Download Carnauba Wax Background Paper

July 2010
Updated January 2011
Carnauba Wax Background Paper
This paper contains factual background information about the carnauba industry. The paper is
divided into two sections: a) A section with facts and a b) section with elaborations of some of the
facts.
a. Facts
1. What is carnauba wax?1
Carnauba wax comes from the carnauba palm, a Brazilian tree formally named Copernicia
prunifera. In hot, dry weather, the plant secretes wax to protect the leaves from damage.
Sources:
– Websites of Brasilian carnauba wax producers (Pontes, Foncepi, Carnauba do Brasil, etc.)
– www.wisegeek.com/what-is-carnauba-wax.htm
2. What is carnauba wax used for?
Carnauba wax is used for a wide array of products mostly falling into the categories of: Cosmetics,
food products and polishes.
Some of the products are: Candies/sweets, chewing gums, chocolates, confectionary sugar, fruit
coating, polishing wax (for car, leather, floor, furniture), food packing, can coating, plastic film,
matches, medicine/capsules, graphite pencils, paints, cosmetics, bullets coating, bar codes, dry
batteries, computer chips, printing ink, carbon paper, toner, dehydrated vegetables, modeling
flowers and fruits, dental wax, textile coatings, lubricants, skin care, hair care, shave creams.
Sources:
– Alves and Coelho (2008)
– Pontes (2010)
– Interviews (see notes section)
– www.wisegeek.com/what-is-carnauba-wax.htm
3. What are the advantages of using carnauba wax?
Sometimes called the “Queen of Wax,” carnauba wax has a much harder melting point (78 C) than
other waxes, and is also extremely hard. It is also not readily soluble. Water cannot break down a
layer of carnauba wax, and only certain solvents can, usually in combination with heat. Used plain,
it can make something waterproof and wear resistant. Combined with things such as tints and dyes,
carnauba wax can be used to create an enduring colored polish. Unlike many other waxes, a
carnauba wax finish will not flake off with time, it will merely become dull. This makes it ideal for
locations in which a flaking finish would look unsightly.
Sources:
1 In this document the term ”carnauba wax” refers to both powder and solid wax produced from the leaves of the
carnauba palm.
– Websites of Brasilian carnauba wax producers (Pontes, Foncepi, Carnauba do Brasil, etc.)
– www.wisegeek.com/what-is-carnauba-wax.htm
4. Where does carnauba wax originate from?
Only in the North-Eastern part of Brazil is carnauba wax extracted from the carnauba palm. The
three states with by far the most production of carnauba wax is Ceara, Piaui and Rio Grande do
Norte.
This part of Brazil is dominated by a semi-arid climate with a dry season from August to December.
Draughts are common. The states in this region are among the the poorest of the 27 states in Brazil.
Below are data from the three states to compare with Human Development Index from the UN and
the GDP pr. capita list from the World Bank.
Ceara:
– Citizens: 8,5 mio
– GDP pr. capita: R$ 5.600 pr. year (23/27) = 2.800 US$ pr. year
– HDI: 0,721 (21/27) = medium
Piaui:
– Citizens: 3,0 mio.
– GDP pr. capita: R$ 4.200 pr. year (27/27, poorest in Brazil) = 2.100 US$ pr. year
– HDI: 0,703 (24/27) = medium
Rio Grande do Norte:
– Citizens: 3,0 mio
– GDP R$ 6.700 pr. year (18/27)
– HDI: 0,738 (20/27) = medium
World Bank list of GDP (nominal) pr. capita from 2009:
– Denmark: nr. 3, 55.995 $
– Brazil: nr. 50, 8.114 $
– Armenia: nr. 94, 2.826 $
– Guatamala: nr. 97, 2.623 $
– Indonesia: nr. 105, 2.349 $
– Iraq: nr. 108, 2.090 $
– Sri Lanka: nr. 109, 2.068 $
– Cote d'Ivoire: nr. 127, 1.093 $
– Ghana nr. 144, 655 $
UN list of HDI from 2007:
– Denmark: nr. 18 = very high
– Brazil: nr. 75, .813 = high (not highest)
– Kyrgystan: nr. 120, 0.710
– Uzbekistsan: nr. 119, 0.710
– Equatorial Guinea: nr. 118, 0.719
– Mongolia: nr. 115, 0.727
– Ghana: nr. 152
– Côte d'Ivoire: nr. 163
Sources:
– World Bank
– UNDP (HDI)
– Wikipedia
5. What is the scale of the production of carnauba wax?
In 2006, 22.409 tons of carnauba wax were being produced in Brazil. 3130 tons were solid wax,
while 19.279 tons was carnauba powder.
