Sustainability Report 2004

Economic and social aspects

Social action | Communities

Aracruz engaged in special activities to improve the quality of life in several communities located near its facilities.

Indigenous Communities

In addition to the commitments in formal agreements, Aracruz has developed a large number of voluntary actions on behalf of indigenous communities. As a result of these actions (those specified under the Agreement, both commercial and voluntary), the Company has given nearly R$22 million to the communities since 1998. In 2004, the Company donated R$5.7 million, of which R$1.9 million was part of the Agreement, R$3.3 million relating to commercial contracts (purchase of wood), and R$500,000 that resulted from voluntary actions.

In 2004, we reached an agreement with the communities regarding new forms of support, among which the following were the most important:

  • Construction of a forest nursery. Aracruz is committed to building a nursery, training indigenous labor, and purchasing 100,000 native seedlings and 500,000 eucalyptus seedlings annually.
  • The purchase of wood by Aracruz from the Indians’ participation in the Forestry Partners Program, both with bark and debarked. The monthly volume of each type of wood purchase will be defined by the Tupinikim and Guarani Indigenous Association (AITG) as a function of its debarking capacity.
  • Apiculture: Interested beekeepers will receive technical advice and support for raising bees, fostering the generation of employment, income and professional training, and promoting cooperatives and associations.
  • Artistic workshops: the Company is committed to donating R$28,000 to complete the construction of an art workshop.
  • New headquarters for the AITG: Aracruz will make a donation of R$45,000 to support the construction of a new office for the Indigenous Association.

Labor qualification and income generation

  • Establishment in 2005 of the process for discussing the extension of the Indian job training program. Also to be discussed is support for sustainable income generating projects for the community.

Black communities

In 2003, Aracruz organized a community work party in Coxi (in the north of Espírito Santo) for the cultivation and planting of malagueta pepper for the condiments industry. In addition to the malagueta pepper project, in 2004 a community garden was started in São Jorge as well as repair of the buildings and equipment in the Linharinho flour mill.

Fishing communities

In 2004 the project for the Center for Integrated Development of Fishing in Barra do Riacho (CIDEP), in partnership with Fishermen’s Associations, the Z-7 fishing community and other fishing entities, was concluded. The implementation of the project depends on the conclusion of an analysis of fish farming and fishing, currently being prepared by a specialized consulting firm hired by the state government.

Rural communities

The Community Nurseries and family farming projects benefited 268 families and eight rural communities in the Extreme South of Bahia. The nurseries established in Aparaju and Ibirapuã produced and sold 157,000 native plant species seedlings, generating income for the 16 families involved. In addition to purchasing the seedlings, the Company supplied training and contributed to the improvement in the infrastructure of the nurseries. The family farming project involved 86 families in the communities of Pouso Alegre, Novo Destino, Vila Portela and Juazeiro. The result of the harvest achieved the desired objectives, guaranteeing the continuing generation of income for these families.