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Last month, I had an opportunity to join a field survey in Indonesia, led by a university which is now conducting a study on the sustainable use of biomass energy. We visited plantations, processing factories and the fields of small-scale farmers of "energy crops", namely, cassava, oil palm, sugar cane and Jatropha (Jatropha curcas). The former three crops already represent major raw materials of biofuel. Biofuel is liquid fuel which originates from biomass, mostly from starch or oil crops. Jatropha is the new face in this field but becoming popular due to its higher potential of oil production capacity and adaptability to less favourable cropping conditions. Indonesia targets biofuel to account for 10 per cent of the country's energy portfolio by 2010 and 6.5 million hectares of idle land will be allocated to these four crops to provide material for biofuel production (Jakarta Post, 2006).
Most respondents we met recognized the current situation as a great opportunity to expand their business. Actually, biofuel is not a new material. Rudolf Diesel, known as the inventor of the diesel engine, demonstrated his invention at the Paris Exposition in 1900 using peanut oil as fuel (Wikipedia, 2006). Biofuel has drawn attention many times since the first oil shock in the 1970s' but unlike previous booms, this time it seems to have a firm footing in society.
However, if we view this phenomenon from a different standpoint, namely, poverty alleviation, it is still unclear whether biofuel development can really mitigate rural poverty. Of course, biofuel production is more labour intensive than petroleum fuel and numerous job opportunities will be created. However, the most serious challenge for biofuel popularity is its higher production costs. Though the current high oil price is a strong push towards biofuel, the major concern of energy starved industrialized countries would be how to secure cheaper biofuel resources. We should be cautious that less attention would be paid to the welfare of small-scale farmers who are nominally the major actors of secondary crop production used for biofuel. It is natural for investors to expect preferable policy packages for large-scale producers with economies of scale in order to procure cheaper energy resources.
Unfortunately, there is voluminous illustrative evidence that large-scale plantation projects tend to impact negatively on the environment and welfare of the rural poor. Of course, large-scale plantations are not necessarily evil in terms of poverty alleviation. Most interviewees I met proudly explained the vast employment opportunities they provide to local communities. A manager of one of the plantations we visited told us that although they had their own harvesting machines, they do not use them very frequently in order to secure work for the local people. The plantation also endeavours to adhere to local labour and environmental regulations through the provision of benefit packages to its employees and the construction of waste water treatment plants on its premises. These efforts are somewhat effective in changing the negative impression given by many stories reporting environmental degradation and labour exploitation by large-scale plantations. However, I was left wondering whether a comment from our local counterpart may be more apt; "The plantations you visited are the best ones in this region. The others are far behind them and rarely accept foreign delegations like yours".
What is the alternative to find a way for poverty alleviation and cheaper biomass energy to coexist? I found some tips from our visit to an advanced base of an agro-business company which is now constructing a new ethanol plant in a cassava production area. Since they are a late comer to the cassava industry in the region, they are diligently formulating mutual trust with nearby small-scale farmers. While waiting for the completion of an alcohol plant, they started producing improved cassava seedlings which grafted a variety of quality roots (lower side) with one variety having photosynthesis ability. According to their explanation, the yield could be more than double the regional average. While selling seedlings, they also provide credit and technical advice to farmers. It is their strategy to win the hearts and minds of local farmers and foster a supportive atmosphere for future cassava procurement. Such revitalization of the local farming system is an option as well as developing large-scale plantations in maiden lands to meet the soaring demand for energy crops.
It is undeniable that the biofuel boom is an unprecedented opportunity for secondary crop producers. It depends on smart choices if the opportunities are to become a real take-off point out of poverty, or just adding another page to the history of exploitation, which was observed in the previous boom of commercial crops.
Written by Tomohide Sugino, Senior Researcher, Japan International Research Center for Agricultural Sciences.
(References available upon request) |
