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Rubber Study Group Looks for Sustainability Plan
By Huileng Tan SINGAPORE — The Singapore-based International Rubber Study Group is embarking on an ambitious initiative to draw up a plan for the industry, much like what the Roundtable on Sustainable Palm Oil did in the tropical oil seed industry. Courtesy of Lekshmi Nair Senior economist and statistician Lekshmi Nair, of the International Rubber Study Group, says what is needed “is commitment from all players in the supply chain” to end up with a sustainability plan. An overwhelming 85% of rubber production comes from small growers. That has meant that the fragmented industry has never come together to agree on a common set of sustainability standards. Natural rubber is a major tropical cash crop valued at more than US$30 billion annually. It has a long history of being cultivated for commercial uses. A boom in the last decade sent prices to record highs and spurred rapid new plantings outside of the traditional producing countries of Thailand, Indonesia and Malaysia, which account for over two-thirds of the world’s natural rubber supply. With burgeoning demand from China fueling rapid planting in these new areas – such as Cambodia and Laos — environmentalists and scientists are increasingly voicing concern about the environmental impact of rubber plantations. While rubber trees are deemed to be green, because they absorb carbon, large tracts of planting will lead to habitat loss for birds, elephants, tigers and other wildlife in the region, and also disrupt water movement, they argue. Set up in 1944, the International Rubber Study Group is made up of more than 30-member governments, as well as producer groups and consumers such as tire companies. Now its members are trying to give it a new, important mission of trying to balance its commercial success while not being overly destructive of the environment. The Roundtable on Sustainable Palm Oil was formed in 2004 in response to pressure from social and environmental groups to develop global standards for the entire palm oil supply chain. Plantation firms, such as Sime Darby Bhd and IOI Corporation Bhd, with estates larger than the city-state of Singapore, were first to adopt the standards and now account for the bulk of 8.2 million tons of eco-friendly palm oil produced annually. A key figure at the rubber study group’s sustainable project is senior economist and statistician Lekshmi Nair. She spoke to The Wall Street Journal about what the organization envisions for the industry. Excerpts follow: The Wall Street Journal : You are setting up a sustainable natural rubber action plan. Define sustainability. Lekshmi Nair: The definition of sustainability varies from different stakeholders, but, in general, sustainability means ensuring continuity of raw material so that it’s not disturbed. The mission of the sustainability initiative in rubber is to promote the economic, environmental and social sustainability in the production and use through dialogue and cooperation with all stakeholders along the supply chain. Now, there is an imbalance in that 85% of natural rubber production is coming straight from small growers while 70% of the consumers are from the tire sector. So we need commitment from both sides [in the form of a memorandum]. For the producers, natural rubber has the potential to generate a number of positive environmental benefits. Sustainability initiatives in rubber have positive impacts on the development policies of the producer economies. Promotion of sustainable production can enhance producers’ market entry and competitiveness in the growing new markets for sustainable products. For the consumers, the tire industry is by far the largest end-use market for natural rubber, with tire producers purchasing around 70% of total natural rubber placed on the global market. About 85% of natural rubber is produced by smallholders, whose decision to plant new trees and tap depends on opportunity cost. [Corporate Social Responsibility] is scaling up to include social as well as environment standards, with application of sustainability principles with regard to resource efficiency or purchase of raw materials [rubber]. So what we needed is commitment from all players in the supply chain to achieve objectives in this initiative in natural rubber. From the producer end, we have to take care of resource efficiency and the purchase of raw materials. This productivity in turn will ensure income for the small growers. For all major consumers, CSR is an issue. From the CSR point of view, the raw material that they are procuring must be shown to be sustainable, and one aspect of this is in its production. What are some of the sustainability criteria you are looking at? Other than improving productivity, we want to ensure natural rubber quality. Improving quality ensures enhancing productivity that certainly will increase income of predominantly small growers. If we looking at the emerging producing countries or African countries, you can see that the rubber they produce is filled with a lot of with impurities. In fact, you can say 50% is filled with sand or wood particles. Latex is collected in a cup attached to trees. So what small growers do is to collect the lumps and throw them to the ground, So contaminants will stick them. However, if small growers take some initiative to avoid these practices, they can avoid impurities at an early stage, which will save a lot of energy during