillers Grains with Solubles) 28

29 Possible Role of R & D 1. Knowledge exchange on integrated land use planning 2. Knowledge exchange on sustainable intensification of production (technology, institutional) 3. Developing new technologies 4. Developing monitoring systems on land use changes and biodiversity 5. Research into consumer behaviour 29

30 EU policies with respect to biodiversity 30

31 THANKS Creating Coherence on Trade, Development and Sustainability For solving the problems we face we need to share knowledge, expertise and experiences to the benefit of all 31

32 More information Contact Wageningen UR32 Wageningen UR

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