October 17, 2013

The Portuguese pulp and paper industry: myths and reality.

The Portuguese paper industry holds some myths, frequently advertised by some opinion makers. Are such myths real?

1.     The weight of the paper industry in the national economy and, in particular, in the exports, has been the most common belief lately.

If, on one hand, it highlights the contribution of the paper industry in the economy, on the other there is a sharp decrease in the weight of all the forest-based industries in the Gross Domestic Product (GDP) - which was already in decline over the last decade. The weight of the forest-based industries in GDP was 2.2% in 2000 and in 2010 it was only 1.3%. The advertised weight of 3.0% of GDP in the forest sector (forest + forest-based industries) for 2000 is reduced in 2010 for only 1.8%.

The importance of the forest-based industry in the exports gross value corresponds to the increased weight of imports of wood. Part of those Imports comes from countries with dubious management rules on their natural resources.

The increase of business profitability on the forest-based industry has been joined by a sharp decline in the forestry business; with the business risk transfer to hundreds of thousands of private forest owners engaged in the roundwood production (families and rural communities hold 92% of the forest areas in Portugal, 60% of farms have less than 5 hectares). At the end of the chain, the risk is supported by the Society. The lack of business expectations in the forests leads to the absence of forest management. The absence of forest management has serious consequences on forest fires, with devastating effects on the statistics of burned forest areas. The Society annually supports high economic costs and huge environmental and social impacts caused by forest fires in Portugal.

Currently, the domestic pulp and paper industry has a very poor auto supplying capacity; rounding 20% (around 16% is Group Portucel Soporcel).

The presence of the pulp and paper industry in the forest (the area of ​​greatest business risk) is continuously decreasing. Only in the last decade eucalyptus areas held by the pulp and paper industry decreased more than 34 000 hectares. There seems to be a progressive disinvestment in the forest and, consequently, a business risk transfer to the hundreds of thousands of families that contribute to supply this industry.

2.     The excellence management awards are another myth.

For this “excellence” in management evaluation, the unilateral imposition of the roundwood prices to the forest owners has been contributed greatly. Such imposition by the pulp and paper industry is protected by the State, in complete contradiction to the principles of equity and healthy functioning of the markets. The luxury of cogeneration profits, guaranteed by the State, has constituted a favorable factor to a good performance management result.

It’s also important to notice that, in 2010 and 2011, Portucel achieved extraordinary overall revenues of about 50 million Euros, generated by tax benefits granted by the State.

3.     The performance in innovation.

The area of eucalyptus in Portugal has increased ten times in the last 50 years (currently the fifth largest in the world), but the national average productivity is the same today as it was previously registered in 1928. The pulp and paper industry had invested in R&D in the past, but currently it has almost abandoned this area, focusing on the quantity instead of quality. However, the risks of quantity production have been assumed by the Society.


After all, everything suggests that the myths associated to the pulp and paper industry in Portugal are nothing but myths. In fact, successive governments have protected the economic interests of shareholders, and its headquarters fiscally addressed in the Netherlands. This state protection is performed on the detriment of families, forests and Territory.

Surely, this is not the type of investment and unsustainable extraction Acréscimo advocates for forest areas and the forest-based industry in Portugal.

Acréscimo is a non-governmental organization that promotes sustainable and socially responsible forest investment. The association is seriously concerned about the high risk of forest fires related to this investment as well as the responsibilities of forest-based industry in promoting this risk (with the complicity of the state) besides a healthy and competitive functioning of markets.


October 8, 2013

Forest certification and the application of sludge from pulp and paper mills in forestry

Acréscimo is a Portuguese non-governmental organization which aims to promote sustainable and responsible investments in forests and uncultivated areas. The association has been communicating, in several media resources, its concerns related to the need to increase the credibility of forest certification among the population. This organization believes that the certified entities, especially the industrial companies that manage forest areas, have a decisive contribution to this objective.

The recent suspension of certificates issued under the Forest Stewardship Council (FSC) in Portugal is our main concern as it corresponds to a very significant part of the Portuguese forest area certified by this scheme. Besides that, we also face the weakly regulated and supervised actions of industrial waste recovery through forestry fertilization programs, specifically the use of sludge from pulp and paper mills.

Pulp and paper industry, in the course of their activity, is responsible for producing a large amount of waste (estimated at approximately 48 tons per 100 tons of pulp produced) or inorganic (ashes, dregs and grits), or organics (sludge) and other sub products. The application of pulp and paper mills sludge on forest soil fertilization emerges as an alternative method of disposing of industrial waste. However, the application of sewage sludge should only be made ​​after a detailed study of its composition and after a proper characterization of the area for its application.

The Portuguese legal framework for the application of sludge in soils results from the implementation of the 1986 EU Sludge Directive (86/27/EEC). The law imposes the obligation to carry out frequent testing on the sludge or mixture of sludge, and on the soil and the water on the places where they are to be spread and incorporated. It imposes limits to the concentrations of heavy metals, organic compounds, dioxins and micro-organisms. It also determines the cases of prohibition in the application of sewage sludge, among others , injecting sludge in soils without agronomic value, burying sludge in soils (other than landfill), apply near water lines and its uptake, or adverse weather conditions ( between November and January, unless otherwise justified). The cellulosic sludge should be spread and incorporated into the soil within 48 hours of its extraction, using the appropriate means/action to ensure a proper soil surface mobilization.

The sludge producer, even if their forestry application occurs on lands of others, will always be co-responsible for possible harmful effects of its application in soil or anywhere else.

With an annual growth estimated at 25% for the paper industry, the production of sludge is projected to increase between 48 and 86%.

It is noted that concerns about the legal requirements for use of sludge and ashes in forest soils, are based on claims submitted to the competent National Authorities, involving Portucel Soporcel company that owns about 122.000 hectares of certified forest, ie more than 50% of the FSC certified forest area in Portugal.

Application of sludge from pulp and paper mills in eucalyptus forest without soil incorporation.

Therefore, it is important to clarify that the extent of a procedure of organic fertilization on forest soils is not conditioned by the growing need for disposal of industrial waste, with corresponding adverse effects especially for rural populations and habitats.

Acréscimo suggests the opening of these forested areas to the public visitation and experts’ evaluation.