processing. So it’s also beneficial from an environmental point of view. Bad quality rubber will require more energy for cleaning and will also produce more waste. Waste reduction can at start at the production stage. Natural rubber is known as a green product as the trees absorb carbon dioxide. What impact does large-scale cultivation of rubber as a cash crop have? Because of the demand for natural rubber, there is a lot of large-scale investment in emerging countries. One issue involves the use of forested versus degraded land. We encourage using degraded forest, and this initiative encourages this type of cultivation versus cutting down forested land. A comprehensive range of social issues, like land use shift, tenure rights, food security, are also within the? broader impact on large-scale investments. Also, when land is given for rubber cultivation, investors have to ensure food security for residents in the area first before they can cultivate a non-food crop like rubber. We need to ensure a balance between the two crops. First, we need to get commitment from all supply chain stakeholders so that the sustainability efforts become voluntary standards. Natural rubber is a commodity with a long history of being cultivated for profit. What took the industry so long to come up with these standards, which you are drawing up? Many of the established rubber growing countries do have initiatives and framework for enhancing small grower productivity through some form of sustainability efforts. But our project will involve multiple stakeholders, including governments and private individuals. At this stage, no civil society organizations [non-governmental organizations] are involved. We know there are some issues surrounding rubber, such as land rights and environmental issues. What is the state of the rubber industry now? Historically you’re looking at rubber as a colonial crop. It started as an organized plantation crop before government land ownership restrictions [to prevent individuals from accumulating too much land] saw it shift to being a small-holder crop. So that’s where the rubber is coming from now, and we need to reach out to these small growers. Other than CSR standards and image, what’s in it for consumers, like major tire makers and small holders? For commodities, there’s a boom and bust cycle. During the bust cycle, growers are withdrawing from this crop. But at the same time for consumers, they want need to keep the production line going, so they need to have an ensured quantity of rubber. Here, we need the consumers’ commitment to encourage small growers to stay with the cultivation of this crop. Sustainable prices are a concern for both producers and consumers. If the price is not sustainable, consumers may find it difficult to get their assured quantity from the producers because nobody can force the small growers to produce. They can do something else. Why not? There’s an opportunity for everybody and they are businessmen. What’s the next stage in the project? We hope to get all stakeholders commitment to this initiative [to sign a memorandum] by the next World Rubber Summit [likely in May of 2014 and held in Singapore] to get their commitment to certain standards. We hope to eventually get into a voluntary certification for sustainable natural rubber. Continue reading
Timber Rules
NANDHINI SUNDAR Timber in house design. The strength of timber is dependent on its usage and seasoning. But what sets it apart from other building materials is its beauty, says Nandhini Sundar Use of wood in housing is as old as dwellings, dating back to the very first hut that was built with tree branches and leaves. While history has seen many experiments with wood, where it featured as the main structural element, weaving in intricate geometrical concepts, incorporating arches and round shapes in timber frames, currently its use is more in aesthetics than functionality. Wood features as façade, on ceilings, walls, floors, furniture, and artefacts, meeting essentially the aesthetic requirements. Interestingly, every piece of timber has a different coefficient of strength. The strength is dependent on its usage and seasoning. What sets it apart from other building materials is its beauty, warmth and value besides cutting down on carbon emissions when plantation wood is opted for. Wood, when used in the interiors as panelling, or as rafters in the ceiling, or heavily in windows, on floors, can add a warmth and old world charm to the décor depending on the manner of depiction. Furniture made of wood, even sans intricate carving, can lend a rich tone. When represented in exotic forms, it appears stately and opulent, totally transforming the décor. Given the extensive use of wood historically in structures and interiors, most of the thematic representations of décor calls for extensive use of timber. While hardwood tends to last for centuries with little maintenance when seasoned right and kept indoors, wood can also be highly manipulated. It can be bent, sanded, cut, joined, and strengthened with pins. Interestingly no two pieces of wood are alike, which adds to its versatility. Natural seasoning Says Architect Satish Naik, Satish Naik & Associates, “Seasoning of wood can be done artificially as well as naturally though natural seasoning is lengthier, requiring soaking of logs in water and later drying in sunlight. A well-seasoned wood does not warp, bend or slit.” The manner of usage also determines its strength. For instance, teak yields maximum