With 7 thousand hectares destined for family farming, the palm company wants to expand more than 15 thousand hectares in the segment in the Amazon (Photo: Disclosure)
In the State of Pará, in the Amazon regions of Tome-Açu and Thailand, there is Belem Bioenergia Brazil (BBB), a company specializing in the production of palm oilpalm kernel and its refined counterparts (RBD).
BBB has 45 thousand hectares in seven municipalities, segregated into 42 farms with its own plantations and 568 partners. The company also has two extracting industries, one in the municipality of Thailand, with a capacity to process 120 tons of fresh fruit bunches (CFF) per hour, and another in Tomé-Açú, with a capacity of 90 tons of CFF per hour. Furthermore, the company has a refining plant with a capacity of up to 350 tons per day.
“We emerged in 2011, and today, 70% of our production is destined for the food market and 30% for biodiesel. Palm production takes place in a tropical climate, close to the Equator, because the plant needs a large amount of rain. Bahia, for example, produces palm, but because it is far from the Equator, it has an extraction rate of 10-11% per ton, while here in Pará, we have 21%, which brings economic viability”, says Eduardo Júnior, CEO of the company.
The company does not have its own land, with 37 long-term lease contracts 25 years + 5 years. BBB is the only company in Brazil with the active RSPO Principles and Criteria certificate (Certified Sustainable Palm Oil).
The characteristics of the palm and the care involved in producing it in the Amazon
Palm, unlike soybeans and corn, is a perennial crop, taking four years to produce its bunches, growing until the seventh and eighth year, when production stabilizes.
“It’s a long-term, capital-intensive culture. You invest and will only see a return between the seventh and eighth year, in addition to having an intensive workforce. The plant needs 2000 hours of sunshine and 2000 millimeters per year of water. Other than that, palm oil is one of the most productive in the world, with one hectare producing six or seven times more than soybeans. We generate around 3500 direct and indirect jobs, depending on production”, explains Júnior.
Among the company's main customers are companies such as Cargill, JBS (JBSS3), Bunge, Agropalma e M. Dias Branco (MDIA3).
“Palm is essentially used for the production of biscuits, ice cream, pasta and fried potatoes, a necessary ingredient for many foods. Palm kernel oil, which is a by-product of the palm, it is used non cosmetic market to make soap and creams. We produce for those at the cutting edge”, he points out.
El Niño should weigh on production
The company has felt the impacts of the El Niño climate phenomenon, which occurred last year, in 2024 production, due to the lower rainfall accumulated.
Unlike soybeans, palm has only one harvest, with 40% of production concentrated in the first half of the year and 60% in the second half of the year, mainly in September, October and November. Belem Bionergia Brasil, which produces an average of 170 thousand tons of palm oil and palm kernel, is expected to produce 150 thousand tons in 2024.
Billionaire revenue, possible IPO and expansion plans
In 2023, the company ended the year with revenue of R$1 billion, EBITDA of R$220 million and a margin of around 25%.
“An IPO is possible, but I don’t see us moving in that direction in the next 3 years. Our shareholders have already thought about this possibility, but it is not something we are targeting now, especially because the market is bad for going public. It is a year in which we are suffering a lot from commodity prices and the effects of El Niño”, he sees.
“There is very little knowledge on the part of managers and investors about palm, as our specialty is soy. In 2022, we present our case and there was a lot of surprise when they discovered that this production is in Pará. Furthermore, there is a problem with legislation, since in Brazil a company cannot acquire and explore land, as is the case with our lease”, adds Júnior.
BBB's sustainability manager, Gilberto Cabral, reinforces care in production in the Amazon, as well as the preservation of the biome, which involves legal reserves, river basins and local culture.
“We are productive and make a profit while being sustainable. We want to expand via family farming, as we already have 7 thousand hectares to grow in family farming and an authorization to grow 15 thousand hectares in this segment, totaling 60 thousand hectares. We see in practice how palm oil has changed the lives of these producers, with renovation of houses, new equipment, vehicles and families sending their children to study in Belém. Our decision to grow through family farming helps change people's lives”, he says.
'Competing in the international palm market is impossible'
The world's largest producers are Malaysia and Indonesia, which together account for 85% of global palm oil production. Brazilian production, at 500 thousand tons per year, accounts for less than 1% of the global total, with the country importing another 300 thousand tons to meet its domestic demand.
“It is impossible to compete on the international market. Among the challenges to produce is the medium-long term investment, high interest rates and the growth of the soybean harvest. Soybeans advanced and broke records and, with the end of land availability in the Center-West and Southeast, producers migrate here, which greatly increases the cost of land and makes economic viability even more difficult”, comments the CEO.
In addition to these issues, the CEO highlights the lack of public policies for palm and the logistical, credit and land problems.
“In Indonesia and Malaysia, 50% of production comes from family farming, with public policies present. If we had a public policy here, we would have a public policy that would serve the national market and a crop that actually generates income for family farmers, which would also help to combat deforestation.”
*The journalist traveled to Pará at the invitation of Fundação Dom Cabral