SOUTH AMERICAPine Chemicals Update

1. Why crude gum production is different in South America.

2. Where crude gum is produced.

3. How crude gum is produced.

4. How much crude gum is produced.

5. What we are doing to improve the “tapping technique”.

6. ... and what about the future of “pine tapping” in South America.

1.  Why crude gum production is different in South America.

ECUATOR

TROPIC OFCANCER

TROPIC OFCAPRICORN

1.  Why crude gum production is different in South America.

NATURAL FOREST vs. PLANTED FOREST

1.  Why crude gum production is different in South America.

FARMER vs. PINE TAPPING Co.

2.  Where crude gum is produced in South America.

ECUATOR

TROPIC OFCAPRICORN

2.  Where crude gum is produced in South America.

TROPIC OFCAPRICORN

Tropical pines:P. car. var. caribaeaP. car. var. hondurensisP. car. var. bahamensisP. oocarpa

Subtropical pines:P. elliottii

3. How crude gum is produced.

3. How crude gum is produced.

Eloise Gerry (1921) Ralph W. Clements (1974)

3. How crude gum is produced.

• CUT (STREAK) MADE EVERY 15 / 21 DAYS REMOVING BARK, PHLOEMA AND CAMBIUM.

• CHEMICAL STIMULANT APPLIED IN PASTE FORM.

4.  How much crude gum is produced.

4.  How much crude gum is produced.

ANNUAL PRODUCTION OF CRUDE GUM

100,000 MT CRUDE GUM(~  12,000 MT) EXPORTED=========88,000 MT INDUSTRIALIZED* 73 %

=========~ 64,000 MT GUM ROSIN(  26,000 MT) EXPORTED=========38,000 MT GUM ROSIN

CONSUMED LOCALY

BRAZIL

4.  How much crude gum is produced.

CROP 1997/98  =   18,000 MT  => ANNUAL RECORD TILL TODAY!

CROPS 1998/99 TO 2010/11 = FROM AN INITIAL DEEP, RECOVERED TO ABOUT 12,000 MT/YEAR…

NEW CROP 2011/12 (STARTING SEPTEMBER 2011) = NEW RECORD EXPECTED =>  ~ 20,000 MT

ARGENTINA

5. What we are doing to improve the “tapping technique”.

5. What we are doing to improve the “tapping technique”.

PLANTING FOR WOOD & CRUDE GUM.

• Seedlings from selected pine trees.

• Wide planting spacing.

• Micro‐tapping.

5. What we are doing to improve the “tapping technique”.

GEP III – R&D PROJECT IN BRAZIL.

• New Chemical Stimulants.

• Need to reduce (eliminate) H2SO4 in chemical stimulants.

• Micro‐tapping.

5. What we are doing to improve the “tapping technique”.

6. ... and what about the future of “pine tapping”in South America.

6. ... and what about the future of “pine tapping”in South America.

• Based on big forest owners.

• Supported by medium size forest owners (100 to 1,000 hectares).

• Short forest rotation (< 15 years?).

6. ... and what about the future of “pine tapping”in South America.

• Better understanding of how the pine tree produces crude gum (oleoresinosis).

• Less intervention.

• Planting exclusively for crude gum production (?).

• Mechanization.

THANK YOU!