strength when used vertically while bamboo is totally flexible, allowing any manner of use. Says Architect Dinesh Verma, ACE Group Architects, “Bamboo can be assembled faster than other types of timber and withstands better harsher weather conditions.” Teak lends itself to decoration given its natural properties while bamboo serves as an excellent support for roofs where it can serve as structural element for the entire stretch of walls as well as ceiling. Stunning dwellings can be created using only bamboo. In rural areas, entire houses are made of bamboo. Bamboo is also excellent for creating exotic varieties of furniture and artefacts. “Bamboo roots come in exquisite shapes that lend themselves to creating mindboggling varieties of art pieces and furniture,” adds Naik. Some of the early uses of timber veered around mahogany, ebony, rose, teak, camphor and walnut. These varieties were crafted to reflect superb craftsmanship. Rosewood, teak and walnut are still sparingly used though the opulent mahogany and the queen of timber, ebony, have gone completely out of circulation, with ebony now listed under the preserved category. The black-coloured ebony is also credited with healing properties, manifesting as hand railings in mansions. Interestingly, only a small portion of ebony’s trunk forms the core of the timber with the rest assuming a lighter shade. Rare Paduk Paduk is another interesting variety of timber found in the forests of Andaman and is unique as it is grown only in this region. “The rare Paduk, referred as the chameleon of timber, has an interesting characteristic of losing its colour completely when exposed to sunlight and regaining it once brought back under shade,” says Naik. Many new varieties of timber have now come to use, each with their own unique individual characteristics, notable ones being sal wood, beach wood, steam wood, American walnut, and rubber wood. Cane too has come to occupy a significant space in timber varieties. Given its lightness, cane is becoming more popular especially with exotic varieties of furniture being crafted using it. Interestingly, even discarded wooden railway sleepers form excellent material for outdoor use. Adds Verma, “These can be used as garden seating elements, to pave the pathways in the garden, even for cladding the façade to give a woody cottage look to the residence.” One of Verma’s residence projects displays such exterior cladding where the hard wooden planks have been bolted in to facilitate easy removal for maintenance. Continue reading
The First Romanian Agriculture Fund To Provide Farmers With Financial Compensation For Economic Losses
Balkans.com Business News Correspondent – 03.09.2013 The first Romanian agriculture fund to take on risks insurers do not cover will be set up by the National Federation Pro Agro, the president of the farmers’ organization, Alexandru Jurconi, told BR last week. The fund is an income stabilization tool and will provide farmers with financial compensation for economic losses caused by such events as adverse weather and environmental calamities. While the model is a first for the Romanian market, it has a strong background in Western Europe. The need to set up an agriculture mutual fund has long been debated locally and has become more pressing in the context of climatic disasters such as last year’s drought as well the more recent food safety scandals. The fund will mostly be fuelled from public sources – 65 percent of the compensation will come from the state and EU funds, and the remaining 35 percent will represent members’ contributions. “The contribution paid by the Pro Agro Agriculture Mutual Fund members will be calculated so that it won’t be a financial burden for the farmer but can still cover compensation of up to 97 percent,” said Jurconi, adding that the organization is currently working on a contribution framework to best cover the losses suffered by farmers. Pro Agro’s announcement comes after Romania finally transposed the EU legislation pertaining to agricultural mutual funds this summer. “I believe that setting up a mutual fund would be local agriculture’s biggest achievement in the last 10 years,” said agriculture minister Daniel Constantin this June. At that time he also expressed hopes that only one such fund would be set up at national level which would “make it stronger”. Under the current law, several such mutual funds can be set up as non-governmental organizations. Any local farmers’ organization can set up a fund but one of the main conditions is that its members represent at least 30 percent of the country’s farming surface. Any farmer who reports revenues can subscribe to a mutual fund both individually and through associations of which the farmer is a member. In the first phase compensation applications will be submitted to the Agency of Payments and Intervention for Agriculture (APIA) until the mutual fund develops a national network, the authorities have previously announced. “In addition to the insurance companies, farmers will have the option to contribute to a mutual fund created and supported by the European Commission. It will be an NGO whose running costs will be supported for a three-year period from EU rural development funds to which Romania will have access,” added Constantin. Members of the National Federation Pro Agro will automatically become members of the mutual fund, which will be headquartered in Bucharest and will have seven other regional branches. Business Review Romania Continue reading