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Global investments of up to 1 billion USD expected every year
Assuming an average investment of 300 - 500 USD per hectare, the expected growth path of the industry will lead to worldwide investments totalling 500 million to 1 billion USD every year for the next 5 - 7 years.
The Jatropha industry structure will transform dramatically
Today, the global Jatropha industry is dominated by government supported programs and a few larger internationally oriented private players. We are observing a trend of major oil companies and international energy conglomerates entering the field with plans for large-scale investments.
Smallholder farmers play a vital role in most Jatropha projects
Two thirds of all projects analysed work with local outgrowers, often in combination with a managed plantation. 50% of all project developers in Latin America and Asia opted for this combined approach. Pure plantation models are most frequent in Latin America (44%). In Africa, where two thirds of the projects integrate smallholders, pure outgrower models are equally import as the combined model.
Jatropha has not led to a reduction in food production
In our sample analysis, only 1.2 % of areas planted with Jatropha had been used for food production in the 5 years prior to the start of the project. 70 % of all projects analysed practise some form of intercropping. Therefore, Jatropha cultivation supports food production if formerly unused areas are developed.
Jatropha has not contributed to the destruction of primary forest
According to our data sample, only 0.3 % of any cultivated areas were previously primary forest, and 5 % secondary forests.
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