Unit 3- Deforestation in Brazil (Case Study)

Question 1

Negative economic impacts

Answer 1

Wealth generated by deforestation is not shared locally but exported.
Brazil could face losses of $317 billion a year if deforestation continues.

Question 2

Positive economic impacts

Answer 2

Expansion of agriculture brings national revenue (ag currently comprises 9.69% of GDP)
Massive initial profits for cattle ranchers from tax subsidies and rebates
The beef industry is worth $8 billion in exports
Countries e.g. Norway and Germany offering to pay Brazil to end deforestation (Norway pledged $1 billion)

Question 3

Negative social impacts

Answer 3

Indigenous communities e.g. Yanomami tribe are threatened by diseases e.g. malaria, violence, water contamination and land clearing
Settlers face a life of poverty, violence, unemployment and inability to access mainstream services.
34 million people rely on the forest for income and subsistence

Question 4

Positive social impacts

Answer 4

Ag expansion has increased food availability
Increased employment in mining, logging, and ag
Increased efforts to preserve Indigenous culture and communities

Question 5

Negative environmental impacts

Answer 5

The Amazon is responsible for 10% of global GHG emissions
Increasing extinction rate (26 species now extinct, thousands endangered e.g. black spider monkey) from habitat loss, increased predation, direct killing, less food, contaminated water sources
Tipping point at 20-25% deforestation (precipitation cycles break down)
Soil erosion, droughts, bushfires (2019= 60000 fires)

Question 6

Positive environment

Answer 6

Increased environmental awareness and advocacy

Question 7

Name of local response to Amazon deforestation

Answer 7

Cacauway chocolate factory

Question 8

When was Cacauway implemented and by whom?

Answer 8

2010 by the Transamazonica Agroindustry Cooperative

Question 9

Reasons and aims for Cacauway implementation

Answer 9

To reduce deforestation
To create profit from cocoa

Question 10

Main features of Cacauway

Answer 10

Sustainable cocoa responsibly sourced from 40 local family farms
Cocoa trees are planted alongside native trees e.g. mahogany
Began small by marketing in local shops and markets
Opened 8 shops in 3 Brazilian states

Question 11

Strengths of Cacauway

Answer 11

• Creates jobs and revenue
• Higher prices paid to cocoa producers (up to 50% higher)
• Organic cocoa fetches much higher prices and can be sold on the lucrative international market
• Cocoa production is now separate from deforestation
• Cocoa does not degrade the soil, and collects CO2. Many farmers are regenerating their land by planting cocoa
• The program supports small-scale local family farms

Question 12

Weaknesses of Cacauway

Answer 12

• Fluctuations in the cocoa price are challenging
• Focuses more on the cocoa industry and making a profit rather than curbing deforestation.

Question 13

Opportunities for Cacauway

Answer 13

• Chocolate industry is growing and demand is increasing, so there is a guaranteed market (World chocolate processors say in the next 5 years there will be an additional demand for one million metric tons of cocoa bean)
• Organic cocoa is high-paying

Question 14

Threats to Cacauway

Answer 14

• Changing cocoa prices are challenging
• Some companies might prefer cheaper options
• Cocoa trees require shade, so a lack of tall older trees may prevent cocoa crops from flourishing
• Diseases threaten cocoa crops e.g. Frosty Pod Rot
• Climate change and changing temperatures