Industry and the Indigenous Pair Up for Profits

A man extracting latex from a rubber tree. Photo: <a href="http://www.flickr.com/photos/transworld/394662094/">Tran's World Productions (Flickr)</a>
A man extracting latex from a rubber tree. Photo: Tran's World Productions (Flickr)

The Rikbaktsa are an indigenous group who live in the Brazilian state of Mato Grosso. For seven decades they extracted latex from the jungle where they live. About 20 years ago the price of latex dropped, making latex extraction unprofitable. Without this industry, the Rikbaktsa were in trouble.

Since then, an unusual partnership with the tire company, Michelin has helped the Rikbaktsa revitalize latex extraction in their community. An article on the United Nations Development Program's website (UNDP) explains how this agreement has benefited both Michelin and the Rikbaksa. Carlos Castro, the head of the UNDP’s Brazilian environmental unit, writes about the partnership's benefits:

It’s a win-win situation. According to Michelin, the quality of these native trees’ latex is higher than the one extracted from the planted trees — even if in the same area. And this is all done in a way that promotes economic development, conserves natural genetic resources and protects the indigenous peoples’ cultural and social diversity.

This partnership promotes development by strengthening the local economy in Mato Grosso says the UNDP. Michelin buys latex from the Rikbaktsa at 30 percent above market value, which has helped families to increase their incomes from $460 to $860 per month. To ensure they're getting high-quality latex, Michelin provides materials, training, and storage facilities to the community. This training has helped locals become more proficient at extracting latex in addition to bringing more cash into the region.

This partnership has been favorable to the Rikbaktsa for social and cultural reasons as well. In addition to providing jobs, it allows them to manage their land while helping stem the exodus of youth leaving Mato Grosso in search of work.

Another positive aspect of this agreement is its environmental benefits. Deforestation from slash-and-burn farming and cattle ranching has devastated Brazil. The region of Mato Grosso has been especially hard hit. As the process of harvesting latex is similar to harvesting maple syrup it can done without without cutting down trees.

By successfully improving the economy, culture, and environment in Mato Grosso, this project shows that both industry and the indigenous can profit by working cooperatively.

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