Between 1990 and 2006, 285.344 tons of carnauba wax were being produced in Brazil. Of this,
66.100 tons were solid wax, while 219.244 tons were in powdered form. Of the 285.344 tons being
produced 1990-2006, ca. 40% was produced in the state Ceara, ca. 50% was produced in Piaui, and
6% in Rio Grande do Norte.
Between 1990 and 2006, the value of the production of the 285.344 tons of carnauba wax was
1.199.364.000 reais corresponding to ca. 3.598.092.000 DKK and 479.745.600 EUR.
Sources:
– Banco do Nordeste
6. Who are the main Brasilian exporters?
Between 20 and 25 industrials/exporters exist in Brazil, who buy crude carnauba wax from
producers in the countryside and refine the wax before it is being exported around the world. The
companies buy either directly from the farmers or from brokers/middle men.
Export data from January-June 2010 shows the top 4 exporters to be Foncepi, Carnauba do Brasil,
Pontes and Brasil Ceras. Medium scale exporters include Rodolfo, Cerpol and Cerapeles.
Sources:
– Interviews (see notes section)
7. What is the scale of export of carnauba wax?
During the last decade around 15.000 tonnes of carnauba wax are being exported from Brazil. Since
1976 the export has been slightly increasing from 8000 tons in 1976 to 16.000 tons in 2006. Before
the crisis in 1975-76 the scale of export were steady for several years between 13-14.000 tons.
In 2008, the export of vegetable wax from Brazil amounted to 513.000.000 DKK or 68.400.000
EUR.
In the first half of 2010, the top four biggest exporters in Brazil (Foncepi, Carnauba do Brasil,
Pontes and Brasil Ceras) together exported for 183.696.000 DKK or 24.492.800 EUR, thereby
having a substantial market share.
Sources:
– Banco do Nordeste
– MDIC
8. What are the destinations of the export?
According to the Ministry of Development, Industry and Commerce (MDIC) the main destinations
are:
– USA (around 25%)
– Germany (10-15%)
– Japan (15-25%)
– Holland (around 5%)
– Italy (around 5%)
According to these MDIC data there is no direct export from Brazil to Denmark and have not been
during 2001-2010.
According to the regional development Bank, Banco do Nordeste, Denmark was the biggest
importer of carnauba wax direct from Brazil in the period 2001-6 accumulated.
Data from the state of Ceara only: In 2008, the major destinations of carnauba wax only from the
state of Ceara were United States (25%), Japan (25%), Germany (9%), Italy (4%), India (4%),
Holland (3%), Venezuela (3%), Belgium (2%), China (2%) and other destinations (18%), measured
by value.
Sources:
– MDIC data according to website of Carnauba do Brasil
– MDIC data according to Banco do Nordeste
– MDIC data according to ADECE
9. Who are the main European importers?
Several big importers are found in Europe. Some of these are the German Kahl Wax, Ter Hell and
C.E. Roeper also from Germany, the Dutch company De Monchy and Ibercereas from Spain. These
importers sell the wax to companies (including sweets companies) all over Europe.
Sources:
– Interviews (see notes section)
10. What companies uses carnauba wax?
This research have focused on sweets being sold in Denmark. Sweets brands being sold in Denmark
include: Haribo, Toms, Malaco, M&M, Menthos, Gajol, Läkerol, Stimorol, Bassett's, Budget,
Carletti.
Companies selling these brands are: Haribo, Toms, LEAF, Cadbury/Kraft Foods, Continental Candy
Industries, Carletti.
