Friday, January 08, 2016

Brasil's road to soy

In the northern Brazilian state of Pará the BR-163 highway is part of a plan aimed at cutting costs by shipping soy out of river ports. But the improvement of the road has accentuated problems such as deforestation and land tenure, and is fuelling new social conflicts. The BR-163 highway runs up to the entrance of the port terminal built in Santarém by U.S. commodities giant Cargill, where the company loads soy and other grains to ship down the Amazon River to the Atlantic Ocean, and from there to big markets like China and Europe. This and other ports built or planned by different companies in Santarém, Miritituba and Barcarena – in Belem, the capital of Pará, at the mouth of the Amazon River – are part of a logistics infrastructure which, along with the paving of the highway, seeks to reduce the costs of land and maritime transport in northern Brazil. The river ports and the road improvement have nearly cut in half the transport distance for truck traffic from Mato Grosso, which is around 2,000 km from the congested ports in the southeast, such as Santos in the state of São Paulo or Paranaguá in Paraná. The Mato Grosso Soy Producers Association estimates the transport savings at 40 dollars a ton.
“Shipping out of ports in the north like Santarém has boosted competitiveness,” José de Lima, director of planning for the city of Santarém, told IPS. “BR-163 is a key export corridor that was very much needed by the country and the region.”

Federal University of Western Pará (UFOPA), chancellor Raimunda Nogueira explained to IPS that 120,000 hectares of land have been deforested to make way for soy. The 350-km stretch of road between the cities of Miritituba and Santarem in the northern Brazilian state of Pará look nothing like the popular image of a lush Amazon rainforest, home to some of the greatest biodiversity in the world. Between the two port terminals – in Santarém, where the Tapajós and Amazon Rivers converge, and in Miritituba on the banks of the Tapajós River – are small scattered groves of trees surrounded by endless fields of soy and pasture.
“When we came here 30 years ago this was all jungle,” local small farmer Rosineide Maciel told IPS.

With the soy production boom in Pará, illegal occupations of land have expanded and property prices have soared. Deforestation in the Brazilian Amazon became more widespread in the 1960s, driven by the expansion of cattle ranching and the timber industry. However, that did not leave the land completely free of vegetation, according to Nogueira, because subsistence farming maintained different levels of regeneration of the forest. When the big agricultural producers came in, they cleared all of those areas in the stage of regeneration that maintained a certain equilibrium

“The paving of BR-163 has heated up the land market,” Mauricio Torres, at the Federal University of Western Pará (UFOPA), told IPS. “As this is happening in a region where illegal possession of land is so widespread and where there is no land-use zoning, it generates a series of social and environmental conflicts.” He continued “Forests are cut down not only for agriculture but to make fraudulent land claims. A common phrase heard in the area along the BR-163 is ‘whoever deforests, owns the land’ – in other words, deforestation has become an illegal instrument for seizing public land.” Land prices are skyrocketing and small farmers are selling out, which accentuates the phenomenon of the latifundio (large landed estates).

When the improvement of BR-163 – including widening it to a four-lane highway along one major stretch – is completed, an estimated 20 million tons of grains (Mato Grosso currently produces 42 million tons) will be shipped northward to Amazon River ports rather than on the longer routes to ports in the southeast, by 2020. The dream of agribusiness corporations is to continue expanding the soy corridor, by building a railway to Miritituba. But Torres complained that “It’s important to stress that a paved BR-163 is not local infrastructure but is for the big soy producers of Mato Grosso. The state of Pará will become merely a transport corridor for soy exports.”