Jari project
Encyclopedia
The Jari project was an attempt to create a tropical tree farm in Brazil
for producing pulp
for paper
.
entrepreneur
and billionaire
Daniel K. Ludwig
. In the 1950s he noticed that demand for paper was rising. Since the forests of the temperate zone were already in use, the supply of the wood pulp for paper was fixed. Ludwig foresaw a future increase in the price of paper due to the increase of mass media
. Since most of the natural forest timber was not suitable for paper production, Ludwig planned a site where the natural forest would be replaced by a tree farm. It would have to be started decades ahead to supply the future paper production.
for his tree farm. At first he considered locating his tree farm in Costa Rica
but the Brazil
ian military government encouraged him to settle on the lower reaches of the Rio Jari, a tributary of the Amazon River
. In 1967, Ludwig bought 1.6 million acres (6,475 km²) for $3 million.
Ludwig controlled the project mainly from the United States. He built a settlement, Monte Dourado, with houses, schools, hospitals, nurseries, bridges and community buildings. He also built roads and railways. The clearing of the land using heavy bulldozers damaged the topsoil
the trees were to be planted in. It became necessary to employ local workers instead for land clearing. The soil turned out to be partially unsuitable for Gmelina. Also, the new trees were damaged by the numerous insects living in the area of the Amazon. Other settlements, the "free cities" of Beiradão and Beiradinho, were built to house workers. In its heyday, the Jari Project had 35,000 workers.
Ludwig had also commissioned two large ship-shaped platforms that were built in Japan and floated to the Jari Project. One barge module contained the pulping sector of the pulp mill. This module housed the digesting the brown stock
the bleach plant and the pulp machine. The second module housed the recovery boiler
, the evaporator
s and the recaust. The pulp mill barge was finished in 1978 and launched on February 1. It traveled through the Indian Ocean and through the Cape of Good Hope, arriving at the Brazilian city of Munguba on April 28. The power group module arrived four days later. Both barges were floated into specially built locks. Hundreds of gum wood piles had been driven into the ground to support the two barges. By closing the locks and pumping the water out, the barges gently settled on the many piles.
It was found that the growth rate of the Gmelina wood was much lower than that predicted and anticipated. To satisfy the demand of the pulp mill production it became necessary to purchase other species of wood from other Brazilian sources. Later the pulp mill planted Eucalyptus
and Pinus radiata. These species grew quite well and reduced the demand on purchased wood from other sources.
growing, which did not turn out well either. Rice growing required large amount of pesticides to keep insects at bay and the soil did not have enough sulfur
for rice. Ludwig corrected the situation with the application of ammonium sulfate
. He expanded to cattle
farming and also discovered a very large source of kaolin. The mining of Kaolin on the Jari river is a large scale commercial operation. Kaolin is exported to numerous countries in Asia and Europe.
. Workers contracted malaria
. Insects devoured the harvest and supplies.
Then Brazilian government officials began to criticize Ludwig's methods and the extent of his land ownership. They also questioned the project's exemption from taxes, not to mention his methods - he had fired twenty-nine directors during the thirteen years of the project and preferred to decide everything essential by himself.
Ludwig gave up in May 1981. Next year he turned the Jari project over to a consortium of Brazilian businessmen. He did not receive any money but the several hundreds of millions of dollars of debt were transferred to new owners. Ludwig was to receive a gradually diminishing cut of the possible profits until the year 2026. The new owners demanded - as Ludwig had - investment in the local infrastructure
.
The remains of the project remain on Brazilian hands in the form of the Jarcel Cellulose company. Ownership is in the hand of Brazilian bank
s and holding companies
.
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
for producing pulp
Wood pulp
Pulp is a lignocellulosic fibrous material prepared by chemically or mechanically separating cellulose fibres from wood, fibre crops or waste paper. Wood pulp is the most common raw material in papermaking.-History:...
for paper
Paper
Paper is a thin material mainly used for writing upon, printing upon, drawing or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets....
.
Background
The Jari project was a brainchild of USUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
and billionaire
Billionaire
A billionaire, in countries that use the short scale number naming system, is a person who has a net worth of at least one billion units of a given currency, usually the United States dollar, Euro, or Pound sterling. Forbes magazine updates a complete list of U.S. dollar billionaires around the...
Daniel K. Ludwig
Daniel K. Ludwig
Daniel Keith Ludwig was a US shipping magnate and billionaire. Even though he was one of the wealthiest men of his day, his name was little known...
. In the 1950s he noticed that demand for paper was rising. Since the forests of the temperate zone were already in use, the supply of the wood pulp for paper was fixed. Ludwig foresaw a future increase in the price of paper due to the increase of mass media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
. Since most of the natural forest timber was not suitable for paper production, Ludwig planned a site where the natural forest would be replaced by a tree farm. It would have to be started decades ahead to supply the future paper production.
Growth
Ludwig selected the fast-growing tropical tree Gmelina arboreaGmelina arborea
Gmelina arborea, , locally known as Gamhar, is a fast growing deciduous tree, occurring naturally throughout greater part of India at altitudes up to 1500 meters...
for his tree farm. At first he considered locating his tree farm in Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
but the Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian military government encouraged him to settle on the lower reaches of the Rio Jari, a tributary of the Amazon River
Amazon River
The Amazon of South America is the second longest river in the world and by far the largest by waterflow with an average discharge greater than the next seven largest rivers combined...