Sources:
– Field study in Danish supermarkets and kiosks
11. How is carnauba wax being produced?
Carnauba wax is harvested in the dry season lasting from August to December.
Around 200.000 people are employed in carnauba production/harvesting in the countryside.
The phases of production are in brief as described below and illustrated in the notes section.
Countryside: The fields
1. Cutting of the leaves from the carnauba palm
2. Carrying of the leaves from the trees to a drying place in the sun
3. Turning of leaves drying in the sun
4. Beating of the leaves (manually or by machine) to separate wax from leaves
Countryside: The farms
5. Boiling of powder with water, afterwards cooling
6. The cooled-down crude wax are hammered to small pieces
The factories:
7. Purification of the crude wax by heating/boiling, filtering to remove impurities, cooling and
dissolving to flakes (or powder if solid wax is not the end product)
8. Export to customers around the world
Sources:
– Interviews (see notes section)
– Field study in Brasil
12. What are the working conditions while producing carnauba wax?
Countryside work takes place in the dry season with almost no rain, often draughts, and
temperatures around 40 C in the sun.
Working hours from sunrise to sundown, around 12 hours a day five days a week.
Risks connected to the phases described in section 11:
1. Heavy bamboo stick of 10-12 meters, palm leaves falling down like darts. Helmets, glasses,
foot wear needed. A lot of hours to concentrate.
2. Heavy liftings through sometime long distances if no drying place nearby or no donkeys to
help
3. Heavy liftings while turning and stacking the dried leaves
4. Inhalation of fine powder during beating process if no mask is weared. If beatig process is
manually then also tough physical work.
5. Risk of boiling wax on skin if no protection is weared
Sources:
– Interviews (see notes section)
– Field study in Brasil
13. What are the wages, profits, prices and costs throughout the supply chain?
Wages for country side workers between 20-50 rials pr. day = 100-250 rials pr. week = 400-1000
rials pr. month. Brazilian minimum wage in 2010 is 510 rials pr. month.
Cutters receive the highest wage, because of experience is needed for this. Lowest wages to workers
carrying, drying and boiling. Sometimes workers are paid according to production level (for
instance number of leaves cutters cut pr. day).
Prices when producers (landowners/brokers/middle men) sell to exporters (varies):
100-130 rials for 15 kg. = 6,7-8,7 rials pr. kg. (carnauba wax type 3 and 4)
10 rials pr. kg. (type 1)
Prices when exporters sell to oversea customers (varies):
2,25 $ pr. pound = 9 rials pr. kg. (type 3)
Prices when European distributors sell to customers (varies):
[insert after answers are received]
Profits for landowners/brokers/middle men in the countryside selling to exporters (varies): 20-40%
Profits for exporters selling to overseas customers (varies): 15-20%
Profits for European distributors selling to customers (varies):
[insert after answers are received]
Prices and profits varies according to leave/wax type (green leaves or the ”eye” leaves) and
according to deals made between producers and exporters and between exporters and importers.
Sources:
– Interviews (see notes section)
b. Notes
1. List of interviews used as sources in this document
– Edgar Gadelha, President of Sindicarnauba (organisation of carnauba wax exporters in
Ceara) and Director of Natural Wax
– Ana Carolina Fontelene, Director of Foncepi
– Lara Pontes, Director of Pontes
– Marina Azevedo, Head of Exports in Carnauba do Brasil
– Johannes Maehlmann, exporter of carnauba wax
– Oscar d'Alva, former employee of the ngo Instituo Sertão and author of ”O extrativismo da
carnauba no Ceara” (2007)
– Countryside workers and landowners from three different places of carnauba production
– Udo Thaysen, Sales Manager in Kahl & Co., Europe's biggest carnauba wax importer
– Mei Ling Yuan, Production Manager in Ter Hell, major carnauba wax importer
2. The flag of the state of Ceara
Notice the carnauba palm tree as part of the coat of arms in the center of the flag.
3. Illustrations of production phases of carnauba wax
1. Cutting
1-2. Mounting
2-3. Carrying to drying site
4. Beating by machine in truck
5. Boiling
6. Hammering to pieces