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Brazilian Mahogany: Too Much In Demand --- Illegal Logging, Exports Are Lucrative for Criminals, Disastrous for Rain Forest

 
By Miriam Jordan.

The Wall Street Journal. (Eastern edition)

.Nov 14, 2001. pg. B.1
 

IN THE MIDDLE of the showroom at The Woods Fine Furniture in Colts Neck, N.J., stands a $16,000 solid-mahogany dining table that seats 14 people. Carole Vanwickle says she has sold several this year, and "nobody asks where the wood came from."

Environmental activists say it's about time U.S. consumers started caring about the origins of this fine, reddish wood. If the timber is from the Brazilian Amazon rain forest -- and chances are that it is -- it most likely was illegally logged and exported.

Now, in a highly unusual move, Brazil has suspended all trade in mahogany. The government's decision late last month follows a two-year investigation by Greenpeace using ground, air and satellite surveillance to document rampant illegal logging on Indian reservations and other protected wildlife areas. Greenpeace lists some 70 companies, mostly in the U.S., that allegedly purchase illegal mahogany. "However unwittingly, manufacturers and retailers in North America, Europe and Japan are aiding and abetting high-level crime," the Greenpeace report says.

Brazil's crackdown on the illegal mahogany trade involves hundreds of federal police, forest agents and Greenpeace activists combing vast tracts of the Amazon in helicopters, planes and boats. Authorities have raided clandestine mills and lumber yards deep in the forest, often encountering gunmen hired by mahogany kingpins, and have seized timber valued in the millions of dollars.

"Those operating with illegal mahogany are working against the forest and its indigenous peoples," says Hamilton Casara, president of Brazil's environmental watchdog, Ibama. "The government is clear -- we want to put an end to the extraction of illegal mahogany."

Brazil permits mahogany logging in designated areas, and exports ostensibly require documentation from Ibama and additional paperwork in accordance with the Convention on International Trade in Endangered Species. But loggers routinely falsify authorization papers and the origin of their mahogany, much of which comes from unlicensed zones, the government says. "This is organized crime, and U.S. consumers are unknowingly fueling it," says Scott Paul, Greenpeace's forest campaigner in Washington, D.C.

The mahogany trade is nearly as old as Europe's 15th-century colonization of the Caribbean, Central and South America, where it is known as the "green gold" of the Amazon. It is coveted for its appearance, durability and malleability, which enable craftsmen to carve it into the smallest, intricate jewelry box or a majestic four-poster. In recent years, it has become popular for flooring and outdoor decks.

Whatever its ultimate use, mahogany fetches top dollar on international markets. Wood from one tree alone can produce $130,000 of furniture, based on retail prices at high-end stores. Small wonder, then, that loggers often bulldoze roads through virgin jungle to reach a single mahogany tree. "Only cocaine has a multiplier effect on such a scale," says Paulo Adario, chief of Greenpeace in the Amazon, who has government-supplied bodyguards after he received death threats related to the mahogany report.

The Forest Stewardship Council, an international body that promotes environmentally sound logging, has certified mahogany operations in Mexico and Central America but not yet in Brazil. Only one Brazilian group has applied for FSC certification.

Brazil has been the biggest source of the wood, supplying about 95% of all U.S. mahogany imports, according to Traffic, the trade-monitoring arm of the World Wide Fund for Nature. Traffic says that the U.S. imported $56 million of mahogany in 1998, the most recent year for which it has figures. Brazil's suspension of the mahogany trade hasn't had a noticeable impact on U.S. retail prices.

Stores like The Woods Fine Furniture buy their mahogany pieces from furniture makers. (The Woods Fine Furniture says it has no idea where the wood in the mahogany items it sells comes from.) The manufacturers get the lumber from importers like DLH Nordisk Inc. of Greensboro, N.C. DLH, one of the companies listed in the Greenpeace report, said in a statement that it's "appalled" by the report's revelations and that it supports the new Brazilian initiative to halt illegal mahogany logging. "DLH will only buy wood if it is accompanied by the necessary legal documentation," says the company's president, Stewart Sexton.

Greenpeace says that DLH supplies mahogany to prestigious furniture makers including Ethan Allen Interiors Inc., LifeStyle International Furnishings and L. & J.G. Stickley. DLH's Mr. Sexton declines to disclose clients' names.

LifeStyle International, whose upmarket brands include Henredon, Drexel Heritage and Lexington Home, says that it gets Brazilian mahogany from three or four U.S. dealers, including DLH. "They assured us that they have licenses for what they import," says Andy Kelly, director of purchasing. "We have these assurances in writing and take them for their word."

In response to questions, Kelly Maicon, a spokeswoman for Ethan Allen, issued a statement saying that since 1997 it has been policy at the Darien, Conn., company to work toward eliminating the use of Brazilian mahogany and that none is currently being purchased. She declined to explain why. Stickley owners Alfred and Aminy Audi issued a statement saying: "The Brazilian mahogany we use is bought from lumber suppliers who respect and abide by the environmental legislation of the Brazilian government."

Brazil authorizes mahogany logging in only 13 areas, some of which are the size of Connecticut. But licensees often operate outside of these zones, according to the Greenpeace report and the government.

Mahogany's scarcity has led loggers deeper into the Amazon and onto indigenous tribal lands, where logging is prohibited. Human-rights groups say that an unknown number of Indians in Para state have been killed resisting logging. But in a pattern that has led to other abuses of the rain forest, some Indian tribes without other means of income allow illegal logging in return for money to buy food and medicine. The payoff is as little as $30 per tree, Greenpeace says, but that was enough for members of the Kaiapo tribe, traditionally warriors, to paint themselves red recently in protest against the government's crackdown on mahogany logging.

Disbanding Brazil's illegal mahogany operations won't be easy. Loggers have foiled previous efforts to regulate the mahogany trade. To combat corruption among government inspectors, Brazil is creating mixed teams of state officials, Greenpeace activists and university researchers.

"It has been difficult to prove that mahogany logs floating down the river were extracted from protected forest, even though we are absolutely certain that the wood couldn't be coming from an authorized area," says federal prosecutor Ubiratan Cazetta. Still, he expects soon to have enough evidence to revoke operating licenses, as well as press criminal charges. "There has never been an operation on such a large scale," says Mr. Cazetta. "It's a new moment for the mahogany trade and the forest."