Jatropha planting programme
Up to 31 March 2008, D1-BP Fuel Crops has planted or obtained rights to offtake from a total of 192,016 hectares of jatropha worldwide. Planting is concentrated in Southern Africa, India and South East Asia. The cumulative position is summarised in the table below:Managed plantations |
Contract farming |
Seed purchase and oil supply agreements |
Total Hectares |
||
| India | South North East Rest |
— — — |
62,455 5,922 2,860 |
— — 23,833 |
62,455 5,922 26,693 |
— |
71,237 |
23,833 |
95,070 |
||
| Africa | Zambia Swaziland Rest |
2,276 1,064 50 |
70 210 879 |
23,179 6,112 13,638 |
25,525 7,386 14,567 |
3,390 |
1,159 |
42,929 |
47,478 |
||
| South East Asia |
Indonesia Rest |
18 — |
19,250 2,212 |
20,132 7,856 |
39,400 10,068 |
18 |
21,462 |
27,988 |
49,468 |
||
| Total | 3,408 |
93,858 |
94,750 |
192,016 |
Managed plantations are those farms where land and labour is controlled by D1-BP Fuel Crops, either through its subsidiaries or joint venture partners. Under contract farming, the farmer plants his own trees on his own land. D1-BP Fuel Crops and its partners assist with the provision of seedlings and the arrangement of bank finance for planting, and offer a buyback of harvested grains with an offtake agreement, subject to a floor price and the achievement of agreed quality standards. We provide support and advice during cultivation, and monitor the condition of the crops. Seed and oil supply agreements are arms-length supply contracts with third parties whereby D1-BP Fuel Crops, either directly or through joint venture partners, has offtake arrangements in place over future output from jatropha plantations which the third party is developing. D1-BP Fuel Crops has limited involvement in this planting and relies on third parties to measure and manage the crop effectively.
The rights to most planting are shared with joint ventures partners or other third parties with whom D1 and D1-BP Fuel Crops have worked to achieve rights to planting of jatropha. As such, offtake from these areas of planting may well be shared with third parties. The price that will be paid to third parties for grain will reflect local market conditions at the date of harvesting, as well as the quality and location of that harvest.