. In 1967, Ludwig bought 1.6 million acres (6,475 km²) for $3 million.
Ludwig controlled the project mainly from the United States. He built a settlement, Monte Dourado, with houses, schools, hospitals, nurseries, bridges and community buildings. He also built roads and railways. The clearing of the land using heavy bulldozers damaged the topsoil
Topsoil
Topsoil is the upper, outermost layer of soil, usually the top to . It has the highest concentration of organic matter and microorganisms and is where most of the Earth's biological soil activity occurs.-Importance:...
the trees were to be planted in. It became necessary to employ local workers instead for land clearing. The soil turned out to be partially unsuitable for Gmelina. Also, the new trees were damaged by the numerous insects living in the area of the Amazon. Other settlements, the "free cities" of Beiradão and Beiradinho, were built to house workers. In its heyday, the Jari Project had 35,000 workers.
Ludwig had also commissioned two large ship-shaped platforms that were built in Japan and floated to the Jari Project. One barge module contained the pulping sector of the pulp mill. This module housed the digesting the brown stock
Brown stock
Brown stock, French: Fond brun or Estouffade is one of the basic stocks in French cuisine. Auguste Escoffier gives a recipe in Le Guide culinaire which contains marrow bones, beef, poultry carcasses, carrots, turnips, leeks, celery, parsnips and onion and is simmered and skimmed for several...
the bleach plant and the pulp machine. The second module housed the recovery boiler
Recovery boiler
Recovery boiler is the part of Kraft process of pulping where chemicals for white liquor are recovered and reformed from black liquor, which contains lignin from previously processed wood. The black liquor is burned, generating heat, which is usually used in the process or in making electricity,...
, the evaporator
Evaporator
An evaporator is a device used to turn the liquid form of some chemical into its gaseous form. For example, an evaporator is used in an air conditioning system to allow the compressed cooling chemical to evaporate from liquid to gas, absorbing heat in the process.-Uses:As stated above, an...
s and the recaust. The pulp mill barge was finished in 1978 and launched on February 1. It traveled through the Indian Ocean and through the Cape of Good Hope, arriving at the Brazilian city of Munguba on April 28. The power group module arrived four days later. Both barges were floated into specially built locks. Hundreds of gum wood piles had been driven into the ground to support the two barges. By closing the locks and pumping the water out, the barges gently settled on the many piles.
It was found that the growth rate of the Gmelina wood was much lower than that predicted and anticipated. To satisfy the demand of the pulp mill production it became necessary to purchase other species of wood from other Brazilian sources. Later the pulp mill planted Eucalyptus
Eucalyptus
Eucalyptus is a diverse genus of flowering trees in the myrtle family, Myrtaceae. Members of the genus dominate the tree flora of Australia...
and Pinus radiata. These species grew quite well and reduced the demand on purchased wood from other sources.
Diversification
Ludwig's next idea was to expand into riceRice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
growing, which did not turn out well either. Rice growing required large amount of pesticides to keep insects at bay and the soil did not have enough sulfur
Sulfur
Sulfur or sulphur is the chemical element with atomic number 16. In the periodic table it is represented by the symbol S. It is an abundant, multivalent non-metal. Under normal conditions, sulfur atoms form cyclic octatomic molecules with chemical formula S8. Elemental sulfur is a bright yellow...
for rice. Ludwig corrected the situation with the application of ammonium sulfate
Ammonium sulfate
Ammonium sulfate , 2SO4, is an inorganic salt with a number of commercial uses. The most common use is as a soil fertilizer. It contains 21% nitrogen as ammonium cations, and 24% sulfur as sulfate anions...
. He expanded to cattle
Cattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
farming and also discovered a very large source of kaolin. The mining of Kaolin on the Jari river is a large scale commercial operation. Kaolin is exported to numerous countries in Asia and Europe.
Decline
Problems also begun to increase due to so-called Amazon Factor - the combined effects of soil, insects, humidity and tropical diseaseTropical disease
Tropical diseases are diseases that are prevalent in or unique to tropical and subtropical regions. The diseases are less prevalent in temperate climates, due in part to the occurrence of a cold season, which controls the insect population by forcing hibernation. Insects such as mosquitoes and...
. Workers contracted malaria
Malaria
Malaria is a mosquito-borne infectious disease of humans and other animals caused by eukaryotic protists of the genus Plasmodium. The disease results from the multiplication of Plasmodium parasites within red blood cells, causing symptoms that typically include fever and headache, in severe cases...
. Insects devoured the harvest and supplies.
Then Brazilian government officials began to criticize Ludwig's methods and the extent of his land ownership. They also questioned the project's exemption from taxes, not to mention his methods - he had fired twenty-nine directors during the thirteen years of the project and preferred to decide everything essential by himself.
Ludwig gave up in May 1981. Next year he turned the Jari project over to a consortium of Brazilian businessmen. He did not receive any money but the several hundreds of millions of dollars of debt were transferred to new owners. Ludwig was to receive a gradually diminishing cut of the possible profits until the year 2026. The new owners demanded - as Ludwig had - investment in the local infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
.
The remains of the project remain on Brazilian hands in the form of the Jarcel Cellulose company. Ownership is in the hand of Brazilian bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s and holding companies
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
.