Tuesday, December 6, 2011

Report: 61% decline in Oil Palm as LNG Revenues flow

 

imageIf you wanted any further proof that SABLs were just a cover for illegal logging take a look at the graph above. It is taken from Vol 1 Chapter 12 at page 151 of the 2011 National Budget. It shows the findings of an ACIL TASMAN study on the long-term impact of the LNG-Project on agriculture in PNG.

Notice that long green bar graph: SMALL HOLDER OIL PALM PLANTATIONS ARE ESTIMATED TO DECLINE BY 61% AS EXPORTS BECOME LESS COMPETITIVE DUE TO THE APPRECIATION OF THE KINA.

Copra production will decrease by 18% and cocoa production by 17%.

This effect the LNG Project will have on the agriculture sector is also known as the Dutch Disease. The high value of the Kina due to influx of LNG Revenue will make agricultural exports much more expensive therefore less competitive on the world market. This will make agriculture a less profitable business.

Those loggers know this and they are bullshitting everyone about growing agricultural products. They’re just in it for the logs and because the logging is under an SABL landowners don’t get paid royalties and the loggers don’t follow sustainable forestry practices.

Of course the other reality is that current small holders involved in Oil Pam are set to lose their income source.

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